Black Swan gold mine to be operator of First Canadian project

Taking on its first Canadian project, Black Swan Gold Mines (VSE) will be the operator of an exploration program on the TAS property located 40 miles north of Fort St. James, B.C. The company, which is active in Australia where it has a 25% interest in a producing gold mine, calls this project “an attractive exploration target.”

Black Swan entered into an agreement with Goldcap Inc. (ASE), whereby it will own 51% of Goldcap through an expenditure of $800,000 over two years. As part of the agreement, three Black Swan nominees will be proposed to the Goldcap board.

Goldcap has an agreement with Noranda Exploration (TSE) giving it the right to earn 45% in the property. In a separate but related agreement with Noranda, Black Swan can acquire an additional direct 10% interest in the property by making a cash payment of $31,000 and by accelerating property expenditures over the next 2 1/2 years.

Black Swan says good gold values are found in a number of locations widely distributed over the core of the property, but concentrated in northwest trending sulphide veins.

Richard Somerville, a director of Black Swan, told The Northern Miner the zones sit on top of a ridge with about 500 ft of vertical relief making them easily accessible by adit.

“Our hope is that after doing detailed exploration we could establish an ore reserve that would be worthwhile exploring from underground, and worthy of further development into a small operating gold mine. We think this property has that kind of potential,” he said.

The initial drilling and surface sampling by Noranda and Goldcap produced some good results. Assays from continuous chip samples in trenches include 6.6 ft grading 0.66 oz gold per ton and 6.2 ft of 0.65 oz. Values from drilling include 17.4 ft of 0.26 oz, 18 ft of 0.11 oz and 6.6 ft of 0.72 oz.

Black Swan will be the project operator and plans a program of stripping, sampling and closely spaced delineation diamond drilling on the k nown zones. The property is accessible by all-weather roads.

The area north of Fort St. James is emerging as an important area for gold exploration, despite its overburden cover. Major companies have been working quietly here for some time, among them Placer Dome Inc. (VSE), involved in joint ventures with Eastfield Resources (VSE) on the Indata property and Big Bar Gold Corp. (VSE) on the Windy property. B.P.-Selco is working a property with Lincoln Resources (VSE) while X-Cal Resources (TSE) plans to continue work on its Snowbird property this fall. Big Valley Resources (ASE) also has extensive holdings in the area.