Rio Algom releases assays from Lockwood joint venture

Drilling on the Lockwood property near Everett, Wash., has returned semi-massive-to-massive sulphide intersections in four of five holes.

The property is owned 65% by Island-Arc Resources (VSE) and 35% by Formosa Resources (VSE), while Rio Algom (TSE) holds the right to earn a varying interest.

Rio must fund work to the completion of a feasibility study and a production decision, at which point Island-Arc and Formosa could exercise one of two options: accept a 10% net profits royalty and provide 20% of development costs for a combined 30% interest, or accept a 15% net profits royalty. The Rio drilling intersected 40 ft. grading 4.29% zinc, 1.38% copper and 0.034 oz. gold and 0.85 oz. silver per ton in Hole 93-23.

Hole 93-25 returned a 16-ft. interval grading 4.22% zinc, 0.65% copper, 0.023 oz. gold and 0.55 oz. silver, plus a 33-ft. section grading 2.85% zinc, 1.08% copper, 0.039 oz. gold and 0.75 oz. silver.

The intersection in Hole 93-23 is 550 ft. east of Hole 93-25. The mineralization in the two holes is reported to be similar in tenor and thickness to that intersected in Holes 91-13 and 91-15, which are 500 ft. northeast of Hole 93-25.

Hole 91-13 intersected 65 ft. grading 3.12% zinc, 1.95% copper, 0.044 oz. gold and 1.23 oz. silver, while Hole 91-15 intersected 43.9 ft. at 1.55% zinc, 1.7% copper, 0.043 oz. gold and 0.86 oz. silver.

Hole 93-21, drilled at 67 from the same setup as vertical Hole 93-25, intersected three narrow sulphide bands. The deepest band returned a 5.8-ft. section grading 1.39 oz. gold and 3.72 oz. silver.

Hole 93-24 was drilled vertically from the same setup as 93-23, but it intersected a quartz porphyry intrusion at the target depth. In the past, several mineralized zones have been intersected on the property. However, determining continuity has been complicated by extensive faulting and intrusions. Kennecott dropped an option on the property last year after an inconclusive drilling program.

Drilling by Rio Algom continues.