Placer Dome and Fairfield conclude option agreement

After negotiating with several majors, Fairfield Minerals (VSE) has concluded an option agreement for its Oka and Elk properties with Placer Dome (TSE). Located in the Okanagan region near Peachland, B.C., the Oka property is said to be geologically similar to the Hedley mining camp.

Four main target areas have been identified on the Oka claim group where massive sulphides have been located in skarn material. In the past, exploration was largely confined to the property’s base metal potential, mostly copper and zinc. (The Brenda mines operation is only a few miles away.)

A reverse circulation drilling program is planned this year on about 325-ft centres which should give them some idea of the stratigraphy. Diamond drilling could follow later. This year’s exploration budget is expected to total about $500,000.

Over 10,000 linear feet of trenching has been completed on the property and gold-bearing skarns and veins have been exposed in several widely-separated areas. Among the significant gold values returned were: 1.1 oz across 5 ft, 0.16 oz over 10.5 ft, 0.24 oz across 6.5 ft, and 0.21 oz over 6.6 ft. Visible gold has been located on one of the showings.

The Elk property, which is located 15 miles to the west, is a vein-type situation. Work done last year included soil geochemical sampling, geological mapping, and backhoe trenching on two areas with gold showings approximately one-half mile apart. Three priority gold anomalies, each about 3,000 ft long and 600-1,200 ft wide, have been identified.

Chip samples from exposed quartz veins with disseminated pyrite gave significant results including 0.65 oz gold and 4.7 oz silver over a 3.3-ft width. A 10.8-ft section of pyritic, clay- altered granite assayed 0.19 oz gold.

Fairfield says that clay alteration zones up to 100 ft wide were exposed and visible gold samples were returned assaying up to 8.7 oz gold. An exploration budget of $400,000 has been approved for the property in 1988.

Placer can earn a 50% interest in the properties for $2 million in exploration expenditures and by paying Fairfield $500,000 for each property before Feb 28, 1992. Placer may increase its interest to 70% by spending a further $2 million on each and paying Fairfield an additional $500,000 for each. Placer has agreed to pay all exploration expenditures until a production decision is reached. Cordilleran Engineering will operate the program.