Golden Sitka Suspends Exploration of Chichagof Properties

A review of exploration programs at the Hirst- Chichagof and Chichagof mine properties in Alaska has led to a decision by Golden Sitka Resources (VSE) to suspend further work at its Chichagof project until spring. The program at Hirst-Chichagof was discontinued entirely based on the recommendation of Allan Bird, a geological consultant retained by the company to review exploration work to date on both projects.

The program at Hirst-Chichagof was designed to investigate the extension of the Kay vein below the 500-ft level. The company reports that four of the six diamond drill holes intersected the potential ore horizon where only an aplite dike was intersected and no values were evident.

At the Chichagof mine, Bird’s review led to a recommendation that the company fully investigate the upper extensions of the Temby and Rust ore shoots (the major producers in the Chichagof mine) by extending the Golden Gate No 4 level about 500 ft. Golden Sitka said, however, that in view of the high costs of the operation during the winter this program would be suspended until the spring of 1989. Another contributing factor was the destruction by fire of the Chichagof camp buildings in September, 1988.

According to Hal McKenzie, president, the company is actively pursuing joint venture partners as there are still a number of “attractive targets” present in the Chichagof structure although their development could require considerably more funds than the company had in its treasury.

With about $1 million on hand, Golden Sitka is currently evaluating a number of projects recently submitted to it for participation.