DRC Resources cuts gold at Afton

Vancouver — DRC Resources (DRC-T) has intersected shallow porphyry gold mineralization about 1 km southeast of the Afton mineral zone, at its Afton mine project near Kamloops, British Columbia.

This new gold zone, is parallel to the previously mined Pothook mineral zone where government reports indicate that 2.5 million tonnes of copper-gold ore averaging 0.35% copper and 0.77 gram gold was mined in the 1980’s.

DRC has drilled a total of 10 diamond core holes that have intersected sulphides in an area measuring 200 by 100 metres. The junior feels that near surface gold mineralization could be significant to the overall economics of development of the Afton project.

A newly completed scoping study pegged the proven and probable mineral reserve in the Main zone at Afton at 36.9 million tonnes grading 1.15% copper and 0.85 gram gold.

Assays for the new zone have been received for 7 drill holes. Significant assay intersections are listed below.

• Hole PO-01 cut 21 metres averaging 0.575 gram gold, starting 67 metres down-hole. This included a 15 metre section that averaged 0.796 gram gold.
• Hole PO-02 cut 66 metres averaging 0.496 gram gold, starting 26 metres down-hole. This was followed by a 217-metre interval that averaged 0.484 gram gold and 0.26% copper, starting 344 metres down-hole.
• Hole PO-03 cut 92 metres averaging 0.299 gram gold and 0.24% copper, starting 420 metres down-hole.
• Hole PO-04 cut 156 metres averaging 0.72 gram gold, starting 6 metres down-hole. This included an 80-metre interval that averaged 0.87 gram gold, starting 6 metres down-hole.
• Hole PO-05 cut 29.6 metres averaging 0.54 gram gold, starting 6.4 metres down-hole.
• Hole PO-06 cut 93 metres averaging 0.55 gram gold, starting 123 metres down-hole.

DRC states that its drilling campaign has also intersected mineralization up to 300 metres below the previously mined Pothook open pit. Further diamond drilling is continuing on this new gold mineral zone and the extension of the Pothook Zone.

In early November DRC completed a $24.15 million bought deal equity financing with a syndicate of underwriters led by Orion Securities, including Dundee Securities and Salman Partners. DRC Resources issued and sold 3.45 million common shares, including the underwriters option at an issue price of $7 per share.

The junior intends to use the net proceeds of this financing to advance the development of the Afton copper-gold project. The money is earmarked for underground development work and infill diamond drilling which will be necessary to bring the project to the final feasibility stage.