LITERATURE REVIEW — Columbia Gold targets extension of Kona zone

The latest drill results from the Fyre Lake massive sulphide project in the Finlayson Lake district of southeastern Yukon confirm the continuity of the western limb of the Kona zone.

Columbia Gold Mines (COB-V) announced assays for an additional six diamond drill holes, bringing to 102 the number of holes reported to date.

The Kona zone is currently defined over a strike length of 1,200 metres and a width of 250 metres. The eastern limb of the zone is found to contain two mineralized horizons, an upper and lower, while the western limb contains only a single horizon. Management of Columbia Gold believes the western portion has been down-dropped and separated by a fault from the eastern limb.

Hole 97-98 was collared in the central part of the western limb, about 100 metres along strike to the southeast of previously reported hole 97-96 (14 metres grading 1.34% copper, 0.1% cobalt and 0.4 gram gold per tonne at a depth of 164.4 to 178.4 metres). Hole 98 intersected 15.3 metres grading 1.11% copper, 0.09% cobalt and 0.31 gram gold (including 3.6 metres grading 1.4% copper, 0.13% cobalt and 0.4 gram gold) at a downhole depth of 195.5 to 210.8 metres.

Stepping out a farther 150 metres to the southeast, hole 97-101 cut 16.5 metres grading 2.15% copper, 0.13% cobalt and 0.58 gram gold (including 7 metres grading 2.36% copper, 0.15% cobalt and 0.59 gram gold) at a depth of 251 to 276.5 metres.

Hole 97-99 was collared 100 metres farther to the southeast but drilled beyond the western edge of mineralization.

A farther 100 metres along strike to the southeast, hole 97-102 pulled a 10.1-metre interval grading 2.98% copper, 0.1% cobalt and 0.95 gram gold (including 4.9 metres grading 3.42% copper, 0.09% cobalt and 1.24 grams gold) at 341.4 to 351.5 metres.

Hole 102 was collared about 100 metres west of previously reported hole 97-92, which intersected an upper 2-metre interval grading 1.37% copper, 0.04% cobalt and 0.09 gram gold at 269.2 to 271.2 metres, plus a lower 2.1-metre interval grading 1.03% copper, 0.05% cobalt and 0.18 gram gold at 419.9 to 422 metres.

Stepping out 50 metres along strike of hole 92, hole 97-100 intersected 15.3 metres grading 2.08% copper, 0.1% cobalt and 1.54 grams gold (including a 5.7-metre interval grading 3.23% copper, 0.14% cobalt and 2.3 grams gold) at a depth of 391.2 to 406.5 metres.

Step-out hole

Hole 97-97 stepped out 50 metres to the west of the most southerly hole of last year’s program, 96-65, which intersected 31.1 metres grading 2.29% copper, 0.07% cobalt and 0.53 gram gold (including a 7-metre interval grading 6.07% copper, 0.05% cobalt and 0.68 gram gold) at a downhole depth of 428.7 to 460 metres.

Hole 97 cut 14.3 metres grading 1.54% copper, 0.11% cobalt and 0.43 gram gold (including 8.2 metres grading 2.22% copper, 0.14% cobalt and 0.53 gram gold) at 375.5 to 389.8 metres.

For the remainder of the season, two drill rigs are targeting the southeastern extension of the Kona deposit. Based on geological and geophysical interpretation, the zone is projected to continue another 1,000 metres southeast of hole 65.

Columbia Gold recently tried stepping out some 350 metres with hole 97-107.

The company, however, was forced to abandon the 800-metre-long hole after it deviated from the target. The rig has now stepped out an additional 100 metres along strike and 50 metres to the east.

Columbia Gold can earn up to an 80% interest in the Fyre Lake project from Welcome Opportunities (WLO-V) by spending $6 million before the end of 1999.

Welcome retains a back-in right to increase its interest to 55% if it should elect to complete a final feasibility study and arrange all financing to put the project into production.