Cominco completes drilling on vanstates gold bet

Cominco recently completed approximately 6,000 ft of drilling on its Telgar property which falls under an option agreement with Vanstates Resources.

Located in Ontario’s Harker- Holloway region, the alteration and mineralization encountered so far is said to be nearly identical in character and style to the American Barrick property to the northeast, say the companies.

Marshall Smith, a consultant for Vanstates, confirms that the program encountered some long silica sections,” while noting the highest grade intercept (0.14 oz gold) occurred over a true width of 4.8 ft. Additional drill results are expected shortly and a reactivation of the drill program is likely at a later date, he predicts.

Cominco is operator for the project with Vanstates having the right to earn a 100% interest for $1.35 million. But Cominco can back in for 55% by paying Vanstates double that amount.

Vanstates is also involved in a major exploration program at Bathurst Inlet in the Northwest Territories. The property falls under an option agreement with Silver Hart Mines which acts as operator. Recent drilling and trenching have demonstrated the presence of gold in a bedded iron formation, according to Mr Smith, who contends it’s basically a dead ringer to the Lupin mine.”

The property is readily accessible (being on Bathurst Inlet) and more geophysics will probably be done before drilling from the ice surface next March or April.

Vanstates is funding the program and can earn a 60% interest for expenditures of $3 million.