WTC-TSE NEWS RELEASE JUNE 9,1997
Drilling to Start in Mexico
Western Copper Holdings Limited (the Company) is pleased to announce
that diamond drilling is scheduled to resume by mid June on two projects; the El Salvador project, a joint venture between Teck Corporation and the Company and the Nieves property, which is part of the Kennecott option. The El Salvador project is located southeast of the city of Zacatecas, in the State of Zacatecas, Mexico. The Nieves property is located north of Zacatecas.
In November of 1996 the El Salvador joint venture made a high grade volcanogenic massive sulfide discovery (zinc, copper, lead, gold and silver). Subsequent diamond drilling in February returned a 13.2 meter interval (43.9 feet) in hole number 12 which averaged 1.98 grams of gold per ton, 196.10 grams of silver per ton, 1.04% copper, 1.06% lead and 5.99% zinc. An Induced Polarization geophysical survey and a Gravity Survey suggests that the deposit extends to the west and north. The scheduled diamond drill program is designed to test the extent of this deposit. The massive sulfide horizon appears to be flat lying and is approximately 200-250 feet below the surface. A Dighem airborne geophysical survey, covering the 225 square kilometer (87 square mile) joint venture area, completed in mid February, has indicated several areas that show similar airborne geophysical characteristics to those encountered at El Salvador. Surface copper oxide mineralization similar in nature to that found at El Salvador has also been discovered at several locations within the joint venture area.
In February 1997 the Company was granted an option by Kennecott Exploration Company. ("Kennecott") to acquire a total of eight claim blocks (Faja De Plata project) in the state of Zacatecas, Mexico, comprising approximately 1,800 square kilometers (695 square miles) covering areas of known gold, silver, copper, lead and zinc occurrences. Western is required to incur exploration expenditures of U.S. $3 million over the next 3 years prior to exercising the option. A payment of U.S. $200,000 cash or Company shares valued at US $250,000 must be made at the date the option is either exercised or terminated. Kennecott retains the right to reacquire 51% of a property by paying 150% of 51% of the Company's expenditure on the property. Kennecott may convert its reacquisition rights, on any particular property, to a 2% Net Smelter Royalty capped at $15,000,000.
Kennecott has recently staked, for the account of the Faja de Plata Project, an additional 150 square mile area covering the area between the Teck/Western El Salvador joint venture and one of the Kennecott blocks. Kennecott retains the right to reacquire 51% of this property and will retain a 1% Net Smelter Return royalty capped at $7.5 million. The bulk of this ground is located near the El Salvador project and was selected for its potential to host massive sulfide deposits.
The company anticipates initiating its exploration of the Faja de Plata Project with a diamond drill program on the Nieves property in late June. Drilling will offset a single Kennecott drill hole which encountered 2 meters from 108 meters to 110 meters grading 367 grams per ton silver, followed by 6 meters of 16 grams per ton silver, followed by 2 meters of 795 grams per ton. The total intercept from 108 to 118 meters (32.81 feet) averaged 240 grams per ton or 8.47 ounces per ton.
The Company, between the El Salvador and Faja de Plata projects, controls approximately 985 square miles, or 630,000 thousand acres, of mineral rights in the State of Zacatecas.
The State of Zacatecas, which is located in central Mexico, has mining history going back nearly 1,000 years and was first mined by the Spanish in the mid 1550's. The region, which is currently the largest silver producing area in the world, has produced in excess of 5.6 million ounces of gold, 1.8 billion ounces of silver and 2.9 million tons of lead and zinc.
For more detailed information on the company, including other projects and financial data, visit our web site at www.westerncopper.com |
