Esperanza Explor. plans major program at Tillicum

With $1 million in the treasury from a recent private placement, Esperanza Explorations will be mounting a major exploration and development program this spring at its Tillicum property in northeastern B.C. Another $650,000 is available through the exercise of its warrants on or before July 31.

The first phase program will test the southerly extension of the mineralized zone by drifting, followed by drilling below known mineralization. The estimated cost of this particular phase is approximately $900,000. The second phase program, if warranted, will see another level developed 200 ft below the lowest mine working and diamond drilling beneath that new level. This would bring the cost of the two phases to $1.6 million

High grade mineralization was first discovered on the property in 1981 in the Heino-Money gold zone. Eleven additional zones associated with a major gold mineralized system have since been discovered. Five of these have been drill-tested and two evaluated by underground development. Most of the exploration work has been concentrated in the Heino-Money zone.

Trenching has revealed several zones of gold mineralization in near vertical skarn structures over a strike length of approximately 2,000 ft and for a vertical extent of at least 700 ft. Values have reached as high as 12.9 oz gold over a width of 8 ft., the company claims.

Esperanza says that drill testing along one quarter of the zone to a depth of 200 ft has yielded an indicated reserve of about 45,000 tons grading 0.75 oz gold. In addition, limited underground development in the Heino-Money zone delineated a proven/probable reserve of about 8,000 tons grading 2.89 oz gold per ton uncut. There was still considerable potential along strike and to depth at the end of last year.

Development ore has been shipped to custom milling facilities for processing and metallurgical testing. The ore is free milling and recoveries from standard gravity and flotation were 93% without cyanidation. The treatment of 3,726 tons of ore has thus far produced 3,160 oz gold, says Esperanza.

The objective of the 1987 exploration program is to delineate an ore reserve of approximately 150,000 tons grading 0.8 oz within the area of the underground workings. The minimum potential in the Heino-Money zone is thought to be 300,000 tons at a similar grade. If this objective is achieved, Esperanza believes the project could begin production in 1988 at a rate of approximately 60,000 oz per year.