San Andreas drill program at Prairie Creek mine project

Diamond drilling at the Prairie Creek mine project near Yellowknife, N.W.T., is expected to augment reserves significantly.

Owner San Andreas Resources (TSE) estimates current reserves at 4.25 million tons grading 13.01% lead, 14.65% zinc and 5.90 oz. silver per ton. The property hosts a series of lead-zinc-silver stratiform and vein deposits next to an existing mill which is capable of processing 1,200 tons per day. The bulk of the reserves lies in Zone 3, which contains a vein system as well as several stratiform deposits. Recent drilling (part of a 40,000-ft. program) extended both structures to the north and resulted in the discovery of multiple vein intersections at depths to 790 ft. below the lowest level of mine workings. Representative values, returned from drilling on the vein system, include: 5.9 ft of 42.58% lead, 35.29% zinc and 12.02 oz. silver for hole 94-65; 16.4 ft. of 18.27% lead, 34.34% zinc and 8.21 oz. silver for 94-63; and 54.1 ft. of 5.18% lead, 12.78% zinc and 2.76 oz. silver for 94-79. A second stratiform deposit (SD2), with a strike length of 40 metres, has been defined within Zone 3 by three holes. Hole 94-65 returned 6.6 ft. of 3.35% lead, 12.66% zinc and 2.25 oz. silver, while hole 94-67 intersected 5.6 ft. of 3.07% lead, 2.81% zinc and 0.84 oz. silver. Hole 94-56 returned 2 ft. of 15.50% lead, 13.65% zinc and 2.42 oz. silver plus 9.5 ft. of 7.24% lead, 20.06% zinc and 1.94 oz. silver.

A new zone of stratiform mineralization was intersected by hole 94-82, adjacent to the vein system and 100 ft. stratigraphically above the original SD1 deposit. It returned 81.4 ft. of 4.56% lead, 10.28% zinc and 1.56 oz. silver.

Drilling will continue on the north extension of Zone 3 for as long as weather permits.

The Zone 3 deposits lie about 1 mile north of Zone 5, where, to date, only one hole, 94-59, has been drilled. The hole intersected a vein structure grading 12.1 ft. of 13.32% lead, 0.04% zinc and 3.39 oz. silver. Zone 6, about 2 miles south of Zone 3, hosts stratiform-type mineralization. Hole 94-64 intersected significant values at the highest stratigraphic level yet. It returned 3.3 ft. of 18.25% lead, 39.42% zinc and 8.66 oz. silver; 6.9 ft. of 9.35% lead, 20.89% zinc and 5.62 oz. silver; and 2.3 ft. of 17.19% lead, 37.79% zinc and 10.56 oz. silver.

Cavity-filling-style pyrite-sphalerite mineralization occurs 6.2 miles northeast of Zone 3 at the Zebra showing. Two geophysical anomalies were drilled at this site, with hole 94-75 intersecting 27.9 ft. of 2.80% zinc and hole 94-78 returning 28.9 ft. of 2.36% zinc.

The Prairie Creek project was initially developed into a silver mine in the early 1980s, only to be aborted, shortly before production, as a result of financing difficulties.

It is expected that, by year-end, data for the initial Environmental Evaluation Report will be submitted, along with all production permit applications. An internal feasibility study is also expected by that time.