New Zone Discovered on U.S. Borax Star Property

Two contiguous gold properties located in southeastern British Columbia are providing an exploration focus for Reymont Gold Mines (ASE), Lectus Developments (VSE) and Ryan Exploration, a subsidiary of U.S. Borax, in turn a subsidiary of Rio Tinto Zinc of Great Britain.

Under an agreement made earlier this summer, Reymont and Lectus can collectively earn a 50% interest in Ryan’s Star property by spending $400,000 over three years, while Ryan can in turn earn a 50% interest in the Reymont/Lectus Gold Eagle No 3 claim found within the Star property for similar expenditures.

U.S. Borax and Asarco, which still has a 3% (net smelter return interest) in the Gold Eagle, had earlier carried out geochemical and geophysical surveys which indicated an extensive gold anomaly associated in places with copper and silver, later confirmed by drilling. U.S. Borax has been quietly working its property for the past five years while Lectus has been working its property for about two years before its involvement with Reymont, which is part of the Brown Group of Calgary, Alta.

The properties are being examined for their potential to host a large tonnage, low grade, open pittable deposit, although recent drilling has also identified mineralized zones that contain narrow high grade sections and medium width, medium grade sections.

Last week Reymont announced the assay results from drilling on a newly discovered zone on the Star property which yielded 5 ft of 0.214 oz gold and 2.36 oz silver per ton. Another 5 ft section further down the hole yielded 0.621 oz gold and 3.6 oz silver.

The sections were obtained from drilling a previously untested zone of the prospect and were in a wide interval of lower grade: 230 ft averaging 0.028 oz gold and 0.36 oz silver. Another hole drilled from the same site but in an opposite direction encountered widespread low grade values of 0.013 oz gold over 160 ft. The company says, however, that heavy water flow hampered the recovery of fine material during drilling which may have caused the loss of some gold values. Fifteen reverse-circulation holes have been completed on the Star property this year. Results from the Alma N zone include: 120 ft of 0.090 oz gold; 155 ft of 0.126 oz; and from the Star zone, 105 ft of 0.048 oz gold.

An exploration program of 9,300 ft of diamond and reverse-circulation drilling is under way to test and define the discoveries at the Alma N zone, the Star-Eureka zone and the new southeast zone. IP surveys, trenching and drilling is also planned for the Gold Eagle claims which Lectus says appear to contain the extension of the new zone.

According to Lectus, a large IP anomaly (over 2000×200 m), coincident with a high gold geochemical anomaly, passes all the way through both properties from north to south along their common boundary, and continues on to the south. Trenches and drill holes have indicated a very thick stratabound area of mineralization containing pyritized silicified felsic volcanics. The over-all picture, Lectus reports, appears to consist of a thick band of mineralized volcanics coming from the southeast and dissipating into a dioritic intrusive which is also mineralized. Lectus has received several financings from First Exploration Fund of Vancouver.