US$9.3 million budget for Fort Knox

The development of the Fort Knox property, near Fairbanks, Alaska, is scheduled to resume May 1. Fairbanks Gold (VSE), 51% owner of the property and the project operator, plans to spend US$9.3 million on the property this year.

The program will be done in two phases. Phase one, running to the end of July, will include 100,000 ft. of reverse circulation drilling on 400 ft. stepouts designed to define the limits of the deposit. The company also plans to drill about 10,000 ft. of diamond core holes in selected areas for geological interpretation.

As a result of drilling last year, the deposit is estimated to contain over 80 million tons grading 0.036 oz. gold per ton. Drilling has encountered mineralization covering an area of about 2,700×1,200 ft. to a depth of more than 900 ft. and is open in all directions.

Following the phase-one program, the company should have a good indication of the size of the deposit. Phase two will back in on the stepout holes, drilling on 200-ft. centres in order to bring to deposit to a drill proven-probable category. Fairbanks also plans another 10,000 ft. of diamond drilling for further geological information.

With the two-phase program scheduled to be finished by the end of this year’s drilling season, Fairbanks expects to have completed an advanced prefeasibility study by March 31.