Suntac hikes Polaris-Taku reserves

A recent independent geostatistical study boosted reserves for the Polaris-Taku deposit in northern British Columbia to 2.2 million tons grading 0.43 oz. gold per ton.

Suntac Minerals (VSE) can earn a 60% interest in the property from Rembrandt Gold Mines (ASE) by delivering a feasibility study for production by 1994. The company has already completed the expenditure of $3 million required under the earn-in agreement.

The new reserve figure compares with the previous estimate of 1.9 million tons grading 0.47 oz. gold. The new calculation includes probable reserves of 333,000 tons grading 0.44 oz. gold and possible reserves of 1.9 million tons grading 0.43 oz. gold at a cutoff grade of 0.25 oz. gold.

Bradford Cooke, president of Canarc Resource (VSE) which controls both Rembrandt and Suntac, said the next step is to complete a $400,000 first-phase drilling program on the property. The program will include a 12-hole, 8,000-ft. infill and stepout program to extend the strike length of the deposit.

Cooke noted that since the gold deposit is refractory and will require capital intensive autoclaving, a primary objective for the company is to develop a larger ore reserve.

Cooke noted that the new reserve estimate, completed by Montgomery Consultants, used a 25-ft. radius around drill holes in establishing ore blocks. He added that if the radius is increased to 50 ft., the tonnage within the C vein (estimated at over 440,000 tons) would more than double with no loss in grade.

As a result, Cooke expects the infill drilling to increase reserves substantially. He added that the main oreshoots in the AB, C and Y veins are open on strike and to depth.

Cooke said Suntac is now searching for funding for the first-phase program which he hoped to start in late February.

The second and third phase of this year’s proposed program include further stepout drilling on strike as well as to depth, underground development work and infill drilling, as well as the completion of a feasibility study. The second and third phases are budgeted at $1.75 million and $3.35 million respectively.

Canarc currently owns about 36% of Suntac’s outstanding shares (41% fully diluted) and about 40% of Rembrandt’s capital (47% fully diluted). Cooke said a merger of the three companies is a likely prospect at some point during the year.