U.S. REPORT Pegasus gets mixed results at Century

The first eight holes drilled by Pegasus Gold (TSE) on the Century Gold property in Idaho returned mixed results, the most impressive being a 20-ft. intersection grading 1.13 oz. gold per ton. As operator of the joint venture project, Pegasus Gold has the right to earn a 51% interest from Cactus West Explorations (VSE) in return for expenditures totalling US$1.5 million over five years.

The property package is about 35 miles to the northeast of Boise and encompasses over 3,200 acres. The history of the area includes extensive placer mining as well as a number of small underground mines dating back to the late 1800s. The Gold Hill mine produced an estimated 500,000 oz. of gold during 1865-1938.

The primary target of Pegasus’ exploration program is a large- tonnage gold deposit. The Gold Hill mine area is characterized by a broad shear zone 300-500 ft. wide, which is believed to have the potential of hosting a large, low-grade deposit.

Dennis Baxter, president of Cactus West, said the main target of the drilling is a rhyolite porphyry unit which is thought to have the greatest potential for carrying disseminated gold values.

He said all the drilling, except for the last few feet of hole GHR-4-90, missed the unit. Baxter said Pegasus is reviewing its exploration plan and he expects the company to move its drilling to the south of hole GHR-4-90, the most southerly hole of the recent program.

Results from the recent program are as follows: Depth Width Gold Hole (ft.) (ft.) (oz./ton) GHR-2-90 220-225 5 0.001 250-255 5 0.097 GHR-4-90 30-45 15 0.025 200-220 20 1.13 (hole lost at 220 ft.) GHR-5-90 155-175 20 0.020 180-185 5 0.016 200-205 5 0.021 GHR-7-90 250-255 5 0.015 285-290 5 0.010 290-295 5 0.42 GHR-8-90 340-355 15 0.044 370-375 5 0.010