Casino drilling yields wide copper-gold intersections

Drilling on the Casino copper-gold project in southern Yukon returned a number of wide intersections for owners Casino Silver Mines (VSE) and Big Creek Resources (VSE).

Big Creek is earning a 50% working interest in the property by spending $2 million by year-end, a further $1.5 million by the end of 1993 and an additional $4 million to May 1, 1998.

The company can also reduce Casino’s participation to a 10% net profits interest by paying it a total of $15 million.

Big Creek also has the right to sell the property for a minimum of $15 million with the proceeds split between the two companies based on a scaled formula.

The recent drilling marks the completion of an initial 8-hole program designed to upgrade results from drilling in the late 1960s and early 1970s which outlined a preliminary open pit reserve of about 170 million tons grading 0.37% copper and 0.039% molybdenum, with a strip ratio of about 1.7-to-1.

Consultanting firm Archer Cathro & Associates is directing the exploration program and president Alan Archer said drilling is continuing on the property with one rig.

Archer said the drilling is being conducted on a 400-ft. grid primarily centred between the old holes on the property, although some of the drilling will twin old holes for comparison purposes.

The company believes the previous drilling understated copper grades while generally ignoring gold values. Archer said there is a good chance the company can outline a higher-grade starter pit of about 70 million tons to improve the payback on the project.

Big Creek estimates that copper and gold values could increase by 30% based on results from the recent drilling.

Archer said Big Creek does not have any major funding plans for the near term, and he noted that funds for continuing work on the property are being raised through small private placements as required.

Assay results from the first eight holes follow:

Hole Zone Interval Width Au Cu Mo

(ft.) (ft.) (oz./ton) (%) (%)

123 Leached cap 27-77 50 0.017 0.13 0.041

Supergene 77-342 265 0.026 0.77 0.047

Hypogene 342-600 258 0.015 0.41 0.032

124 Leached cap 8-37 29 0.011 0.04 0.012

Supergene 37-222 185 0.039 1.55 0.026

Hypogene 222-600 378 0.019 0.58 0.047

125 Leached cap 10-142 132 0.008 0.11 0.025

Supergene 142-364 222 0.010 0.55 0.028

Hypogene 364-700 336 0.008 0.23 0.024

126 Leached cap 10-385 375 0.013 0.16 0.059

Supergene 385-602 217 0.013 0.52 0.053

Hypogene 602-800 199 0.009 0.29 0.066

127 Leached cap 11-362 351 0.015 0.13 0.043

Supergene 362-582 220 0.021 0.76 0.042

Hypogene 582-800 218 0.018 0.36 0.078

128 Leached cap 12-272 260 0.023 0.14 0.064

Supergene 272-657 385 0.011 0.40 0.031

Hypogene 657-900 243 0.012 0.35 0.035

129 Leached cap 10-167 157 0.005 0.22 0.032

Supergene 167-302 135 0.007 0.46 0.051

Hypogene 302-600 298 0.008 0.24 0.051

130* Hypogene 60-147 87 0.004 0.15 0.085

147-461 314 0.012 0.33 0.051

* hole lost in broken ground