United Lincoln Drilling Expands MBX Gold-Copper Zone

While recent drilling is continuing to expand the MBX gold-copper zone which now measures 2,500 ft along strike and up to 1,000 ft wide, the discovery of a portion containing higher gold values is undoubtedly the more encouraging news for the junior company attempting to prove up a bulk tonnage open pit gold-copper mine where gold credits are expected to figure prominently in project economics. United Lincoln has a 70% interest and is operator while partner BP Resources Canada Ltd. (TSE), which staked the property as a raw pros pect back in the early 1980s, holds a 30% interest.

Intrigued by United Lincoln’s 1988 reconnaissance drill program that encountered values as high as 0.078 oz gold over 280 ft in altered volcanics within an alkaline stock, management of Continental Gold Corp. (VSE) moved last fall to take control of the company which is now its 69%-owned subsidiary. The companies are expecting to amalgamate within the next several months into a single entity under the control of Robert Hunter and Robert Dickinson, both of whom were involved in development of the Golden Bear mine in northwestern B.C.

By the end of 1988, the partners had assigned the bulk tonnage prospect a preliminary geological inventory based on 31 holes in the order of 20 million tons, with average gold grades in the range of 0.02 to 0.04 oz and average copper grades in the 0.3% to 0.5% range. (N.M Dec., 5/88). Although considerable drilling needs to be done before the deposit’s size and grade can be confirmed, United Lincoln is expecting that its 1989 program will add significantly to these numbers.

This year the partners are jointly funding an expanded drill program which is now testing the eastern flank of a large circular disseminated sulphide system measuring two miles in circumference (as indicated by recent geophysical surveys). The partners are encouraged by recent work which appears to be demonstrating vertical continuity to a depth of at least 850 ft, with the zone open to extension along strike and at depth.

Gold is disseminated throughout the MBX zone, including its southern end where two recent holes encountered lower copper values but significantly improved gold values. From a total hole length of 925.3 ft, hole 88-61 encountered 720.3 ft of 0.09% copper and 0.036 oz gold per ton, including 168.9 ft of 0.10% copper and 0.073 oz gold and 246 ft of 0.12% copper and 0.045 oz gold.

The second hole, 88-66, included a 601.7-ft interval (from a hole length of 651.7 ft) grading 0.12% copper and 0.035 oz gold. Included in that interval was 258.1 ft of 0.05% copper and 0.062% gold and 145.9 ft of 0.03% copper and 0.086 oz gold. Robert Dickinson, president of United Lincoln, said the last 6 ft of this hole assayed 0.27 oz gold per ton.

“We initially saw Mt. Milligan as a classic porphyry copper situation with uniquely high gold values,” he said. “But what appears to be happening now is that the copper-gold is phasing into an area with higher grade gold values, although we don’t know the size of it yet.”

Other holes drilled into the MBX zone returned copper values within the expected range although some intervals were shy of targeted gold grades; among them hole 88-65 which intersected 451.1 ft of 0.41% copper and 0.013 oz gold, and hole 88-67 which intersected 379.8 ft grading 0.26% copper and 0.012 oz gold from a total hole length of 806.8 ft.

A 1,017-ft interval of 0.36% copper and 0.015 oz gold was reported from hole 88-68, including 487 ft of 0.43% copper and 0.022 oz gold. Although further assays are expected from hole 88-70, a 430.8-ft interval of 0.38% copper and 0.016 gold was reported.

Several holes were also drilled peripheral to the MBX zone, with one encountering 906.6 ft of 0.11% copper and 0.012 oz gold, and a second hitting 368.9 ft of 0.08% copper and 0.020 oz gold.

By the end of January, United Lincoln expects to have four drill rigs on the property to continue to test the sulphide system and numerous other targets covered by a thin layer of overburden. A major logging road runs through to the 42-sq-mi property.

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