Reserve estimate announced for Eskay Creek

A long- awaited independent preliminary calculation of reserves and grade was announced by Calpine Resources (VSE) and equal partner Stikine Resources (TSE) for the 21 zone discovery on the Eskay Creek property north of Stewart, B.C. Although the final report isn’t expected for several weeks, the companies released a preliminary reserve estimate summary prepared by Roscoe Postle Associates of Toronto.

The 21 zone deposit is reported to contain probable geological reserves of 1.25 million tons grading 1.52 oz. gold per ton and 38.0 oz. silver. (A cutoff grade of 0.25 oz. gold was used.)

The bulk of these reserves — some 1.07 million tons grading 1.66 oz. gold, 43.3 oz. silver, 2.1% lead and 5.2% zinc — are generally from the Central and North zones. The South zone, which contains some refractory mineralization, accounts for 183,000 tons of 0.71 oz. gold, 6.8 oz. silver, plus low lead and zinc values.

Roscoe Postle Associates also calculated possible reserves of 437,000 tons grading 0.88 oz. gold, 32.8 oz. silver, 2.1% lead and 4.8% zinc, generally from the Central and North zones.

The interim report used a minimum thickness of 6.5 ft. and a specific gravity of 2.76. It was also noted that “generally gold assays are uncut.”

These estimates are part of a larger ongoing study. The summary, however, stressed “they are unlikely to change significantly” when the final report is submitted.

The work in progress by Roscoe Postle Associates will use drill hole data on holes up to 89-205 and involve geological reserve estimates at three different cutoff grades, 0.25, 0.10 and 0.04 oz. gold.