Wayside misses Mosquito payment (January 14, 2002)

Vancouver — International Wayside Gold Mines (IWA-V) has failed to make a required $100,000 payment to Mosquito Consolidated Gold Mines (MSQ-V) and, as a result, has lost its right to earn a 100% stake in the Island Mountain and Mosquito Creek claims. The claims are part of Mosquito’s Cariboo project, near Wells, B.C.

The Frank Callaghan-led junior also gave back its right to earn a half-interest in the Cariboo gold quartz claims. Wayside still retains the option to earn a 50% interest in the claims by spending $500,000 per year and completing a positive feasibility study. The company could have earned the remaining half by making cash payments totalling $4 million by Dec. 31, 2003.

Wayside has been operating in this district since 1994, when it optioned the Cariboo group of claims from Mosquito. The Cariboo project comprises 153 sq. km and is centred on the historic Cariboo Gold Quartz, Island Mountain-Aurum and Mosquito Creek mines, which collectively produced more than 1.2 million oz. from 1933 to 1987.

Early work by Wayside targeted the bulk-tonnage potential of the Sanders, Pinkerton and Rainbow zones of the historic Cariboo Gold Quartz mine, on the flank of Cow Mountain. Wayside tabled an indicated resource estimate for Cow Mountain of 6 million tonnes grading 2.23 grams gold per tonne, equivalent to 430,885 contained ounces. An additional 1.5 million tonnes grading 1.85 grams, equivalent to 90,936 oz., were classified as inferred.

Over the past couple of years, Wayside has shifted focus to the nearby Bonanza Ledge gold discovery, where drilling has outlined five zones of mineralization. Geologist Ned Reid identified the high-grade Bonanza Ledge style of pyritic mineralization in the footwall of the BC vein in March 2000. Forty-eight holes tested an area 412 metres along strike, with the bulk of the holes collared in a 140-metre section.

The Bonanza Ledge zone represents a combination of sheeted veinlet and replacement mineralization that may form one or more folded discordant vein systems.