distance of 20 metres. The material collected averaged 2 ounces Au per ton, with no
"nugget effect" in evidence. Samples were sent to Westcoast Mineral Testing and to
Westmin's Premier mill in Stewart, B.C. for a metallurgical evaluation of this ore,
which proved extremely amenable to cyanidation, with potential recoveries of 95%
to 99% of the gold content.
A 6 hole drilling program in 1991 established the down-dip continuity of the ore
shoot; following this, a decision was made to extract a bulk sample of 200 tons from
surface in an open-cut. This first phase of bulk sampling was conducted in 1992,
with a short follow-up in 1993. Altogether 190 tons of ore was shipped to the
Premier mill for custom processing during this first phase. A gold recovery of 98.9%
was achieved, and the sample yielded 370 ounces of gold, for an average grade of
1.94 oz/ton Au over the 190 tons.
The near-vertical vein was mined by benching in the open-cut. Due to the excellent
fragmentation characteristics of the vein quartz, and the presence of a narrow clay
alteration envelope to the vein, it was possible to mine the bulk sample with minimal
dilution by making extensive use of stulling and by using minimal charges for
blasting.
Following a second diamond drilling campaign in 1994, a decline ramp was driven
25 metres below the open-cut to test the ore at that level. This decline was used for
taking an underground bulk sample of 583 tons in 1995 and 1996. This second bulk
sample yielded 924 ounces of gold. Overall, the bulk sampling of the Victoria Vein in
1992-1996 produced 773 tons of ore containing 1294 ounces of gold, for an average
grade of 1.674 oz/ton Au.
In 1996, an alternative to cyanidation of the ore was investigated by shipping to
Cominco's Trail smelter, for processing of the ore under the smelter's silica
schedule. The processing contracts which were signed with Westmin and with
Cominco are fairly complex and not readily comparable, except by working out the
percentage of contained gold payable to the shipper. For the bulk sampling of the
Victoria Vein these figures are very comparable, in the range of 80% to 81%.
Shipping distances from the property to Stewart and to Trail are also very similar.
However the sampling/assay procedure at Trail is definitely more elaborate, and
generally gave more satisfactory results than those used the shipper at the
shipping pad, or by the Premier mill at its reception pad. (detailed discussion of this
issue in attached PDF file).