Drilling by Taseko confirms size and grade of Fish Lake

Assay results from a further two holes on the Fish Lake property, 75 miles southwest of Williams Lake, B.C., are confirming size and grade projections made earlier this year by part-owner, Taseko Mines (VSE).

Taseko remains the operator of Fish Lake until May 31, 1994, when the copper-gold project reverts back to Cominco (TSE). Taseko entered into an agreement with the major in April, which gives it control of the property while a buyer is found. Under the agreement, proceeds from the sale of the property will be split between the two companies according to a scaled formula. Cominco’s split is capped at 40% to a maximum of $48 million, assuming Taseko can find a buyer for the property willing to pay in excess of $70 million.

Before the start of the current drilling program, Taseko estimated that preliminary reserves on the deposit totaled 600 million tons grading 0.20% copper and 0.011 oz. gold per ton.

Following the release of the first three holes, Taseko projected that the grade of the deposit would increase to 0.28% copper and 0.015 oz. gold. The fourth and fifth holes appear to substantiate Taseko’s estimates, with hole 91-4 returning 2,348 ft. from 105 ft. to 2,552 ft. grading 0.32% copper and 0.015 oz. gold. Hole 91-5 intersected 2,356 ft. from 63 ft. to 2,419 ft. grading 0.30% copper and 0.015 oz. gold.

The five holes have tested the deposit over 1,300 ft. in the north-south direction, 1,000 ft. in the east-west direction and to a depth of 1,500 ft. Holes 91-6 and 91-7 are reported to have intersected disseminated copper sulphide mineralization throughout, touching down at about 2,630 ft. Assay results from the two holes are pending.

The current drilling program includes nine holes with the remaining four drilled on 330-ft. stepouts to the north, south, east and west.