Surface work to start at Gunsteel gold bet

Surface exploration will begin shortly at Gunsteel Resources’ Nugget gold property near Salmo, B.C. According to Stan Endersby, president, consideration is also being given to direct shipping ore to the nearby Cominco smelter at Trail.

Some high grade material averaging better than 1.0 oz gold per ton was encountered in the 100 sub- level of the Nugget vein and Cominco has agreed to accept 500 tons per month, he confirms. The ore has a high silica content and would be used as flux in the smelter. A nominal treatment charge would apply with Gunsteel receiving credit for the gold. Mr Endersby says the 500-ton shipping rate would net about $250,000 per month to Gunsteel and co-owner Nugget Mines.

Underground exploration has yielded encouraging results and reserves now stand at 67,000 tons grading 0.45 oz. This compares to past production from the property of 430,000 tons grading 0.54 oz. Exploration development on the Nugget and Calhoun veins was curtailed in late February because of insufficient space to store ore grade material. Also, the lower level portal was not accessible because of winter conditions.

Since that time crews have been laying track and rehabilitating underground workings for future exploration. An unloading trestle and ore storage area have been completed at the Motherlode No 5 portal and stored ore is being removed from the underground. Exploration drifting on the Nugget and Calhoun veins is being resumed. Diamond drilling on the Fawn No 1 vein has indicated the ore zone extends at least 100 ft below the lowest level; the structure will be tested further along strike and some 300 ft deeper. A number of other targets will be tested shortly as well.

Mr Endersby says exploration to date has demonstrated good potential for blocking out 75,000- 100,000 tons of ore which would justify the installation of a mill and commercial production. An approved mining plan and reclamation permit have already been received, he notes.

Follow-up work will begin soon on the Jero claims at Rossland, B.C. where some encouraging gold values were found in soils. Some of these values are associated with strong electromagnetic conductors. Work on the Allco, Gonzo, Omineca and Chilko Lake properties will commence later this season.