1991 program to establish grade at Frasergold

Establishing grade certainty in the open pit reserve potential of the Main zone on the Frasergold property will be an important mandate of the 1991 program planned by Eureka Resources (TSE) and a unit of Asarco (NYSE). Asarco will be contributing to a $2-million budget for the advanced gold property, about 68 miles east of Williams Lake, B.C. The major has the right to earn a 50% interest on production of a feasibility study and a commitment to place the property into commercial production.

This year’s program — jointly co-ordinated by Asarco and Eureka — will include about 36,000 ft. of large diameter reverse circulation drilling, as well as 330 ft. of underground development and bulk sampling.

The underground work will all be from the existing underground adit, and provides for at least one intersection across the full width of mineralization.

Drilling is to incorporate a new 5.5-inch diameter bit concept, whereby the drill cuttings are collected at the face of the bit. The new sample collection method is expected to improve sample recovery and prevent loss of gold.

Eureka said historically the larger the diameter of sampling, the higher the gold content. Previous bulk samples collected from existing underground workings are reported to indicate an average grade of 0.072 oz. gold per ton, while drill-grade average within this same area was 0.054 oz. gold per ton.

“The apparent upgrading factor is considered very real,” Eureka President J.J. O’Neill stated, “and it is for this reason that the mandate of the 1991 field program is to establish the true grade.” The drilling is expected to upgrade a significant portion of the preliminary 12-15 million tons of open pit reserves.

The balance will be upgraded on successful completion of this program, and additional drilling will be required to test the remainder of the property.

An 18-man trailer camp is on site and work is expected to begin in mid-May. Drilling is scheduled to begin in early June, followed by underground mining in early July.

Eureka said 100% of the reserves mined will be included as bulk samples and be shipped to an existing pilot mill in Vancouver for processing and metallurgical testing.