Tenajon hits high-grade gold at Summit Lake

Vancouver — Tenajon Resources (TJS-V) has intersected high-grade gold at the formerly producing Summit Lake mine in northwestern British Columbia.

Fourteen drill holes extended areas of known gold mineralization, and a major exploration program is planned for early next summer.

Four parallel zones occur in a 650-ft.-wide northwestern trend. Three of these zones were developed in the early 1980s, resulting in 95,426 oz. gold over four years. Grades at the time averaged 0.474 oz. gold per ton, and recoveries were 89-92%. High interest rates and falling gold prices forced the mine to close.

Tenajon recently began a 4,000-ft. program of underground drilling in an attempt to expand the resource. Of the 14 holes sunk so far, 11 have intersected high-grade gold.

Seven holes tested targets beneath the old mine workings at the M zone. Highlights include:

— 14.3 ft. grading 1.137 oz. gold per ton at a depth of 178.7 ft. in hole 798;

— 13.8 ft. grading 0.961 oz. gold at a depth of 237 ft. in hole 715; and

— 6.2 ft. grading 0.88 oz. gold at a depth of 188 ft. in hole 714.

The western extent of the M zone at the 3000 level was tested by three holes at 100-ft. spacings; these returned up to 4.9 ft. grading 0.415 oz. gold at a down-hole depth of 195 ft.

Three holes tested the N zone, where limited mining took place. These returned up to 3.8 ft. grading 1.3 oz. gold at 361 ft. down-hole. South of the N zone, this year’s drilling on the L zone returned up to 6.7 ft. grading 0.475 oz. gold at 324.7 ft. down-hole (including 2 ft. of 1.17 oz. gold).

At the Road showing, 2 miles from the old mine workings, chip sampling returned a 4.9-ft. section averaging 0.606 oz. gold.

When the mine was closed, geological resources in the three zones were pegged at 132,306 tons averaging 0.56 oz. gold.

Tenajon recently received a favourable ruling relating to a lawsuit filed by Trans Pacific Mining and Carminco Gold & Resources over an alleged breach of an option agreement on the Summit Lake property. The British Columbia Supreme Court found that there was not an enforceable option agreement between the plaintiffs and Tenajon; therefore, the plaintiffs’ action was dismissed and Tenajon was awarded costs.