Abacus aims to expand Lookout zone

Exploration drilling is set to resume at the Niblack volcanogenic massive sulphide project in southeastern Alaska.

Abacus Minerals (AMC-V) will focus on the gold-enriched Lookout zone, where last year’s drilling showed continuity of massive and semi-Massive sulphide mineralization over a strike length of 1,200 ft. and a downdip of 800 ft.

The most westerly drilled hole, LO-117, intersected 115.9 ft. of mineralization, including a 24.5-ft. interval averaging 0.13 oz. gold and 0.66 oz. silver per ton, plus 1.53% copper and 2.66% zinc.

A drill-indicated resource within the zone was calculated at 1.8 million tons grading 0.12 oz. gold and 1.37 oz. silver, plus 1.5% copper and 2.64% zinc.

As part of the 1997 program, which is budgeted at $4 million, two drill rigs will focus on expanding this resource. Much of the mineralization remains open along strike and downdip.

Teck (TEK-T) holds a 14% interest in Abacus, as well as a back-in right to a 51% interest in Niblack, which it can exercise by placing the project into production.

In addition, Abacus has acquired from Barrick Gold (ABX-T) the right to a 100% interest in six early-stage gold-silver exploration properties in the Santa Cruz province of Argentina.

Abacus is required to issue 400,000 shares to Barrick and spend US$2.75 million on exploration over four years. Barrick retains a back-in right to a 50% interest in all six properties, which it can exercise by electing to spend the next US$3.75 million.

Abacus is well-financed with working capital of $5.5 million. It currently has 21.5 million shares outstanding, or 31.4 million fully diluted.