Encouraging results reported on two Crown Res. properties

Encouraging results have been reported by Crown Resource of Denver with joint-venture partner Echo Bay Mines on Crown’s Granny and Key gold and silver properties at Kettle River, Wash.

High grade gold mineralization has been identified over a horizontal distance of more than 500 ft on the Granny property, and a new, third gold mineralized zone has been discovered on the Key property, Crown President Paul Jones reports.

Drill hole results on the Granny project have shown that high grade mineralization occurs over good widths with the potential for parallel multiple veins within the zone, Mr Jones reports. Two drill holes indicate grades ranging from 0.09-0.23 oz gold per ton over a true thickness of 8.7 ft on up to 2.25-4.22 oz over a true thickness of 3.1 ft. A major mineralized zone encountered in previous drilling has been confirmed.

Last year’s drilling indicated the mineralization extends over a vertical range of at least 400 ft. High grade mineralization has now been encountered over a horizontal distance of 500 ft. Because of the wide spacing of the drilling, correlation of individual vein intercepts is not yet possible. Drilling continues on this zone which remains open in both horizontal directions along strike and at depth.

At the Key project, a new area of mineralization has been revealed with potential for open pit mining. The Overlook desposit, the third on the property and located south of the Key East and Key West deposits, has shown good gold grades and intercept thickness, according to the president.

Seven vertical reverse circulation drill holes on the Overlook deposit indicate grades ranging from 0.05 oz over 20 ft on up to 0.46 oz over 10 ft.

Three drill holes are offsets of Hole No OL-3, drilled last year, which intersected 230 ft grading 0.08 oz at a depth of 160-390 ft. This recent drilling indicates an entirely new area of mineralization with significant tonnage potential, Mr Jones reports. Further drill testing continues.

Total drill indicated geological reserves at Key East and Key West have been reported at approximately 1.3 million tons grading 0.16 oz.

Echo Bay may earn a 60% interest in each of the Granny and Key properties by spending $10 million. In 1986, Echo Bay spent approximately $700,000 on the two properties and has committed $1.1 million for exploration this year.

Once Echo Bay earns its 60%, Crown and joint-venture partner Gold Texas Resources would each hold a 20% interest in the two properties.