U.S. REPORT Crown makes new gold discovery

Denver-based Crown Resources (VSE) is adding yet another new gold discovery to its already impressive exploration track record. The company recently announced a new find on its Kings Canyon project in western Utah, a joint venture with Centurion Mines (NASDAQ).

Crown is currently earning a 60% interest in the early-stage gold property where two of the better holes in recent drilling intersected 100 ft. of 0.053 oz. gold and 95 ft. of 0.049 oz. gold per ton.

“We are extremely encouraged by these early-stage drilling results and believe the overall potential of this property is just now emerging,” said Crown President Christopher Herald. “We expect that Kings Canyon will be an important future component in Crown’s growth strategy through exploration.”

Crown is best known for its 30% interest in the Kettle Bay gold mine operated by Echo Bay and the advanced Crown Jewel project where Battle Mountain Gold can earn a 51% interest. Both gold projects are in eastern Washington state.

Earlier this year, Herald said the company participated in a “one-company staking rush” in central and western Utah and accumulated at least 180,000 acres.

The Crown-Centurion joint venture covers a total of 90,000 acres, which Crown said effectively controls 98% of a “newly recognized gold district which displays many geologic similarities to the goldfields of Nevada.”

Crown said “potentially economic” gold mineralization has been partially delineated on the Kings Canyon property over a horizontal strike length of 2,500 ft. and 200-400 ft. in width. (Most of the drill holes are spaced on 100-ft. and 200-ft. centres.)

The company said this mineralization displays “excellent continuity,” and remains open in two directions. A second parallel zone was also identified to the west.

Current drilling is continuing to delineate and expand the discovery, and preliminary metallurgical testing was recently initiated. (Centurion Mines reported that preliminary cyanide leach tests show recoveries in excess of 75% gold.)

The property contains a number of favorable targets not yet tested by drilling. Crown said reconnaissance surface sampling indicated “strong gold-enriched areas over a substantial portion of the landholdings.” Drill targets in these new areas are currently being developed for testing during the summer field season.

Results from recent drilling on the Kings Canyon property are as follows:

ft. ft. gold

Hole Interval Width oz./ton

6 175-270 95 0.032

7 205-275 70 0.023

8 280-335 55 0.033

14 180-225 50 0.044

15 170-270 100 0.036

16 175-275 100 0.053

17 330-405 75 0.021

18 340-420 80 0.028

20 235-330 95 0.023

21 190-265 75 0.028

23 205-300 95 0.048

25 165-215 50 0.051

29 165-250 85 0.034

30 145-195 50 0.049

31 245-295 50 0.050

32 255-350 95 0.033

33 160-210 50 0.070

35 200-305 105 0.027

37 215-310 95 0.026

38 160-255 95 0.049

40 180-285 105 0.022

41 210-330 120 0.031

43 170-270 100 0.036