Preliminary estimate boosts reserves at South Kemess

A recent preliminary reserve estimate has almost doubled reserves on the South Kemess property in north-central British Columbia to 140 million tons grading 0.23% copper and 0.017 oz. gold per ton.

The property, owned 60% by El Condor Resources (VSE) and 40% by St. Philips Resources (VSE), was last estimated to contain about 78 million tons grading 0.30% copper and 0.018 oz. gold.

The deposit is described as blanket-shaped, measuring some 3,000 ft. east-west, 2,000 ft. north-south and averaging about 295 ft. in thickness. The reserve estimate was confirmed by a unit of Rio Algom (TSE) which is acting as technical adviser on the property for St. Philips. Rio has an option to purchase up to five million common shares of St. Philips which would give it a 48% interest in the company. Rio also has a 9.9% interest in El Condor.

The joint venture recently released assay results for holes 91-76 through 91-80. The holes are 330-ft. stepouts to the west of previous drilling which is on a 330-ft. grid pattern.

Hole 91-76 is the most northerly of the five with 91-77 through 91-80 extending southward on the grid.

Hole Width Gold Copper

(ft.) (oz./ton) (%)

91-76 304.0 0.019 0.21

91-77 774.1 0.020 0.24

91-78 687.2 0.018 0.21

91-79 382.8 0.015 0.17

91-80 low grade


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