DRC cuts gold at Afton

Vancouver — DRC Resources (DRC-T) has intersected shallow porphyry gold mineralization at the Afton mine project near Kamloops, B.C.

The intersection occurred about 1 km southeast of the Afton mineral zone. The new zone is parallel to the previously mined Pothook mineral zone, where government reports indicate that 2.5 million tonnes of copper-gold ore averaging 0.35% copper and 0.77 gram gold were mined in the 1980s.

DRC has drilled a total of 10 diamond core holes that have intersected sulphides in an area measuring 200 by 100 metres. The junior says near-surface gold mineralization could be significant to the overall economics of the Afton project.

Proven and probable reserves in the Main zone are estimated to be 36.9 million tonnes grading 1.15% copper and 0.85 gram gold per tonne.

Assays from seven holes drilled on the new zone have been received, including the following highlights:

— Hole 1 cut 21 metres averaging 0.57 gram gold starting at a down-hole depth of 67 metres. This included a 15-metre section that averaged 0.80 gram gold.

— Hole 2 cut 66 metres averaging 0.50 gram gold starting at 26 metres down-hole. This was followed by a 217-metre interval of 0.484 gram gold and 0.26% copper starting at 344 metres down-hole.

— Hole 3 cut 92 metres of 0.30 gram gold and 0.24% copper starting 420 metres down-hole.

— Hole 4 cut 156 metres of 0.72 gram gold starting at 6 metres down-hole. This included an 80-metre interval that averaged 0.87 gram gold starting at 6 metres down-hole.

— Hole 5 cut 29.6 metres of 0.54 gram gold starting at 6.4 metres down-hole.

— Hole 6 cut 93 metres averaging 0.55 gram gold starting at 123 metres down-hole.

DRC has also intersected mineralization up to 300 metres below the previously mined Pothook open pit. Further diamond drilling is continuing on this new gold zone and on the extension of the Pothook zone.

In early November, DRC completed a $24.1-million bought-deal equity financing with a syndicate of underwriters led by Orion Securities, including Dundee Securities and Salman Partners. DRC Resources issued and sold 3.4 million shares, including the underwriters’ option, at an issue price of $7 per share.

Proceeds will be used to develop the Afton copper-gold project.