Calpine/Stikine results shows tonnage potential

Two other holes returned encouraging results as well. Hole CA88-17 yielded 44.3 ft of 0.32 oz gold including 19.7 ft grading 0.52 oz. Another hole, CA88-18, assayed 0.23 oz gold and 3.5 oz silver over 132.9 ft including 68.9 ft averaging 0.37 oz.

The holes are part of a 45,000-ft drill program which began in mid- January on the 21 zone. The project is funded on a 50/50 joint venture basis by the two companies. Consolidated Stikine is funding its participation with $1 million in flow-through funds; and it’s waiting approval for a $1 million private placement which should be sufficient to complete the program.

A second diamond drilling rig and a tracked vehicle have been mobilized to the property. The Longyear 38 drill will allow testing of the deep downdip potential of the 21 zone. An airborne electro- magnetic survey is now in progress over the Eskay Creek project and surrounding properties. This program will guide future exploration on the numerous zones of base and precious metals mineralization known to exist on the property.

Calpine has made a takeover offer for Consolidated Stikine on a five- for-one basis plus a warrant. Marguerite Mackay, the latter’s president, confirms that directors and insiders of the company are not accepting the offer. In any event, Consolidated Stikine hasn’t recommended that other shareholders not accept the offer, she said.

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