San Andreas plans winter drilling

With the release of additional high-grade lead-zinc-silver values at its Prairie Creek property 300 miles west of Yellowknife, N.W.T., San Andreas Resources (VSE) announced plans to continue drilling through the winter.

Recent drilling on the property has outlined a new zone of mineralization which the company describes as solution cavity infill, or replacement-style mineralization.

The two most recent holes include PC-92-12, which intersected 32.8 ft. from 869.1 ft. to 901.9 ft. grading 7.2% lead, 8.2% zinc and 2.4 oz. silver per ton.

Hole PC-92-13 intersected vein style mineralization from 851.7 ft. to 871.1 ft. for a total width of 19.4 ft. grading 15.5% lead, 5.6% zinc and 8.4 oz. silver.

Lower in the hole, PC-92-13 encountered cavity filling style mineralization, with a 78.4-ft. intersection from 896.7 ft. to 975.1 ft. grading 6.9% lead, 14.4% zinc and 2.0 oz. silver.

The new zone is flat-lying, of variable width and measures over 300×300 ft. with the potential for expansion in all directions, according to the company. Previous work on the property, dating back to the early 1980s, concentrated on steeply dipping vein-style mineralization which can be traced in a semi-continuous fashion for over 12 miles along a strong north-south striking shear zone.

The work outlined proven, probable and possible reserves totalling about two million tons grading 11.8% zinc, 10.8% lead, 0.42% copper and 5.3 oz. silver. Previous owners of the property spent over $64 million developing a 1,200-ton-per-day mine and mill at the site before the company was forced into bankruptcy.

San Andreas is earning a 60% interest in the property by spending a total of $1.8 million by August, 1995. If the venders decide not to participate in the 40% working interest, San Andreas has the right to purchase it, subject to a 10% net profits interest, for $900,000.

The company plans to continue drilling through the winter and is reviewing the possibility of bringing a second drill on to the property.