Westmin Resources has received more encouragement from its Silbak Premier property near Stewart, B.C. Some additional high grade intersections have been reported from the Glory Hole area and all the values are within the present design limits of a proposed open pit.
Eight gold intercepts were recently encountered in six drill holes, four of which represented caved stope fill material from previous mining operations. The shallow drill holes included: 18.3 ft of 0.92 oz, 19.4 ft grading 0.35 oz, 25 ft averaging 0.34 oz, 26.5 ft of 0.26 oz, 32 ft grading 0.12 oz and 5.4 ft averaging 0.32 oz. Two others were lower grade and they averaged 0.098 oz over 31 ft and 0.085 across 24 ft.
Westmin says the surface drilling results in the Glory Hole area suggest an “improvement and expansion of the ore inventory and probable reduction in the waste-to- ore stripping ratio.” A phase-two drill program is under way and another 6,000 ft of drilling is planned for the Glory Hole area and 13,000 from the No 2 level underground to define reserves in the lower part of the proposed open pit.
The underground portion of the program is also designed to test the grade of the stope fill material and the mineralization on the footwall of stope in areas not sufficiently tested by surface drill holes. Some percussion drilling is planned for the No 4 level dump which is estimated to contain more than 500,000 tons of material grading 0.10 oz gold and 1.26 oz silver.
Assay results are expected shortly from the Simcoe area which is located 2,600 ft southeast of the Glory Hole zone. Two drill holes totalling 1,834 ft were recently completed there in a broad mineralized zone. Additional targets are being defined by geophysical and geochemical survey work, says Westmin.
The company has also completed a 7,255-ft diamond drill program on the adjacent Big Missouri property which is owned jointly by Westmin and Tournigan Mining Explorations. The 61-hole program was designed to upgrade reserves in the four mineralized zones adjacent to the Big Missouri property and results will be reported when available.
A recalculation of reserves for the Silbak and Big Missouri properties is expected in January. This will provide the basis for a feasibility study with one common facility at the Silbak property and a production rate of 2,000 tons per day. It’s possible the Big Missouri would be operated on a seasonal basis because of weather conditions at higher elevations.
Westmin can earn a minimum 50% working interest in the Silbak for expenditures of $4.7 million before Dec 31, 1987. British Silbak Premier Mines can elect to participate in a joint venture as to 50% or be reduced to a 20% carried net profits interest. Westmin had spent $3.5 million to the end of the 1986 phase one program.
Westmin has agreed to sell 13.33% of its interest in the Silbak and Big Missouri projects to Canacord Resources for $2 million in 1986 exploration expenditures. Canacord can elect to increase its funding to $3 million by the end of February to raise its interest to 18.75% of Westmin’s.