Western Copper Holdings Limited -
Mexican exploration progress
Western Copper Holdings Limited
WTC
Shares issued 13,970,000
1998-08-25 close $2.55
Tuesday Aug 25 1998
Mr. Mike Halvorson reports
The company has released a report on the status of its exploration programs in Zacatecas, Mexico.
San Nicolas Deposit
At the San Nicolas massive sulphide deposit, in-fill drilling by joint venture partner Teck Corp. (Teck) is
confirming the continuity of the deposit both as to metal content and tonnage. Teck is currently
completing a four hole directional drill program to more precisely define ore deposit boundaries and
provide needed information on pit wall stability. Bench scale metallurgical test work is also in progress.
Outlined below are significant drill holes completed since the last news release. Of particular significance
is hole SAL-88, a directional hole located at line 2+68S, station 17+68W and drilled at a bearing of S65
degrees W, which further confirms the exceptional high grade nature of a portion of the ore body.
Hole
------
Interval Width Cu Zn Ag Au
From - To (m) % % g/t g/t
----------- ----- ---- ----- ----- ----
SAL-80
504.5-553.1 48.6 0.49 1.75 43.3 0.70
SAL-81
238.7-274.0 35.3 1.53 1.62 20.5 0.33
incl.
246.0-258.0 12.0 0.29 3.93 26.5 0.47
incl.
261.0-274.0 13.0 3.60 0.20 12.8 0.03
SAL-83
265.3-269.1 3.8 1.90 1.14 46.2 0.27
SAL-85
255.5-257.4 1.9 0.97 5.06 82.6 0.77
323.4-327.5 4.1 1.30 0.03 4.3 -
435.0-454.5 19.5 0.44 0.80 43.7 0.72
SAL-86 assays pending
SAL-87
165.9-175.1 9.2 1.10 6.01 64.0 1.50
SAL-88
211.4-300.0 88.6 1.27 5.23 61.4 1.04
incl.
211.4-234.0 22.6 1.89 14.07 125.7 1.62
Exploration in other areas peripheral to San Nicolas is proceeding systematically using geologic mapping
and gradient IP to define drill targets. IP crews are currently working 5 kilometres northeast of San
Nicolas to cover copper showings at La Virgen and El Desquite. New targets identified by the surveys
could be ready for drilling by mid-September. Drilling is in progress at Cerro del Grito, north of La
Virgen, to test a stratified, silicified horizon, which according to an old drill log contains 26 metres
averaging 160 g/t silver.
Penasquito Project
Data compilation and review, following completion of Western's initial nine-hole drill program indicate
that the Chile Colorado silver-lead-zinc mineralization may represent the southern lobe of a much larger
system which extends north for 1,200 metres through the Azul pipe into the north Azul area. Such a
mineralized system, based on a few widely spaced drill holes, could contain up to 200 million tonnes
averaging 0.3-0.5 g/t gold, 70-90 g/t silver, and 2.0-3.0 per cent combined lead-zinc.
A CSAMT survey, designed to measure changes in rock resistivity, is currently in progress across the
entire mineralized zone. A CSAMT survey performed earlier by Kennecott Exploration in the Chile
Colorado area pinpointed zones of high-grade mineralization which were subsequently confirmed by
drilling. It is hoped that the expanded CSAMT survey will provide support for the larger target concept
and identify zones of potentially high-grade mineralization.
Faja de Plata Properties
Western has an option to earn a 100 per cent interest in the Faja de Plata properties, containing over 1.2
million acres, subject to a 51 per cent back in right held by Kennecott. The most advanced property in
this group is San Jeronimo, 20 kilometres south of the city of Zacatecas. Shafts up to 160 metres in
depth, including the Loreto shaft, occur along the three-kilometre surface trace of the vein system which
strikes easterly across the property.
Two diamond drill holes were completed to test for both massive sulphide and high-grade vein silver
potential. Massive sulphide potential is considered excellent, based on the presence of submarine
volcanic rocks and narrow zones of bedding-conformable silver-lead-zinc mineralization intercepted in
hole one (best intercept: 4 metres beginning at 130 metres averaging 23 g/t silver, 0.49 per cent lead and
0.55 per cent zinc). The area will be subjected to further geophysics and drilling once current
information has been analyzed.
The second hole, close to the Loreto shaft, intercepted a 0.9-metre massive sulphide vein at 168.3
metres containing argentiferous galena, sphalerite, and ruby silver which assays 1.6 kg/t silver, 2.12 per
cent lead and 4.52 per cent zinc. The entire mineralized structure, including low grade mineralization on
either side of the massive sulphide, is 3.1 metres wide and averages 541 g/t silver, 0.7 per cent lead and
1.55 per cent zinc. This confirmation of high silver grades in an area not mined since 1911 represents
another attractive exploration target at San Jeronimo.
The Faja de Plata properties will continue to be the primary focus of Western's exploration outside of
San Nicolas and Penasquito.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com |
