Eskay gold values drop off base metals values continue

Eskay Creek is owned equally by Calpine Resources (VSE) and Stikine Resources (VSE). As operator, Calpine is continuing a drill program with two rigs on the 21 zone discovery.

The latest step-out drill holes (mostly from 10+00N to 11+50N) are continuing to test the north end of the 21 zone discovery. According to Chet Idziszek of Prime Explorations, the results indicate a zonation effect in this portion of the deposit.

“What we’re seeing now are lenses of massive and disseminated sulphide mineralization with precious metal values located stratigraphically over and above the higher grade gold and base metal mineralization at the contact with the rhyolite,” he said. “It’s like a second mineralized zone.”

Step-out hole 144 returned no significant results. Hole 145 was drilled to test an outside geophysical target and returned 13.1 ft of 0.044 oz gold and 0.32 oz silver near the bottom of the hole. Infill drill hole 89-135 (0+75N) returned 23 ft of 0.113 oz gold and 0.22 oz silver and 32.8 ft of 0.064 oz gold and 1.62 oz silver.

By the end of November, Calpine expects to have completed drilling the 21 zone on 50 m spacings to within 50 m from the property boundary. This phase of drilling will involve backing up to fill in gaps from the recent wide spaced step-out drill program.

Upon completion of this phase of drilling, Idziszek said a drill- inferred reserve calculation would be made by an independent consultant.

A budget is being prepared for the next phase of the drill program which will be aimed at moving inferred reserves to the drill indicated category. Idziszek said this will involve drilling the central and north portions of the 21 zone deposit on 25-m spacings.

“That will probably involved drilling some 330 drill holes,” he said. “We expect to have five to seven drills on the property to begin this phase of drilling by Christmas.”

The 21 zone is cut by a fault on the southwestern end, so Prime Explorations is dedicating considerable effort to locating a southwestern extension.

Drilling has started on the 22 zone some 3,000 ft south of the fault, and Prime is preparing to drill test the McKay zone further to the south of the 22 zone. The objective, besides testing for mineralization, is to gather geological information on the zones.

Project manager David Mallo said these zones, when combined with the 21 zone, represent about five kilometres of favorable stratigraphy on the Eskay Creek property. Mallo said initial work on the 22 zone shows its stratigraphy to be identical to the 21 zone.

Results from step-out drilling are:

0 06,0101,0302,0101,0201,0103,0106,0103,0108,0102,0105,0102,0104,0102, Interval Length Gold Silver Lead Zinc Copper Hole ft ft oz/t oz/t % % % 89-137 226.3-239.4 13.1 0.108 7.57 3.37 9.73 1.29 288.6-308.3 19.7 0.018 0.94 3.22 5.16 0.31 472.3-475.6 3.3 0.051 1.85 3.85 6.66 0.19 89-138 239.4-508.4 269.0 0.104 6.37 0.45 0.85 0.06 89-139 265.7-879.0 613.3 0.064 1.29 0.35 0.56 0.06 924.9-934.8 9.9 0.124 3.20 89-142 377.2-390.3 13.1 0.010 1.93 3.18 5.73 0.45 455.9-465.8 9.9 0.089 3.51 0.19 0.37 0.08 89-143 393.6-423.1 29.5 0.293 17.13 1.17 1.58 0.17 472.3-485.4 13.1 0.016 1.57 0.77 1.26 0.10 89-146 167.3- 206.6 39.3 0.030 0.41 0.71 0.82 0.06 (9+50N) 262.4-337.8 75.4 0.052 2.16 0.59 1.04 0.05 367.3-373.9 6.6 0.310 0.24 1.92 4.08 89-148 78.7- 91.8 13.1 0.139 12.75 2.07 3.46 0.20 262.4-291.9 29.5 0.115 0.51 0.56 0.75 89-149 436.3-617.0 180.7 0.090 1.82 0.35 0.62 0.05

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