Calpine’s Eskay Creek discovery largest B.C. find in many years

Although no reserve calculation has been put together, Calpine President Murray Pezim estimates it could be 2-3 million tons averaging 0.25 oz gold. Discussing the project with The Northern Miner recently the chronically optimistic Pezim insisted “we have a mine there now, just look.”

He likes it so much he wants to buy the company — that is Consolidated Stikine — if he can get his hands on it. Calpine recently offered five of its shares for one Consolidated Stikine but the latter is reported to be uneasy with the offer.

Recent assay results are from a phase-two drill program which followed the initial discovery of high grade precious metals mineralization in the 21 zone. Ten holes aggregating 6,887 ft were completed in the follow-up program to the end of December, Calpine reports. The most significant holes are listed below.

Interval Est.true Gold Silver ilver Hole (ft) width oz/t oz/ton 88-08 305.5-315.3 9 0.119 0.30

408.8-418.6 9 0.33 0.15 88-11 187.0-285.4 78 0.114 0.14 including

201.8-211.6 8 0.267 1.19

246.1-280.5 27 0.162 0.02 88-12 268.1-316.6 46 0.1881 1.13

341.2-449.5 102 0.293 3.03 88-13 282.5-326.8 44 0.233 3.35 88-14 162.4-182.1 19 0.165 1.58 88-15 172.2-270.6 90 0.056 6.33 including

236.2-255.9 18 0.137 24.55 88-16 254.9-333.6 75 0.1 3.42 including

264.7-294.2 28 0.15 7.87

323.8-333.6 9 0.191 0.63

The 21 zone now extends for over 1,100 ft and is open along strike in both directions and also to depth. Mineralization occurs at the contact of sulphide-bearing sediments overlain by barren intermediate volcanics, the company points out. Considerable stibnite, orpiment and realgar is visible in the core from several holes.

Precious metals mineralization, including the 21 zone, extends intermittently within the volcanic stratigraphy for at least two miles along strike, Calpine adds. Prime Explorations President, Chet Idziszek says the west side of the 21 zone dips at about 65 degrees but the eastern portion, which has a different trend line, is considerably flatter. At least two parallel zones have been found in the eastern portion of the zone; he adds that the 21 zone “loo ks strata-controlled but structure is important.”

The present exploration program will involve in-fill drilling in a shallow tier of holes; a second drill is expected to arrive by month-end and it will test to depths of 1,500 ft or more and along strike. “That will tell the story fairly quickly,” he predicts.

No metallurgical test work has been completed but Idziszek doubts whether there is any nugget effect in high grade areas; indeed, he says the distribution of gold values in these areas is quite homogeneous. Sulphide material is present within the 21 zone which could be a factor in project economics.

As an example, 88-2 returned 34.4 ft of 0.49% lead and 0.9% zinc while 88-4 averaged 0.71% lead and 1.2% zinc over 19.7 ft. “All existing core samples will be assayed for their copper, lead and zinc contents, which are expected to contribute additional value to the grade of the deposit,” the company says.

Another 45,000 ft of drilling should be completed by the end of March at a budgeted cost of $3 million. An airborne electro-magnetic and magnetic survey will be done on the Eskay Creek project and surrounding properties later this month.

A joint industry/government study is under way on road access into the area. One proposal, which Calpine feels is the most logical, would see road access from the Stewart Cassiar highway though Eskay Creek and into the SNIP and Skyline projects.

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