A second-phase exploration program will begin this fall on the Silver Butte mine property in Oregon. The program will be carried out by Formosa Resources (VSE), mine operator, with funding provided by Washi Kosan of Japan, Formosa’s largest shareholder.
Formosa resumed production at its copper-zinc-gold-silver mine earlier this year, and also carried out the first phase of a US$1.5-million exploration program this spring. The program was focused on underground drilling at the mine and surface geological, geochemical and geophysical surveys over a 1.5-sq.-km area in the immediate vicinity.
The underground drilling is reported to have demonstrated that high-grade copper found in the lower areas of the mine continues at depth. The work also supported Formosa’s view that there are at least three separate (stratigraphically) ore horizons within the mine’s productive unit. The second-phase exploration program will involve follow-up work on a number of surface anomalies identified earlier this year. The program is also aimed at proving up ore zones further downdip and strike-extensions with a view to expanding reserves.
Washi Kosan will have a 2% net smelter royalty on the production from the area covered by the exploration program.
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