Drilling on the Rainbow claim near Kamloops, B.C., has returned a promising intersection for partners Getchell Resources (VSE) and Teck (TSE).
The latter can earn a 70% interest in the property by spending $300,000, while Deak Resources (TSE) holds a 2% net smelter royalty, half of which can be bought by Teck for $500,000.
Teck has completed a 16-hole, 2,600-metre drilling program designed to test for bulk-minable copper-gold mineralization at Rainbow. The best result came from drill testing on a previously unknown, northwest-trending dyke complex south of the known No. 2 zone.
Hole 94-14 intersected 61.5 metres grading 0.7% copper and 0.1 grams gold per tonne, followed by 14.1 metres grading 0.35% copper.
Additional drilling will be required to determine the extent and significance of the intersection, as well as its relationship to the No. 2 zone. The No. 2 zone contains an estimated 3 million tonnes grading 0.76% copper. James Gillis, president of Getchell, said the zone is currently uneconomic, owing to its high stripping ratio. However, he is optimistic about the prospects for a separate deposit at the company’s Galaxy property. Galaxy hosts an estimated 3.2 million tonnes grading 0.65% copper and 0.34 grams gold available at a stripping ratio of less than 3-to-1. Gillis said Teck’s recent reopening of its nearby Afton-Ajax copper-gold mine renders the Galaxy reserve attractive to that company. Getchell and Teck are investigating the potential for a joint venture.
CSA Management (TSE) and Goldcorp (TSE) are entitled to 40% of Getchell’s share in any deal made with Teck on Galaxy.
Additional drilling on the Rainbow property is planned for September.
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