Partners size up Discovery zone (April 28, 2003)

Joint-venture partners International Taurus Resources (ITS-V) and Fairstar Explorations (FFR-T) have taken delivery of SRK Consulting’s resource estimate for the Discovery zone on their Fenelon property in the Casa Berardi region of northwestern Quebec.

The estimate, which incorporates all previous drilling and sampling data, as well as a structural analysis, points to an indicated resource of 49,550 tonnes grading 11.2 grams gold per tonne, equivalent to 17,900 oz. contained gold. In addition, 38,840 tonnes averaging 10.5 grams gold are classified as inferred.

In its report, SRK notes that the estimate takes into account the interpreted variable geometry of the higher-grade portions of the deposit, as well as the presence of high-grade gold values, many of which exceed 100 grams gold.

SRK put together a geologic model of the zone that envisages a central area of mafic rocks flanked by argillaceous sedimentary units. The central zone is strongly altered, and gold mineralization is associated with sulphide and quartz veining. Several mineralized zones have been outlined along 200 metres of strike and to a depth of 300 metres.

Overall, the deposit remains open at depth and stretches for more than 3 km along strike.

SRK’s resource estimate is centred on 110 metres of strike length in the upper 50 metres of the deposit. It includes four of nine previously identified gold-bearing, vein-like structures known as structures 1 South through 4 South.

Looking ahead, the partners plan to investigate the feasibility of both underground and open-pit mining options at Fenelon.

Initial designs for a program of underground test mining call for Utah-based Mineral Resources Engineering to remove 40,000 tonnes of ore from the upper 50 metres of the high-grade zone via a ramp cut into the existing bulk-sample pit. The test program is expected to produce up to 15,000 oz. gold and provide the partners with cash flow.

A 14,000-tonne bulk sample from the upper portion of the deposit in June 2001 yielded 4,339 oz. gold. The final recovery from the bulk sample was 97.1%. The ounces generated $1.3 million in cash flow, net of milling and refining costs.

MRE intends to complete a full feasibility study.

Taurus owns a 62% stake in the 72-sq.-km property, with the remainder held by Fairstar.