The first phase of drilling on the Star property in southeastern British Columbia has been completed. Barkhor Resources (VSE) is earning a 50% interest in the property from Kokanee Resources (VSE) in return for $600,000 in exploration expenditures. Investors were somewhat disappointed in the first phase of drilling, as reflected in the market’s reaction. Barkhor pulled back to the $1 level from a speculative high of about $2.50, while Kokanee dropped to the $3.50 level from a high of $5 3/4.
The two companies note the Phase I program was successful in intersecting “significant alteration and/or base and precious metal mineralization that is associated with known mineral deposits.”
The companies have previously stated they are searching for deposits similar in nature to the huge Sullivan orebody owned and operated by Cominco (TSE) since the early 1900s. As yet, no intersections of the same magnitude as those encountered at Sullivan have been released.
A Phase II program budgeted at $350,000 is set to start immediately on the property. Perhaps it will meet with success.
Assays are pending on holes S90-4, S90-6, S90-7, and S90-8. 0108,0502,0302,0304,0304,0210,0206,0200,0000 Hole Intercept Length Gold Silver Lead Zinc Copper (ft) (ft) (oz/ton) (%) (%) (%) S90-3 1116.5-1119.8 3.3 — 0.44 0.83 — 0.37 1221.8-1225.1 3.3 — 10.06 12.12 — — 1267.8-1271.1 3.3 — 0.85 0.95 — — 1284.2-1287.5 3.3 — 0.23 1.04 0.58 — S90-5 508.4-514.1 5.2 0.06 0.09 — — — 1163.4-1164.1 0.7 0.03 0.78 1.19 0.12 —
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