Akiko cuts new zone at New Burgin project

Drilling on the New Burgin silver-lead-zinc project in Utah has intersected a new zone of gold-rich mineralization for partners Akiko Gold Resources (VSE) and Chief Consolidated Mining (NASDAQ).

Hole CB-6, drilled towards the southeast from a setup above the southwestern end of the New Burgin deposit, returned a 26.5-ft. interval grading 10.5% zinc, 4.3% lead, 0.22 oz. gold and 3.2 oz. silver per ton.

Chief, operator of the program, is drill-testing the New Burgin from underground workings above the deposit to confirm and expand the previously estimated resource of 1.14 million tons grading 19 oz. silver, 22% lead and 7.5% zinc.

Akiko, while encouraged by the drill results, says it is too early to estimate the deposit’s gold potential.

Past work in the area turned up a 26.5-ft. intersection grading 0.1 oz. gold and 15 ft. grading 0.08 oz. gold in hole B-31, about 150 ft. south of CB-6. An old hole (SB-1), about 400 ft. north of CB-6, encountered 55 ft. grading 0.08 oz. gold, including 8 ft. grading 0.2 oz. gold.

Chief continues to drill underground at the southwestern end of the deposit and is drifting towards the northwest to establish stations for drilling the down-plunge extent of the New Burgin.

Akiko is earning a half interest in the property from Chief by spending US$10 million on exploration and development. Akiko receives Chief stock at US$4 per share for the first US$4 million in expenditures, and the company now holds 285,000 shares. A further US$1-million payment is due at the end of May, and Akiko expects to announce details of a financing in the near future.