Muskox stung by latest Yellowjacket results

Vancouver – Muskox Minerals’ (MSK-V) phase II drill results from its Yellowjacket gold project near Atlin, in northwestern British Columbia, failed to live up to expectations but has shed some light on the nature of the mineralized zones.

Of the dozen core holes poked into the Yellowjacket project in this latest program, three intersected significant gold mineralization, including YJ04-01 which cut 2.5 metres grading 26.1 grams gold per tonne and hole YJ04-07 hitting 1.05 metres of 225.6 grams gold. Four holes yielded no significant results with the rest returning low-grade intersections.

Muskox’s several holes that failed to return significant gold were all drilled on southerly azimuths, with dips paralleling the interpreted south-dipping mineralized zones.

Modeling of drill-hole geologic data has now defined three parallel, planar gold mineralized zones, within the Pine Creek Fault zone, having an east-west trend and southerly dip.

Drilling by Muskox in late-2003 returned a particularly high-grade intersection of 5.56 metres grading 513.7 grams gold in hole YJ03-01. The company’s exploration program has focused on an area where Homestake Minerals (since taken over by Barrick Gold (ABX-T) in 2001) explored from 1987-89. Homestake drilled along the Pine Creek Fault, encountering associated gold mineralization from near-surface to depths of 100 metres and along strike for about 230 metres.

Gold mineralization at Yellowjacket is generally coarse-grained and occurs within quartz veinlets in fractured volcanics and altered serpentinites.

Due to the close surface proximity of the previous high-grade intercepts (within 15 metres), Muskox is contemplating excavation of a mini-bulk sample that would counter any potential nugget-effect in the gold mineralized zone, delivering a more representative sample.

The area has a history of placer gold production dating back to the late-1800s as part of the Atlin gold camp. Reported production in excess of 600,000 oz. gold came from creeks in the area.

Muskox is earning a 100% interest in the project.

Investors sold off the issue on the results. At presstime, the company’s shares were down 23%, closing at 15 on volume of 1,006,600. The latest figures show 78.7 million shares outstanding.