Vancouver – An extensive summer drill program by YGC Resources (YGC-T, YGCFF-O) on its Ketza River project, in the Yukon’s Pelly Mountains area, has led to a significant gold resource increase.
Data from a 37-hole program was incorporated into the study, conducted by Giroux Consultants, which upgraded the measured and indicated resource category by 49% to 8.5 million tonnes grading 2.8 grams gold per tonne (contained 756,700 oz. of gold). Inferred resources increased 127% to 14.6 million tonnes of 2.2 grams gold (contained 1,054,400 oz. of gold). A 1 gram gold cut-off grade was used in the calculations.
The gains all came from the Manto zone, which has been extended westward by recent drilling. The Manto zone hosts more than 75% of all contained gold in the entire Ketza deposit (Manto and Shamrock). Additional results from 30 Manto holes and 19 Shamrock holes drilled this past summer were not incorporated in the resource estimate and are expected soon.
The company continues its drill effort on both zones enroute to delineating further resources. YGC Resources president Graham Dickson reviewed the company’s goal to “delineate potentially low-cost, open-pit ‘ounces’ with the objective of attaining a measured and indicated resource of 1.5 million ounces by March 2006.”
Mineralization in the Manto zone occurs as replacements along favourable Lower Cambrian limestone horizons. Massive sulphide zones (pyrrhotite, pyrite and arsenopyrite) have been oxidized with gold enrichment occurring along structural zones or panels at normal, cross-cut faulting in the stratigraphy.
At Shamrock, gold mineralization is broadly disseminated in quartz-sulphide vein stockworks and breccias hosted in an interbedded sequence of Lower Cambrian phyllites, argillites, quartzites and carbonates.
Shares of YGC Resources dropped two pennies on the news, closing at 66 apiece on volume of 41,000.
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