Cominco Resources hits high-grade gold in Turkey

High-grade gold mineralization over significant thicknesses was encountered by Cominco Resources International (TSE) during a recent shallow drill program on two 100% owned properties in Turkey. The company has some 4,600 square miles of prospective mineral properties in Turkey acquired since the country opened its doors to foreign investment in 1986. The discoveries were made on the Corak and Tak properties in the northeastern portion of the country near the Black Sea.

President George Tikkanen told shareholders at the company’s recent annual meeting that the properties represent “one of the best exploration plays I’ve ever seen.”

The most impressive results to date were encountered on the Corak property where reverse circulation drilling intersected 50 ft. grading 0.73 oz. gold (cut) per ton in hole C-11. The uncut grade over the 50-ft. section was a spectacular 1.7 oz.

Hole C-6, 325 ft. east of C-11, intersected 25 ft. of 0.42 oz. Both holes were drilled at a –60 degrees angle and were collared in mineralized bedrock buried below alluvium. A coring rig is on the property to augment the reverse circulation drilling.

Core drilling is also planned for the Tac property where recent reverse circulation drilling intersected 55 ft. grading 0.25 oz. (cut to 1.0 oz.), or 0.53 oz. uncut. The Tac property is 12 miles northeast of Corak and both properties are accessible by road and near sources of power and water.

Tikkanen told The Northern Miner that the properties are currently viewed as epithermal prospects as the gold was encountered within large, prominent alteration zones. But he also said much more drilling would be required to make even a preliminary estimate of size and grade potential.

Cominco Resources is planning to spend $2.5 million exploring for gold and base metals in Turkey this year, more than it will spend in any other country excluding the U.S.

The bulk of this will be spent on properties in the Black Sea volcanic belt, which includes both gold and polymetallic (massive sulphide) targets. The company has a smaller land package in the western portion of the country, and it has maintained an exploration office employing Turkish geologists in Ankara since 1988.

Tikkanen said Turkey is viewed as having “excellent exploration potential” because the country was largely unexplored by modern methods until a recent change in the mining laws opened the doors to foreign investment.

“We were one of the first companies to recognize its potential although others are there now,” he said.

Tikkanen said Turkey has signalled a desire to align itself with the European Economic Community and is now welcoming foreign investment in many sectors of its economy.

“The country has a high inflation rate that could potentially have a destabilizing influence, but we’ve found the people are hard-working and dedicated,” he added.

Assessing risks inherent in foreign projects is all part of Cominco Resources’ mandate, given that its goal is to expand mineral production through exploration, acquisition and joint ventures in selected countries throughout the world.

The company has been particularly active in Chile where a joint venture partner recently brought on stream the Marte heap leach gold mine in the Maricunga district.

Cominco Resources has a 25.7% interest in the new mine which produced 1,400 oz. gold to its account in the first quarter of this year. Because of startup problems, which are believed to be temporary in nature, the company isn’t expecting Marte to contribute much to earnings this year.

Cominco Resources has a 50% interest in a second Chilean gold project, Lobo, which appears minable by open pit methods, with reserves processed by milling. And more recently, the company (as to 42.5%) and parent Cominco (TSE) joined forces to acquire a substantial interest each in the Quebrada Blanca copper project, now in the engineering stage.

The Maria copper project in Mexico is believed to have good potential for 1990 cash flow now that a decline has been driven to reach the high-grade deposit. Mining studies are under way, and it is expected commercial production could begin in the second half of this year.

Vice-President Geoff Harden said Cominco Resources isn’t out of the woods yet with the recently acquired Glenbrook nickel smelter in Oregon. But the company noted that the project was acquired “at a very significant discount to replacement cost.”

At the company’s recent meeting, details were given of an impressive variety of gold and/or base metal exploration and development projects in various parts of the world.

Closer to home, however, there was little good news about the company’s 76% owned Buckhorn mine in Nevada. Tikkanen said recent mine results were below normal and only about one year of reserves remains, although an exploration effort is continuing.

With so much on its plate, the company may be looking at a further financing this year in addition to the $29 million it expects to receive from an exercise of warrants.

Parent company Cominco agreed to exercise its warrants and those not exercised by others. This will likely increase its interest in Cominco Resources International slightly above its current 60.8% level.

For its first quarter ended March 31, Cominco Resources reported a net loss of $7.13 million or 18 cents per share.