A second-phase program aimed at exploration for new zones and zone extensions will be carried out over the balance of this summer and fall at the Brewery Creek gold property near Dawson, Yukon.
The promising bulk tonnage project is owned 51% by Hemlo Gold Mines (TSE) and 49% by Loki Gold (VSE). Project operator is Noranda Exploration. The initial part of the program, with a budget of $1.2 million, includes reverse circulation drilling, diamond drilling and trenching. The objective is to expand preliminary reserves last reported as totalling 11.1 million tons grading 0.052 oz. gold per ton. These reserves are contained within a number of zones that are considered amenable to open pit mining techniques. Since the reserve estimate was announced at the end of the 1990 season, Noranda Exploration carried out a 1991 first-phase program which was recently completed on the property.
Loki commissioned an independent engineering evaluation of the geological reserves to the end of the first-phase drilling and expects the study will be completed shortly.
The Brewery Creek property is still considered to have potential to increase reserve tonnages in several of the known zones, in recently discovered parallel zones and in a number of untested gold soil anomalies. In addition to the field exploration program, engineering and environmental baseline studies are being carried out by Noranda. More metallurgical test work is also planned on oxide, sulphide and sediment-hosted mineralization.
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