Afton extended at depth (September 17, 2001)

Vancouver — A drill program by DRC Resources (DRC-V) has cut significant mineralization some 3,000 ft. below surface at the past-producing Afton copper-gold mine in British Columbia.

Part of an ongoing $2-million program, hole 38 returned 43 ft. grading 2.05% copper and 0.03 oz. gold per ton from 2,867 ft. down-hole. This is the deepest intersect cut to date.

So far, with the mineralization open along strike and at depth, the junior has defined the zone over a 1,600-by-2500-ft. area.

At last count, the property hosts an indicated mineral resource of 25 million tons grading 2% copper and 0.045 gram gold per ton.

Earlier this year, Vancouver-based Behre Dolbear & Co., completed a scoping study on the project. The study utilized block caving at a rate of 4,500 tons per day and put the total production costs over the life of the mine at $22.19 per ton. The early-stage scenario would generate an internal rate of return of 32.3%.

Preliminary metallurgical test work showed recovery rates of 89% for copper and 90% for gold, using standard floatation.

DRC can earn a 100% interest in the 6-sq.-km property from Westridge Enterprises and Indo-Gold Development by issuing 2 million shares over a six-year period and spending $6.5 million on exploration over nine years. The company must also bring the property into production within 10 years to retain its 100% interest.

The Afton mine started production in 1978, cranking out 450,000 oz. gold and 45 million tons copper before being permanently closed by Afton Mines, a subsidiary of Teck (TEK-T), in May 1997.

The remaining resource at mine closure was pegged at 10.5 million tons averaging 1.52% copper and 0.03 oz. gold per ton.

DRC continues to drill-test the mineralization along strike and at depth.