NNSL (Dec 01/97) - Almost three decades ago, the Discovery mine was closed following a fire.

Today, Discovery's potential is again coming to light, GMD Resources Corporation senior vice president Peter Hawley said at the 25 annual GeoScience Forum last week.

"The old mine contains gold reserves that are economical to mine," he said.

The original mine was discovered in 1944. By 1965, a 4,060-foot shaft was sunk and mill capacity reached 250 tons per day.

The mine operated for 20 years, producing a stunning ratio of gold to ore -- 1.02 million ounces of gold from one million tons of ore.

GMD has found the mineralized zone extends down 8,600 feet.

The company, which has spent $10 million over the last two years in exploration, expects to release new resource-reserve figure this week.

"The more work we do, the more we realize the potential."