Eskay Creek drilling suggests extension on Adrian ground

With two drill rigs still at work, Prime Resources Group (VSE) has released results from several holes designed to test the northward strike extent of the 21B deposit at the Eskay Creek project north of Stewart, B.C. The latest results appear to confirm longstanding speculation that the 21B zone deposit plunges at depth onto adjacent ground held by Prime company, Adrian Resources (VSE).

Collared at 0+50W on section 12+50N, about 50 metres south of the northern boundary of the property, the holes are the most northerly ones drilled to date on the 21B deposit. Both holes returned sulphide mineralization with values in gold, silver, lead, zinc and copper.

Hole 645 returned 55.8 ft. of 0.40 oz. gold, 2.07 oz. silver, 0.2% lead and 0.18% zinc from 1,056.1 ft. to 1,111.9 ft.

Hole 646 returned a number of intersection at depths ranging from 810 ft. to 1,003.6 ft. These include: 16.4 ft. of 0.39 oz. gold, 10.53 oz. silver, 2.67% lead, 4.0% zinc and 0.43% copper; 95.1 ft. of 0.37 oz. gold, 15.53 oz. silver, 5.15% lead, 15.27% zinc and 1.58% copper; and 49.2 ft of 0.065 oz. gold, 3.90 oz. silver, 2.02% lead, 3.20% zinc and 0.35% copper.

Assays are awaited for two other holes drilled on the section, and for hole 649 which was drilled to test an IP anomaly straddling the Eskay Creek property boundary with Adrian.

Prime noted that drilling to date on the 21 zone deposits has shown “excellent direct correlation with IP anomalies and the main body of the 21B zone deposits.”

Although the potential depth extension of the Eskay Creek deposit onto the Adrian claims has yet to be drill tested, the share price of Adrian appreciated considerably in recent weeks. At press time, the issue was trading at about $8.50.

Shareholders sldo approved an agreement that will allow Prime and its partner at Eskay Creek, Stikine Resources (TSE), to earn a 50% interest in Adrian’s SKI project.

The deal calls for staged expenditures of up to $5 million over four years, and for Adrian to be carried through to feasibility.

Adrian currently holds title to two of three claims making up the SKI project, including ground that covers a staking gap at Eskay Creek. Reserves within the TOK claim gap total 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 per ton.

Adrian also holds title to the claim that is considered prospective to host extensions of the 21B zone deposit. The company intends to dispute a ruling that awarded Ken McKenzie title to the remaining claim making up the SKI property.