Preliminary Spectrum reserve estimate

A reserve estimate was released by Columbia Gold Mines (VSE) and Eurus Resource (VSE) for the Spectrum gold project in the north Iskut region of British Columbia.

The project is operated by Columbia, with Eurus holding the right to earn a 50% interest. Spectrum was previously known to host low-grade gold-copper mineralization, but recent exploration has been focused on finding and outlining high-grade gold reserves.

The new reserve calculation was based on both previous and 1991 drilling on the QC and Porphyry zones, and on pre-1991 drilling on the 500 Colour and other zones.

Undiluted, high-grade reserves on the property are now estimated to total 303,000 tons grading 0.46 oz. gold per ton, with 260,500 tons grading 0.45 oz. gold classed as inferred tonnage. Diluted high-grade reserves total 216,800 tons grading 0.47 oz. gold, with 178,800 tons grading 0.46 oz. gold classed as inferred.

The cutoff grade used for the calculations was 0.29 oz. gold per ton, and minimum width for the zones was 4.9 ft. perpendicular to strike and dip of a zone.

Indicated reserves were based on a minimum of two intercepts for a zone on its dip or along strike and were projected to a maximum of 33 ft. from a drill hole intercept. Inferred reserves were projected to a maximum of 165 ft. from a drill hole intercept where there was only one intercept for a zone, or 131 ft. beyond indicated reserve blocks.

The high-grade preliminary reserves are contained within an area of low grade, gold-copper mineralization previously estimated to total 9.23 million tons averaging 0.037 oz. gold per ton and 0.18% copper at a cutoff grade of 0.01 oz. gold. It should be noted that this bulk tonnage reserve makes no allowance for dilution and includes the high-grade gold mineralization of the Porphyry, QC and 500 Colour zones.

Columbia will soon be making recommendations for a program of continued drilling in 1992. Once this report is received and reviewed, Eurus will make a decision as to whether it will continue to fund ongoing exploration.