“Golden Triangle Fund” to raise $4 million (June 18, 1990)

Ten junior companies active in northwestern British Columbia have joined forces to raise about $4 million through the “Golden Triangle Fund” for their 1990 exploration activities. As the name suggests, the companies plan to use the proceeds to look for gold and other metals in the Stikine Arch, a mineral-rich region found within British Columbia’s rugged northern Coast Range mountains.

Specifically, they will be looking for “Eskay Creek and Snip type deposits.” Eskay Creek, owned equally by Prime Resources Group and Stikine Resources, is a recently discovered gold-silver-lead-zinc deposit north of Stewart. Snip, owned 40% by Prime, is a high- grade gold deposit being brought to production by Cominco some 20 miles to the west.

The juniors will also be looking for alkaline porphyry copper-gold and skarn-related gold-copper deposits, volcanogenic massive sulphide deposits and for prospective new properties in the area. The companies all have one or more common directors and all have received technical advice from Ronald Netolitzky, a geologist and director of Stikine. The bulk of the projects are still in the early stages of exploration.

The largest share of proceeds, just over $1 million, are slated to go to Solomon Resources (VSE). Some $400,000 of this is targeted for the Lance property where Solomon is earning a 50% interest from Winslow Gold and Northwind Ventures.

The Lance property is about four kilometres east of the Eskay Creek project, and as might be expected, the exploration focus is for a similar type of mineralization.

A preliminary work program was completed on the property last fall. Based on the results and on geological interpretation, the company sees potential for a geological formation similar to that which hosts Eskay Creek on the Lance property. This year’s program will consist of geophysical surveying, trenching and possibly diamond drilling.

About $100,000 will be spent on the Mikhail property, 10 km southwest of Eskay Creek, where Solomon can earn a 60% interest from Winslow and Teuton Resources. The program will include detailed prospecting, mapping and detailed soil geochemical surveying.

Finally, Solomon intends to spend about $300,000 on the Handel property where it will be earning a 50% interest from Winslow. This property is contiguous to the Snip gold deposit and a number of mineralized showings were identified in the 1989 program. This year’s program will consist of infill geochemical sampling, prospecting, mapping, trenching and possibly diamond drilling.

Ascot Resources (VSE) intends to spend its share of proceeds, an estimated $800,000, on the Kinaskan Lake properties. Ascot has options to acquire varying interests (50-100%) in this 23,525-hectare land package which was acquired by staking and from four different parties. The exploration focus is for gold, copper-gold, and base metals.

Big M Petroleum (VSE) is looking to spend about $400,000 on the Waratah, Joy and Ian properties in the Iskut River district where precious metals is the main exploration focus.

Oliver Gold (VSE) intends to spend a similar amount on the joint- ventured Kitsault and Oliver properties (the latter is in southern British Columbia). The Kitsault property was explored in the past for its lead-zinc potential, but this year’s program will be aimed at examining its potential to host mineralization similar to that found at Eskay Creek.

Near Stewart, B.C., Hyder Gold (VSE) intends to spend about $350,000 exploring its Gold Cliff property, a silver-lead-zinc prospect that has been known since the 1920s.

Dryden Resource (VSE) will be focusing its efforts on three projects in the Stikine Arch. About half the estimated $300,000 proceeds will be spent on the Poker property optioned from Cominco. The program will be focused on locating the source of some quartz-sulphide boulders yielding high grade gold.

Work is also planned for the Kinaskan Lake property in the Liard district where previous exploration outlined a porphyry copper target and a silver-lead-zinc target. Some work is also planned for the nearby joint-ventured Horn property, also a silver-lead-zinc prospect.

Prolific Resources (VSE) (soon to be Skeena Resources after a share consolidation) intends to spend about $200,000 on several early stage polymetallic properties in the Liard mining division.

American Ore (ASE) has a one- third interest in the Iskut River property with partners Prime (operator) and Golden Band Resources. This property adjoins the northern boundary of the Snip gold deposit and contains several undelineated gold and base metal prospects hosted by the same geology that hosts the Snip deposit.

Loki Gold (VSE) intends to use its estimated share of proceeds (about $200,000) for its share of exploration on the Paradigm/ Mikhail gold property 10 km southwest of Eskay Creek and on the Cunningham Creek property in the Caribou mining division.

Finally, Stow Resources (VSE) expects to spend a similar amount exploring its More Creek property in the Stikine Arch. This property was acquired to cover favorable stratigraphy believed to be similar in some respects to that hosting the Eskay Creek deposit.