American Bullion expands Red Chris copper project

Initial drill results are expanding the size of the Red Chris project in northwestern British Columbia.

American Bullion Minerals (VSE), which holds an 80% interest, hopes to boost the open-pit, minable resource to 240 million tonnes from 157 million grading 0.48% copper and 0.37 gram gold per tonne.

Teck (TSE) owns the remaining 20%, which it can increase to 55% by funding the project to production after American Bullion completes a prefeasibility study.

Holes 134 and 140 extended the northern limit of the deposit, in addition to expanding its depth potential below the 350-metre limit of the preliminary pit plans.

Drilling on the southern margin (including holes 133, 135, 137, 139, 142 and 143) extended the mineralization within the current pit limits, effectively adding to the resource while reducing the stripping ratio.

Drilling here also encountered a second stockwork zone, which has an elevated gold content represented by intersections of 25 to more than 30 metres grading greater than 1 gram gold.

Recent results from the Red Chris program are as follows:

HoleIntervalWidthCopperGold

(m)(m)(%)(g/tonne)

133204.2-364.5160.30.310.40

incl.215.2-247.5 32.30.540.90

134288.7-508.9219.50.330.24

135260.9-312.7 51.80.270.65

incl.288.3-312.7 24.40.341.06

137 50.9-111.9 61.00.320.46

139130.2-276.5146.430.400.12

140392.3-812.9420.60.510.48

incl.392.3-438.0 45.70.740.57

and526.4-812.9286.50.580.57

142 8.5-90.5 82.00.780.31

130.2-523.4393.20.420.30

143273.4-401.4128.00.390.46