Omni drilling expands reserves at Skukum Creek

A $2-million, phase-1 exploration program has substantially increased reserves at Omni Resources’ Skukum Creek property in the Yukon’s Wheaton River Valley.

Drill-proven reserves have increased to 821,000 tons averaging 0.225 oz gold per ton and 8.96 oz silver, with an additional 131,000 tons drill-indicated grading 0.261 oz gold and 4.95 oz silver.

Within this reserve estimate for the Rainbow and Kuhn zones are a series of blocks where the gold equivalent exceeds 0.5 oz, President E. Bergvinson says. This higher grade portion consists of 183,000 tons averaging 0.575 oz gold and 16.5 oz silver (0.79 oz gold equivalent). These blocks could easily be mined initially before removing the lower grade portions, he says.

Both zones remain open as well as the related Sterling zone which is largely untested. Four other adjacent zones are unexplored and are scheduled for diamond drilling from surface during 1988.

Omni is proceeding with the phase 2 mining program which includes continued drifting into the Rainbow and Kuhn veins along strike to determine the most suitable mining method. Raises will be constructed in the Kuhn and possibly the Rainbow zone. Work will include bulk sampling for comparison of drill core grades to mining grades and for metallurgical testing.

The company is negotiating a $1.5-million private placement to finance the 1988 program. An additional 5,000 ft of underground drilling and 10,000 ft of surface drilling are included in the budget. Omni anticipates the feasibility study will be completed in April, leading to a production decision this spring. Production at a rate of 500 tons per day is slated to begin early in 1989.