Trader results cut reserves at Tel project

Discouraging drill results at Trader Resources Tel deposit on Banks Island, B.C. has forced the company to reduce its reserve estimate by about half.

Based on the results of a 71-hole diamond drill program, initial estimates of 206,000 tons grading 0.64 oz gold per ton have now been reduced to 100,000 tons of 0.5 oz.

After completing the program late last month, the company has released assays from a number of significant intersections. They are as follows: Hole 39 at a depth of 354 ft intersected an 8.5 ft cut grading 0.79 oz * Hole 88 at the 492 ft level intersected 3 ft of 3.45 oz and hole 67 at the 459 ft level intersected 1.6 ft of 1.06 oz.

Based on these latest results, the company has put the Tel project on hold while it attempts to find additional reserves on the Bob, Kim and Discovery deposits which are in the same area.

Trader Secretary Peter Matthews denied speculation that the Tel deposit is too narrow to mine. “It’s lack of tonnage rather than width which has prevented us from mining the Tel deposit,” said Matthews who was expecting the 71-hole program to prove up reserves of around 500,000 tons. According to Mr Matthews the Tel deposit has a minable width of around 5 ft (the minimum width for mining).

“If reserves on the other deposits are sufficient we will be able to mine all four deposits collectively,” he said.

Meanwhile, as a result of a private placement with Edlers Resources of Melbourne Australia, the company has approximately $4 million of allocated working capital in its treasury.