ST. JOE GOLD TO DEVELOP ONTARIO MINE

  St. Joe Gold Corp said it plans to
  proceed with development of its Golden Patricia gold property
  in northwestern Ontario.
      It said about five mln dlrs will be spent to continue
  underground development and obtain operating permits and
  another 10.2 mln dlrs is expected to be required to complete
  underground development, construct a mill and provide the
  infrastructure needed to put the mine into commercial
  production.
      St. Joe Gold said if the necessary operating permits were
  granted in time, it would start gold production in the second
  half of the year ending October 31, 1988 at an annual rate of
  about 40,000 troy ounces.
      The company said the property is estimated to contain over
  500,000 troy ounces of gold, and the initial mining project
  covers only seven of 192 claims, with drill-indicated reserves
  of 293,000 short tons grading 0.88 troy ounce of gold per ton.
      It said initial mine output is expected to be about 150
  tons of ore daily.
      St. Joe Gold said the Golden Patricia vein has not been
  tested at depth or along strike to the east and west and
  exploration is continuing on the Golden Patricia property and
  the adjacent wholly-owned Muskeg Lake property.
      The company also said its Richmond Hill gold and silver
  deposit in the Carbonate district of western South Dakota has
  been shown by drilling to contain about 3,900,000 tons grading
  0.055 troy ounce of gold and 0.23 troy ounce of silver per ton.
   It said preliminary results are encouraging and a feasibility
  study is nearing completion.
  

