Silverknife reserves total 400,000 tons, Reg Res. reports

Drill-indicated and inferred reserves stand at 400,000 tons at the silver-lead-zinc-gold Silverknife prospect at the Liard mining division in British Columbia, Reg Resources reports.

Forty-nine holes representing 13,700 ft have been drilled to date. The reserves total is based on an approximate strike length of 800 ft, an average thickness of 10 ft and a down-dip extension to 500 ft. Among the better values were 29 oz silver per ton and 17% lead/zinc combined over a 14-ft section.

Dr Gary Medford, consulting geologist for the project, said the mineralization is open to the north and west.

Reg says a further $600,000 will be spent on the Silverknife claims under the current option agreement with Chevron Minerals and Teryl Resources.

Under the agreement, Reg has a 40% carried interest until $900,000 has been spent by Teryl and Chevron ($450,000 each); Teryl and Chevron will each earn a 30% working interest in the project. Chevron has an option to earn an additional 21% interest by paying $2 million to Reg and $650,000 to Teryl; Reg and Teryl would then each retain a 24.5% interest.