Liquid Gold underground at Brett

Underground development is proceeding at the Brett gold property near Vernon, B.C.

Liquid Gold Resources (VSE) is driving an adit 800 ft. into the side of a mountain in order to intersect the high-grade Bonanza shear zone, where previous drilling returned values as high as 3.2 oz. gold per ton. The adit was expected to have reached the Bonanza zone by presstime; removal of an 8,000-tonne bulk sample will follow.

In 1988, Huntington Resources (VSE) intersected 235 ft. of 2.03 oz. from a hole drilled downdip through the structure. The Bonanza appears to have a true thickness averaging 6 ft., although, in places, the structure swells to 40 ft. Gold mineralization is not only confined to quartz veining within the shear zone, but to material adjacent to the zone as well.

Liquid Gold is earning a 50% net profits interest in the property from Huntington. The former must provide the required financing and produce 1,200 tons of ore by Feb. 12, 1995. Of the first $800,000 in revenue generated, Liquid Gold will receive 67.5% and Huntington 32.5%, after which time the revenue will be split 50-50.

In order to process the sample, Liquid Gold has the option of buying a 49% interest in the 100-ton-per-day Greenwood mill. Should it do so, a combined cash and stock payment of $195,000 over five years would be required. The Greenwood mill is not winterized, however, and the company is negotiating with Bethlehem Resources (TSE) for the use of the Goldstream facility.