Westmin intersects high grade gold on new zone at SB bet

A recent hole drilled by Westmin Resources (TSE) returned 23 ft. grading 1.10 oz. gold per ton from a new gold- bearing structure on the SB property near Stewart, B.C. The discovery is reported to be different in character from the 35 zone where numerous holes in the recent underground drill program returned well mineralized intersections in excess of 20 ft. This drilling was conducted to confirm earlier reserve estimates and for calculation of mineable reserves in preparation of a mining plan.

Westmin is earning a 50% interest in the SB property from Tenajon Resources (VSE) by spending a total of $2.8 million. Westmin recently filed a prospectus with the Northwest Mine Development Review Committee in order to complete permitting early this year, complete development work and begin production in May.

Before Westmin began its work program, the SB property was reported to contain reserves totalling 308,000 tons with an average uncut grade of 0.5 oz. gold and 1.07 oz. silver per ton. These reserves are contained in two of five known mineralized zones that are both open for expansion.

Reserves from the SB property would be processed at Westmin’s 60%-owned Premier gold-silver mining operation near Stewart. Since startup in 1989, the mine has been plagued by cost overruns and by operating problems largely relating to a lower grade of reserves than originally expected.

The SB property, accessible by road, is situated between the Big Missouri and Premier open pit mines which together make up the Premier gold project. The agreement between Westmin and Tenajon will provide for SB reserves to be processed at Westmin’s 2,200-ton- per-day mill at a guaranteed throughput of 119,000 tons per year.

“I’ve stuck with the idea that this (the agreement with Westmin) is the best way to go for a long time, even though I’ve taken some criticism for it,” Tenajon President Don McLeod said. “To try and raise the money to do it yourself in this climate is just about impossible.”

Westmin’s recent drilling on the 35 zone at the SB property consisted of 16,000 ft. in 76 holes of underground drilling. The new gold-bearing structure was encountered in underground hole 140 which was drilled east (40-50 ft.) of the north end of the 35 zone.

McLeod said further interpretative work and more drilling are planned to determine the significance of the 23-ft. intersection of black carbonaceous, silicious breccia assaying 1.10 oz. gold and 1.52 oz. silver.

Drilling results from the Kansas and West Kansas zones are still awaited. Selected underground drill holes from the 35 zone with significant intersections are as follows: 0104,0202,0304,0201,0204,0202,0204,0202,0204,0202,0107, Intercept width gold silver zinc Hole (ft.) (ft.) (oz./ton) (oz./ton) (2%) 68 112.9-133.9 21.0 0.49 1.88 3.41 72 75.1-123.0 47.9 0.35 2.04 3.35 73 48.5-57.7 9.2 0.24 0.70 and 165.0-183.4 18.4 0.47 1.17 2.37 and 273.3-278.2 4.9 0.61 1.90 2.59 77 65.3-90.2 24.9 0.45 1.45 3.49 81 58.1-81.4 23.3 0.60 2.02 10.35 82 128.9-145.3 16.4 0.87 1.09 2.81 85 83.3-90.9 7.6 1.13 7.15 89 144.4-172.9 28.5 0.81 0.64 122 12.1-15.1 3.0 0.28 0.58 and 55.0-98.8 43.8 0.54 2.97 6.04 and 330.1-335.0 4.9 0.23 0.73 9.08 123 149.9-170.0 20.0 0.55 0.44 93 92.9-107.9 15.1 0.50 0.97 98 191.3-201.5 10.2 0.39 1.22 3.02 15 149.0-159.5 10.5 0.14 0.31 113 118.8-135.2 16.4 0.38 9.19 17.74 115 154.2-167.0 12.8 0.37 7.03 18.14 129 102.7-114.2 11.5 0.27 4.47 15.37 130 96.5-99.7 3.3 0.37 0.26 and 139.1-165.4 26.2 0.43 4.72 6.65 118 136.5-149.6 13.1 0.16 2.80