With Prime Equities as operator, Gigi Resources (VSE) is about to start its 1990 work program at the Trophy gold project in the Galore Creek region of northwestern British Columbia. Gigi can earn a 55% interest in the property from Continental Gold (TSE) by spending $5.5 million and issuing 200,000 of its shares to Continental over five years.
Goldbelt Mines (VSE) acquired a 45% interest in the 47,000-acre property earlier this year when it issued 750,000 of its shares to Continental. Corona (TSE) currently owns about a 17.6% equity interest in Goldbelt, one of the largest landholders in the Galore Creek camp.
The Trophy property is adjacent to two porphyry copper deposits; Galore Creek (137 million tons of 1.02% copper and 0.14 oz. gold per ton) and the Copper Canyon deposit (28 million tons of 0.64% copper and 0.02 oz. gold).
Previous work by Continental Gold on the Trophy property is reported to have resulted in the discovery of three gold-bearing shear zones that have yet to be tested fully. Most of the work was focused on the Ptarmigan zone where drilling in 1988 returned 0.16 oz. gold and 0.88 oz. silver over 36.4 ft.
In 1989, Gigi evaluated the entire potential of the large property which led to the discovery of nine precious and base metal occurrences. Some 21 mineralized occurrences are now known to exist on the property.
Drilling is expected to start in late July. The program is designed to test the dip and strike extensions of the Ptarmigan zone before moving to other targets to be defined as the field season progresses. About $1 million is expected to be spent on the property this season.
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