Tenajon hits high-grade at Summit Lake

Vancouver – Tenajon (TJS-V) has intersected high grade gold while drilling at its past-producing Summit Lake mine property in northwestern British Columbia. Fourteen holes extended the areas of known gold mineralization, prompting the company to plan a major exploration program for early next summer.

The company’s wholly-owned Summit Lake is situated 50 km north of Stewart in northern British Columbia. The company believes there is value in the pre-existing development work and infrastructure at the mine.

Four parallel zones occur within a 650-foot-wide northwest trend on the property. Development of three of these zones in the early 1980s produced 95,426 oz. gold, with grades averaging 0.474 oz. gold per ton at 89-92% recoveries, over the four years it operated.

High interest rates and falling gold prices in the early 1980s led to the mine’s shutdown. The property has seen little exploration since the mine was first put into production.

A 4000-foot drill program to test the old Summit Lake mine site began this fall. Underground drilling focused on resource expansion in and around the old workings. Eleven of the 14 drill holes intersected high-grade gold mineralization.

Seven holes tested targets beneath the old mine workings at the M zone. Highlights include: 14.3 ft. of 1.137 oz. gold per ton at a depth of 178.7 ft. in hole 798; 13.8 ft. of 0.961 oz. gold at a depth of 237 ft. from hole 715; and 6.2 ft. of 0.88 oz. gold from 188 ft. down in hole 714.

The western extent of the M zone at the 3,000 level was tested by three holes at 100 ft. spacing returned up to 4.9 ft. of 0.415 oz. gold from 195 ft. depth.

Three holes testing the N zone where limited mining took place south of the M zone, returned up to 3.8 ft. of 1.3 oz. gold from 361 ft. down. South of the N zone this year’s drilling on the L zone returned up to 6.7 feet of 0.475 oz. gold from 324.7 ft. (including 2 ft. of 1.17 oz. gold).

At the Road showing, 3 km from the old mine workings, chip sampling returned a 4.9 ft. section averaging 0.606 oz. gold from a rock exposure that is elsewhere buried by overburden.

The geological resources within the three zones were estimated to be 132,306 tons averaging 0.560 oz. gold, when the mine was shut down.

Tenajon recently received a favourable ruling relating to the lawsuit filed by Trans Pacific Mining and Carminco Gold and Resources over the alleged breach of an option agreement on the Summit Lake property. The B.C. Supreme Court found that there was not an enforceable option agreement between the plaintiffs and Tenajon and as such the plaintiffs’ action was dismissed, and Tenajon awarded costs.