Cheni’s drilling increases reserves at J&L property

Reserves at the J&L property near Revelstoke, B.C., have increased substantially following a recently completed $3.4-million exploration program.

Cheni Gold Mines (TSE) is earning a 60% interest in the property from joint-owners Equinox Resources (TSE) and Pan American Minerals (TSE). Cheni can earn the interest by funding all costs to completion of a bankable feasibility study as well as arranging production financing. Probable and possible reserves in the Main zone of the J&L property are now estimated at 4.77 million tonnes grading 2.7% lead, 4.3% zinc, 7.2 grams gold and 72 grams silver per tonne representing over a 3-fold increase in tonnage. Reserves in the arsenic-free Yellowjacket zone discovered last year also took a jump. Probable and possible reserves in the zone are estimated at 910,000 tonnes grading 7.4% zinc, 2.6% lead and 55 grams silver.

The Main zone remains open in both directions along strike and to depth while the Yellowjacket is open on strike.

Further exploration work is continuing on the property including drilling on the Yellowjacket zone to test its strike

extent.

Drilling is also continuing on the Main zone to test its extent to depth and convert reserves from the possible to the probable category. Preliminary metallurgical testing on the Yellowjacket mineralization indicates good recoveries can be obtained by simple flotation. Extensive tests on the flotation portion of the flow sheet for the Main zone mineralization have increased gold grades in concentrate and improved recoveries. Cheni is now testing the process in a pilot plant in France. Since the gold is associated with arsenic, it will have to be extracted from concentrate by using commercial oxidation technology.