Holmer options claims to Chevron

Chevron Minerals will be spending approximately $700,000 this year on B.Y.G. Natural Resources’ Mt. Nansen gold property in the Yukon.

The expenditure is almost identical to last year’s budget which was directed towards expanding reserves in open pitable, oxidized ore zones. These zones represent strike extensions of the Brown McDade and Webber zones and untested soil geochemical targets.

This year’s program should include bulldozer stripping and diamond drilling at the Flex and Brown McDade zones for reserve calculation purposes. Diamond drilling is also planned for the southern extension of the Brown McDade, the Huestis upper portal will be rehabilitated, and trenching will be done on outlying veins and geochemical targets.

The property includes the old Nansen mine which has two developed orebodies, the Huestis and the Webber. The Brown McDade was only partially developed and altogether these zones contain 184,500 tonnes of proven and probable reserves grading 0.41 oz gold and 11.7 oz silver. The zones are open for expansion in all directions, the companies note.

There is a 300-ton-per-day concentrator on the property which operated briefly in the late 1960s. B.Y.G. concluded an agreement on the property with Chevron in 1985 under which Chevron has agreed to spend $6 million over a 5-year period to earn a 62% participating interest.

B.Y.G. is well financed with approximately $900,000 in its treasury. About half of that was from the exercise of warrants associated with a private placement last April. B.Y.G. was recently listed on the tse and the company has about 9.2 million shares outstanding.