Blackstone Res. Hits nickel-zinc in Yukon Territory

Reconnaissance drilling by partners Blackstone Resources (BZZ-A) and Glenhaven Resources (GNN-A) has encountered a stratigraphically controlled nickel-zinc horizon on the Taiga property, 100 km northeast of Dawson City, Y.T.

The program consisted of 12 widely spaced, short holes designed to test a nickel-molybdenum-zinc soil anomaly.

Of the 616 metres drilled in the 10-km-long zone, hole 8 hit 25.5 metres of 0.51% nickel and 0.41% zinc starting at 29 metres. This intersection included a 5.3-metre intercept of 1.42% nickel and 0.7% zinc.

Final samples from the drill program are being shipped to Chemex Labs in Vancouver for analysis.

Blackstone has staked 800 additional mineral claims to cover 32 km of favorable stratigraphy, bringing total holdings to more than 900 claims covering 34 sq. km.

Glenhaven can acquire a half interest in the original project area by spending $1 million on exploration, issuing 100,000 shares and paying $175,000 cash by Dec. 31, 1999. The company can increase its interest to 60% by spending an additional $1 million on exploration, issuing 100,000 shares and paying a further $100,000 in cash.

The newly staked claims, outside of the original agreement, will become a 50-50 joint venture between Blackstone (the operator) and Glenhaven.

Exploration during the 1980s led to the discovery of the Nick deposit, 150 km east of the Taiga property. The mineralization proved uneconomic, though the discovery of a new type of stratiform sediment-hosted deposit caused exploration in the area to increase.

Among the explorers is Blackstone, which believes the Taiga Basin holds potential for hosting a nickel-zinc deposit minable by open-pit methods.