Exploration may be losing steam in some parts of Canada, but not so in the emerging Stikine Arch camp of northwestern British Columbia. Dubbed “Canada’s Golden Triangle” by brokers, this rugged and remote region is expected to be the focus of a $100-million exploration and development effort dominated by a raft of juniors and a few well-heeled majors. Roughly one-third of this will be spent by Prime group companies managed by flamboyant mine- financier, Murray Pezim. The work programs are typically carried out by Prime Explorations, the behind- the-scenes team that discovered the high-grade Eskay Creek deposit north of Stewart in 1988.
The bulk of the funds will be spent at Eskay Creek which is to be owned 100% by a new company formed by the merger of Pezim’s Prime Resources Group (VSE) and Stikine Resources (TSE). When the merger is finalized, Toronto-based Corona (TSE) will be the new company’s largest shareholder with a 44.6% interest.
The remainder of the funds will be spent on other properties held by Prime group juniors, all under the umbrella of a second new company called “Son of Prime” by Pezim.
For Prime Explorations — which consists of four geologists, an equal number of support staff and nine contract employees — this means managing an exploration and development budget rivalling that of any major mining company.
Headed by geologist Chet Idziszek, the team has been working full throttle at Eskay Creek for several years now. That work will continue again this year, but exploration manager James Foster also expects the group will be kept busy on a number of less advanced properties in the Stikine Arch during the summer season.
“The general intent is to keep two or three drills busy hopping around from project to project as targets are developed,” he said.
The summer season should start in late June or early July, roughly about the same time Prime expects to complete its latest $15.0 million drill program at Eskay Creek. This infill and stepout drill program started in January and was aimed at defining reserves within the 21 zone deposits, and at finding other mineralized zones.
Besides the 21B and 21A deposits (which together contain probable and possible reserves totalling 1.55 million tons averaging 1.34 oz. gold and 36.21 oz. silver plus base metals), Prime has discovered two nearby zones called the Pumphouse Lake zone and the 21C zone.
This summer the Eskay Creek project will move into a new phase as Prime Explorations begins a $15.0 million program for the second half of 1990 that includes work on several adjacent or nearby properties held by other Prime companies.
This work will include an estimated $4-5 million, 2,000-metre underground exploration program at Eskay Creek that will involve underground drilling and the taking of a bulk sample for pilot plant metallurgical testing at Lakefield Research. Only minimal metallurgical test work has been done to date on the 21B zone deposit which accounts for the bulk of reserves.
“We also want to take a good look at the continuity, the rock stability, and all the various aspects required from an engineering standpoint,” said Idziszek.
The underground program will have two phases. In the first phase, to run from June to October, a 500-metre underground exploration decline will be driven from the south to enter the heart of Eskay Creek’s current known reserves (between 5+00N and 6+00N.)
Later this summer or early fall, a second decline will be collared at a different location (at about 10+00N) to investigate the north end of the 21B zone where infill drilling is still continuing and where new tonnage is expected to be added to existing reserves.
In the meantime, Prime Explorations will continue the search for new zones.
“We think there is excellent potential for other zones,” Idziszek said. “Before the engineers move in we want to make sure that we’ve found any other zones in what we call `the potential mine area’. After condemnation drilling we would get out of this area and then evaluate the remainder of the property.”
Drilling is planned to start soon on the GNC claims adjoining Eskay Creek, held equally by Prime, Stikine and Canarc Resource (VSE). And this summer Adrian Resources (VSE) intends to start drilling certain claims that make up its SKI project adjacent to the Eskay Creek property.
Although ownership of the claims is still disputed, Adrian appears confident it will retain title. Drilling is expected to start once a shareholder meeting is held to approve an agreement allowing Prime and Stikine to collectively earn a 50% interest in the SKI project.
Adrian already has a small reserve of 65,000 tons averaging 0.92 oz. gold, 57.4 oz. silver, 1.1% lead and 2.2% zinc at a cut-off grade of 0.25 oz. gold. This is from the TOK claim gap covering a portion of the 21B zone deposit.
Adrian currently has title to its IKS 1 claim covering the eastern part of the TOK claim gap — the part containing the above mentioned reserve — while Eurus Resource (VSE) holds the western portion of the gap.
But Prime’s latest discovery at Eskay Creek — the 21C zone — is projected to pass through the TOK claim gap on to the Gamma claim of the adjoining Albino Lake project held by Eurus (formerly Tamavack, Calvada and Consolidated Powergem).
About three-quarters of the claims making up the Albino Lake project (including the Gamma claim) are subject to section 35 disputes by Ken McKenzie (who also has title to one of the claims making up Adrian’s SKI project). Drilling is planned this season for the claims where ownership is not disputed.
Idziszek noted that exploration of the Adrian and Eurus properties to the north of Eskay Creek will be complicated by the fact they are covered by an extra layer of geology called the Bowser Sediments.
“The one way to do exploration in this area is to do stepout drilling along strike of the Eskay Creek deposit and tie down the stratigraphy.”
Another nearby property with potential for favorable geology will be drill-tested this season. Called the Lakewater property, it is held equally by Prime’s Tymar Resources (VSE) and by Akiko-Lori Gold Resources (VSE) and Arc Resource Group.
Outside of the immediate Eskay Creek area, drilling is planned for the Treaty Creek property held by Tantalus Resources (VSE). Foster said drilling on the Konkin zone last year came up with a lot of broad, low-grade gold mineralization. The zone will be further tested this year, as will several large gossans found on the property.
“The kind of alteration found on this property has all the earmarks of a Carlin-type environment,” Foster said, adding that about $0.5 million will be spent this season.
A property held by Janus Resources (VSE) (formed from the merger of Crest, Corptech and Magenta) will also be drilled to follow up a number of mineralized showings, including a low grade, bulk tonnage gold-copper zone.
This season Prime intends to be active in the busy Galore Creek camp (about 30 miles north of the Iskut River) where it is still expanding its land position. Large porphyry copper deposits were discovered at Galore Creek several decades ago, but the region is considered highly prospective for both precious and base metals.
Prime’s Gigi Resources (VSE) will be active on the Trophy project optioned from Continental Gold (VSE). About $500,000 was spent on this project late last summer and a number of prospecting discoveries were made outside of the Ptarmigan zone and other showings discovered by Continental the previous year.
Foster said about 20 mineral occurrences were discovered, ranging from precious metals, copper, copper-gold, and lead-zinc-silver. A number of these will be drill- tested during the summer program, as will the Ptarmigan zone area, and work is planned to test a large copper-gold anomaly found on the property.
Consolidated Goldwest Resources (VSE), another Prime company active in Galore Creek, expects to be kept busy on a group of properties optioned from Pass Lake Resources (VSE), including the Scud River and Sphaler Creek properties.
Several new precious and base metal occurrences were discovered on these properties last year, the most significant being the Deluxe shear zone on the Sphaler Creek property. A number of other properties will be tested in the Galore Creek camp, including the Paydirt property optioned from Silver Standard Resources (VSE) which already has a small deposit of about 200 tons grading 0.12 oz. gold.
This year Prime will be managing work on the Polaris-Taku mine project well to the north of Galore Creek. Prime company Suntac Minerals (VSE) is earning a 60% interest in the former gold producer. The objective this year is to expand existing reserves and explore untested areas of the property.
Work is also planned for several properties in the Iskut River camp to the south of Galore Creek. The new company to be formed from the merger of Prime and Stikine will have a 40% interest in the Snip project being brought into production by Cominco (TSE). This project has diluted reserves of 1.03 million tons grading 0.96 oz. gold.
A nearby property held by Prime, American Ore (ASE) and Golden Band Resources (VSE) will be drilled to further test a blind gold discovery made last year by stratigraphic drilling.
Copper-gold and other showings on a property held by Avondale Resources (VSE) will be drilled in a $0.5-million work program this season to follow up the successful 1989 program. And drilling is also planned for a nearby precious metals prospect held by Ticker Tape Resources (VSE) and Tymar Resources.
Closer to Stewart, drilling is planned for a property held by Maple Resources (VSE). Foster said some interesting surface results were encountered on this property to date, including gold-silver and some minor base metals in the known showings, and lead-zinc- silver showings that are possibly stratabound. A large and as yet untested geochemical anomaly will also be explored.
Near the Bond Gold discoveries, drilling is planned for a property held by Goodgold Resources (VSE), where precious and base metal showings have been encountered in a volcanogenic-type environment.
“We haven’t done much work, but the property has enough similarities to Eskay Creek for us to be intrigued by it,” said Foster, noting that the similarities involve the same suite of mineralization and surrounding host rocks as seen at Eskay Creek.
Exploration may be losing steam in some parts of Canada, but not so in the emerging Stikine Arch camp of northwestern British Columbia. Dubbed “Canada’s Golden Triangle” by brokers, this rugged and remote region is expected to be the focus of a $100-million exploration and development effort dominated by a raft of juniors and a few well-heeled majors. Roughly one-third of this will be spent by Prime group companies managed by flamboyant mine- financier, Murray Pezim. The work programs are typically carried out by Prime Explorations, the behind- the-scenes team that discovered the high-grade Eskay Creek deposit north of Stewart in 1988.
The bulk of the funds will be spent at Eskay Creek which is to be owned 100% by a new company formed by the merger of Pezim’s Prime Resources Group (VSE) and Stikine Resources (TSE). When the merger is finalized, Toronto-based Corona (TSE) will be the new company’s largest shareholder with a 44.6% interest.
The remainder of the funds will be spent on other properties held by Prime group juniors, all under the umbrella of a second new company called “Son of Prime” by Pezim.
For Prime Explorations — which consists of four geologists, an equal number of support staff and nine contract employees — this means managing an exploration and development budget rivalling that of any major mining company.
Headed by geologist Chet Idziszek, the team has been working full throttle at Eskay Creek for several years now. That work will continue again this year, but exploration manager James Foster also expects the group will be kept busy on a number of less advanced properties in the Stikine Arch during the summer season.
“The general intent is to keep two or three drills busy hopping around from project to project as targets are developed,” he said.
The summer season should start in late June or early July, roughly about the same time Prime expects to complete its latest $15.0 million drill program at Eskay Creek. This infill and stepout drill program started in January and was aimed at defining reserves within the 21 zone deposits, and at finding other mineralized zones.
Besides the 21B and 21A deposits (which together contain probable and possible reserves totalling 1.55 million tons averaging 1.34 oz. gold and 36.21 oz. silver plus base metals), Prime has discovered two nearby zones called the Pumphouse Lake zone and the 21C zone.
This summer the Eskay Creek project will move into a new phase as Prime Explorations begins a $15.0 million program for the second half of 1990 that includes work on several adjacent or nearby properties held by other Prime companies.
This work will include an estimated $4-5 million, 2,000-metre underground exploration program at Eskay Creek that will involve underground drilling and the taking of a bulk sample for pilot plant metallurgical testing at Lakefield Research. Only minimal metallurgical test work has been done to date on the 21B zone deposit which accounts for the bulk of reserves.
“We also want to take a good look at the continuity, the rock stability, and all the various aspects required from an engineering standpoint,” said Idziszek.
The underground program will have two phases. In the first phase, to run from June to October, a 500-metre underground exploration decline will be driven from the south to enter the heart of Eskay Creek’s current known reserves (between 5+00N and 6+00N.)
Later this summer or early fall, a second decline will be collared at a different location (at about 10+00N) to investigate the north end of the 21B zone where infill drilling is still continuing and where new tonnage is expected to be added to existing reserves.
In the meantime, Prime Explorations will continue the search for new zones.
“We think there is excellent potential for other zones,” Idziszek said. “Before the engineers move in we want to make sure that we’ve found any other zones in what we call `the potential mine area’. After condemnation drilling we would get out of this area and then evaluate the remainder of the property.”
Drilling is planned to start soon on the GNC claims adjoining Eskay Creek, held equally by Prime, Stikine and Canarc Resource (VSE). And this summer Adrian Resources (VSE) intends to start drilling certain claims that make up its SKI project adjacent to the Eskay Creek property.
Although ownership of the claims is still disputed, Adrian appears confident it will retain title. Drilling is expected to start once a shareholder meeting is held to approve an agreement allowing Prime and Stikine to collectively earn a 50% interest in the SKI project.
Adrian already has a small reserve of 65,000 tons averaging 0.92 oz. gold, 57.4 oz. silver, 1.1% lead and 2.2% zinc at a cut-off grade of 0.25 oz. gold. This is from the TOK claim gap covering a portion of the 21B zone deposit.
Adrian currently has title to its IKS 1 claim covering the eastern part of the TOK claim gap — the part containing the above mentioned reserve — while Eurus Resource (VSE) holds the western portion of the gap.
But Prime’s latest discovery at Eskay Creek — the 21C zone — is projected to pass through the TOK claim gap on to the Gamma claim of the adjoining Albino Lake project held by Eurus (formerly Tamavack, Calvada and Consolidated Powergem).
About three-quarters of the claims making up the Albino Lake project (including the Gamma claim) are subject to section 35 disputes by Ken McKenzie (who also has title to one of the claims making up Adrian’s SKI project). Drilling is planned this season for the claims where ownership is not disputed.
Idziszek noted that exploration of the Adrian and Eurus properties to the north of Eskay Creek will be complicated by the fact they are covered by an extra layer of geology called the Bowser Sediments.
“The one way to do exploration in this area is to do stepout drilling along strike of the Eskay Creek deposit and tie down the stratigraphy.”
Another nearby property with potential for favorable geology will be drill-tested this season. Called the Lakewater property, it is held equally by Prime’s Tymar Resources (VSE) and by Akiko-Lori Gold Resources (VSE) and Arc Resource Group.
Outside of the immediate Eskay Creek area, drilling is planned for the Treaty Creek property held by Tantalus Resources (VSE). Foster said drilling on the Konkin zone last year came up with a lot of broad, low-grade gold mineralization. The zone will be further tested this year, as will several large gossans found on the property.
“The kind of alteration found on this property has all the earmarks of a Carlin-type environment,” Foster said, adding that about $0.5 million will be spent this season.
A property held by Janus Resources (VSE) (formed from the merger of Crest, Corptech and Magenta) will also be drilled to follow up a number of mineralized showings, including a low grade, bulk tonnage gold-copper zone.
This season Prime intends to be active in the busy Galore Creek camp (about 30 miles north of the Iskut River) where it is still expanding its land position. Large porphyry copper deposits were discovered at Galore Creek several decades ago, but the region is considered highly prospective for both precious and base metals.
Prime’s Gigi Resources (VSE) will be active on the Trophy project optioned from Continental Gold (VSE). About $500,000 was spent on this project late last summer and a number of prospecting discoveries were made outside of the Ptarmigan zone and other showings discovered by Continental the previous year.
Foster said about 20 mineral occurrences were discovered, ranging from precious metals, copper, copper-gold, and lead-zinc-silver. A number of these will be drill- tested during the summer program, as will the Ptarmigan zone area, and work is planned to test a large copper-gold anomaly found on the property.
Consolidated Goldwest Resources (VSE), another Prime company active in Galore Creek, expects to be kept busy on a group of properties optioned from Pass Lake Resources (VSE), including the Scud River and Sphaler Creek properties.
Several new precious and ba
se metal occurrences were discovered on these properties last year, the most significant being the Deluxe shear zone on the Sphaler Creek property. A number of other properties will be tested in the Galore Creek camp, including the Paydirt property optioned from Silver Standard Resources (VSE) which already has a small deposit of about 200 tons grading 0.12 oz. gold.
This year Prime will be managing work on the Polaris-Taku mine project well to the north of Galore Creek. Prime company Suntac Minerals (VSE) is earning a 60% interest in the former gold producer. The objective this year is to expand existing reserves and explore untested areas of the property.
Work is also planned for several properties in the Iskut River camp to the south of Galore Creek. The new company to be formed from the merger of Prime and Stikine will have a 40% interest in the Snip project being brought into production by Cominco (TSE). This project has diluted reserves of 1.03 million tons grading 0.96 oz. gold.
A nearby property held by Prime, American Ore (ASE) and Golden Band Resources (VSE) will be drilled to further test a blind gold discovery made last year by stratigraphic drilling.
Copper-gold and other showings on a property held by Avondale Resources (VSE) will be drilled in a $0.5-million work program this season to follow up the successful 1989 program. And drilling is also planned for a nearby precious metals prospect held by Ticker Tape Resources (VSE) and Tymar Resources.
Closer to Stewart, drilling is planned for a property held by Maple Resources (VSE). Foster said some interesting surface results were encountered on this property to date, including gold-silver and some minor base metals in the known showings, and lead-zinc- silver showings that are possibly stratabound. A large and as yet untested geochemical anomaly will also be explored.
Near the Bond Gold discoveries, drilling is planned for a property held by Goodgold Resources (VSE), where precious and base metal showings have been encountered in a volcanogenic-type environment.
“We haven’t done much work, but the property has enough similarities to Eskay Creek for us to be intrigued by it,” said Foster, noting that the similarities involve the same suite of mineralization and surrounding host rocks as seen at Eskay Creek.
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