PJX Resources (CVE:PJX) said Monday that it has optioned ground on strike with the Vine property in British Columbia, opening the way for expanded exploration potential.
The company has boosted the land position at Vine from 640 hectares
to more than 6,300 hectares of land, through an option agreement with
Klondike Gold Corp (CVE:KG).
The Vine property hosts a deposit of gold, silver, lead, zinc and
copper mineralization that was first discovered in the late 1970s by
Cominco. The last significant drilling done on Vine was between 1989
and 1991, when low metal prices curtailed any further exploration and
the land ownership became fragmented.
"This is a win-win scenario for PJX Resources and Klondike Gold," said PJX president and CEO, John Keating.
"This is the first time in over 20 years that the Vine land position
has been consolidated into a size that can be properly explored. Metal
prices today are far more favourable than they were when the Vine was
"Gold is trading over US$1,600 an ounce, as compared to US$360 in
1991. Silver averaged about US$4 per ounce in 1991 and is now trading
over US$30 an ounce. Zinc, lead and copper prices are also much
"This larger land package combined with stronger metal prices makes a
discovery on strike or at depth with the Vine more favourable for
Under the terms of the option deal, PJX can earn a 50 percent
interest in Klondike's 6,300 hectare property by completing $1.5 million
in work, and by making share payments of a maximum of 200,000 common
shares over a five year period.
Once PJX has completed the option terms, the companies will form a
50/50 joint venture, with PJX as the operator. If either company decides
not to participate in the venture, then its interest will be diluted on
a pro-rata basis to a two percent net smelter royalty.
The road-accessible Vine property is located 11 kilometres south of Cranbrook, British Columbia.
According to BC historical records, trenching and drilling have
exposed massive and disseminated sulphides within a sheared vein system,
and the mineralized Vine structure has been traced for over 1,000
metres along strike and a downdip extension of at least 700 metres.
Drilling in the 1990s of the Vine structure intersected three massive
sulphide veins. The upper vein had a true width of 4 metres, averaging
2.94 per cent lead, 0.2 per cent zinc and 29.13 grams per tonne silver
across 4 metres.
The lower vein had a true width of 3.4 metres, averaging 4.7 per cent
lead, 2.09 per cent zinc, 0.36 per cent copper and 35.3 grams per tonne
silver across 3.4 metres.
Historical proven and probable reserves for the Vine property are
estimated at 1.3 million tonnes grading 2.2 grams per tonne gold, 36.3
grams per tonne silver, 3.12 per cent lead, 3.12 per cent zinc and 0.11
per cent copper.
PJX said it has access to the drill core and logs from the more than
50 holes drilled on the Vine deposit. It has recently had the data
digitized for computer modelling, with the information to be used to
assess the potential for mineralization - on strike and at depth.
The results of this work will be used to identify targets for drilling the Vine vein, the company said.
PJX plans to fly an airborne survey over the property to identify
potential Vine style and Sullivan deposit targets. The Sullivan Mine is
located about 30 kilometres to the north of the property, with Teck
Cominco closing it in 2001 after producing over 120 million tonnes of
silver-lead-zinc ore during its 90 year mine life.
PJX's primary focus remains the Dewdney Trail property, where three
target areas have been identified to date with significant gold deposit
The company has also identified a new target area on the Zinger
property that may have the potential for multiple gold deposits.
Meanwhile, targets are being developed on its Eddy property, and PJX can
now identify areas on the Vine asset.
PJX said it has identified new targets on multiple properties by
using an estimated $8 million in previous exploration work on its
It plans to test the most promising targets with trenching and
drilling this year. The company's main properties are located in the
historical mining area of Cranbrook and Kimberley, British Columbia.