Drill turning at Jales

Vancouver — Junior St. Elias Mines (SLI-V) has launched a 1.500 metre drill program over the Gralheira- Jales gold property in northern Portugal.

Located in the Tras-O-Montes region, the project covers 16.8 sq km and hosts the past producing Jales mine, as well as the Gralheira gold deposit. Before closing in 1992, the Jales operation produced 830,000 oz of gold from material grading 12.9 grams gold per tonne. From 1985-to-1990 joint venture partners Rio Tinto (RTP-N) and BRGM, the Bureau Recherch Geologiques et Minieres, a French Government organization drilled 50 holes on the property, of which 47 were completed on the Gralheira structure. Covering a 1.2-km strike length, 45 of the holes cut the vein structure with 21% of the intersections returning more than 8 grams gold.

Based on the results, the partners drifted a 359-metre adit exposing the vein system along the entire length. A total of 10 cross-cuts were driven into the footwall and hanging wall of the mineralized shear zone, and a 23 metre raise was also completed on the vein. Channel samples collected from the raise returned an average weighted value of 12.63 grams gold and 52.7 grams silver over a 1.12 metre width.

St Elias’ initial target is high-grade shoots within the Gralheira deposit, which lies 700 metres north of the Jales mine. Gold mineralization occurs in a 3-km long shear zone within subparallel veinlets and veins ranging from 0.5-to-1.5 metres in width. A review of the data, identified areas of higher grade gold mineralization in ore shoots. Each shoot appears to have a lateral extent of 60-to-100 metres and a vertical extent ranging from 50-to-100 metres. The gold grades in these areas range from 8-to-130 grams gold.

The aim of the current 10 holes program is to increase the drill hole density around the higher-grade shoots in the eastern and central part of the deposit to 25 metre spacings.

The company can take an initial 51% interest from fellow junior Kernow Resources and Developments (KRD-V) by spending $1.5 million, issuing 500,000 shares and paying $50,000 over three years. St. Elias can then earn another 24% stake by spending an additional $2.5 million, issuing 1 million shares and paying $100,000 over the next 3-years.