Cdn United results encourage

The latest drill program on the Fireweed property near Smithers, B.C. is continuing to extend a high grade mineralized horizon, officials of Canadian- United Minerals (VSE) report. Robert Holland, exploration manager, said the 100%-owned project appears to be shaping up as a major new silver/base metals discovery, with encouraging widths and grades of mineralization.

The current drill program is focused on the West zone, one of two known zones encountered in previous drill programs on the property. Michael Callahan, president, said the program encountered “significant” mineralization in every hole drilled to date and has now traced a sandstone unit with high silver values within the West zone for over a strike length of 1000 ft and to a depth of 500 ft.

“We think we have a very large system,” he said. “What we have clearly identified to date is a sandstone reef associated with the system that has finely disseminated sulphides in it, and this is where we are finding our higher grade silver values so far. We also have widespread sulphide mineralization in other rock types associated with the entire West zone.”

A recent hole, 88-24, drilled 160 ft west of a previous hole 88-22 (42.6 ft averaging 17.7 oz silver per ton, 1.79% lead and 3.07% zinc) intersected the same mineralized horizon. The company reports that visible sulphide mineralization was encountered over a 58 ft apparent width and assays from a portion of the zone include: 38.4 ft grading 12.95 oz silver, 1.93% zinc and 0.97% lead including 19.6 ft grading 18.81 oz silver, 1.85% zinc and 0.89% lead.

Holland said individual assays within the zone ran as high as 28.4 oz silver and up to 1.5% lead and 3.5% zinc. Using current metal price conversions, the company estimates the 19.6 ft interval in this zone represents a gold equivalent grade of about 0.37 oz. Another hole in the current drill program intersected 62.3 ft grading 6.04 oz silver, 0.77% zinc and 0.52% lead which includes 36.1 ft grading 9.24 oz silver, 1.11% zinc and 0.77% lead. A 16.4 ft intersection grading 1.69 oz silver, 3.83% zinc and 4.02% lead was reported from Hole 88-26.

Assays are expected shortly from a hole drilled to test the zone to the east, which intersected at least six massive sulphide horizons ranging from 2.8 to 12.9 ft wide over a 115 ft section of core. The company said these sulphide horizons are associated with acid volcanic dykes or flows and show bedding and other textures suggestive of volcanogenic massive sulphide mineralization.

Callahan said the next step, assuming continuing positive results, would be to do in-fill drilling to prove up tonnage, and then later possibly drive a ramp into the system where the average 32 ft of overburden is cut by a creek.

“From what we are seeing so far, we are looking at a very cheap mining operation and easy milling. If it’s really big tonnage we could consider open pit, or if it’s isolated to the area that we have now identified, it would be possible to ramp right into it,” he said.

A logging road runs through to the 16,615-acre flat-lying property, making it accessible by two-wheel- drive vehicles.

Canadian-United also holds an interest in the Dome Mountain gold project in B.C. The company’s major shareholder is Sandhurst Mining of Australia, which is also the major shareholder of Queenstake Resources.