Muskox stung by Yellowjacket results

Vancouver — Disappointing results from a second phase of drilling on the Yellowjacket project near Atlin, B.C., are nonetheless shedding light on the nature of the gold mineralization.

Of the 12 holes sunk by Muskox Minerals (MSK-V), three intersected significant mineralization, including hole 1, which cut 2.5 metres grading 26.1 grams gold per tonne, and hole 7, which returned 1.05 metres of 225.6 grams gold. Four holes yielded insignificant results, and the rest returning low-grade intersections.

The company has defined three parallel, planar zones within the larger Pine Creek fault zone, and these trend east-west and dip to the south.

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 program focused on an area that had been explored by Homestake Minerals in 1987-89 (before it was taken over by Barrick Gold). 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 in quartz veinlets within fractured volcanics and altered serpentinites.

The previous high-grade intercepts were within only 15 metres of each other, so Muskox is considering a bulk sample; this would counter any potential “nugget effect” in the zone and deliver a more representative sample.

More than 600,000 oz. are said to have been pulled from creeks in the area, which has a history of placer gold mining dating back to the late 1800s.

Muskox is earning a 100% interest in the project.

At presstime, the company’s shares were down 23%, having closed at 15 on volume exceeding 1 million. Muskox has 78.7 million shares outstanding.

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