Penasquito drilling results
Western Copper Holdings Limited WTC
Shares issued 13,970,000 May 14 close $7.75
Fri 15 May 98 News Release
Mr. Mike Halvorson reports
Western Copper has received initial results from a drilling program at the
Penasquito silver project in the Concepcion del Oro district in
northeastern Zacatecas State, Mexico. Western Copper acquired 100 per cent
of Penasquito from Kennecott Exploration in March 1998.
A 3,000 metre diamond drilling program began in April 1998 to test
partially defined mineralized zones and geophysical anomalies previously
identified by Kennecott. Work started in the Chile Colorado zone where two
holes (WC-1, WC-3) have intersected significant zones of silver
mineralization. A third hole, WC-2, tested another outlying geochemical
anomaly, but did not contain significant mineralization.
Assay values for the two Western Copper holes and the previous Kennecott
holes at Chile Colorado are listed below. Hole WC-1, drilled 100 metres
west of hole PN-28, intersected 219.7 metres of mineralization, beginning
at 198.8 metres, which average 53 g/t silver, .79 per cent zinc and .28 per
cent lead. Narrow intervals of high-grade mineralization occur within this
thick interval. Hole WC-3, collared 165 metres east of hole PN-26, was
drilled due west at -70 degrees and intersected 99.2 metres, beginning at
153.1 metres, which average 189 g/t silver, 2.48 per cent zinc and 2.15 per
cent lead. This intercept contains a high-grade zone of 17.1 metres,
beginning at 178.5 metres, which averages 406 g/t silver, .58 g/t gold,
5.20 per cent zinc and 4.76 per cent lead.
Hole WC-3, the first hole at Chile Colorado drilled in an east-west
direction, confirms that north to northeasterly trending structures are an
important ore control in addition to east-west structures previously
identified. The area of maximum fracture density appears to be related to a
Providencia style Pb-Zn-Ag chimney emplaced in a sandstone (Caracol
Formation) rather than a limestone host rock. Sandy and calcareous zones
within the sandstone, as well as poorly defined breccia zones, exert a
strong control on location of high grade mineralization.
More drilling will be required to define the lateral and vertical extent of
mineralization at Chile Colorado. However, the mineralized zone is at least
400 metres long, 100 metres wide, 150-200 metres thick and has been closed
off only on the east side.
Western Copper entered into an agreement with Kennecott in March 1998
covering ten properties in Mexico, including Penasquito. Kennecott has a
one time option to back-in for 51 per cent of Penasquito when an inferred
resource has been identified on the property. In the event Kennecott
exercises the option, it must first pay Western 150 per cent of 51 per cent
of expenditures associated with Penasquito and then, to earn this interest,
has five years in which to either make all subsequent expenditures required
to take the property to a decision to mine or make expenditures totalling
US$25,000,000 in respect of the property.
>From To Int. Au Ag Pb Zn
(m) (m) (m) g/t g/t % %
---- --- --- --- --- -- --
Hole WC-01
198.8 418.5 219.7 0.37 53 0.28 0.79
286.0 349.0 63.0 0.57 87 0.29 0.99
312.4 325.0 12.6 0.38 187 0.22 1.21
389.0 403.5 14.5 0.48 85 0.79 1.76
Hole WC-03
153.1 252.3 99.2 0.38 189 2.15 2.48
168.9 220.1 51.2 0.56 312 3.57 4.11
178.5 195.6 17.1 0.58 406 4.76 5.20
Hole PN-19
170.0 310.0 140.0 0.43 130 1.80 2.50
208.0 218.0 10.0 0.68 586 10.1 7.90
Hole PN-26
162.0 277.0 115.0 0.34 119 1.52 2.08
Hole PN-27
171.0 194.0 23.0 0.58 256 2.89 3.02
204.0 211.0 7.0 0.22 357 5.24 4.89
267.0 269.0 2.0 13.20 170 0.13 0.22
Hole PN-28
226.0 376.0 150.0 1.05 72 0.18 1.45
318.0 354.0 36.0 2.16 90 0.17 2.30
335.0 354.0 19.0 3.25 104 0.15 2.95
Hole PN-41
254.0 268.0 14.0 0.47 128 1.90 1.80 |
