Pacific Metals options Mt. McKendrick gold play

Alberta-listed Pacific Metals has reached an agreement with Habsburg Resources (VSE) to earn a 49% interest in the Mount McKendrick gold showing near Smithers, B.C.

The property consists of seven claims covering about 1,550 hectares. Two of the claims, known as Harold and Emily, host the Pioneer vein which has returned values up to 15.4 grams gold and 1,110 grams silver per tonne. In 1991, Habsburg drilled three holes into the Pioneer vein and successfully traced it to a depth of 42 metres. One of the holes intersected 11.42 grams gold and 35.99 grams silver over a core length of 2.6 metres. Pacific must deliver 200,000 shares to Habsburg and spend $200,000 to earn a 24% interest during the first year. In the second year, Pacific will deliver a further 400,000 shares and spend an additional $200,000 to earn a further 25% interest.

Pacific plans to proceed with a 2-phase exploration program. The first phase, which will cost $200,000 and last six months, will consist of geological mapping, geochemical sampling, induced polarization surveys and trenching. A second phase, to consist of diamond drilling, will test targets outlined during the first phase.