Drill results boost Miligan potential

As operator and 70%-owner, Continental Gold has three drill rigs at work to expand reserves last reported at 100 million tons grading an average of 0.3% copper and 0.025 oz gold per ton. At press time, 140 holes had been drilled at Mt. Milligan.

“We are about a month away from being able to calculate a total drill-indicated reserve for the MBX, West Breccia and 66 zones which now appear to form one deposit,” said President Robert Dickinson, adding that the company is confident it now has “significantly in excess” of 150 million tons.

Dickinson said recent drilling is indicating that the MBX, West Breccia and 66 zones form one contiguous, blanket-shaped mineralized body 4,000 ft long, up to 2,500 ft wide and between 600-800 ft thick that is still open.

“Within this one deposit we have three zones with varying gold and copper values,” he said, noting that any operating plan would involve mining areas in the earlier years that are higher in grade than the average for the total deposit.

Continental’s partner is BP Resources Canada, which has a 30% working interest. Both companies are sharing in the costs of the 1989 program which is expected to advance the project to the pre- feasibility stage by August.

The latest results from drilling on widely spaced sites in the MBX zone include:

Intercept Copper Gold Hole ft. % oz/ton 89-112 814.1 0.37 0.017 incl. 358.1 0.45 0.023 89-115 724.7 0.32 0.019 incl. 273.7 0.33 0.030 89-119 242.7 0.06 0.023 89-120 588.1 0.48 0.015 incl. 173.5 0.89 0.030 89-122 674.1 0.48 0.017 incl. 412.7 0.63 0.024 89-123 197.4 0.38 0.009

139.1 0.29 0.010

526.8 0.38 0.014 89-124 158.4 0.15 0.011

19.6 0.50 0.023

Drilling on wide-spaced sites in the West Breccia zone returned 461.1 ft of 0.37% copper and 0.006 oz gold; 250.9 ft of 0.28% copper and 0.010 oz gold; 97.7 ft of 0.24% copper and 0.012 oz gold; 560.9 ft of 0.12% copper and 0.005 oz gold and 294.8 ft of 0.25% copper and 0.008 oz gold.

The two longest intercepts from wide spaced drilling in the 66 zone returned 122.3 ft of 0.01% copper and 0.018 oz gold and 183.7 ft of 0.04% copper and 0.039 oz gold.

Continental is planning to drill test gold-copper soil geochemical anomalies that extend for 5,000 ft south and 5,000 ft west of the 66 zone. A fault zone which appears to be a control of the Mt. Milligan mineralization is projected by the company to extend through this area. Drilling is to begin in about three weeks after a large induced polarization survey is completed.

“With this type of porphyry model, typically you see more than one deposit so we feel there is a high probability of finding additional reserves,” Dickinson said.

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