Kokanee testing Sullivan-type exploration target

Speculation on the significance of recent drilling at the Vine property near Cranbrook, B.C., has dramatically boosted the share price of Kokanee Explorations (VSE). The junior company reported that drilling intersected bedded sulphide bands including bedded sphalerite over 20-30 ft. at the Middle Aldridge/Lower Aldridge contact and overlying a sulphide fragmental. This contact, or “Sullivan time horizon,” is considered to be equivalent stratigraphically to Cominco’s Sullivan zinc-lead-silver mine in nearby Kimberley.

Kokanee’s share price, which has traded as low as $1.37 in the past year, peaked at $2.95 before settling at $2.68 as a result of the speculation.

Since the discovery of the Sullivan mine in the late 1800s, a number of companies have searched unsuccessfully for other Sullivan- type deposits in the East Kootenay district. The Vine property was optioned from Cominco (which has a back-in right) and Kokanee’s consulting geologists combine 50 years of experience working for Cominco in the East Kootenays.

Consulting geologist David Pighin said the Vine property, although still in the early stages of exploration, has some of the best “Sullivan smoke” (favorable geologic markers) seen outside the immediate area of the Sullivan mine.

In view of the bedded sulphides bands encountered in the drilling, Kokanee interprets the fragmental alteration and stratigraphic position as “strong evidence” the Vine vein is a feeder system that carried and deposited metal-rich solutions at the same time the Sullivan mine was deposited.

It plans to trace and drill test systematically the Vine vein system for further evidence of venting and stratiform mineralization on the Sullivan horizon. Work to date has tested the downdip of the Vine vein system to about 800-900 ft. beneath surface.

The Vine vein is believed to continue on to adjacent ground held by Cominco, and possibly on to ground held by Goldpac Investments (VSE). Goldpac also intends to drill test its property for a Sullivan-type target.

In early January Kokanee reported assay results from five holes drilled on the Vine vein, then classed as a “St. Eugene-type” exploration target. The results included a significant number of narrow intersections with varying results.

Assays for intervals over five feet in width are: 11 ft. of 0.08 oz. gold, 1.02 oz. silver, 2.38% lead and 0.85% zinc; 6.9 ft. of 0.04 oz. gold, 1.32 oz. silver, 3.43% lead and 0.91% zinc; 5.5 ft. of 0.04 oz. gold, 1.65 oz. silver, 5.66% lead and 0.9% zinc; 8.5 ft. of 0.04 oz. gold, 1.70 oz. silver, 3.27% lead and 0.17% zinc and 6.2 ft. of 0.10 oz. gold, 1.24 oz. silver, 3.25% lead and 0.56% zinc.

Last November, Kokanee issued a release to clarify promotional literature reporting grades on the Vine vein to be “in excess of 25% combined lead-zinc” and “up to 0.49 oz. gold per ton.” It did so by noting this was meant to indicate that only selected samples had assay values of this range.

The company also clarified reports that the Vine vein structure was exposed in widths “up to 12 metres (true width)” by noting that the vein was not fully mineralized across that width.