Porphyry deposit at South Kemess

A large porphyry copper-gold deposit is being outlined at the South Kemess property in the Toodoggone region of north-central British Columbia. El Condor Resources (VSE) and Kennecott, in a 60-40 joint venture, are earning a 60% interest in the property from St.Phillips Resources (VSE) and its affiliate Stork Ventures by spending $1.1 million.

Wide copper-gold intersections have been encountered from near-surface to depths of up to 675 ft. The drilling covers an area measuring about 1,500×2,000 ft. with the deposit remaining open in all directions.

El Condor includes a copper equivalent grade with its assays derived from a formula that takes into account estimated concentrate trucking and smelting costs as well as a number of other factors. The relative gold and copper prices used were US$375 per oz. and US90 cents per lb. respectively.

Complete drilling results from the 1990 season follow: Hole Interval Intercept Gold Copper Copper

(ft.) (ft.) (oz./ton) (%) Equiv.(%) 90-1* 22-594 572 0.019 0.28 0.94 90-2* 15-561 546 0.014 0.23 0.72 90-3* 10-620 610 0.015 0.23 0.74 90-4* 25-240 215 0.007 0.24 0.38 90-5* 23-76 53 0.007 0.13 0.37 90-6* 37-643 606 0.022 0.29 1.04 90-7* 50-404 354 0.018 0.23 0.84 90-8* 20-571 551 0.013 0.20 0.64 90-9* 22-697 675 0.019 0.27 0.29 90-10* 17-338 321 0.014 0.21 0.70 90-11* 20-203 183 0.027 0.37 1.28 90-12* 10-121 111 0.018 0.26 0.87 90-13* 60-453 393 0.019 0.25 0.89 90-14 50-430 380 0.029 0.39 1.38 90-15 50-351 301 0.023 0.21 1.00 90-16 50-312 262 0.032 0.30 1.35 90-17* 20-387 367 0.013 0.19 0.62 90-18 40-492 452 0.013 0.22 0.66 90-19 80-413 333 0.015 0.22 0.74 90-20 30-358 328 0.014 0.14 0.62 90-21 57-348 291 0.013 0.15 0.60 90-22 20-341 321 0.009 0.14 0.45 * previously released