Drilling by Stikine hits ‘marker’ horizon

Vancouver — Deep drilling by Stikine Gold (SKY-V) at its Sullivan Deeps project, 4 km north of the Sullivan lead-zinc mine in southeastern British Columbia, has intersected an important geological “marker” horizon.

The so-called Hiawatha Marker horizon lies 450 metres above the Sullivan mineralized horizon.

Stikine is earning a half-interest in Sullivan Deeps from Teck Cominco (TEK-T) in an attempt to locate the long-sought-after extension of the Sullivan mine orebody in the north-south corridor. Mineralization is believed to continue across the east-west-trending Kimberley Fault; however, it is offset substantially downward through the drop movement along the fault structure.

Cominco drilled a hole more than 2,000 metres deep on the target in 1996 but failed to intersect significant mineralization. Subsequent down-hole geophysics identified a 3-sq.-km conductive anomaly larger than that of the Sullivan orebody — and it is this that is the focus of Stikine’s current drilling.

The Sullivan mine operated for almost a century before being closed in late 2001. It was one of the richest and largest lead-zinc producers in the world, having life-of-mine output of more than 18 billion lbs. lead and more than 17 billion lbs. zinc, plus silver, tin and copper. The value of the metals produced at Sullivan exceeds $20 billion.

Lead-zinc mineralization at Sullivan is sedimentary exhalative in origin and was deposited within a sub-basin structure. It occurs in a corridor of feeder zones that hosted several such “sedex” deposits, including the Stemwinder and North Star mines.

Stikine was trading at 37 per share at presstime. The company has 20.5 million shares outstanding.