Calpine drill results bolsters Eskay Creek tonnage potential

The first hole from a phase-two drill program at Calpine Resources (VSE) Eskay Creek project in northwestern British Columbia appears to confirm the large tonnage potential of the discovery. Consolidated Stikine Silver (VSE) is Calpine’s 50% joint venture partner in the project.

In the latest program, drill hole CA88-7 returned 157.4 ft grading 0.163 oz gold, among the longest to date; within that section was a 34.4 ft intercept averaging 0.42 oz gold and 49.2 ft grading 0.21 oz. Minor silver was also noted.

Calpine says the hole was drilled to the top of the altered mineralized target in the 21 zone and approximately 60 ft northeast and 40 ft lower than CA88-6 which yielded 96.5 ft of 0.73 oz. (N.M., Nov 7/88). Because of technical problems, the 627.8 ft deep hole failed to completely cross the zone, Chet Idziszek, the president of Prime Explorations, told The Northern Miner. (Calpine is a Prime Group company). He also said they have encountered antimony mineralization (a common marker mineral for gold at Eskay Creek) about 250 ft to the south in hole No 12.

The high grade mineralization in the upper zone occurs within a graphitic argillite, generally where it comes into contact with the overlying volcanics. But Idziszek conceded they were “still learning as they go along.” Drill hole azimuths have been changed from 95 to about 150 “because we are trying to stay normal to the contact curves,” he added.

“We are using the volcanic contact as our guide but some of the other mineralization is coming in at a slightly different angle. We will know after this phase of drilling how well we did.” He estimated the true width of the zone at 70-80% of the intercept lengths reported.

Several distinct zones and mineral types have been identified so far. Antimony mineralization occurs mainly in the graphitic argillite unit; below that they have encountered altered rhyolitic breccias, he said, adding that it’s difficult to tell what runs and what doesn’t in this area. Disseminated galena and sphalerite mineralization was noted in hole No 5 (242 ft of 0.14 oz) and in surface trenches, he added, noting that this was what Premier Mines was looking at in the 1930s.

There is also a rich carbonate/ quartz fault zone which is quite wide and contains disseminated orpiment, realgar, pyrite, and antimony, he said, pointing out that it’s difficult to drill.

“Basically, the 21 zone is a composite of all these four different types in a package that is about 100 m in thickness.”

The mineralization is probably related to a major structural control although it was deposited at different times, he suggested.

Fire assay results have confirmed previously announced results for holes 88-3, 88-5 and 88-6. Indeed, there was a net average increase of 2.6% over the values announced several weeks ago.

Prime Capital Chairman Murray Pezim said there were “some more exciting holes coming up,” based on visual observation of drill core by company geologists. “We are on hole 14 and haven’t missed one yet,” he emphasized, adding that a second drill will be moved onto the property in January.

Pezim said Prime is interested in taking over Consolidated Stikine but he stated “we won’t fight them, it will be peaceful.” And he confirmed the matter had been discussed with the company.

Consolidated Stikine President Marguerite Mackay said that a financing was in the works to fund her company’s portion of the 1989 drill program. Calpine has spent about $900,000 and now holds a 50% interest in the property; so it’s now a true joint venture in terms of property expenditures.

Mackay said that Pezim has approached them indirectly and she suggested jokingly that “he’s been under the impression that he already has us.”