Results confirm high-grade gold at Eskay Creek

The latest uncut assay results released by operator Calpine Resources (VSE) are continuing to confirm the high- grade nature of the Eskay Creek gold deposit, north of Stewart, B.C. Calpine owns 50% of the project while Stikine Resources (TSE) holds the remainder. A total of six drill rigs are continuing to test the 21B deposit where Roscoe Postle Associates recently calculated a probable and possible geological reserve of 1.5 million tons grading an impressive 1.43 oz. gold per ton, 40.26 oz. silver, 2.1% lead and 5.08% zinc. A cutoff grade of 0.25 oz. gold was used.

While several stepout drill holes testing the area beyond this reserve returned no significant results, one of the better stepout holes returned 137.7 ft. grading 0.447 oz. gold and 24.08 oz. silver, including 32.8 ft. of 1.356 oz. gold and 74.44 oz. silver. Another hole returned 26.2 ft. of 0.877 oz. gold and 42.29 silver, including 13.1 ft. of 1.546 oz. gold and 77.23 oz. silver.

Infill drilling is presently confined to the 21B deposit within the bounds of the reserve. The latest results, excluding base metal results which are still pending, are: Length Gold Silver Hole ft. oz./ton oz./ton 90-250 32.8 1.466 28.96 90-286 23.0 0.347 25.95 90-287 29.5 1.248 33.87 incl. 13.1 2.433 69.10 90-288 13.1 0.321 0.34 90-289 32.8 5.09 181.96 90-296 13.1 0.877 30.22 90-297 26.2 0.821 10.66 90-308 19.7 0.394 10.34 90-309 19.7 0.697 17.96 90-310 19.7 1.413 55.59 90-311 6.6 0.263 1.63 90-312 23.0 0.524 10.90 incl. 6.6 1.360 20.12 13.1 0.322 4.64 90-313 9.8 0.291 8.25 13.1 1.129 62.10