Crown’s Jewel potential up on newest gold results

The potential of Crown Resources’ (VSE) Crown Jewel gold property in northeastern Washington continues to increase as results from a program financed by Battle Mountain Gold (TSE) are released. Crown Resources says assays from new infill and stepout drill holes indicate that a mineralization located 1,000 ft. to the southwest of the original drilling area is connected to a zone containing 8.3 million tons of grade 0.10 oz. gold per ton.

The drilling is being conducted under an agreement which gives Battle Mountain the option to earn 51% of the project from Crown Resources.

To exercise the option, Battle Mountain must pay the junior an additional $5 million and it has until Jan. 4 to decide whether or not to do so.

Core hole D-46, which is 40 ft. west of a hole that intersected 75 ft. of 0.58 oz., returned 130 ft. of grade 1.26 oz gold starting from surface. As ore-grade mineralization has already been reported in holes between the new drilling area and the region containing previously reported reserve, Crown says it is certain the two areas are connected and form a large mineralized system.

“The southwest extension zone is higher grade than the original reserve area and is entirely open over a 1,500-ft. strike length, to the south, southwest and west,” the company says. New ore reserve calculations based on the new results are now in progress.