Blue Dog drilling confirms good values

Associated companies Gold Canyon Resources (VSE) and Bradner Resources (VSE) continue to report encouraging results from drilling on the Adit zone at the Blue Dog property in Washington Cty., Idaho. The partners can acquire a 100% interest in the property from Homestake Mining (NYSE), which has retained a 40% back-in right at the point of feasibility.

The latest results from drilling at Blue Dog are expected to add tonnage and improve the grade of geological reserves last reported as 6.0 million tons of 0.025 oz. gold per ton.

Hole 90-2 returned 294 ft. grading 0.055 oz. gold, which included 114 ft. of 0.043 oz. gold and 60 ft. of 0.146 oz. gold. Hole 90-1 returned 350 ft. of 0.024 oz. gold, including 50 ft. of 0.39 oz. gold, while hole 90-3 returned 300 ft. of 0.017 oz gold.

The latest results appear to confirm results from last fall’s drilling program which include 130 ft. of 0.053 oz. gold, 160 ft. of 0.071 oz. gold and 50 ft. of 0.024 oz. gold.

According to Bill Beaton, consulting geologist, a channel sampling program last fall in the Adit zone yielded a bulk sample that averaged 0.056 oz. gold.

Beaton told The Northern Miner that exploration activity in western Idaho and eastern Oregon is taking on new steam now that Atlas (NYSE) has announced plans to develop its Grassy Mountain project in Malheur Cty., Oregon, 14 miles from the Idaho border. The proposed open pit mine is targeted to produce about 100,000 oz. each of gold and silver when up and running in 1993.

In other news, Gold Canyon and Bradner recently entered into a joint venture agreement with Silver Standard Resources (VSE) and Carlin Resources Corp. (VSE) to explore the 1,150-acre Chandler property to the east of, and contiguous with, the Blue Dog property.

Each company will have a 25% interest in the joint venture which is to be managed by Silver Standard, a junior company associated with Teck (TSE).

According to Silver Standard, gold mineralization on the Chandler property is similar to that on the Blue Dog and associated with hot spring silica domes. A $65,000 program of surface geochemistry, geology and geophysics is under way.