The high-grade 21B zone on the Eskay Creek property north of Stewart, B.C., now hosts probable reserves of 1.19 million tons grading 1.91 oz. gold and 85.5 oz. silver per ton.
This updated and upgraded reserve was released by 50% owner Prime Resources Group (VSE) on the basis of a recent reserve audit completed by Derry, Michener, Booth and Wahl as part of a feasibility study.
The company said the current reserve represents 2.27 million oz. gold and 101.7 million oz. silver, or 3.4 million oz. gold and gold equivalent. This represents about a 10% increase in contained oz. from projections released last December when the 21B zone was estimated to host preliminary reserves of 1.15 million tons grading 1.86 oz. gold and 74.8 oz. silver, or 3.1 million oz. gold and gold equivalent.
The new estimate uses the same cutoff grade of 0.4 oz. per ton gold equivalent and 90-to-1 conversion ratio for gold and gold equivalent. It also includes allowances for mining recovery, and about 27% dilution. As well, the reserve includes about 150,000 oz. gold and gold equivalent in the TOK claim gap where Prime and partner Stikine Resources are earning a 50% interest from Adrian Resources (VSE).
Prime and Stikine are both controlled by International Corona (TSE) which is now in the process of completing a proposed merger with Homestake Mining (NYSE) of San Francisco.
Funds for the $10-million feasibility study at Eskay Creek are being provided to Prime and Stikine by Placer Dome (TSE) under the terms of a loan agreement signed May 1.
Placer Dome will have a 22% direct interest in Eskay Creek and will finance its shares of costs to develop and bring the project into production.
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