First hole pulls good values from Spectrum project

The first hole of this season’s drilling program on the Spectrum property in northwestern British Columbia returned a number of good gold intersections.

Hole 91-63 intersected 176 ft. (from 100 ft. to 276 ft.) at an average grade of 0.10 oz. gold per ton plus 0.23% copper. The intersection included 20.3 ft. grading 0.71 oz. gold per ton from 227.3 ft. to 247.6 ft., or 14.1 ft. from 227.3 ft. to 241.4 ft. grading 1.0 oz. gold per ton. The hole also cut 13.1 ft. grading 0.14 oz. gold from 314.9 ft. to 328.0 ft.

The drilling is part of a first-phase $1-million program funded by Eurus Resource (VSE). Eurus recently negotiated a deal to earn a 50% interest in the property from Columbia Gold Mines (VSE) by spending a total of $8 million over the next four years.

Columbia, in turn, can earn a 100% interest in the property from Northair Mines (TSE) and Calnor Resources (VSE) through $2.95 million in expenditures. The earn-in is subject to a net smelter return to the two companies capped at 3%.

The drilling is designed to test the extent of the Porphyry and QC zones which have been traced to a depth of about 300 ft. over a strike extent of 1,000 ft. and 1,800 ft. respectively.

The 176-ft. upper intersection in hole 91-63 represents the Porphyry zone which the companies believe has the potential to support a bulk-tonnage open pit operation.

The Porphyry zone typically has a high-grade zone in a structure within its lower portion, represented by the 20.3-ft. intersection grading 0.71 oz. gold.

Gold values were also encountered in the QC zone, located in the footwall and about 100 ft. east of the Porphyry zone.

John Brock, president of Columbia, said the companies plan to concentrate drilling along strike to the north to test a geochemical anomaly identified in previous work.

Despite what Brock said was “probably the best hole out of Western Canada this year,” Columbia’s share price did not react well after the news was released. The issue managed to drop a nickel to $1.05 on over 190,000 shares.

Columbia has about 8.5 million shares outstanding, 2.4 million of which are owned by International Mahogany (VSE), 1.3 million by Welcome North Resources (VSE) and about one million by company insiders.