Prairie Creek stepout drilling expanding tonnage potential

Stepout drilling on the Prairie Creek mine project 300 miles west of Yellowknife, N.W.T., continues to expand the project’s tonnage potential.

San Andreas Resources (VSE), the operator on the property, is earning a 60% interest in Prairie Creek by spending a total of $1.8 million by August, 1995. Previous estimates of total reserves, dating back to the early 1980s, stand at about two million tons grading 11.8% zinc, 10.8% lead, 0.42% copper and 5.3 oz. silver per ton.

The reserves are hosted in a steeply dipping vein, the extent of which has been expanded by San Andreas’ subsequent drilling.

In addition, drilling in September intersected a distinctively separate form of mineralization the company categorizes as “Mississippi Valley Type” (MVT). The new system was discovered when San Andreas began probing the downdip extent of the vein system.

The horizontal zone of MTV mineralization has been intersected in 10 holes over an area measuring 500 ft. by 400 ft. at a depth of about 600 ft. Intersection widths have ranged from 3 ft. up to almost 80 ft. with combined lead-zinc grades ranging from 6% to more than 40%.

Peter Tsaparas, president of San Andreas, noted that the downdip vein and MTV drilling covers only a portion of the strike length under the old ore reserve, leaving room for a considerable expansion of reserves. The company is also developing a high-grade section of vein mineralization as indicated by recently completed hole PC-92-19.

San Andreas plans to continue drilling through the winter at the site and remains well funded with about $1 million in working capital. The company expects to receive an additional $2.2 million at the end of January following the exercise of warrants at $1.25 per share.