Tulsequh drilling results batter Redfern

Recent drilling results from the Tulsequah Chief project in northwestern British Columbia helped initiate a free fall in the share price of Redfern Resources (TSE). The junior has earned a 40% interest in the massive sulphide project from Cominco (TSE). The results follow an earlier set which also failed to cut the wide massive sulphide intercepts seen in the first two holes of the 1990 drilling program.

The initial holes, 22 and 23, respectively intersected 164 ft. grading 2.9% copper, 1.6% lead, 9.1% zinc, 0.11 oz. gold and 5.0 oz. silver per ton and 89.5 ft. grading 1.2% copper, 1.2% lead, 5.4% zinc, 0.11 oz. gold, and 4.2 oz. silver.

This spurred the stock from the $4 level to almost $9 in anticipation of a large deposit being outlined at depth.

Results from these holes were followed by holes 24 and 25 which were drilled to the east and west of 22 and 23. (Hole 23 is about 500 ft. downdip from 22.) Although the holes intersected 20 ft. and 5.5 ft. respectively of well mineralized massive sulphides, the remaining favorable stratigraphy was displaced or shifted by a post-mineral dyke.

The most recent holes were also drilled to the east and west of the two initial holes. They were designed to intersect the mineral horizon at the furthest strike extent possible from the underground drilling station.

All of the favorable stratigraphy in hole 26 was displaced by the dyke, while hole 27 intersected the western edge of the mineralized zone returning subeconomic base metal values.

John Greig, president of Redfern, said the dyke is believed to be a single tabular body dipping at about 85 degrees on the same strike as the sulphide zone, which in turn dips at about 55 degrees . He said holes 24 and 25 are believed to have cut through the intersection of the dyke and the sulphide lens.

Redfern’s share price fell from the $6 level to the $5 level after the release of holes 24 and 25. After the release of holes 26 and 27, the issue dipped below $3. Greig said the stock drop was largely caused by margin calls forcing selling, with the drop compounded by a generally soft market.

Holes 28 and 29, now being drilled, are targeted to intersect the lens downdip from the dyke and holes 22 and 23. The holes are expected to reach target depth by Nov. 5.