Uranerz, Jascan prepare to drill Dawson gold bet

Toronto-based Jascan Resources (TSE) says Uranerz U.S.A., a unit of West Germany’s Uranerzbergbau, has elected to proceed with more drilling on Jascan’s Dawson gold property in Colorado. Uranerz originally acquired its option to explore the property last February. Since then, Uranerz has encountered favorable gold results during its recent drilling work.

The claims have been estimated to host preliminary reserves of around 465,000 tons grading 0.24 oz. gold per ton in two main shoots. The mineralization is associated with a stratabound sulphide zone within metamorphic rocks.

The second option period calls for Uranerz to make a cash payment of US$50,000 and undertake to spend another US$250,000 on the property for a total expenditure of US$450,000. Uranerz estimates that since beginning its option in February, expenditures have totalled $420,000. Expenditures in excess of US$200,000 in the first option period are credited to the second period.

By fulfilling the expenditure requirements of the second period, Uranerz earns the right to continue on to a third phase by paying another US$150,000 to Jascan before Feb. 1, 1991.

Jascan says construction of drill roads is under way in preparation for another 15,000 ft. of drilling in the Copper King segment of the claim group. That drilling will focus on a 2,000-ft. interval between the Dawson and Windy Gulch segments which host the bulk of previously known gold reserves.

In addition to diamond drilling, Uranerz plans to drill some shorter surface holes in the Windy Point area, about 1,000 ft. west of the other gold zones.

A prefeasibility study and metallurgical tests are also planned prior to an underground program next year.

The former owner of the Dawson gold project, U.S. Borax, spent about US$2.2 million on the claims. U.S. Borax drilled about 61 holes totalling nearly 51,000 ft.