Yellowhead to drill Harper Creek

Vancouver — Along with a proposed financing to raise up to $10 million and become a publicly traded company later this year, Yellowhead Mining is planning a spring exploration program at its newly acquired Harper Creek polymetallic volcanogenic sulphide deposit situated 90 km northeast of Kamloops, B.C.

The project was previously explored by several companies, notably partners Noranda and U.S. Steel (through subsidiary Quebec Cartier), starting in 1966. The companies drilled 163 holes totalling more than 25,830 metres and outlined a resource of 85.5 million tonnes grading 0.43% copper before their joint-venture agreement expired in 1981.

In 1986, a junior company commissioned a prefeasibility study for a proposed open-pit mine, and as part of that process, calculated resources of 65 million tonnes grading 0.36% copper, 0.04 gram gold and 2.2 grams silver per tonne. These resources are not compliant with National Instrument 43-101 reporting standards, and should be considered as historical information only.

Earlier this year, Yellowhead received an independent 43-101 technical report for the project that reviewed previous exploration results and re-sampled nine holes from the Noranda/U.S. Steel joint venture and two holes drilled by a junior company. The company reports that the results of the review and re-sampling program provided correlation and confirmation of previous exploration data.

The company plans to build a field camp and carry out a geophysical program this spring, along with detailed mapping, and a 2,000-metre, first phase of a recommended 7,500-metre drilling program. A flow-through financing is expected to provide some funds for the initial $2.8-million exploration program, while the proposed initial public offering is expected to generate up to $10 million.

The company has nominated Stuart (Tookie) Angus and David Dickens to its board, pending shareholder approval, to join existing directors and officers Ron Handford, Greg Hawkins and Derek White.