Shannon finances Tatsamenie program

Alberta-based Shannon Energy (ASE) has raised $700,000 through a number of flow-through share issues to finance exploration at the Tatsamenie property in northwestern British Columbia, the company said recently.

Under an agreement, with Chevron Minerals and Dia Met Minerals (VSE), Shannon can earn a 50% interest in the 13,375-hectare property by spending $1.5 million over a 3-year-period. After that, Shannon’s interest may be reduced by 10% if Dia Met spends an additional $300,000 on exploration at Tatsamenie.

The claim blocks in which Shannon has an interest are comprised of three main groupings: the central Misty Nie block, the westward Ram Tut Tot and the eastward Grand Slam

This year, exploration will focus on the Misty Nie block which covers the northern half of a 15 km fault zone, according to Shannon. The Gold Bear property where partners Chevron Minerals and Homestake Mineral Development have outlined 1.5 million tons of average 0.3 oz gold per ton, covers the southern half.

The fault structure contains exposures of gold mineralization along its entire length, said Shannon President R. W. Boal. Surface sampling along the fault has located three showings on the Misty Nie block which contain gold values ranging from 0.3 oz to 2 oz *

The intensity and extent of the hydrothermal alteration and mineralization is indicative of either a very large system or a number of systems that could have produced several deposits, Boal said.