Prime’s latest falls short of `coarse gold’ expectations

Although not as spectacular as initially estimated, drill hole 90-489 from the Eskay Creek project north of Stewart, B.C., still turned out dazzling assay results for both precious and base metals. Project operator Prime Resources Group (VSE) announced several weeks ago that the hole intersected “significant coarse visible gold” within a massive sulphide horizon between 401.9 and 426.5 ft. At the time, on-site geologists estimated the core would run 1-2% visible gold.

The gold occurs as fine to coarse disseminations within a chalcopyrite-rich base metal host. But because the visible gold interval in hole 489 was the first occurrence of visible gold with extensive yellow chalcopyrite mineralization in any drilling to date, this combination led to the initial overestimation of the visual gold content when the hole was first reported.

As it turned out, however, hole 489 still turned out an impressive 26.2 ft. grading an impressive 14.44 oz. gold, 71.40 oz. silver, 9.03% lead, 26.23% zinc and 3.53% copper.

Collared on section 8+75N, the hole also returned 23 ft. of 0.37 oz. gold, 17.07 oz. silver, 11.03% lead, 15.21% zinc and 0.80% copper and 26.2 ft. of 0.13 oz. gold, 10.90 oz. silver, 0.83% lead, 1.52% zinc and 0.06% copper.

Assays are eagerly awaited for another hole, 90-497, which also intersected “significant coarse visible gold” within a 12.1-ft. massive sulphide horizon some 50 metres south of hole 489 at the same stratigraphic position.

A third hole, 90-515, drilled midway between holes 489 and 497 is reported to have intersected a 24.6-ft. wide massive sulphide horizon between 393.3 and 417.9 ft., with the lower 14.1-ft. interval displaying “significant visible gold.”

All three holes are considered to be stepout holes by virtue of having been drilled outside the current reserve outlined on the Eskay Creek property by Toronto-based Roscoe Postle and Associates. As such, they are expected to add to current probable and possible reserves stated as 1.55 million tons (at an 0.25 oz. gold cutoff) grading 1.34 oz. gold and 36.21 oz. silver in the 21A and 21B zones.

Six drill rigs are currently at work on the Eskay Creek project which is owned equally by Prime Resources Group and Stikine Resources (TSE). The two companies plan to merge into a new entity that will be owned 44.6% by Toronto- based Corona (TSE).