Mining Reserve Calculations Begin For Sulphurets Project

Reserve calculations to be used in generating mining reserve figures for the advanced Sulphurets project in northwestern British Columbia are now in progress. The property is owned 60% by operator Newhawk Gold Mines (TSE) and 40% by Granduc Mines (TSE). Cominco Engineering Services has been retained to provide engineering advice for the gold-silver project located northwest of Stewart, B.C.

The new reserve calculations are to be based on data generated from the current $5.8 million Phase II exploration program. Work has emphasized structural investigation of the West zone which has a mineral inventory of some 1.5 million tons grading 0.506 oz gold and 20.17 oz silver per ton as calculated early this year by American Mine Services.

Underground development to date consists of a decline from surface to the 1,300 m level and development on two levels; the 1,350 m and 1,300 m levels. In this phase of the program, Newhawk completed 610 ft of drifting, 591 ft of cross- cutting, 160 ft of decline and 653 ft of raising, and work is now extending the decline to the 1,250 m level.

Newhawk says the underground exploration shows the West zone to be comprised of structurally controlled quartz vein stockworks within a silicified-seriticized alteration zone. Gold and silver mineralization is reported to consist of electrum, tetrahedrite and ruby silver and occurs within quartz veins stockworks, breccias and silicified zones. The Main zone — the dominant feature of the deposit — is described as a strong persistent zone of bifurcating quartz veins and a series of high grade, conjugate, subparallel veins and stockwork zones which splay off the Main vein.

On the upper or 1,350 m level, Newhawk has driven six drifts along some 640 ft of mineralized structures, while four raises exposed a total of 222 ft of mineralization in four separate structures. Chip samples from drifts include: 5.6 ft of 0.485 oz gold and 52.61 oz silver over a 106-ft length, while chip samples from raising returned 5.9 ft of 1.993 oz gold and 172.42 oz silver over a length of 52.5 ft.

On the lower or 1,300 m level, four drifts were driven along 555 ft of mineralized structure and three raises exposed 232 ft of mineralization in three separate structures. Chip samples from drifts include 5 ft (diluted) of 0.28 oz gold and 12.76 oz silver along a 171-ft length while chip samples from raising include: 5 ft (diluted) of 0.432 oz gold and 21.97 oz silver over a length of 98 ft; and 5.7 ft of 2.017 oz gold and 152.59 oz silver along a length of 32.8 ft.

Newhawk says the drifting and raising, together with continued geological interpretation, has improved its understanding of the deposit. Mineralization has been shown to occur in discrete high grade shoots within a well mineralized structure, and Newhawk says these shoots have been shown to be continuous along strike for lengths ranging up to 250 ft and up-plunge for lengths of up to 100 ft.

Three additional raises are in progress from the 1,300 m level. An exploration drift has been driven to the south at the 1,325 m level to provide access to explore the southern extension of the structure with a pattern of underground drill holes. Reconnaissance program

Over the summer, Newhawk conducted a reconnaissance program to explore and evaluate a number of other known zones of mineralization found on the large property. The area known as the Sulphurets Lake zone revealed gold mineralization in shear zones with grades of 0.246 oz gold and 1.38 oz silver per ton over 6.6 ft, and 0.244 oz gold and 2.99 oz silver over 6.6 ft.

The Sulphurets Gold zone returned assays as high as 0.154 oz gold in grab samples, and 0.086 and 0.097 oz gold over 9.8 ft. Newhawk says this zone appears as a broad halo around the west, south and east sides of the Main Copper deposit discovered by Granduc Mines in the early 60s.

Numerous quartz stockworks from the new Josephine zone were sampled with resulting assays as high as 0.189 oz gold, 84.01 oz silver over 10.1 ft and as high as 0.309 oz gold, 41.77 oz silver in grab samples. A new area named the Golden Marmot zone was discovered about 1.5 miles north of the West zone and surface chip sampling gave results as high as 0.956 oz gold and 3.52 oz silver over 8.2 ft. Trenching returned assays as high as 4.814 oz gold and 3.52 oz silver over 9.8 ft.

Work is also under way to further define the mineralization encountered in the deep surface drilling completed earlier this year which indicated a possible new zone, called the UTC zone. Further surface drilling is under way to test the zone and Newhawk expects underground definition drilling will also be scheduled from the current West zone workings. Results to date include: 13.8 ft of 0.535 oz gold and 2.01 oz silver; 36 ft of 0.412 oz gold and 9.78 oz silver; and 20 ft of 0.412 oz gold and 4.09 oz silver.

Newhawk also spent time this summer to complete its access route and to upgrade the camp and facilities. A budget is now being prepared for the next phase of exploration to follow the current phase, scheduled to end late this year.