YGC boosts Ketza gold resource (December 05, 2005)

Vancouver — An extensive summer drill program by YGC Resources (YGC-T, YGCFF-O) on its Ketza River project, in the Yukon’s Pelly Mountains area, has led to a significant gold resource increase.

Data from a 37-hole program was incorporated into the study, conducted by Giroux Consultants, which upgraded the measured and indicated resource category by 49% to 8.5 million tonnes grading 2.8 grams gold per tonne (756,700 contained ounces). Inferred resources increased 127% to 14.6 million tonnes of 2.2 grams gold (1 million contained ounces). A 1 gram gold cutoff grade was used in the calculations.

The gains all came from the Manto zone, which has been extended westward by recent drilling. The Manto zone hosts more than 75% of all contained gold in the entire Ketza deposit (Manto and Shamrock). Additional results from 30 Manto holes and 19 Shamrock holes drilled this past summer were not incorporated in the resource estimate and are expected soon.

The company is continuing to drill on both zones with the aim of delineating further resources. YGC Resources president Graham Dickson says the company’s goal is to outline a measured and indicated resource of 1.5 million oz. gold by March 2006 — preferably low-cost, and amenable to open-pit methods.

Mineralization in the Manto zone occurs as replacements along favourable Lower Cambrian limestone horizons. Massive sulphide zones (pyrrhotite, pyrite and arsenopyrite) have been oxidized with gold enrichment occurring along structural zones or panels at normal, crosscut faulting in the stratigraphy.

At Shamrock, gold mineralization is broadly disseminated in quartz-sulphide vein stockworks and breccias hosted in an interbedded sequence of Lower Cambrian phyllites, argillites, quartzites and carbonates.

Shares of YGC Resources dropped two pennies on the news, closing at 66 apiece on volume of 41,000.