Exploration Boom in Northwestern B.C.

For the past several years northwestern British Columbia has experienced an exploration boom, and although it’s still early in the game, three gold camps have already been carved out of this rugged and sometimes inhospitable corner of the province.

The Iskut River camp — often referred to as the Skyline/Delaware camp — has taken the lion’s share of exploration dollars and cornered the most investor interest. Skyline Explorations (TSE), a true Iskut River pioneer, is now producing gold and minor amounts of silver and copper at a rate of 200 tons per day from its 100%-owned Johnny Mountain mine. This project was acquired by staking and has proven, drill indicated and inferred reserves of about 1.1 million tons of 0.7 oz gold per ton.

Right next door, Cominco Ltd. (TSE) and Delaware Resources (VSE) are developing the promising Snip deposit which has inferred reserves of 1.2 million tons averaging 0.7 oz gold. The co-venturers are busy on a $4.46 million underground program which, subject to positive results, may be sufficient to proceed to a production decision. Delaware also has a large land position north of the Snip deposit area, including a joint venture with American Ore (ASE) and Golden Band Resources (VSE) at the drill stage.

If there’s an exploration boom anywhere, Murray Pezim and the Prime Capital group can’t be too far away. In fact since taking control of Delaware via Colossus Resource Equities (VSE), Prime Capital has become the largest single land holder in the Iskut River camp, with its companies collectively holding interests in excess of 150,000 acres.

According to Chester Idziszek, who heads up Prime Explorations, among the more prospective projects to date is the Eskay Creek property 60 miles north of Stewart. Prime has a sizeable stake in Calpine Resources (VSE), which is earning a 50% interest in the property from Consolidated Stikine Silver (VSE).

“We’re getting a lot of smoke from this property and there are good intercepts from previous work that show the mineralization is continuous along strike and open at depth,” said Idziszek, citing results such as 66 ft of 0.122 oz gold and 2.91 oz silver, including 26 ft of 0.190 oz gold and 7.13 oz silver. A 3,900-ft drill program will test the down-dip and strike continuity of gold-bearing structures within the 21 zone. Calpine says a shear system hosting the zone has been trenched over a strike length of 1,000 ft, with the trenching indicating the gold-silver-base metal mineralization is up to 100 ft wide. Other known zones parallel the 21 zone, including the 22 zone which returned assays up to 11.88 oz gold and 215.74 oz silver from grab samples, and 3.51 oz gold and 148.8 oz silver over 3.5 ft from channel samples.

Prime Explorations is drilling a property held by Ticker Tape Resources (VSE) and Cheryl Resources (VSE) to test two main targets, the King vein and North zone. Assays from sampling the eastern 131 ft of the King vein indicate an average grade of 0.383 oz gold over an average vein width of 3.7 ft. Results from 1987 drilling on the North zone include 3.3 ft of 0.213 oz gold and 59 ft grading 1.31 oz per ton silver, 2.6% zinc and 0.88% lead. Drilling will also test the Darwin vein, a newly discovered structure reported to contain visible gold.

A 4-hole drill program was just completed on a property where Prime’s International Wildcat Resources (VSE) is earning a 50% interest from Brenwest Mining (VSE). Drilling is also planned for a property held by Prime’s Adrian Resources (VSE) and on a property adjacent to it, the Prism-Verjoy, which is one of five claim blocks where Prime’s Pezgold Resource Corp. (VSE) can earn an interest from International Prism Exploration (VSE).

“There are several different environments for mineralization in the camp,” notes Jim Foster, exploration manager for Prime, “one shaping up so far on one of our Pezgold properties is a skarn-type mineralization which we understand is similar to what a few other companies are getting nearby.

“Elsewhere the most common type is similar to the quartz vein shear system with mineralization in it that we see on the Delaware property, but we’re also seeing porphyry copper-type mineralization although we don’t have a good handle on that at the moment.”

Foster said the most useful exploration techniques are geochemical sampling and basic prospecting. “That’s how we’ve come up with most of our discoveries so far.”

Foster adds that drilling is now under way on the Prism-Gab project about 16 miles northeast of the Snip Deposit, another Pezgold/ International Prism joint venture. The initial program is focused on the Ken showing where a zone of copper/gold mineralization drilled by Newmont Mines in 1972 assayed 0.12 oz gold over 5 ft. Pezgold says prospecting in 1988 identified an anomalous area of skarn mineralization covering 2,000 x 1,000 ft including the Ken and Glacier showings. Trenching of the Ken showing produced a chip sample averaging 0.280 oz ton gold over 4.9 ft. The skarn mineralization is open in both directions along strike. Two grab samples 150 ft southwest of the high grade trench sample, assayed 0.983 and 0.178 oz gold. Elsewhere on the property, work is continuing on two new discoveries; the CUBA (silver-lead-zinc) and the Northwest showing, believed to be on the northeast extension of the major structure which hosts a gold-bearing skarn, on which Gulf International Minerals (VSE) has reported drill intersections as high as 1.605 oz gold over 36.5 ft.

Gulf International, a company associated with Skyline Explorations, is continuing to drill its 100%-owned McLymont property with work concentrated on the Northwest zone. Mineralization here is reported to comprise relatively flat lying sulphide oxide material localized along deep keel- like structures. Recent assays include: 15 ft of 0.810 oz gold, 16 ft of 0.645 oz and 9.2 ft of 0.319 oz. Another Skyline-associated company, Inel Resources (VSE), has driven an underground exploration adit on its property to the south. Skyline also has farmed out some of its properties to other juniors; Tungco Resources (VSE), Hector Resources (VSE), Tanker Oil and Gas (VSE) and Pezgold Resources.

A large percentage of properties in the Iskut River camp were prospected and staked by the Iskut and North West Gold syndicates and have since been sold, optioned or rolled into junior companies. The syndicates were originally formed by partners Charles Underhill and Reg Davis. Underhill is also president of Jazzman Resources (VSE) and Consolidated Sea Gold (VSE), both of which have properties at the drill stage adjacent to Gulf International’s McLymont property.

The Hughes-Lang group is also in the area with Meridor Resources (VSE) on a claim block near the Delaware property.

Winslow Gold Corp. (VSE) and partner Pamorex Minerals (TSE) completed a Phase II program on their Snipakker Mountain project located adjacent to the Cominco/ Delaware property on the east. Prime’s Golden Nevada is reportedly buying into Winslow. Sulphurets Camp

To the south of the Iskut River area is the Sulphurets camp, a region which came into prominence as a result of work by Newhawk Gold Mines (TSE) and partner Granduc Mining (TSE) on the Sulphurets property. This project has a mineral inventory of two millions tons of 0.462 oz gold and 21.78 oz si lver, with 300,151 tons of 0.516 oz gold and 28.28 oz silver from the West Zone in the proven category. Newhawk, owned 41% by Corona Corp. (TSE), is operator as Donald McLeod, president, has years of experience in this rugged area. While a good portion of the large property remains to be explored, production from the West Zone is a clear possibility next year.

Located entirely within the Newhawk-Granduc claim boundaries, Catear Resources (VSE) is working its 100%-owned Goldwedge property, now in a pre-production phase. The company reports reserves of 291,916 tons grading 0.835 oz gold and 2.44 oz silver, although these are expected to be updated shortly. A mill is operating at 40 tons per day and a second crusher is being added to increase throughput to 120 tons. Catear has a large land position in the Sulphurets camp (over 100,000 acres) and is encouraged by recent results on a number of its properties.

Prime’s Golden Nevada is also drilling a property in the Sulphurets area in order to earn an interest from Noranda (TSE).

And this summer Western Canadian Mining Corp. (VSE) and 30%- partner Sulphurets Gold (VSE) reported that a large area of copper- gold mineralization suitable for open pit mining techniques had been defined on their Kerr property. The zone occurs over a north- south trend distance in excess of 3,280 ft, over a width of 328-984 ft and vertical distance of 984 ft with the mineralization open along trend at both the north and south ends of the zone, and at depth. Over 17,000 ft of drilling has been done on this property to date focused on the B Zone mentioned above, and on the A zone, a more restricted area of gold-silver mineralization. Stewart Camp

Further to the south is the Stewart camp, sometimes called the Silbalk-Premier camp.

Westmin Resources (TSE) and partner Pioneer Metals (TSE) are now in the process of bringing on stream a 2,200-tons-per-day operation. Feed will actually come from two deposits, the Big Missouri (1.8 million tons of 0.105 oz gold and 0.86 oz silver) and the Silbak- Premier (open pit mineable reserves of 6.5 million tons of 0.063 oz gold and 2.34 oz silver). Westmin has 51%, Pioneer 40%, and Canacord Resources holds 9.9%.

Across the Alaskan Panhandle border from this project, Star One Resources (VSE) is exploring a claim block they believe has some important geological similarities to the Premier Gold Project. Another advanced project in the area is the S.B. property, a 50/50 joint venture between Tenajon Silver (VSE) and the up-for-sale Esso Minerals. Recent underground sampling across a true width of at least 33 ft averaged 0.883 oz gold and 2.43 oz silver per ton uncut (cut to 1 oz: 0.742 oz). The underground program is designed to provide data for tonnage and grade calculations.

There are, of course, numerous other companies active in these three camps in addition to the Dease Lake and Tatsamenie Lake regions to the north. A few juniors are also exploring the Coast Range to the south for possible extensions of the mineralized trend that hosts the Premier Gold deposits.