United Pacific Gold completes Phase II at Golden Zone

Preliminary assay results from a recent surface drill program on the Golden Zone project in south-central Alaska were released by operator, United Pacific Gold (VSE), a semi-independent exploration subsidiary of City Resources (TSE). The company and 50/50 joint venture partner, Golden Zone Resources (VSE), are aiming to prove up a gold deposit to be mined initially from an open pit and then underground.

United Pacific Gold said a number of reverse circulation holes were drilled vertically into the steeply- dipping breccia pipe deposit on 50-ft sections in order to confirm the continuity of mineralization in the area tested to date. Selected results from reverse circulation drilling include: Grade Hole IntervalLength(oz Au/ton) 88-22 0-70 70 ft0.111 oz 88-23 0-350350 ft0.074 oz 140-245105 ft0.157 oz 88-24 0-375375 ft0.100 oz 265-340 75 ft0.312 oz 310-335 25 ft0.513 oz 88-25 0-150150 ft0.087 oz 105-145 40 ft0.160 oz 88-26 0-130130 ft0.150 oz 88-27 0-45 45 ft0.151 oz 170-205 35 ft0.286 oz 175-195 20 ft0.445 oz 88-28 0-400400 ft0.068 oz 250-400150 ft0.136 oz 88-29 0-295295 ft0.051 oz 180-270 90 ft0.140 oz

The company has now met its Phase II field program expenditures commitments and is winding down field operations for the winter. An evaluation of this season’s results will follow, as will metallurgical testwork.

On its own, United Pacific Gold recently carried out an integrated program of prospecting, mapping, geochemistry, trenching, geophysics and diamond drilling on several of the 14 areas (about 20,000-ha) staked by the company in coastal British Columbia during the summer of 1987.

In the Knight Inlet area, trenching and drilling across a newly discovered zone disclosed 6.5 ft of 0.318 oz gold, 1.09 oz silver and 0.81% copper; and 3.2 ft of 0.528 oz gold, 1.28 oz silver and 3.26% copper. Several other anomalous zones were discovered by drilling and one high grade intercept of 4.5 ft grading 0.311 oz gold, 1.4 oz silver and 1.06% copper was reported. A 6.5 ft chip sample across a mineralized zone 275 m to the east contained 2.47 oz gold, 1.47 oz silver and 1.0% copper.

In an area 10 km west, prospecting and blasthole pitting disclosed high grade values, two of which were 0.460 oz gold and 715.30 oz silver and 1.650 oz gold and 948.30 oz silver per ton.

The company describes the precious metals mineralization in this area as associated with advanced argillic and silica altered rhyodacite intrusions as epithermal planar structures. An aggressive exploration program is being planned for the 1989 season to follow-up these results.