Drilling expands potential of New World project

Drilling success on the New World property this year has Crown Butte Resources (TSE) predicting a substantial increase in reserves from those reported at the end of the 1989 program. Recent drilling at this gold- silver-copper project in Park Cty., Mont. encountered an unusually thick, laterally continuous zone of mineralization on the north end of the main Miller Creek deposit. In addition, the company said drilling on the Homestake Breccia target is continuing to define “significant mineralization in what will likely prove to be a major new discovery.”

This year’s drill program, which so far has reached 94,000 ft. in 220 holes in several target areas, is being carried out by a unit of Noranda (TSE) which can ultimately acquire up to 60% of Crown Butte’s shares.

Before the 1990 program began, the New World project was estimated to contain preliminary reserves of 4.64 million tons grading 0.17 oz. gold (uncut), 0.72 oz. silver per ton and 0.81% copper in the Miller Creek, Como and McLaren areas. Drilling is continuing and updated reserves for the property are expected early in 1991.

“We’re extremely pleased by results from this year’s program and expect the increase in reserves to be substantial,” said David Rovig, president of Crown Butte. “For the first time on this project we’re going to drill into the winter.”

The company is no doubt encouraged by results from exploration drilling in the north end of the main Miller Creek deposit where 10 holes (618, 619, 635, 636, 640, 641, 665, 670, 681 and 683) intercepted wide thicknesses of hematite- sulphide skarn. Assay results are listed below. This thick zone now remains open only to the west of the north end of the deposit.

The main Miller Creek zone, discovered in 1989, also remains open on the west and south edges of the deposit. A recent stepout hole drilled on the southeast end of the deposit intersected 25 ft. of 0.34 oz. gold. Additional 100-ft. offsets in this zone include: 15 ft. of 0.48 oz. gold; 10 ft. of 0.16 oz. gold and 20 ft. of 0.30 oz. gold.

Crown Butte also released some impressive assay results from infill drilling of the Miller Creek deposit. Selected results (uncut) include: 94.1 ft. of 0.52 oz. gold, 0.71% copper and 1.0 oz. silver; 30.7 ft. of 0.32 oz. gold, 2.13% copper and 1.96 oz. silver; 65.8 ft. of 0.63 oz. gold, 1.93% copper and 4.66 oz. silver; 72.3 ft. of 0.21 oz. gold, 0.77% copper (silver assays pending); 46.2 ft. of 0.80 oz. gold, 3.36% copper and 3.24 oz. silver; 64.6 ft. of 0.32 oz. gold, 1.24% copper and 1.72 oz. silver.

Drilling on the nearby Homestake Breccia target also returned some noteworthy assays from mineralization encountered in three distinct laterally continuous zones.

Some of the better holes returned: 182 ft. of 0.16 oz. gold and 249 ft. of 0.21 oz. in a diatreme zone; 60 ft. of 0.32 oz. and 50 ft. of 0.24 oz. in a xenolithic replacement zone; and 130 ft. of 0.31 oz. in a tertiary intrusive zone. Other notable intersections include: 165 ft. of 0.36 oz., 110 ft. of 0.23 oz., and 105 ft. of 0.13 oz.

“The Homestake Breccia was discovered this year when we were drilling a geotechnical hole for alignment of the tunnel to come in underneath the Miller Creek deposit,” said Rovig. “We knew the breccia was there, but the magnitude and quality of the mineralization was a bit surprising.”

The Homestake Breccia deposit remains open to west, north and south. More drilling is planned for this season, although weather and access conditions may likely permit only 100-ft. grid definition infill drilling, and limited stepout drilling to the north during the remainder of the season. This promising target will also be drilled during the 1991 season, as will a number of other less advanced exploration targets where limited drilling was carried out this year.

The Miller Creek and Homestake Breccia areas are considered to be an underground resource, although the New World property contains other, smaller deposits (Como and McLaren) that are considered to be amenable to open pit mining methods. So far, Crown Butte is optimistic the project will present no metallurgical problems, as can be the case in some skarn-type deposits.

“The metallurgy has turned out to be fairly straightforward and from zone to zone it’s compatible,” Rovig told The Northern Miner.

Crown Butte and Noranda are now starting the permitting process for the project which is in an environmentally sensitive area. Although some exploration work will continue next year, the majority of the 1991 program will involve infill drilling and engineering work aimed at advancing the project to the mine development phase.

“We (Crown Butte) are expecting a feasibility study from Noranda in April of 1991 which should scope the magnitude of the project,” Roving said.

Assay results from exploration drilling in the Miller Creek area include: Interval Thickness Gold Copper Silver Hole ft. ft. oz./ton % oz./ton 618 480-550 70 0.44 (0.38 cut) 0.66 pending 619 405-490 85 0.24 (0.22 cut) 0.82 2.01 635

415-485 70 0.15 (0.22 cut) 0.61 1.95 636 330-360 30 0.48 (0.40 cut) 0.75 pending 637 145-155 10 0.16 (0.22 cut) 0.07 pending 245-255 10 0.15 (0.56 cut) 3.01 3.83 638 365-375 10 0.07 (0.56 cut) 0.13 pending 639 295-305 10 0.16 (0.56 cut) 0.64 1.46 640 420-490 70 0.19 (0.56 cut) 0.31 1.07 641 400-475 75 0.27 (0.56 cut) 0.98 2.67 643 260-275 15 1.10 (0.56 cut) 2.49 pending 645 235-240 5 0.13 (0.56 cut) 0.01 pending 647 115-135 20 0.26 (0.56 cut) 0.62 pending 654 180-190 10 0.16 (0.56 cut) 0.05 0.38 655 240-260 20 0.30 (0.56 cut) 1.09 pending