Exploration picks up in Utah’s Tintic district

Exploration activity appears to be picking up steam in Utah’s Tintic district.

The camp was formerly among the most prolific in the state, having produced nearly 3 million oz. gold, more than 300 million oz. silver and 280 million lb. copper, mostly from 1869 through to the late 1920s.

Today, Centurion Mines (NASDAQ) is among the companies active in the area. The Salt Lake City-based junior is exploring select gold-silver-copper targets on its large position in the district. A more recent entrant, Akiko Gold (VSE), plans to drill the Burgin silver-lead-zinc deposit and test other targets on 14,500 acres of patented claims recently optioned from Chief Consolidated Mining. Akiko can earn a half interest and be operator by spending US$10 million.

For the second year, Kennecott is exploring for large, bulk-minable copper-gold deposits on ground optioned from Centurion. The major has spent more than US$1.5 million to date on the venture and can earn a 70% interest by paying all costs through completion of a positive feasibility study. Kennecott operates one of the world’s largest porphyry copper mines (Bingham), north of the Tintic district. So far, Centurion reports, the major has drilled 12 exploratory holes totaling more than 20,000 ft. on its properties. It has also carried out scientific investigations including geologic mapping, geochemical sampling and extensive geophysical surveying. No results have been released from Kennecott’s early-stage program, although reports suggest that two zones of copper mineralization require further work. Barry Katona, Centurion’s general manager, said Kennecott recently paid US$50,000 to begin its second-year option period on Centurion lands situated roughly 70 miles southwest of Salt Lake City. “We are assuming the company is encouraged by results to date,” he said.

Centurion recently expanded its Tintic district holdings by purchasing 980 acres of privately owned lands. “We are the largest holder of properties in the district, as well as the largest holder of precious metals properties in the state of Utah,” Katona said.

Centurion’s land holdings in the Tintic district total 27,000 acres (most of which are privately owned), comprising about 120 old gold-silver mines. About 30% of the land package has been optioned to Kennecott.

“We have two drill rigs at work on our 100%-owned properties and are exploring for large, breccia-type, gold-silver-copper deposits,” Katona said. “Most of these properties have never been explored using modern methods and there has been no underground exploratory drilling.”

Centurion’s program will involve geologic mapping, sampling and computer modelling of all data, including underground mine workings. The company reports that preliminary work has already identified unmined zones containing ore-grade gold-silver-copper mineralization. At last report, 18 breccia pipe targets had been identified.

This summer, Akiko plans to drill the Burgin deposit, which already hosts 1.03 million tons of proven and probable reserves containing 24 million oz. silver, 275,000 tons lead and 90,000 tons zinc. The property comes complete with a concentrator and has the added benefit of being on patented ground within a state with good infrastructure.

The reserve is concentrated in a 600-800-ft., amoeba-shaped, underground deposit of Cordilleran-style mineralization similar to silver-rich polymetallic mines in Mexico. Grades are typically much higher than those in Mexico, however, which is due to the Tintic district’s receptive host rocks and ideal structural preparation for mineral emplacement.

“The Tintic district is famous for its bonanza-style deposits and at one time was the leading silver producer in the world,” said Ray Irwin, Akiko’s vice-president of exploration. “Granted, silver prices are not what they once were, but it is important to keep in mind that the Burgin deposit’s silver content has a gold equivalency of about 0.3 oz. gold per ton.” The 1994 drilling is aimed at doubling or tripling the Burgin deposit and is also intended to provide information on metallurgy, rock mechanics and hydrology for use in future mine planning.

Roland Ridler, a geological consultant and recent addition to Akiko’s board, has been involved in the due diligence review of the Burgin deposit and in assessing the overall exploration potential of the project area. “We have identified a half-dozen other targets that warrant further exploration,” Ridler said, adding that the district is zoned and offers opportunity for gold targets, as well as more Burgin-style silver-lead-zinc targets.

Akiko President Stephen Flechner said the company’s goal is to be in production within two years. “We still have to do some infill drilling to prove up the current resource, as well as drilling to expand reserves, but a lot of work was done by previous operators (Sunshine Mining).” Akiko’s drill program is

expected to begin late this summer.