$2.5m. in flow-through for Houston Metals bet

A $1-million exploration program is under way at the old Silver Queen Mine near Houston, B.C. The property falls under a joint venture agreement between Houston Metals and New Nadina Explorations.

Rehabilitation of surface facilities and underground mine workings commenced last November together with exploration to the north and south of known ore zones. Houston Metals, the operator, estimates there are some 600,000 tons of reserves on the property grading 0.18 oz gold, 10 oz silver, 0.65% copper, 2.5% lead and 7% zinc.

Underground development has confirmed the presence of gallium, indium and germanium in what the company claims are “commercial quantities.” For example, development work on the No 5 vein structure returned 0.034 oz gold, 9.72 oz silver, 1.1% copper, 0.4% lead, 11.1% zinc, 0.07% cadmium plus 1.1 g gallium and 46 g germanium. These assay results were across a width of 3.6 ft and over a distance of 80 ft. Averaged across a width of 18.5 ft, assay results from a crosscut on the No 2 vein included 8.9 g gallium and 78.7 g germanium.

Houston has signed commitment letters with First Exploration Fund 1987 for $2.5 million in flow- through funding which will be used to develop the property. The company says that initial results suggest grades will average 12% zinc, 2.0 oz silver, 75 g germanium, 10 g gallium and 20 oz indium over good mining widths. In addition there would be minor values in gold, copper, lead and cadmium.

Mine crews are driving a 1,000-ft crosscut to the NG3 vein and they are averaging about 24 ft per day. Negotiations are under way to raise funds for exploration below the 2,600-ft level and a feasibility study should begin later this year, the company adds.