San Andreas hits zinc-lead values

With assay results from four recent holes, San Andreas Resources (VSE) is reporting the discovery of “Pine-Point-style mineralization” at its Prairie Creek mine property 300 miles west of Yellowknife, N.W.T.

Discovery hole 92-8 intersected 73.1 ft. grading 6.68% lead, 12.7% zinc and 1.60 oz. silver per ton (from 894-967.1 ft.), and provided the first indication that cavity-fill sulphides (replacement-style mineralization) were present on the property.

Previous work was focused on vein-type mineralization and on the zone 3 deposit which has reserves in all categories totalling 2 million tons grading 10.3% lead, 11.75% zinc, 0.42% copper and 5.3 oz. silver per ton. This reserve dates back to the early 1980s when the Hunt brothers of Texas and others spent more than $64 million to develop a 1,200-ton-per-day mine and mill at the site before being forced into bankruptcy.

The project was reactivated by San Andreas which began a drill program on the property this June aimed at expanding and upgrading reserves and testing other known zones on the property. The discovery was made when several holes were drilled to test the vein structure’s potential at depth. The mineralization in the discovery hole consists of interlayered sphalerite, galena, pyrite, silica (jasperoid) and dolomite at 70 to the core axis over 73.1 ft. of core. San Andreas says the “floor and roof” of the cavity is sharply defined.

Peter Tsaparas, San Andreas president, says the discovery of the flat-lying mineralization has “obvious tonnage implications,” and as a result, the company staked additional claims to secure a land package now measuring about 17 miles long by 2.7 miles wide.

“We’ve had considerable interest from major mining companies,” Tsaparas said, adding that the company has changed the plan of all future drilling to focus on the new development. “The cavity fillings usually have irregular shapes, so we plan to drill 8-10 holes to find out what kind of reserves we have.” The company also identified a showing at the end of the property, but on strike with the main deposit, where surface mineralization is believed related to cavity-fill sulphides.

Even before the new discovery was made, San Andreas believed the property had good potential for new discoveries as the known massive vein is traceable in a semi-continuous fashion for 12 miles along a strong shear zone. San Andreas has already drilled almost 10,000 ft. in 12 holes, and all holes intersected lead-zinc-silver values. One of the previous holes, 92-3, encountered typical vein-style mineralization but cut an unusual width of high-grade material in two closely spaced intervals; 20.7 ft. averaging 18.8% zinc and 18.9% lead and 30.8 ft. averaging 23.3% zinc and 23.3% lead. Holes 10, 11 and 12 also encountered cavity-fill sulphides.