Stepout drilling at Fish Lake boosts metal content sharply

Stepout drilling at the Fish Lake property, southwest of Williams Lake, B.C., is confirming results encountered in the first hole of this year’s drilling program. As a result, contained gold and copper in the deposit are estimated at nine million ounces and 3.4 billion lb. respectively, compared with the previous estimate of 6.6 million oz. and 2.4 billion lb.

The property is owned by Taseko Mines (VSE) and Cominco (TSE). Taseko retains management of the property to May 31, 1994, during which time a buyer will be sought. Proceeds from the sale of the property will be split between the two companies on a sliding scale based on the selling price. Cominco’s share is capped at 40% to a maximum of $48 million.

Hole 91-2, drilled 330 ft. to the west of hole 91-1, intersected 2,687.3 ft. grading 0.35% copper and 0.019 oz. gold per ton from 25.0 ft. to a depth of 2,712.3 ft.

Hole 91-3, which was drilled 660 ft. to the south of hole 91-2, intersected 2,473.4 ft. from 144 ft. to 2,617.4 ft. and averaged 0.35% copper and 0.016 oz. gold.

Hole 91-1, released earlier this month, intersected 2,714.3 ft. grading 0.37% copper and 0.022 oz. gold.

Taseko is drilling a total of nine holes in a cross-pattern using 330-ft. stepout holes to the north, south, east and west of hole 91-2. Although the holes are located within the previously defined area of the Fish Lake deposit, they are considerably deeper than previous drilling which was generally limited to about 600 ft.

Preliminary reserve calculations, based on the shallower drilling as well as some deep holes, placed total reserves at about 600 million tons grading 0.20% copper and 0.011 oz. gold.

Jeffrey Franzen, project director, noted that assay results from the first three holes indicate the grade of the deposit is higher than previously thought. He said the average grade is expected to increase to 0.28% copper and 0.015 oz. gold but noted that further work will be required to substantiate the estimate.

Drilling is continuing, with holes 91-4 and 91-5 completed to 2,683 ft. and 2,507 ft. respectively. Taseko is awaiting assays and reports that disseminated copper sulphide mineralization is evident throughout the holes.