Tungco to drill new gold zone

Four new anomalous gold showings were recently uncovered on Tungco Resources’ (VSE) Waratah property in the Iskut River gold camp in northern B.C. The showings were found during this season’s exploration program now focused on the Gold Bug zone discovered during the 1987 field program.

The zone is located about 2 km from the existing airstrip that services the Cominco/Delaware Snip project. Tungco plans to build a $15,000 access road from a nearby Cominco-Delaware cat trail in order to more effectively access and develop the Gold Bug vein system.

Tungco says its 1988 drill program will include drilling on the Gold Bug zone as well as on previously discovered vein systems found in other areas of the property, including the No 7 vein which will be drilled to depth.

During the 1987 field program the company discovered numerous but narrow gold-bearing veins within the same rock unit that hosts the nearby Stonehouse gold deposit of Skyline Explorations. Tungco reports that no fewer than 18 separate quartz vein structures with more than 0.10 oz gold per ton were located on the property, some with individual assays exceeding 1.0 oz.

Tungco has recently farmed out to an associated company, Big M Petroleum (VSE), 10% of its right to earn a 100% interest in a new 78-unit property in the Iskut River area. Big M can earn its interest by issuing 100,000 of its shares to Tungco, and by paying 10% of the costs of the proposed $225,000 exploration program.

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