Drilling and feasibility work on the New Burgin deposit in Tintic, Utah, continue apace under the direction of owner Chief Consolidated Mining (NASDAQ).
The New Burgin represents the downdip extension of the Main Burgin deposit, mined by Kennecott in the 1960s and 1970s. Described as a massive sulphide replacement of deformed and brecciated limestones and quartzites, the New Burgin was last estimated to contain 1.1 million tons grading 22% lead, 7.5% zinc and 19 oz. silver per ton.
Current work is aimed at expanding and infilling the amoeba-shaped deposit, which dips roughly 30-40 to the northwest and measures about 400 ft. along strike and 600 ft. along the downdip extent. The width varies from 30 to more than 100 ft.
Hole CB-3, which steps out to the northeast, intersected 42 ft. grading 11% lead, 6% zinc and 5 oz. silver, including a 15-ft. interval grading 14% lead, 10% zinc and 10 oz. silver.
Hole CB-4, which steps out to the southwest, returned 8 ft. grading 4.3% lead, 12% zinc and 1.5 oz. silver.
Underground drifting above the deposit and towards the northwest is being carried out in an effort to establish setups for drill-testing the downdip extent of the New Burgin.
Akiko Gold (VSE) can earn a half interest in the property by spending US$10 million. In return for the first US$4-million expenditure, it has received Chief stock at US$4 per share; Akiko now holds 285,000 shares.
The Chief stock owned by Akiko is now worth more than US$2 million but does not become free-trading until October, 1996.
An additional payment of US$1 million is due by May 31, and Akiko says it is reviewing financing options. These include the issuance of debentures convertible into Chief and Akiko shares, or inviting the participation of another mining or metal-refining company.
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