Additional assay results from drilling on the Prairie Creek mine property in the Northwest Territories under option to San Andreas Resources (VSE) continue to confirm the high-grade nature of the project.
San Andreas can earn a 60% interest in the property by issuing 100,000 shares, paying $100,000, and spending $1.8 million by August, 1995. Subject to the vendors not wishing to pursue a 40% working interest, San Andreas can purchase the remaining 40%, less a 10% net profits interest, for $900,000. Proven, probable and possible reserves on the property stand at about two million tons grading 11.8% zinc, 10.8% lead, 0.42% copper and 5.3 oz. silver per ton.
The reserve figure dates back to the early 1980s when the Hunt brothers of Texas spent $64 million developing a 1,200 ton-per-day mine and mill at the site before being forced into bankruptcy.
San Andreas hopes to bring the mine into production, with the current drilling program designed to upgrade and expand reserves.
The recent drilling results included three holes within the reserve area: PC-92-4, which intersected 10.5 ft. grading 12.6% zinc, 13.4% lead, 0.38% copper and 5.01 oz. silver; PC-92-6, which intersected 3.7 ft. of 19.7% zinc, 17.6% lead, 0.55% copper and 6.91 oz. silver; and PC-92-7, which intersected 10.1 ft. of 12.5% zinc, 28.7% lead, 0.50% copper and 9.4 oz. silver. Hole PC-92-5 was drilled just below the reserve boundary, intersecting 8.5 ft. grading 6.0% zinc, 7.2% lead, 0.2% copper and 2.88 oz. silver. Drilling on the property is continuing, although the company noted that no additional drilling has been done below previously released hole PC-92-3, which intersected two high-grade zones about 90 ft. below the reserve boundary.
The hole encountered 20.7 ft. grading 18.76% zinc, 18.85% lead, 0.86% copper and 10.51 oz. silver in the upper zone, and an additional 30.8 ft. grading 23.25% zinc, 23.26% lead, 0.84% copper and 11.55 oz. silver in the lower intersection.
The Vancouver Stock Exchange approved a two-for-one stock split effective Aug. 21, effectively doubling the company’s current 3.3 million outstanding shares.
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