United Lincoln tests depth, gold potential at Mt. Milligan

Late last year, United Lincoln estimated an initial reserve (based on 31 holes) for the MBX gold- copper zone in the order of 20 million tons with average gold grades in the 0.02-0.04 oz range and average copper grades in the 0.3%-0.5% range, with the deposit open to extension in all directions and to depth.

The latest assay results from the MBX zone include: 822.3 ft of 0.37% copper and 0.015 oz gold between 83 ft and 905.3 ft from a total hole length of 1,403.5 ft. Hole 88-70 also includes a 423.1-ft intercept grading 0.39% copper and 0.017 oz gold from 83 ft to 506.1 ft. From a total length of 1,114.2 ft, hole 89-71 intersected 828.5 ft grading 0.25% copper and 0.009 oz gold from 254.9 ft to 1,083.5 ft.

The company said these holes — combined with an earlier hole which graded 0.36% copper and 0.015 oz gold over 1,017 ft — indicate that the gold-bearing mineralization of the MBX zone has vertical continuity to a depth of at least 850 ft. The zone now measures 2,500 ft along strike and up to 1,000 ft wide and is open.

Gold and copper are disseminated throughout the MBX zone, with several recent holes indicating an increase in gold grades at the open, southern end. Assays from two recent holes in the newly- named 66 gold zone include: 980 ft of 0.02% copper and 0.010 oz gold including 101.7 ft of 0.07% copper and 0.035 oz gold from hole 89-74; and 772.7 ft of 0.11% copper and 0.023 oz gold including 426.7 ft of 0.16% copper and 0.036 oz gold from hole 89-77.

Two rigs are now at work on systematic 100-m step-out holes in the 66 zone which is reported to be 1,600 ft wide, 1,110 ft long and open to extension to the south and west. It merges with the MBX zone copper-gold mineralization to the north. A third rig is testing the western flank of the circular disseminated sulphide system measuring two miles in circumference.

United Lincoln is 69%-owned by Continental Gold Corp. (VSE) and the two companies plan to amalgamate on a one share for one share basis in March, 1989.

Continental has been active the past several years on its 71-sq-mi Trophy gold project in the Galore Creek area of northwestern British Columbia. In early February the project was optioned to Gigi Resources (VSE), a Prime Capital company which can earn a 55% interest through the staged issuance of 200,000 of its shares to Continental and by completing $2.5 million in work expenditures.

Gigi is planning to spend $0.5 million on the project in 1989 to further test some 16 gold and silver- bearing zones found on the claims in earlier work. Diamond drilling on the Ptarmigan zone last year penetrated a structure 560 ft below surface, returning a 36.4 ft interval grading 0.16 oz gold and 0.88 oz silver plus significant lead and zinc values.

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