Prime Resources Group (PRU-T) has encountered a narrow interval of high-grade silver mineralization at the Corey property, held by Kenrich Mining (KRC-V) in northeastern British Columbia.
The hole, which returned a 0.4-metre interval of 90.55-90.95 metres grading 1,735 grams silver per tonne, was one of four drilled by Homestake Canada on behalf of Prime. The four holes totalled 1,263 metres and were drilled in the Cumberland South area of the joint-ventured PRU block.
Prime can earn an initial 51% interest in the PRU block through a combination of cash payments, share purchases and exploration expenditures totalling $10.5 million. By spending an additional $10 million, Prime can earn a further 19%.
The company also holds an exclusive right to earn a half-interest in the remaining portion of the Corey property.
To date, Prime has spent $1.2 million exploring the PRU block in a program of geological mapping, surface sampling, trenching and limited drilling. It is expected that a further $250,000 will be required to complete this year’s program, which will involve further analysis and interpretation of drill results.
The Corey property lies 10 km south of Prime’s Eskay Creek gold-silver mine and covers a 12-km strike length of prospective Jurassic-age Hazelton Group rocks, which includes the Betty Creek, Salmon River and Bowser Lake formations. Field work has identified mineralized felsic volcanics and mudstones in a geological setting similar to that at Eskay Creek.