Billiton calculates reserves at Blende lead/zinc deposit

Using parameters applicable to open pit mining, Billiton Metals Canada has calculated a preliminary reserve of 12.6 million tons grading 2.2% zinc, 3% lead and 1.46 oz. silver per ton at the Blende deposit in the central Yukon. Under an option agreement with NDU Resources (VSE), Billiton must spend $4 million on exploration by the end of 1991 to earn a 50% interest in the property. Additional cash payments of $300,000 are due this month.

Based on the results from 18 recent holes, Billiton’s new reserve estimate covers a 1,640-ft. section of the mineralized fault complex. Using a minimum pit width of 100 ft. and a cutoff grade of 1% zinc and 1% lead, Billiton calculated a stripping ratio of 2.1-to-1.

With a commitment to spend $2.5 million on the Blende deposit in 1991, Billiton is planning additional metallurgical tests, environmental work and at least 40,000 ft. of drilling.

Meanwhile, NDU is beginning to receive results from its drilling program on the Bend copper-gold prospect in Wisconsin.

Infill drilling on a previously outlined preliminary reserve of 2.6 million tons grading 1.8% copper and 0.095 oz. gold (not including inferred reserves of 1 million tons grading 0.68% copper and 0.12 oz. gold), NDU intersected mineralized lenses in all three holes.

Results include a 37.2-ft. width grading 2.64% copper and 0.079 oz. gold in hole B90-1 and a 14.6-ft. width grading 4.07% copper and 0.024 oz. gold in Hole B90-2.