Silver Century hits copper in Quebec

Drilling by Silver Century Explorations (SVC-A) has intersected strong copper grades on the Stoke property, northeast of Sherbrooke, Que.

The company’s interest in the property was obtained through its participation in the Eastern Canada venture with the Canadian subsidiary of Phelps Dodge (PD-N). The project is being operated by Phelps Dodge, which has been exploring the deposit since 1995.

Three holes totalling 347.5 metres were recently drilled to test induced-polarization (IP) anomalies. Hole 1 intersected 5.78% copper across 5.6 metres (from 72.4 to 78 metres), including 7.84% copper across 4 metres.

The mineralization occurs as strongly disseminated to locally massive, pyrite-chalcopyrite bands hosted in a mafic to intermediate pyroclastic unit.

Drill holes 2 and 3 tested two separate IP anomalies, which consist of altered felsic to intermediate volcanics containing varying amounts of pyrite and hematite located north of the high grade copper intercept.

The 9,300-ha property covers a 25-km strike length of the Ordovician-aged Stoke geological domain. Field work last summer included sampling of a small, stratabound base metal showing with grab samples assaying as high as 12% zinc and 2.35% copper on a geological horizon separate from the copper-rich intercept in hole 1.

The Sherbrooke region is highly prospective for volcanogenic massive sulphide mineralization, having hosted several past copper producers, including the Cupra and Solbec mines.

The Eastern Canada venture will continue to employ ground and airborne geophysics, geological mapping and geochemical surveys on the property in order to identify exploration targets. This work is expected to be followed up by reconnaissance drilling to confirm the extent of the high-grade copper mineralization on strike and below hole 1.

Silver Century will spend about $1 million, prior to Oct. 31, exploring nine properties owned by, or optioned to, Phelps Dodge in Ontario, Quebec, Nova Scotia and Newfoundland. Upon completion of this initial work, Silver Century can acquire (subject to royalty interests) any property by spending at least $200,000 on exploration per property by Oct. 31, 1999, or twice the amount of Phelps Dodge’s prior exploration expenses, whichever is greater.

Phelps Dodge may elect to earn back up to 60% of its interest in any property by incurring exploration expenses equal to three times those incurred by Silver Century and/or by making cash payments to Silver Century.

The Stoke property is held by Phelps Dodge through an underlying option agreement. To vest its interest in the property, the Eastern Canada venture must spend $3.6 million over a 5-year period and would be subject to a 1% net smelter return royalty payable to a third party in the first two years after commercial production, and 2% thereafter. The Stoke property is also subject to a 10% net profits interest, which may be purchased for $2 million.

Agnico-Eagle Mines (AGE-T) provides management, technical and financial assistance to Silver Century and, together with its associated companies, has a combined ownership interest in Silver Century of 73%.