Echo Bay, Quest hit gold at Honduran property

Echo Bay Mines (ECO-T) has uncovered significant zones of gold mineralization during a 23-hole drill program at the Zopilote property in Honduras.

Echo Bay is earning a 60% interest in the property from Quest International Resources (QIX-T) by spending $5.4 million on exploration there over four years.

Results from the first 10 holes include: 39.4 ft. of 0.08 oz. gold per ton in hole 1; 34.4 ft. of 0.05 oz. in hole 2; 49.2 ft. of 0.05 oz. in hole 4; and 59 ft. of 0.07 oz. in hole 8.

Holes 1 to 7 were designed to test for new areas of mineralization as far as 300 meters south of the previously delineated resource area, which currently contains 211,000 oz. gold. Those holes encountered significant gold mineralization in previously untested areas. Holes 8 and 9, however, were designed to test the downdip extension of the known resource.

“These preliminary results are exciting,” says Joel Casburn, Quest’s vice-president of development. “They substantiate the initial findings of Quest and considerably expand the area of mineralization.”

Quest notes that only three of the five target areas delineated by Echo Bay’s initial surface sampling program were tested by the recent drilling.

In related news, Quest will acquire from Echo Bay a 100% interest in that company’s Zuloaga silver project in Mexico. Under terms of the deal, Quest will pay $1 million over two years. The Zuloaga project, which comprises land holdings totalling 38,300 acres, is situated in the Melchor Ocamp mining district of Mexico’s Zacatecas state.

Echo Bay previously defined a resource of 8.86 million tons grading 1.3 oz.

silver per ton, equivalent to 11.5 million contained ounces, as well as a combined lead-zinc value of 1.75%. The calculation was based on 36 drill holes.

Echo Bay also defined new targets on an adjacent concession after collecting 332 highly mineralized samples from underground workings there.

“The potential for a high-grade, silver-rich polymetallic deposit clearly exists on this property,”

says Donald Gustafson, Quest’s president.

In Nevada’s Carlin trend, Quest and Barrick Gold (ABX-T) have struck a deal at the Pony Creek property.

Barrick can earn a 70% interest in the property by spending US$5 million on exploration there over five years. Pony Creek is situated near land held by Barrick. The major has already paid Quest $50,000 as part of the due diligence stipulation.

Previous drilling on the property delineated a resource of 1.12 million tons grading 0.057 oz. gold per ton. Intercepts graded up to 0.124 oz. over 145 ft.

“Barrick’s knowledge and experience in Nevada is well known, and we are looking forward to a successful and rewarding partnership on our Pony Creek property,” says Thomas Menning, Quest’s chairman.