Drilling may expand Samatosum mine

Additional drilling on the Gold zone at the Samatosum mine near Adams Lake, B.C., indicates that the life of the mine will be extended.

The Samatosum, with current reserves good until October, 1992, is 70% owned by Minnova (TSE) and 30% owned by Rea Gold (TSE) which also holds a 5% net smelter royalty interest.

The Gold zone was discovered earlier this year during detailed drilling for the underground feasibility study. The discovery hole (U1330-43) intersected 11 metres grading 0.43% copper, 2% lead, 3.23% zinc, plus 67 grams silver and 7.29 grams gold per tonne.

Further drilling on the zone was delayed until underground development was under way.

Hole U1290-01 recently intersected 14.7 metres grading 0.62% copper, 4.55% zinc, 2.45% lead, plus 6.6 grams gold and 213 grams silver. The hole was designed to intersect the zone near the discovery hole to check the true thickness and geometry of the mineralization.

Holes U1290-02 and U1290-03 were drilled on the same section about 15 and 30 metres downdip from U1290-01 and are reported to have intersected similar mineralization although assays results are still pending.

The zone is about 50 metres below the current underground development and lies subparallel to the Sam horizon where the companies are now mining. Underground minable reserves were last stated at 80,000 tonnes grading 1.2% copper, 2.9% zinc, 1.7% lead, 1.7 grams gold, and 1,020 grams silver. The mine is currently operating at about 450 tonnes per day from both open pit and underground with average grades for September of 0.82% copper, 2.00% zinc, 1.03% lead, 1.37 grams gold and 692 grams silver.