Colony Pacific plans underground program at Blue Moon

The company has already submitted its proposal to the Mariposa Cty. planning department for preliminary review. With all responses favorable so far, its next step involves a public meeting to hear submissions from interested parties later this summer.

Colony Pacific said a positive outcome at this meeting would enable it to apply for all specific permits required to start the underground progra m, a process that could take between 120 to 150 days to complete.

Blue Moon reserves as calculated by the firm of Derry, Michener, Booth and Wahl are reported as 3.8 million tons grading 7.87% zinc, 1.09% copper, 0.46% lead, 2.44 oz silver and 0.051 oz gold per ton. Included in this are 1.3 million tons averaging some 21.8 ft true thickness and grading 9.69% zinc, 1.25% copper, 0.51% lead, 3.27 oz silver and 0.072 oz gold.

During the waiting period for permits, Colony Pacific intends to carry out detailed design and engineering work. A pilot hole for the planned 2,400-ft shaft and underground tunnelling program will also be drilled.

The company said these excavations will provide horizontal access to the deposit at depth in order to detail existing reserves, obtain a representative bulk sample, evaluate potential underground mining conditions and carry out an underground diamond drilling program.

Exploration work is also continuing at Blue Moon. Detailed induced polarization surveys were recently completed to define new and existing near-surface drill targets.

Colony Pacific recently acquired an interest in the 2,600-acre Silba project which is located in the same volcanogenic massive sulphide belt that hosts the company’s 100%- owned Blue Moon, Schell Ranch and Bonne Terre properties.

A recent private placement to raise funds for ongoing work at Blue Moon and other California properties increased issued shares to 10.6 million, 32.9% of which are held by Westmin Resources (TSE) and 26.1% by Imperial Metals Corp. (TSE) and other companies in the Imperial Metals group.

Colony Pacific reported a loss of $84,000 for the first six months of 1989, compared to a loss of $85,000 for the comparable period in 1988.

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