Abacus explores u.g. potential at Niblack

Abacus Minerals (AMS-V) is investigating the feasibility of underground exploration at the Niblack volcanogenic massive sulphide project in southeastern Alaska.

The junior recently released assay results from the final four holes of its 1997 surface drilling program, which was directed primarily at the Lookout zone. That program traced the zone over a strike length of 1,200 metres and downdip to 800 metres. A drill-indicated resource was calculated at 1.8 million tons grading 0.12 oz. gold and 1.37 oz. silver per ton, plus 1.5% copper and 2.64% zinc.

The drilling also tested the downdip continuity of the Lookout zone and its western extension. Two of the final holes were drilled on the southern fringe of the zone so as to test the downdip extension of stringer mineralization intersected in hole 149, which averaged a previously reported 0.82% copper over a 254-ft. interval.

Both holes are reported to have intersected more than 250 ft. of stringer pyrite-copper mineralization. However, hole 152 returned only 9 ft. of 1.06% copper, while hole 153 averaged 1.33% copper over a 21-ft. interval. Abacus believes the style of mineralization is indicative of a feeder zone.

On the eastern end of the zone, hole 151 was drilled so as to explore the massive sulphide mineralization encountered in hole 147; it intersected a narrow 1.2-ft. interval grading 0.16 oz. gold and 3.1 oz. silver, plus 0.18% copper and 28.1% zinc. Hole 147 intersected a previously reported 21 ft.

averaging 0.14 oz. gold and 2.58 oz. silver, plus 2.79% copper and 4.22% zinc.

The final hole, 154, was drilled on the zone’s western edge and intersected an anomalous 10.5-ft. section of massive pyrite 700 ft. updip of hole 150, which returned a previously reported 16.5-ft. interval averaging 0.099 oz.

gold and 1.51 oz. silver, plus 1.46% copper and 2.24% zinc.

Studies in works

Abacus is contemplating going underground in 1998 with a 2,000-ft.

exploration adit, driven from the Trio zone westward through the Lookout zone. A prefeasibility study is under way, as is a scoping study, metallurgical tests and environmental baseline surveys.

Teck (TEK-T) can earn a 51% interest in the project by completing a feasibility study and placing the project in production.

In related news, Abacus is shifting its focus farther south to the Santa Cruz province of Argentina, where it optioned a 100% interest in six gold properties from Barrick Gold (ABX-T).

A $750,000 exploration program will focus on the Manchuria property.

Previous work has outlined a quartz stockwork zone in a sequence of rhyolitic volcanic rocks which extends over an area measuring 2,950 by 1,640 ft.

Limited trenching returned the following:

* 360 ft. grading 0.043 oz. gold and 1.68 oz. silver, plus 295 ft. of 0.007 oz. gold and 0.19 oz. silver in trench 1;

* 590 ft. of 0.04 oz. gold and 0.43 oz. silver, plus 197 ft. of 0.035 oz.

gold and 0.35 oz. silver in trench 2; and

* 295 ft. of 0.017 oz. gold and 0.53 oz. silver in trench 3.

Abacus will continue trenching in preparation of a 6,500-ft. drill program, to begin in the new year. Barrick retains a one-time back-in right to a 50% interest in all six properties, which it can exercise once Abacus has spent US$2.7 million on exploration.