Cheni cuts down Lawyers’ reserves

This summer’s exploration program on the Lawyers property, owned by Cheni Gold Mines (TSE), has proved disappointing for the junior gold producer. The 100% owned Lawyers Mine is in the Toodoggone region of north-central British Columbia.

The work program included stepout and infill drilling on the Cliff Creek zone, located to the southwest of the current mining operations at the AGB zone.

Previous work had outlined mineralized zones on each end of the 3,000 ft.-long northwesterly trending structure. The company had assigned probable reserves to the Cliff Creek zone of 838,900 tons grading 7.1 oz. silver and 0.18 oz. gold per ton, plus possible reserves of 524,500 tons grading 6.6 oz. silver and 0.17 oz. gold.

Drilling between sections 4350 NW and 4800 NW (about 1,500 ft.) returned no significant intersections while infill drilling on section 4200 NW, where a strong mineralized zone was encountered in 1987, indicates that continuity is limited.

In addition, the results of core logging and analytical work show that precious metal values are erratic and are hosted by a relatively tight structure.

As a result of the program, Cheni has downgraded the reserves in the Cliff Creek zone to 466,000 tons of probable reserves grading 0.19 oz. gold, and 7.7 oz. silver. Possible reserves total 114,000 tons grading 0.17 oz. gold, and 7.8 oz. silver. All reserves are calculated at 0.10- oz. cutoff.

The company reports that underground development on the Cliff Creek north zone is proceeding and that the decline has intersected the zone at the 1650 elevation. Cheni plans to continue work to develop production levels above and below the 1650 elevation as well as to begin an underground drilling program to define oreshoots and explore downdip extensions.


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