Esso calculates reserves for SB

In its most recent program, operator Tenajon completed a total of 15 surface holes on the Kansas zone, and 36 underground diamond drill holes on the Face Cut/35 zone.

According to Esso Minerals’ recent calculations, probable and possible reserves on the Kansas and Face Cut/35 zones total 308,000 tons with an average uncut grade of 0.505 oz gold per ton and 1.07 oz silver. With individual assays cut to one ounce per ton, the gold grade for this reserve is 0.351 oz gold.

The Face Cut/35 zone also contains copper-lead-zinc mineralization, however Tenajon said values for base metals have not yet been calculated. The Kansas zone, located about 500 m from Face Cut/35, contains predominantly gold-silver mineralization.

Donald McLeod, president of Tenajon, said both zones are open along strike and at depth and “hold excellent potential for developing additional reserves as exploration continues.”

Tenajon’s 1988 surface drill program also identified two new zones of mineralization now called the West Kansas and Anomaly zones. The company said it expects to put particular emphasis on development of the two zones in the 1989 season, as both are predominately gold-silver zones.

The West Kansas zone lies parallel to and west of the Kansas zone. The first hole to intersect the zone last fall returned a 20 ft intercept grading 2.749 oz gold uncut, and 0.426 oz gold cut to one oz. A second hole drilled on the zone returned 6.5 ft grading 0.440 oz gold.

Tenajon also drilled four surface holes in its 1988 program to test for a possible parallel zone to the east of the Kansas zone. Three of the holes intersected mineralization in the new Anomaly zone. Results include: 13.1 ft of 0.290 oz gold; 7.0 ft of 0.508 oz; and 10.4 ft of 0.270 oz.

The SB property is road-accessed and lies between two gold-silver deposits that together make up the 2,200-ton-per-day Premier Gold project being readied for production by Westmin Resources. The project is a 50/50 joint venture, however Esso Minerals is being sold by its parent company, with Homestake Mining a recent serious bidder.

But according to Bruce McLeod, project manager, Tenajon fully intends to exercise its right of first refusal to buy out the remaining property interest in SB. A major exploration program for the coming year is now being prepared by Tenajon, with work to begin as soon as weather conditions permit.

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