Red Chris play shows potential

Junior American Bullion Minerals (VSE) is more than satisfied with preliminary drill results at its Red Chris project in northern British Columbia.

Several holes on the southern margin of the established resource intersected gold zones assaying in excess of 1 gram per tonne — more than double the known deposit’s grade.

Consultant Fluor Daniel Wright has estimated the open-pit resource at 157 million tonnes grading 0.48% copper and 0.37 gram gold, based on a 0.3% copper cutoff.

The current program is also expanding the deposit to depth at the northern margin.

Results from the first eight holes of the 22,000-metre program are expected shortly, with a further 60 holes yet to be drilled.

Teck (TSE) holds a 20% interest in Red Chris, which it can boost to 55% following completion of a prefeasibility study. To do so, it would be required to fund the project to production, leaving American Bullion with a 45% carried and non-assessable interest.