Drilling for a water quality monitoring well in the area of a proposed tailings dam at the Huckleberry project near Kemano, B.C., has intersected a zone of high-grade copper.
New Canamin Resources (VSE) can earn a 100% interest in the Huckleberry property from Kennecott by spending a total of $1.5 million, about $1 million of which has already been spent. Kennecott, in turn, has the right to retain a 60% interest by paying New Canamin 150% of its costs above the $1.5 million earn-in.
New Canamin has been working to drill-off a higher-grade core within a larger reserve which previous operators estimated at about 85.6 million tons grading 0.4% copper.
The company has drilled about 25,000 ft. since taking on the project last year and is completing a new reserve estimate and mine plan in the hope of developing a 2,700-to-3,300-ton-per-day open pit copper mine. Hole 93-26, drilled about 3,800 ft. east of the proposed pit, hit bedrock at 110 ft. and intersected 25 ft. grading 0.89% copper before bottoming in mineralization at 135 ft.
Hole 93-25, another water quality test about 400 ft. to the southwest, did not hit bedrock. Holes 93-28 and 93-27, about 1,000 ft. and 1,400 ft. respectively to the southwest of hole 92-26, passed through a narrow zone of copper mineralization and assay results are pending.
Although the new discovery appears to have mineralization identical to that of the Huckleberry deposit, the company says it is too far east to be directly related.
Alan Savage, president of New Canamin, says further drilling will be under way March 20 with a minimum program of five 100-ft. step-out holes around the discovery.
New Canamin has about 4.3 million shares outstanding and about $400,000 in working capital following completion of a 400,000-share private placement at $1 per share.
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