An option agreement has been entered into between Kerr Addison Mines and Chesbar Resources under which the latter may earn a 50% interest in the 126-claim vic gold property and the nearby 63-claim dic property, 47 km west of Carmacks in the Yukon, by spending $200,000 on exploration by Dec 31, and a total of $400,000 by Dec 31, 1988.
Chesbar has, in turn, optioned 50% of its interest to States Exploration; Chesbar will be the operator of the joint venture and each company will pay its proportionate share of costs. High gold values were obtained on the property in boulders, bedrock, trenches and drill holes by Kerr Addison in 1985 and 1986, Chesbar President J. T. Flanagan reports. The values were located within a mineralized area 1,000 m long by 700 m wide, with the best values in the North zone.
Work to date has been concentrated in the South zone where high gold values in boulders were followed up by trenching and drilling. Because the property has not been glaciated, the loose rocks are of local origin, and gold-bearing quartz veins were subsequently discovered in bedrock beneath the gold-bearing float, Mr Flanagan reports.
Drilling obtained numerous gold intersections, ranging up to 1.04 oz per ton over 1.3 ft and 0.37 oz across 8.5 ft, and averaging 0.45 oz over an average width of 3 ft.
The main target in the Chesbar program will be the North zone, which has not yet been drilled and where high grade float is more abundant. Of 59 composite samples of loose vein material taken from bulldozer trenches in the North zone, 49 averaged 0.78 oz, with 33 of these being greater than 0.33 oz. Chesbar plans an immediate start to drilling on the zone, which is accessible by road.
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