EXPLORATION ’87 WESTMIN

With more than a dozen properties in various stages of exploration, Westmin Resources is into a banner mineral exploration season. About $6 million of the work commitments are being financed by junior partners which have raised new funds via flow- through share issues. The most spectacular and significant results are being obtained some 9 mi from Stewart, B.C., on the British Silbac Premier Mines property and on Tournigan Mining Explorations’ Big Mussouri ground, some 4 mi to the north.

After several seasons of geoscientific surveys, analysis and limited drilling, the 1986 program proved positive from the start. Phase i drilling on the Glory Hole zone (an area mined decades ago and considered amenable to open pit mining) returned intersections of 20-30 ft ranging from 0.25 to 0.33 oz gold plus 30-60 oz silver per ton. In November impressive ore grades were encountered in diamond drilling on four proposed open pit zones on the Big Missouri property. Late in the year, fill-in drilling intersected some bonanza grades such as hole 122, which cut 5 ft grading 22.7 oz gold and 18.4 oz silver per ton, followed by 10 ft grading 0.39 oz gold and 2.2 oz silver per ton. Those impressive surface results were later confirmed by underground drilling. All this has resulted in a most significant upgrading in reserve tonnage and grade.

Meanwhile engineering studies evaluating metallurgy, tailings deposition, geotechnical aspects and hydroelectric potential are in progress in preparation for a detailed feasibility study. Initial discussions have been held with appropriate governmental agencies and with municipal groups at Stewart, B.C., and Hyder, Alaska. Submission of a Stage i socio-economic and environmental impact study is expected in early April. Westmin is working towards a production decision in mid-1987.

Westmin’s other major exploration project encompasses Colony Pacific Explorations’ Blue Moon polymetallic deposits in Mariposa Cty., northern California. A $1-million diamond drill program has extended and upgraded previously reported reserves. The best individual hole was No. 33 which intersected 36 ft averaging 0.15 oz gold, 2.92 oz silver per ton, 0.94% lead, 0.63% copper and 25% zinc. The mineralization is surprisingly similar to that of the ore bodies at Westmin’s newly-expanded H-W mine at Myra Falls on Vancouver Island.

On the Debbie property, along Vancouver Island’s Sicker belt, Westmin’s first drill hole into a pyritic quartz- carbonate alteration zone intersected 37.2 ft grading 0.124 oz gold per ton. Within this intersection are two sections of 9.4 and 8.5 ft grading 0.17 and 0.179 oz gold per ton respectively. Drilling in a second area to the south, the Regina zone, has intersected copper in what appears to be a massive sulphide stringer zone. Funding is being provided by Nexus Resource Corp. and by Angle Resources which can earn a 50% interest through expenditure of $1 million before February, 1988.

The Little Stull property, in Manitoba, is part of the Westmin-Barringer Magneta Western Shield joint venture. Funding is being provided by Tanqueray Resources. Diamond drilling has intersected gold mineralization (geochemical analysis) in sludge samples. Westmin has staked four gold showings on the Ontario side of the border — not far from the Little Stull property and with similar geological characteristics. Joint-venture partners for these properties are being lined up.

At Utik, Man., a letter of agreement was being prepared at presstime which provides for the expenditure of $980,000 prior to Feb 28, 1988, by Polestar Exploration to earn a 30% interest in the property. Meanwhile at Sundy Lake, Ont, in the vicinity of the big Campbell Red Lake-Amoco gold mine, diamond drilling is in progress, with one hole having intersected a 3-m quartz zone with carbonate alteration. Exploration funds are being provided by Tanqueray Resouces.