Archive for October, 2009

Underworld Releases New Drill Results

Underworld Resources Inc. has released final drill results from the 2009 drilling program at the White gold property, Yukon, including five drill holes from the Golden Saddle zone. Mineralization has also been discovered at the McKinnon zone, located five kilometres to the east of the Golden Saddle. 

      HIGHLIGHTS OF THE MOST RECENT ASSAYS 
           FROM THE GOLDEN SADDLE ZONE

                 Weighted avg.
Hole ID               (g/t Au)    Grade length (m)

WD09-102                 1.46               158.5
WD09-103                 1.98                67.7
WD09-106                 2.97                25.5

These results include step-out holes on the north and northeastern margin of the current drill pattern which confirm continuity of mineralization down-dip to the north and along strike to the northeast. Thick intercepts of gold mineralization continue to be hosted by the felsic metaintrusive which contains much of the Golden Saddle deposit. Mineralization remains open to expansion to the north and northeast.

Hole WD09-102, which intersected 158.5 metres averaging 1.46 grams per tonne Au from 368.5 metres, also included 41.72 metres averaging 4.36 g/t Au from 385 metres. Hole WD09-102 was drilled from the same set-up as hole WD09-80, which previously returned 16.94 metres averaging 5.94 g/t Au from 358 metres and demonstrates continuity of a higher grade core zone within a thick envelope of gold mineralization.

Hole WD09-103 is the most northerly hole drilled at Golden Saddle. It returned 67.7 metres averaging 1.98 g/t Au from 357.5 metres and also included 25.38 metres averaging 4.48 g/t Au from 363.62 metres. Hole WD09-103 was a 60 m down-dip step-out from hole UW09-101. Hole WD09-101 returning 142 metres averaging 1.43 g/t Au from 267 metres, including 48.75 metres averaging 3.67 g/t Au as previously reported.

Holes WD09-104, 105 and 106 are infill holes in the centre and eastern part of Golden Saddle deposit and have returned near-surface gold intercepts. Hole WD09-104 was lost at 356.6 metres in a fault. At the end of this hole, the drill core was still mineralized. The 2009 drill program included 25,670 metres of core drilled, with 19,023 metres in 60 holes completed at the Golden Saddle deposit. The 2009 drill program was completed ahead of schedule and under budget.

Underworld anticipates completing an initial NI 43-101 resource estimate for the Golden Saddle deposit in January, 2010, using the 75 holes drilled at approximate 50 m spacing during 2008 and 2009.

Visible gold mineralization was discovered at the McKinnon prospect in July, 2009, within altered and quartz veined meta-intrusive exposed on the access road from the barge landing to the Golden Saddle deposit. The host lithologies alteration and mineralization observed at McKinnon are analogous to Golden Saddle. Follow-up trenching uncovered a quartz breccia which averaged 60.2 g/t Au and 354 g/t Ag in three samples. Additional drilling will be carried out at this prospect as well as at other targets at the White gold property during the 2010 program.

Environmental baseline data collection is continuing, metallurgical testwork is under way and community relations dialogue continues at the White gold project. JDS Energy and Mining has been retained to complete a non-NI 43-101-compliant preliminary economic assessment to quantify the viability of a mine development at Golden Saddle. Based on the results of this study, to be completed in March, 2010, Underworld will plan a comprehensive program of additional engineering and processing studies to advance the White gold project toward feasibility.

Intrusion-related gold mineralization at the Golden Saddle zone is preferentially hosted within metamorphosed felsic intrusive units, as well as felsic and mafic metavolcanic rocks. Gold mineralization is associated with quartz veins, stockwork and breccia zones, as well as pyrite veinlets and disseminations. The alteration assemblage includes pervasive albite, carbonate, sericite and silicification. The main mineralized zone at Golden Saddle strikes to the northeast, with a gentle to moderate dip to the northwest.

JP and Ross property

The company is pleased to announce that it has recently completed an agreement covering the JP and Ross claims whereby Underworld Resources may earn a 100-per-cent interest. The 703-claim package covering 142 square kilometres is located in the White gold district north of the Stewart River and accessible from Dawson City by road.

The area has an extensive history of placer gold mining but limited hard rock exploration and no drilling has been carried out there. A total of 81 rock samples were collected during the 2009 summer season. Assays returned include 1.25 g/t Au with 17.4 g/t Ag in a quartz vein with boxworks after pyrite, and 0.47 g/t Au with 4.8 g/t Ag in a quartz vein displaying several deposition events. Approximately 5,500 auger soil samples were also collected during this program, assays are still pending. The acquisition of the JP Ross property extends Underworld Resources’ landholdings in the White gold district to 731 square kilometres.

The company can earn a 100-per-cent interest in the JP Ross property from a third party Yukon resident by completing annual exploration programs totalling $1.6-million ($43,000 first year), paying $450,000 in cash ($75,000 first year) and issuing 750,000 (145,000 first year) Underworld shares. Underworld will reimburse the third party $117,000 ($250 per claim comprising the property) to cover staking costs.

Commencing on July 15, 2015 (and in the event Underworld is continuing with the option), Underworld agrees to pay a $30,000 annual advance until the commencement of commercial production with respect to the property. The annual advance royalty payments will be deducted from any royalty payments.

Following both the exercise of the option and the commencement of commercial production with respect to the property, Underworld will pay a royalty, being equal to 2.0 per cent of net smelter returns. Underworld will be entitled at any time and from time to time to purchase one-half of the royalty for $2-million.

, ,

No Comments

Kaminak Announces Trench Results, Plans for Drilling

Kaminak Gold Corp. has released new chip sample/trenching results from the Supremo gold-in-soil anomaly on the company’s 100-per-cent-owned Coffee property. Additional trench results from the Latte, Kona and Espresso gold-in-soil anomalies will be available in the coming weeks. Management has also approved plans for a minimum 5,000-metre phase one diamond drill program scheduled to begin in the spring/summer of 2010. This will be the first-ever drill program on the Coffee property and can be financed through Kaminak’s existing treasury.

Supremo trench results

Results are presented here from follow-up crosscut trenching that was completed near trench No. 3 where a previous result of 2.3 grams per tonne gold over 21 metres was obtained. This earlier result was from an east-west-trending shallow trench. Two new north-south-trending trenches six metres apart from one another were dug directly on top of the original east-west trench in hopes of expanding the known extent of the mineralization. Results include 11.72 grams per tonne gold over 10 metres from one trench and 8.56 grams per tonne gold over 15 metres from the other trench. Both of these high-grade results begin right next to the original trench and extend northerly.

The significance of these results is simplified on a sketch map available on the company website. The true width or extent of this zone is not fully known partially due to the oxidized and rubbly nature of the trench material, but it appears to have a roughly east-to-northeast trend. These new data have identified high-grade gold in rock as well as successfully extending the known area of mineralization in the trench No. 3 area.

A separate interval of 1.76 grams per tonne gold over 25 metres was uncovered from trench No. 2, approximately 100 metres from trench No. 3. The relationship between these occurrences is being investigated; however, initial observations suggest they are separate geological targets possibly hosted by a series of stacked structurally controlled zones.

These represent the final assays from the 2009 trenching program at the Supremo target. This program successfully identified several drill targets in addition to the results discussed in this release from trenches No. 2 and No. 3. Other notable targets include trench No. 6 (11.45 grams per tonne gold over five metres), trench No. 8 (1.37 grams per tonne gold over 30 metres) and trench No. 4 (0.53 gram per tonne gold over 45 metres). Additional trench results are pending from the Latte, Espresso and Kona targets and will be released in the coming weeks. Phase one drilling in 2010 will focus on evaluating priority targets from across the property and will be designed to test shallow, near-surface targets.

Anomalous gold values in the Supremo region are associated with heavily bleached and weathered rock comprising primarily sericite and quartz. This host rock is heavily altered; however, a progression from fresh felsic gneiss can be observed within the trenches. There also seems to be a correlation between high gold values and several pathfinder elements, including arsenic (As) and antimony (Sb). Over all, gold values for 25 total samples reported here ranged from below detection level to a high of 13.79 grams per tonne gold. Sampling consisted of continuous chip samples over five-metre intervals of oxidized and weathered rubble subcrop that is interpreted as being near in place.

, ,

No Comments

Underworld Step-out Holes Expand Golden Saddle Deposit, Including 3.68 g/t Au over 91.3 meters

Underworld Resources is pleased to announce results from the White Gold Property, Yukon, including 17 drill holes from the Golden Saddle Zone. At Golden Saddle, mineralization remains open to expansion along strike to the northeast and at depth.

Results include step-out holes that have expanded the Golden Saddle Deposit along strike to the northeast, and down-dip. In the eastern portion of the Deposit, thick intercepts of gold mineralization continue to be encountered by step-out holes with mineralization hosted by mafic metavolcanics in contrast to felsic metaintrusive which were encountered previously.

Drill Hole WD09-91, returned a near surface intercept of 91.28 meters averaging 3.68 g/t Au. Drill Hole WD09-94 returned 104.58 meters averaging 1.01 g/t Au, and was terminated still in mineralization Drill hole WD09-99, which intersected 98.0 meters averaging 1.73 g/t Au, and WD09-101, which intersected 93.88 meters averaging 2.10 g/t Au. Both drill holes were completed from the same set-up and are the most northeasterly holes reported to-date. Drill holes WD09-72 and WD09-80 are step out holes down dip at Golden Saddle.

An additional five holes are pending assay at Golden Saddle and three holes are pending assay on the McKinnon zone. Underworld anticipates completing an initial NI 43-101 Resource Estimate for Golden Saddle by January 2010, using completed multiple infill holes at 50 meter spacings.

Most recent drill results include:

Hole ID From (m) To (m) Length (m) Au (g/t)
Golden Saddle      
WD09-83 126.78 133.43 6.65 1.01
WD09-86 292.00 300.20 8.20 2.85
including 299.00 300.20 1.20 13.65
WD09-87 224.50 247.20 22.70 2.20
including 235.15 247.20 12.05 3.21
WD09-88 No Significant intercepts  
WD09-89 101.33 108.50 7.17 1.82
and 300.50 305.61 5.11 1.06
WD09-90 56.00 65.10 9.10 0.99
WD09-91 70.22 161.50 91.28 3.68
including 140.50 157.00 16.50 6.28
WD09-92 9.24 22.72 13.48 2.55
WD09-93 349.00 425.00 76.00 1.05
including 393.00 423.38 30.38 1.80
WD09-94 154.50 259.08 104.58 1.01
including 219.00 259.08 40.08 1.78
WD09-95 15.24 55.00 39.76 2.38
including 17.50 36.50 19.00 3.24
WD09-96 188.00 238.00 50.00 1.94
including 204.50 237.39 32.89 2.32
WD09-97 399.50 423.03 23.53 1.19
including 418.00 423.03 5.03 4.60
WD09-98 257.56 265.00 7.44 3.70
WD09-99 260.00 358.00 98.00 1.73
including 260.00 279.00 19.00 6.29
WD09-100 402.50 430.00 27.50 1.23
including 280.62 304.00 23.38 4.86
WD09-101 280.62 374.5 93.88 2.10
including 280.62 304 23.38 4.86
         
Donahue      
DN09-02 No Significant intercepts  
DN09-03 120.48 121.21 0.73 21.5
         
South Donahue      
SD09-01 No Significant intercepts  
SD09-02 No Significant intercepts  
SD09-03 No Significant intercepts  
SD09-04 No Significant intercepts  
SD09-05 No Significant intercepts  

*True Widths are estimated to be between 70% and 100% of drilled interval

The 2009 exploration program at the White Gold Project is now complete. The program included 25,670 meters of drilling, including 19,023 meters in 60 holes at the Golden Saddle Deposit.

Intrusive-related gold mineralization at the Golden Saddle Zone is preferentially hosted within metamorphosed felsic intrusive units, as well as felsic and mafic metavolcanic rocks. Gold mineralization is associated with quartz veins, stockwork and breccia zones, as well as pyrite veinlettes and disseminations. The alteration assemblage includes pervasive K-spar, carbonate, sericite and silicification. The main mineralized zone at Golden Saddle strikes to the northeast, with a gentle to moderate dip to the northwest.

The objective of the 2009 drill program at Golden Saddle and the Arc Zone was to expand the known extent of mineralization in all directions, with the intent to complete an initial NI 43-101 compliant resource estimates for both Zones. Drill spacing was nominally 50 and 100 meter centers at Golden Saddle and Arc, respectively.

Three drill holes were completed at the Donahue Zone, and five holes were completed at the South Donahue Zone. These targets are located 3km’s and 4.5km’s southeast of the Golden Saddle Zone, respectively. They occur within similar host rocks to Golden Saddle with a similar geochemical signature. At Donahue, a high-grade zone averaging 21.5 g/t Au over 0.73 meters was encountered in DN09-03. At South Donahue, multiple one to five meter thick quartz veins were intersected within an altered granitoid, however no significant values were returned.

At the Golden Saddle Zone, a total of 23 samples from six 2008 drill holes averaging 6.60 g/t Au have been analyzed by bottle roll cyanide leach methodology to determine metallurgical behaviour. Average gold recovery was 85.5%, ranging from 65.7 to 93.7%. Samples included near-surface oxidized material, partially oxidized, and unoxidized material. Unoxidized and partially oxidized mineralization returned higher recoveries, averaging 87.7%, with oxidized mineralization averaging 73.6%. Additionally, higher grade individual samples, over 10 g/t Au, typically displayed slightly lower recoveries averaging 83.7%. This is potentially due to reduced leaching with coarse gold, which could possibly be amenable to gravity separation to boost recoveries.

, ,

No Comments

Hinterland Updates on Ballarat

Hinterland Metals Inc.’s soil geochemical and airborne geophysical surveys are now complete on the Ballarat property and preliminary interpretation of the results is encouraging. The exploration target at Ballarat is gold mineralization associated with soil geochemical and magnetic anomalies similar to Underworld’s white gold discovery located approximately 15 kilometres due north.

The soil survey has identified two parallel, northeast-trending, linear gold anomalies in the northwestern corner of the property. Each anomaly is roughly two kilometres long. The northern anomaly is better defined, more continuous and averages 100 to 150 metres wide. The second anomaly, located about 200 metres southeast of the first, is less definite, irregular and generally less than 50 metres wide. The anomalous gold area corresponds to a magnetic low that occurs on the northwestern margin of a circular magnetic high that covers most of the Ballarat property. The preliminary interpretation of the soil geochemical and magnetic data is that there is a sharp lithological contact between relatively gold-enriched rocks to the northwest with relatively gold-depleted rocks to the southeast. An exploration crew recently spent several days on the Ballarat property and located four quartz veins in the anomalous gold area.

The soil geochemical survey involved the collection and analysis of 1,478 B Horizon soils. The analytical work was completed at Acme Analytical Laboratories Ltd., in Vancouver, B.C. Samples were dried and sieved to minus-80-mesh size and analyzed for 36 elements (including gold) by 15-gram aqua regia digestion, ICP-MS finish technique. Acme is accredited under ISO 9001.

The multisensor geophysical survey airborne geophysical survey was completed by Precision Geosurveys Inc., of Vancouver, B.C., with a helicopter flying grid lines at 100-metre line spacing. A total of 300 line kilometers of data was collected. A high-resolution magnetometer system was used to assist in interpreting bedrock units, structure and alteration. A radiometric system consisting of a multichannel spectrometer with state-of-the-art design and large gamma-ray-sensing crystals was used to map lithologies and alteration.

, ,

No Comments