Drilling by Sutton expands Bulyanhulu

Deep drilling on the Bulyanhulu property in Tanzania is expanding the project’s gold resource, according to Sutton Resources (VSE).

Sutton, which holds an 85% interest in the property, is confident ongoing drilling will double the previous resource estimate of 3.5 million tons grading 0.31 oz. gold per ton for Reef 1.

The Tanzanian government retains a carried 15% equity interest in the project, as well as a 3% royalty on production. Sutton is required to spend at least US$1.5 million this year, US$1.5 million next year and US$12 million in 1997.

Drilling to date on Reef 1 includes 158 holes over a strike length of 4,500 ft. and a depth of up to 2,300 ft. The average thickness and grade of the steeply dipping deposit is estimated at 14.7 ft. and 0.31 oz. gold, respectively.

Sutton expects to re-estimate the resource in the near future.

Deep drill results are as follows:

HoleIntercept depth (ft.)Width (ft.)Gold (oz./ton)

1721154.1 6.6 1.41

1731544.2 23.7 0.24

1741011.0 6.6 0.60

1751538.7 23.7 0.38

1761935.0 19.8 0.07

1771777.8 6.6 0.24

1781679.9 6.6 1.10

1791304.3 6.6 0.70