News Release: February 20th, 2003
Drilling intersects
High-grade Gold at the Siwash Mine, B.C.
In September, 2002 a sixteen hole, 5,000 m
(meter) diamond drill program was carried out to test the continuity
of mineralisation at the company's wholly owned Siwash Gold Mine.
The deposit is located roughly two kilometres south of Highway
97 and 45 kilometers (km) southeast of Merrit in the Okanagan
area of Southern British Columbia. The mine is known for its
very high gold grades and in the 1990's, 51,750 ounces of gold
were produced from 18,400 tons of mesothermal quartz vein ore
extracted from the B vein system in open pit and underground
operations. The Siwash Mine presently has an indicated resource
of 87,700 oz (2,727,400 grams) gold in 61,300 tons and a probable
reserve of 45,200 oz (1,405,700 gm) gold in 44,500 tons for a
total of 141,962 ounces in 123,142 tons as calculated on
completion of the last drill program in 2000. Calculation of
an updated resource estimate incorporating the 2002 drill intersections
is underway. Several structures were tested in the program, including
the WD vein, the Deep B shoot, the Gold Creek West vein and the
Bullion Creek structure.
The continuity of the WD vein, located
200 m north of the B vein system, was tested in fifty metre step-outs
to the south and east of previous drill perimeter. All holes
intersected the vein near the projected depth and will result
in an increase of the resource. Hole 311, the deepest hole drilled
on the structure, returned 0.567 oz/t (troy ounces per short
ton) gold over a true width interval of 2.15 m indicating good
continuity of the structure and mineralization to depth. The
WD structure has been traced along strike for a length of 525
m and down dip for 320 m. It remains open to the east, west and
down dip.
Two holes were drilled into the Bullion
Creek structure, located 700 m north of the B vein, to test
a zone of hydrothermal alteration not known previously to be
associated with significant gold. Strongly altered granodiorite
was intersected in both holes and narrow pyritic quartz veins
returned an assay of 0.246 oz/t gold over a true width of 0.50
m. The presence of gold mineralization in Bullion Creek zone
establishes good potential for other high-grade shoots and is
considered a priority exploration target.
The Gold Creek West vein, 400 m southwest
of the mine site, was tested by a total of nine drill holes in
1996 and 2000 and shows continuity of structure and mineralization
over a strike length of 190 m. Four holes drilled this season
intersected the vein at the projected locations and have extended
its continuity a further 100 m to the west. No significant results
were returned from the 2002 drilling.
The Deep B shoot on the B vein system
is located immediately below the existing mine workings and can
be accessed by extending the existing decline approximately 600
m. It contains an inferred resource of 35,600 oz Au in 12,200
tons grading 2.925 oz/t. The 2002 in fill drilling decreased
the drill intersection spacing to approximately 30 m and tested
the perimeter of the known shoot. Results confirmed the grade
of the shoot internally but did not extend the high grade zone
beyond its previously defined limits.
A possible extension to the B and WD vein
systems was found roughly two km along
strike to the east, on the other side of an area of overburden
cover and no outcrop, as part of a trenching program in 2001.
Grab samples of the vein material taken at surface returned averaged
analyses of 0.922 oz/ton (31.6 grams/tonne) gold and 3.04 oz/ton
silver (104.4 grams/tonne). A 0.5 by 0.5 m panel sample of the
same vein taken in the wall of the trench returned 0.635 oz/ton
gold (21.8 grams/tonne) and 0.96 oz/ton (32.9 grams/tonne) silver.
This discovery was extremely significant as it adds two kilometres
of prospective, unexplored strike length to the high-grade vein
system.
All samples were analyzed at Acme Analytical
Labs in Vancouver using wet geochemical, fire assay and metallics
techniques. Duplicate and blank samples were included in the
sample shipments sent to Acme and confirmed procedural quality.
Check assays were carried out by ALS Chemex Labs in Vancouver.
The qualified person and supervisor of the 2002 exploration drill
program was Wojtek Jakubowski, P.Geo.
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