Gold City to drill western properties

Alberta-based Gold City Resources plans to begin drilling this month on its two gold properties in south-central British Columbia.

The properties have geology similar to the Crown Jewel-Buckhorn mine across the border in Washington state, the junior says.

One property, known as the Midway project, covers 17,000 acres near Rock Creek, B.C., and contains four distinct gold targets: the KET 28, ANA 1, KET 1 and ANA 2-3 groups. Previous drilling on KET 28, which is in the historic Poland-China-Dayton gold camp, returned a value of 0.26 oz. gold per ton over 20 ft. Gold City plans to drill three holes on this prospect to evaluate further the earlier intersection.

The other project, known as Paulson, is 40 km east of Grand Forks, B.C. It contains two gold anomalies which will be drill-tested following surface exploration.

The two claim groups were recently acquired from a subsidiary of Denver, Colo.-based Crown Resources (TSE) and are subject to a 4% net smelter return. In other news, Gold City reports that it has settled $500,000 in debts for the issuance of 800,000 treasury shares and has assigned the Indian River placer gold property to a second creditor for forgiveness of a $200,000 debt.