Monday, 19th December 2005 (5626 views)

Placer Dome has struck high-grade gold at its Campbell mine property in north western Ontario.

The discovery confirms the extension of a high-gold zone at an adjacent property owned by Goldcorp.

Canada's second biggest gold miner has also reported "significant visible gold" through mining and drilling activity in Campbell's deep development.

The company says it has confirmed continuity of the structure over a length of 100 metres down dip.

Placer says the two discoveries taken together "validate the exploration potential of the deeper Campbell ore body".

"While further work is required to define the extent and significance of these discoveries, they highlight the exploration potential of the Campbell mine and our land position in the Red Lake camp," commented the company.

"Ongoing exploration to expand the ore body at depth positions the Campbell mine to return to a high-production, low-cost operation."

The discovery comes as Placer struggles to stave off a $9.2 billion takeover bid from rival Barrick.

A merger would create the world's largest gold producer but Placer has reiterated its belief that the offer does not offer shareholder value.

 

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