Varitech uncovers enriched zone

Recent drilling on the Big Onion property near Smithers, B.C., intersected a near-surface enriched copper zone, Varitech Resources (VSE) reported.

The company said holes BO-91-1 to 4 of the 1991 phase-one drilling program outlined a thicker, higher-grade supergene area in the North zone. (Supergene refers to enriched mineralization that has been formed by generally descending water. A supergene zone typically sits above the main orebody.) “Supergene copper mineralization in the four holes averaged 0.52% copper over 265 ft., indicating the presence of a higher grade (23% higher than the deposit average) near surface, `leachable’ copper zone,” wrote the company in a press release.

Overall, the mineralization in these four holes, Varitech said, averaged 0.4% copper over 492.5 ft., presenting “a significant increase in width and tonnage and decrease in stripping ratio at about the same grade as the previously indicated deposit average.”

(Previous drilling of the property by another company in the 1970s outlined a preliminary reserve estimate of up to 80-100 million tons grading 0.42% copper and 0.02% molybdenum, with unknown gold and silver credits, the company said.)

Varitech’s target is to outline a low-cost, leachable supergene copper deposit amenable to SX-EW technology, and at least 50 million tons in size at 0.5% or a minimum contained reserve of 500 million lb. copper. Varitech is paying $4 million and issuing 200,000 shares during a 4-year period to earn a 100% interest in the property. As well, a $5-million buyout would net the company the underlying 3% net smelter royalties. Eight holes have been completed to date in the phase-one program; assays from the other four holes are awaited. The second phase is scheduled for startup in late September.