Tenajon seeks to buy Esso’s interest in SB

Surface diamond drilling on the SB property near Stewart, B.C. intersected a new zone parallel to the Main zone where operator Tenajon Resources (VSE) has been encountering impressive values in both precious and base metals from an underground diamond drill program.

The first assay released from surface drilling of the new zone is a spectacular 20.0 ft of 2.749 oz gold per ton (cut to 1 oz: 0.425 oz) from Hole S-88-45. Assays for base metals are expected shortly.

According to Don McLeod, president, the discovery this season of several new zones parallel to the Main zone has important implications for the SB property, as they are located within 100-150 ft of the Main zone and could be readily accessed from present underground workings.

Assays were also reported from the underground drill program being conducted along the massive sulphide zone from seven drill stations. Recent results include: 10.9 ft of 0.310 oz gold; 15 ft of 0.230 oz gold; 23.7 ft of 0.230 oz; 26.6 ft of 0.626 oz; 10.8 ft of 0.669 oz; and 18.3 ft of 0.322 oz per ton. Assay results for base metals are also expected shortly for the above holes.

McLeod said the budget for the 1989 work program, which is “likely in the range of $5 million,” will be presented before year end after evaluation of results from the past season’s surface and underground programs. In the meantime, the company will be releasing assays from a backlog of drill core from this season’s work. Results to date are showing a project unusual in that significant values are being reported in both base metals and precious metals.

“There’s a definite zoning effect on the property,” said McLeod, “within the structure we are finding substantial areas of polymetallic material with strong base metal values, but there’s also highly silicified areas where mineralization is mainly gold with minor amounts of base metals.”

The first preliminary metallurgical tests undertaken this year are indicating “excellent” recoveries, McLeod said.

The SB property enjoys a significant advantage over many project located in northwestern British Columbia in that it is readily accessible by the Granduc road. The property lies between the Big Missouri and Silbak deposits being readied for production in early 1989 by Westmin Resources (TSE).

Tenajon’s equal partner at SB is Esso Minerals Canada, which is now up for sale. Is Tenajon Resources interested and a possible contender? According to Don McLeod, the answer is clearly in the affirmative.