Underground program near at Regional’s Midway bet dd

A $10-million underground program could begin later this year at Regional Resources’ Midway property on the B.C./ Yukon border. President Graham Farquharson emphasized at the annual meeting that underground exploration was the most effective method of blocking out reserves. He predicted another million tons minimum would be required to justify a production decision.

Reserves now stand at approximately 1.3 million tons grading 12 oz silver per ton, 7% lead and 9.6% zinc. Adding another million tons would give the project a 10-year mine life and he confirmed the earliest possible production date is mid-1990. That reserve base would probably justify a milling rate of about 500 tons per day.

Exploration last year was essentially grass roots in nature. The program concentrated on areas with favorable geological characteristics which had not been explored before, he said. “We didn’t come up with anything outstanding but we extended the mineralization in the Discovery area another 400 m.” Cave-like structures

Defining ore at Midway is a problem because the mineralization occurs in cave-like structures which are difficult to intercept from surface. Also, the favorable ore horizons disappear into rising topography so surface drilling is expensive. The cave structures appear to be extensive and he claimed mines with almost identical geology in Tennessee have operated continuously for more than 40 years.

Mr Farquharson said it was impossible to justify a large exploration program last year with silver at $5(US) per oz. But he conceded the situation looks much better this year with silver in the $7.50-$8.00 range. Two other important metal credits, lead and zinc, are also stronger.

Verbal discussions have taken place with the company’s partners (Canamax Resources and Procan Exploration) regarding the proposed $10-million program and he said they have “concluded this is the route to go.” The program would run through the winter. A number of financing options are available and several investment dealers have expressed an interest in funding the program.”The chances are better than 50/50 that we will be spending a whole lot of money there this year,” he said.

Regional holds a 50% interest in Fairfield Minerals which has a number of properties in B.C. and the Yukon. John Stollery, president of Fairfield, said crews are being mobilized for work on these properties. Getty Resources is funding a $1.2million program on Fairfield’s Logan property in the Midway area and two drills are now in operation. Work on the Oka and Elk properties near Peachland, B.C., are fairly grass roots in nature as is the program on the Ram property in the Yukon which is under option to Equity Silver.