Peruvian to earn 60 per cent of Imperial's Silvertip deposit
Peruvian Gold Limited PVO
Shares issued 14,227,466 Apr 16 close $0.53
Mon 19 Apr 99 News Release
Also Imperial Metals Corporation (IPM)
Mr. David Henstridge reports
Peruvian Gold has signed a letter of intent with Imperial Metals Corporation, whereby Peruvian can acquire by option a 60 per cent interest in the Silvertip deposit in northern British Columbia. Peruvian can earn its 60 per cent interest by spending $5-million over three field seasons with a minimum commitment of $450,000 in 1999. IMC retains the right to buy back a 20 per cent interest by spending $2-million within 18 months of completion of Peruvian's earn-in.
Silvertip is approximately 85 kilometres southwest of Watson Lake, Yukon, and is accessible by a 25 kilometre road from the Alaska Highway. Good infrastructure exists for shipping concentrates to the port at Skagway, Alaska, accessible by 510 kilometres of all-season road from the site. The Silvertip deposit (formerly Midway) is 100 per cent owned by Silvertip Mining Corporation, a wholly owned subsidiary of Imperial Metals. Imperial's 1997 drill program increased the resource to 2.57 million tonnes grading 8.80 per cent zinc, 6.4 per cent lead, 325 grams per tonne (9.5 ounces per ton) silver, and 0.63 g/t (0.02 ounces per ton) gold. The table below shows the resource categories calculated by Imperial.
Tonnes Ag Pb Zn Au
(millions) g/t % % g/t
Measured and
indicated 1.12 378 7.7 9.5 0.85
Inferred 1.45 284 5.4 8.3 0.46
Total 2.57 325 6.4 8.8 0.63
Using metal prices of $5 (U.S.) per ounce silver, $280 (U.S.) per ounce gold, 22 U.S. cents per pound lead and 44 U.S. cents per pound zinc, this mineralization has a contained metal value in excess of $170 (U.S.) per tonne.
Silvertip is classified as a manto deposit, consisting of irregular tube-like mineralized bodies hosted by limestones, similar to deposits found in Mexico and Central America (Santa Eulalia, El Mochito). As yet, the source of the mineralization, which is expected to have been channeled along a steeply dipping feature such as a fault or chimney, has not been identified.
Geophysics, particularly the CSAMT (controlled source audio-frequency-magnetic-telluria) method has been demonstrated to be a useful tool in defining the known mineralization, reflected as low resistivity anomalies. At the end of the 1998 exploration program, several deep geophysical anomalies remained to be drill tested, including one chimney-like feature. These anomalies are immediately to the south of and below the known mineralization.
Also, in 1998, IMC discovered mineralization in outcrops of the Tapioca sandstone, the formation that stratigraphically underlies the McDame limestone, which is the host to the Silvertip deposit. Broad CSAMT anomalies exist at depth within the Tapioca sandstone and will need to be drill tested.
The 1999 work program, managed by Imperial, will include several more lines of CSAMT to further define the targets before proceeding with a 2,000 metre diamond drilling program. Peruvian's option transaction may result in the acquisition of a significant stake in a large and advanced high-grade silver-zinc deposit with Imperial Metals, a recognized and highly experienced mine operator and developer in British Columbia.
© Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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