Drilling boosts potential of Williams Creek copper project

Initial results from drilling on the Williams Creek property, 28 miles by road northwest of Carmacks, Yukon, indicate previous estimates of reserve tonnage and grade will be increased.

Prior to beginning the current drilling program, preliminary open pit copper-oxide reserves at the property were estimated at 9.7 million tons grading 1.02% oxide with a strip ratio of about 2.9-to-1.

Western Copper Holdings (VSE) and Thermal Exploration (ASE) can jointly earn a 100% interest in the property from Archer Cathro and Associates by spending a total of $2 million or completing a bankable feasibility study by Dec. 31, 1992.

Archer retains a 15% net profits interest or a 2.5% net smelter royalty to a maximum of $2.5 million.

The joint venture agreement calls for Thermal to spend the first $640,000 on exploration (completed) and Western to cover the next $960,000. Dale Corman, president of Thermal, said the ore zone is about 1,900×125 ft. and extends to a depth of about 600 ft. He noted that the mineralization has been intersected below 1,600 ft. but is not oxidized below the 800-ft. level. The deposit appears to be offset by faulting on both ends and the companies are now completing a detailed geophysical survey to locate the fault offsets as well as other mineralized zones.

The drilling program, initially budgeted at 8,000 ft., was increased to 12,500 ft. following the success of recent results. Hugh Lawrenson, a manager at Olympic Drilling and Consulting, said he thought his company may have made a record for the greatest footage of HQ drilling in a month for a single rig. He noted that the rig drilled a total of 10,232 ft. in 30 days. Corman said preliminary feasibility work will be done over the next few months leading to a full feasibility next year.

Western and Thermal hope to develop the property as a solvent extraction/electrowinning operation. Similar to a heap leach gold operation, dilute sulphuric acid is percolated through stacked ore and the resulting copper sulphate solution is recovered in ponds. Electroplating is then used to produce cathode copper.

Hole Interval Width True width Copper Gold

(ft.) (ft.) (ft.) (%) (oz./ton)

22 34-178 144 127 1.19 0.019

23 122-336 214 203 0.82 0.026

incl. 241-336 95 90.3 1.46 0.054

24 384.5-553 168.5 160 1.14 0.018

25 18-176 158 150 1.36 0.022

26 10-146 136 129 0.83 0.014

incl. 86-146 60 57 1.35 0.29

27 34-177 143 136 1.53 0.019

incl. 84-177 93 88.4 1.95 0.027

28 6-135 129 123 0.98 0.12

29 164-291 127 121 1.06 0.006

30 336-440 104 99 1.51 0.015

31 32-149.5 117.5 112 0.94 0.008

32 147-242 95 90 1.07 0.013

33 275-334 59 56 1.10 0.005

34 73.5-153.5 80 76 1.45 0.006

35 244-304 60 57 1.08 0.007

36 35.5-107.5 72 69 0.76 0.007

37 181-245.5 64.5 61 0.84 0.012