Eskay Creek area comes alive

This time the spotlight is on the Unuk River area which skyrocketed to prominence after Calpine Resources (VSE) reported spectacular results from step-out drilling on the 21 zone discovery at its 50%-owned Eskay Creek project.

Not only did Calpine pull what must rank among the hottest holes in Canadian mining history — a 682-ft interval grading an average of 0.85 oz gold plus silver, lead and zinc values — but it also sparked a turnaround for a languishing Vancouver Stock Exchange. This means juniors are now able to raise funds for exploration programs in the region; a daunting and depressing task just weeks ago.

Most of the new financings are for work programs near Calpine’s Eskay Creek project located 50 miles north of Stewart, B.C., and about 25 miles east of the Iskut River camp where Skyline Gold operates that district’s first gold mine.

Calpine’s Eskay Creek project is now considered part of northwestern B.C.’s “Golden Triangle” which encompasses the Iskut River camp to the west, the Unuk River (Eskay Creek) camp to the east, and the Sulphurets and Stewart camps to the south.

Besides Eskay Creek, the “triangle” has two producing gold mines, at least three more in the wings, and a recently-discovered porphyry copper-gold deposit.

Although Calpine’s drilling is continuing to return impressive results, the real excitement comes from the realization that the 21 zone deposit (which appears to be open pittable) represents a completely different animal from the small tonnage, quartz vein-type, high-grade gold deposits most commonly associated with the Cordillera.

The 21 zone deposit is considered to be more akin to a volcanogenic epithermal-type gold deposit, or possibly even a massive sulphide deposit overprinted by epithermal gold mineralization that later invaded the zone of weakness. The implications are for larger tonnages and more consistent and predictable deposits.

The felsic volcanic sequence hosting the 21 zone deposit — called the Mount Dilworth Formation — has now become the object of intense exploration elsewhere in the surrounding area.

Tom Schroeter, senior regional geologist for the British Columbia’s Ministry of Energy, Mines and Petroleum Resources, said government geologists traced the formation northwards to the Eskay Creek region from the Stewart are a last summer as part of an ongoing mapping program.

Schroeter likens northwestern British Columbia to Chile in terms of its potential to host gold deposits in a variety of geologic environments, as well as large porphyry copper-gold deposits and massive sulphide deposits.

“Even the climate and operating logistics are similar in that both are high and rugged,” he said. “But northwestern B.C.’s potential has only been scratched.”

The Mount Dilworth Formation is associated with a number of gossans and known mineralized showings along its length, and the Prime Resources (VSE) group companies have moved aggressively to secure prospective ground along the structure. Corona Corp. (TSE) is a substantial shareholder in Prime.

Prime companies currently control about 400,000 acres in northwestern British Columbia. However, this includes ground in the Galore Creek region some distance to the north of the Iskut River area. All programs are managed by Prime Explorations which has built up an impressive data base on the region.

With the Calpine program clearly on track, Prime Explorations is now turning its attention to work programs on nearby properties, particularly those considered most prospective to host extensions of the 21 zone.

“The Adrian property has to be number one because it has the strike extension of the 21 zone,” said Chet Idziszek, president of Prime Explorations.

Adrian Resources’ property is located immediately contiguous to the northwestern boundary of the Calpine/Consolidated Stikine ground. But because two parties are contesting title to the claims, Adrian has option agreements with both parties to secure at least the right to earn a 50% interest. The work program here involves linecutting, IP and magnetometer surveys followed by diamond drilling.

Idziszek said the next most prospective project is the Albino Lake property located one mile north of the 21 zone. This joint venture will be owned 25% by Calvada Resources (VSE), 25% by Consolidated Powergem Resource Corp. (VSE) and 50% by Tamavack Resources (VSE) after Calvada and Powergem earn their respective interests from Tamavack.

Field crews are under way with linecutting, magnetic and VLF-EM surveys in preparation for a drill program expected to begin this season. This property is thought to host the strike extension of the 21 zone stratigraphy, although it lies beneath a veneer of younger and dominant sedimentary rocks.

In contrast to Eskay Creek which has been explored in several waves going back to the thirties, most of Prime’s projects are still in the early stages of exploration.

“It’s a major grass roots exploration effort of the type a major mining company would run based on a new discovery,” said James Foster, exploration manager for Prime Explorations.

Because working seasons are short, Prime Explorations hopes to do as much surface work as possible on its key properties in order to define targets that can be drilled throughout the winter. Modern exploration methods such as VLF, IP and magnetics are used, as well as basic “boot and hammer” prospecting.

Prime will be looking next at prospective properties along the Mount Dilworth Formation.

“We will be looking for more animals like the 21 zone,” said Foster.

A work program is already under way on the Treaty Creek project some 11 miles east of Eskay Creek. Tantalus Resources (VSE) can earn a 51% interest from Teuton Resources (VSE).

According to Tantalus, results from a recent geophysical survey “indicate the volcanic stratigraphy hosting the 21 zone at Eskay Creek can be tra ced to Treaty Creek.” A recent drill hole, 89-1, is reported to have intersected a zone of sulphide mineralization over a core length of 31 ft within a silicified felsic volcanic unit beneath the Konkin zone gold showing. Assays are expected shortly and more drilling is planned.

A prospecting, mapping and geochemical sampling program has also started on the VR property to the east of the Treaty Creek project, “with emphasis on Mount Dilworth stratigraphy”. This ground is held by Argo Development Corp. (VSE) and Halcyon Resources (VSE) which, as equal partners, plan to earn a 60% interest from Teuton.

On its own Halcyon has secured a 100% interest in the Reg claims four miles north of Eskay Creek. Preliminary exploration work is planned this season.

The felsic volcanic stratigraphy that hosts the 21 zone is also believed to be traced on the Lost property held by Achilles Resources (VSE), and on the Palmiere Creek project held by Sierra Madre Resources (VSE) and Rockridge Mining Corp. (VSE).

Partners Akiko-Lori Gold Resources (VSE) and Cheryl Resources (VSE) plan to explore the Lakewater project three miles southwest of Eskay Creek. (Work is held up because some of the claims are contested by the same parties disputing the Adrian ground.) The companies also plan to explore the Bowser River project 30 miles northwest of Stewart.

A number of other Prime companies are also active and ground is still being acquired. However, the action is not just confined to Prime companies. In recent weeks, a raft of juniors have announced property acquisitions or details of work programs in the region.

A preliminary drill program is scheduled to start soon on ground held 75% by Springer Resources (VSE) and 25% by Cove Resources Corp. (VSE ) near Eskay Creek. As operator, Granges Inc. (TSE) is earning a 50% interest in the project’s 50,000-acre land package by spending $3 million over three years.

Granges’ crews are reported to have identified a number of drill targets on th
e newly-named AP zone in what is believed to be the same geological strata as the nearby Calpine-Stikine project. (Murray Pezim and several associates recently joined the board of Springer.)

Brad Cooke, president of Canarc Resource Corp. (VSE), and several partners in Arc Resource Group (a private company) also acquired considerable ground near Eskay Creek as a result of research effort last summer. Most of this has since been optioned out. However, the GNC claims next to the Eskay Creek project are still held by Canarc although Calpine can earn up to a 66% interest.

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