Big Creek moves two rigs for spring work at Casino

Drilling on the Casino copper-gold-molybdenum porphyry deposit in the Yukon is now finished for the 1992 season with a total of 21 large diameter holes completed.

Big Creek Resources (VSE), the operator of the program, can earn a 50% interest in the property from Casino Silver Mines (VSE) by spending $3.5 million by Nov. 1, 1994, plus an additional $4 million by May 1, 1998. Following the completion of $3.5 million in expenditures, Big Creek has the right to sell the entire property for a minimum of $15 million with the proceeds split between the two companies according to a scaled formula. Consultant Archer Cathro & Associates is entitled to 5% of Big Creek’s share of any sale proceeds on the first $100 million and 10% on the balance. Previous drilling on the property, dating back to the late 1960s and early 1970s, outlined a large porphyry deposit containing an estimated preliminary open pit reserve of about 170 million tons grading 0.37% copper and 0.039% molybdenum.

Gold was not generally assayed for at the time of the original drilling, although estimates made prior to this year’s drilling put the total mineral inventory at about 417 million tons grading 0.3% copper, 0.01 oz. gold and 0.038% molybdenum with a high-grade core of about 71 million tons grading 0.46% copper and 0.014 oz. gold.

Taking an average of the 21 holes drilled this year, Big Creek noted that intersections through the leached cap averaged 257.6 ft. in width at an average grade of 0.09% copper, 0.04% molybdenum and 0.015 oz. gold. The supergene zone below the cap returned an average thickness of 196.1 ft. grading 0.6% copper, 0.058% molybdenum and 0.017 oz. gold.

The hypogene zone below that averaged 311.5 ft. in thickness, grading 0.28% copper, 0.039% molybdenum and 0.012 oz. gold.

A new reserve estimate based on the 1992 drilling has not been released. Big Creek plans to merge with Pacific Sentinel Gold (VSE) on a 1-for-1 basis. Extraordinary general meetings for shareholder approval have already been held.

Ultimately, the company plans to acquire a 100% interest in the property through the $15-million purchase option.

The new company would then be free to further develop the property and find a buyer.

A 50-man camp and two additional drills were recently moved up to the site in preparation for an accelerated exploration program on the property next spring.