Skyline to develop Bronson Slope

Drilling will resume in the spring on Bronson Slope in the Iskut River district of northwestern British Columbia.

Bad weather in late 1994 forced International Skyline Gold (TSE) to suspend drilling after having drilled only two holes.

The 3,000-metre program will be resumed in order to delineate a starter pit for a large-tonnage copper-gold porphyry operation.

Holes 1215 and 1216, drilled at 55 and 58, returned the respective intersections of 271.3 metres of 0.22% copper, 0.98 grams gold and 3.8 grams silver per tonne, and 221 metres of 0.18% copper, 0.62 grams gold and 1.5 grams silver. Hole 1216 included a 23-metre interval grading 0.47% copper, 1.5 grams gold and 3.7 grams silver. The angle of drilling allows for a greater accuracy of grade, as it cuts across three different sets of vein structures.

In 1994, nine holes were drilled in two separate programs; these, combined with previous drilling, have outlined 100 million tonnes averaging 0.15% copper, 0.72 grams gold, 4.08 grams silver and 0.007% molybdenum. An initial starter pit, measuring 470 by 300 metres, is being designed around a higher-grade resource of 20 million tonnes at 0.25% copper, 0.75 grams gold and 3.39 grams silver.

Based on US94 cents per lb. copper, US$375 per oz. gold and US$4.30 per oz. silver, the starter pit has a value of about $20 per tonne.

Skyline believes the most efficient mining method would consist of an in-pit twin ore and waste pass at the base of the slope, where an underground crusher would be situated. From there, a conveyor would transport ore to the mill and waste to a waste-rock dump. The elimination of haulage trucks would result in fuel savings and low mining costs.

Preliminary batch flotation tests of low-grade composite drill core samples indicate bulk recoveries of 86% for copper, 79% for gold and 70% for silver. Talks are ongoing with the state of Alaska regarding funding for up to US$22 million to develop a road from the Bradford Canal, 68 km west of Bronson. The road would provide access not only to a shipping port but also to the Tyee hydroelectric station, which supplies Wrangell and Ketchican, Alaska. Other power options include a high-efficiency diesel generator and a run-of-river penstock generator on the Iskut River.

Skyline believes the high gold-to-copper ratio of the Bronson deposit will translate into low costs, with a capital payback projected at five years. A preliminary feasibility study will begin, following spring drilling.