Teck (TEK-T) has signed a deal with Corona Gold (CRG-T) whereby the latter can earn a 50% interest in the 2,100-ha Tsacha gold property in British Columbia.
To earn its interest, Corona must spend $500,000 on exploration by Sept. 1, 1998, and a total of $1.5 million by Sept. 1, 2001.
The 84-claim property was staked by Teck in 1994 following the discovery there by the British Columbia Geological Survey of gold-bearing quartz veins a year earlier. The property is underlain by several types of volcanic rocks and volcaniclastic sediments, which form part of the Jurassic-aged Hazelton Group. The rocks are intruded by Cretaceous dykes and sills.
Steeply dipping quartz and quartz-carbonate veins striking north-northeast occur in a 2-km-wide zone in a unit of felsic tuffs. The Tommy vein, which was the focus of past exploration by Teck, has a strike length of 640 metres and extends to a depth of 150 metres. The vein, which was tested with trenching and 35 drill holes over 5,195 metres, is calculated to contain 440,000 tonnes grading 8.5 grams gold per tonne at a cutoff grade of 5 grams per tonne.
Drilling has also enabled Teck to identify the Johnny, Larry and Barney veins, which returned 6.2 grams over 2.7 metres, 7.1 grams over 5.1 metres, and 14.1 grams over 0.6 metre, respectively.
Work at the property this year has consisted of induced-polarization surveys aimed at locating extensions of the known veins, as well as identifying new ones.
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