Loki, Hemlo discover new gold zone at Brewery Creek

A recent exploration program has identified a new gold zone and new geochemical anomalies which partners Hemlo Gold (TSE) and Loki Gold (VSE) believe could increase the reserve potential of the Brewery Creek gold property near Dawson, Yukon.

Hemlo owns 51% of the project and is operator, while Loki holds a 49% interest. The two companies are funding a second-phase exploration program aimed at identifying new exploration targets.

Positive results are being reported from initial trenching on the newly discovered Schooner zone, about 5,000 ft. southeast of the Bohemian zone. An 820-ft. trench returned 0.042 oz. gold per ton over 19.6 ft. while a 91.8-ft.-long trench returned 0.059 oz. gold over 91.8 ft., which includes 19.6 ft. of 0.13 oz. gold. The third trench, some 197 ft. long, returned 1.47 oz. gold over 9.8 ft. and 0.034 oz. gold over 19.6 ft.

Loki President Lawrence Nagy also reported that “significant” geochemical anomalies to the south of the main trend indicate a parallel mineralized system.

Before the second-phase exploration program began, Brewery Creek was reported to host preliminary reserves of 11.1 million tons grading 0.052 oz. gold per ton. This reserve is considered amenable to open pit mining techniques, with oxides forming the largest portion (about 8.28 million tons). Loki released results from reverse circulation drilling within known zones, and results from diamond drilling done to confirm previously drilled reverse circulation holes (and to obtain structural and geological data). Some of the better results from diamond drilling on the Kokanee zone include: 64.1 ft. grading 0.13 oz. gold per ton; 52.4 ft. of 0.13 oz. gold, 39.3 ft. of 0.17 oz. gold; 72.1 ft. of 0.079 oz. gold and 85.3 ft. of 0.093 oz. gold. Selected diamond drill results from the Blue zone include 118.1 ft. of 0.12 oz. gold, 188.8 ft. of 0.051 oz. gold, 91.8 ft. of 0.21 oz. gold and 45.9 ft. of 0.10 oz. gold.