$400,000 program planned for Brewery Creek project

A $400,000 exploration program will begin shortly on the Brewery Creek property near Dawson, Yukon, a bulk-tonnage gold project owned 51% by Hemlo Gold Mines (TSE) and 49% by Loki Gold (VSE).

The program is designed to further expand Brewery Creek’s reserve inventory which was last reported as

17 million tons in nine deposits at an average grade of 0.055 oz. gold per ton (or 930,000 oz. gold, of which 693,000 oz. would be in the oxide, heap leach category). This diluted preliminary reserve estimate was released by Loki Gold

earlier this year, and is based on an independent reserve study by Orcan Mineral Associates.

The 1992 first-phase program is focused on defining new targets in the south, east and northwest portions of the property adjacent to the Schooner, Classic and Pacific zones. The program will include induced polarization surveys, mechanical trenching and drilling.

A follow-up program dependent on the results of the first-phase program would begin in early summer. The Brewery Creek property has moderate terrain and is accessible by road from Dawson. The initial discovery on the property was made by geologists working out of Noranda Exploration’s Whitehorse office.