YGC taps bonanza-grade gold at Ketza River

Vancouver – Drilling on the Manto zone at YGC Resources’ (YGC-T, YGCFF-O) Ketza River project in the Yukon has tied into high-grade gold mineralization.

With ten holes completed outside of the modeled resource at the Nu-Zone, a couple of holes showed strong gold grades in a manto-type environment. Oxide mineralization is apparent in the floor of the Nu-Zone pit and drilling returned grades of up to 42.4 grams gold per tonne over 20.5 metres (from 7.3 metres downhole depth) in hole KR-06-804, including an 8.75-metre interval averaging 81.4 grams gold.

The two holes (804 and 806) returning significant gold were drilled on a south azimuth and dipped 77 and 59 degrees respectively to intersect the mineralized zone, which appears to dip to the north at about 30 degrees.

YGC updated its Ketza River resource estimate late last year, upgrading the previous measured and indicated resource category by 49% to 8.5 million tonnes grading 2.8 grams gold per tonne (756,700 ozs. of contained gold). Inferred resources were increased 127% to 14.6 million tonnes of 2.2 grams gold (1,054,400 ozs. of contained gold).

The resource boost came primarily from the Manto zone, which was extended westward by drilling. The zone hosts more than 75% of all contained gold in the entire Ketza deposit.

Mineralization in the Manto zone occurs as replacements along favourable Lower Cambrian limestone horizons. Massive sulphide zones (pyrrhotite, pyrite and arsenopyrite) have been oxidized with gold enrichment occurring along structural zones or panels at normal, cross-cut faulting in the stratigraphy.

At Shamrock, gold mineralization is broadly disseminated in quartz-sulphide vein stockworks and breccias hosted in an interbedded sequence of Lower Cambrian phyllites, argillites, quartzites and carbonates.

Shares of YGC Resources closed up 16 on the news at $1.14 apiece on volume of over 185,000. The company has a $63-million market capitalization based on its 55 million shares outstanding.