Sterling Pacific drills Nevada play

Junior Sterling Pacific Resources (VSE) is drill-testing four anomalies on its newly acquired Monarch-Zim gold properties near Reno, Nev.

Besides the 10-hole program of 2,500 ft. now under way, Sterling recently completed 35 miles of a grid line geophysical survey over 700 acres. The goal is to outline a bulk-tonnage deposit amenable to open-pit mining. Purchase terms for the Zim property included payment of $14,500 and 250,000 shares, whereas the Monarch acquisition involves payment of US$514,000 over two years. Both properties have seen sporadic, small-scale mining since the early 1880s.

Farther south and east, at the San Lazarus property in New Mexico, an induced-polarization survey will attempt to determine drill targets. Sterling holds two options to acquire a half interest in the property, and it can earn 20% from Jacqueline Gold (VSE), which currently holds

a 70% interest, by spending $400,000 on exploration and paying $80,000 in cash and 100,000 common shares.

An additional 30% can be acquired from BMR Gold (TSE).

Reserves, based on a 24-hole program by Jacqueline in 1993, are estimated at 231,000 tons grading 0.31 oz. gold per ton in the proven and probable category, as well as 483,000 tons averaging 0.13 oz. in the inferred category.