YGC finds new zone at Ketza River

Exploration work at the Ketza River project in the Yukon has led to the identification of a new oxide zone between two previously mined-out orebodies.

Property owner YGC Resources (VSE) is in the midst of a drilling program under the management of Wheaton River Minerals (TSE), which owns a controlling position of 53% in YGC.

The drilling is intended to enhance the project’s established reserve base.

Assay results from the first three holes are as follows: 8.2 ft. of 0.26 oz. at a drilled depth of 208.3 to 216.5 ft. for hole 95-507; 28.9 ft. of 0.33 oz. at a depth of 186 to 214.9 ft. for 95-508; and 15.4 ft. of 0.34 oz. at a depth of 191.6 to 207 ft. for 95-509.

YGC is continuing to drill the new area, known as the Fork zone, which was identified following a reinterpretation of local geology and ore controls.

Last year, an internal feasibility study assessed the economics of mining the Grew Creek deposit by open-pit methods and then trucking the ore 55 miles to YGC’s 495-ton-per-day Ketza River mill. The deposit contains oxide reserves estimated at 266,000 tons averaging 0.39 oz. gold per ton.

Plans call for production of 62,000 oz. over 16 months at a projected cash cost of US$242 per oz. Startup costs are projected to be $5 million.

It is believed that an additional 28,000 oz. are recoverable through a subsequent underground operation.

The Ketza River property also hosts a sulphide deposit containing 209,000 tons grading 0.33 oz. Mill modifications and further permits are required if this deposit is to be mined.

Meanwhile, after drilling three holes, Hemlo Gold Mines (TSE) has dropped its option to earn a 60% interest on a portion of the Ketza River property.

Hemlo was required to spend $2 million on exploration as part of the agreement. YGC will now follow up several of the targets that have been outlined.