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Quick Summary
The Clone Gold property is located in the prodigious Eskay Creek/Stewart Region of British Columbia and is approximately 20 kilometers (12 miles) SE of the town of Stewart B.C. and the Canadian-Alaskan border. To date, 3 million dollars has been spent on exploration of the Clone. In November 2005 Canasia Industries Corp entered into an option agreement with Teuton Resources Corp and Silver Grail Resources Corp, the owners of the Clone Property. Terms of the option require Canasia to spend a total of $1,800,000 over five years to vest a 50% interest in the property. To date, Canasia has spent $400,000 on the Clone. Teuton-Silver Grail will act as operator during the term of the option.
Extended Summary
The Clone property is situated within the densely mineralized belt of NW British Columbia referred to as both the Eskay Creek/StewartRegion, or the Golden Crescent.
The Eskay Creek/Stewart Region is 160 km by 50 km (99 miles by 31 miles) and to date has produced 15 million ounces of gold, 270 million ounces of silver, 4 billion pounds of copper and 782 million pounds of Molybdenum. At current market value the region has thus far produced over 46 billion dollars in precious minerals.
Much of the Clone property was staked in 1994 as part of a regional effort aimed at exploring virgin ground made newly viable by receding glaciers. The process of glacial melt, known as ablation, has progressed at a striking rate over the course of the last decades. As far as mineral exploration is concerned such environmental change greatly increases the ease at which previously difficult or unreachable ground is made available. The Clone property is one such example.
In 1995 high-grade gold-bearing shear zones were discovered by Teuton Res. Corp prospectors at the head of the melting Sutton Glacier. Trenching of these shears returned Gold values ranging up to 3.59 oz/t over 5.5m (18 feet). These discoveries triggered a staking rush within the area eventually leading to a $2.6 million cash infusion by Prime Resources-Homestake Canada, at that time the companies which controlled the rich Eskay Creek mine.
Between 1995 and 1998 approximately 3 million dollars were spent on the Clone in exploration. Drilling during this period was confined to the 500 m long 'Main Zone' which overlapped the original discovery area. The most promising results were Hole #18 with contained a 19.7 foot intercept grading 1.53 oz/t gold and 0.33% cobalt, and Hole #110 which contained a 32.9 foot intercept grading 1.28 oz/t gold.
Between 1998 and 2002, due to the weakness in gold prices, little work was done on the Clone.
In June 2003, upon the resurgence in gold values, the Clone Property again became attractive for exploration. A $300,000 exploration program was undertaken in which 4 of the 5 holes drilled into the Main Zone intersected gold values, the best of which was Hole #2 containing a 27.8 foot intercept grading 2.357 oz/t gold.
1995 Results
| TABLE A TRENCH RESULTS |
| Trench # |
Structure |
Width (feet) |
Gold (oz/ton) |
| 4 |
H-1 |
18.0 |
3.59 |
| 7 |
S-1 |
9.5 |
1.65 |
| 10 |
S-2B |
14.8 |
2.08 |
| 11 |
H-1 |
8.9 |
0.71 |
| 12 |
H-1 |
22.0 |
0.56 |
| 14 |
H-1 |
24.0 |
1.50 |
| 15 |
H-1 |
24.6 |
0.76 |
| 16 |
H-2 |
4.9 |
7.18 |
| 25 |
S-2A |
9.8 |
1.03 |
| 28 |
S-2A |
6.6 |
1.15 |
| 29 |
S-2A |
8.7 |
0.96 |
| 64 |
S |
11.0 |
0.52 |
| 78 |
H-1 |
26.3 |
0.90 |
| 81 |
H-1/S-2A |
29.5 |
0.24 |
Intercepts on the Clone between 1995-1998
| TABLE B |
| Drill Hole |
Interval (feet) |
Gold (oz/ton) |
| 4 |
16.4 |
0.61 |
| 8 |
9.8 |
1.67 |
| 10 |
26.2 |
1.85 |
| 11 |
30.0 |
0.64 |
| 11 |
13.1 |
0.89 |
| 18 |
19.7 |
1.53 |
| 25 |
12.0 |
0.64 |
| 68 |
8.9 |
1.29 |
| 72 |
27.5 |
0.38 |
| 74 |
12.9 |
0.63 |
| 84 |
11.5 |
0.90 |
| 91 |
50.9 |
0.22 |
| 110 |
32.9 |
1.28 |
| 124 |
23.0 |
0.43 |
Intercepts on the Clone from 2003
| TABLE C |
| Drill Hole |
Interval (feet) |
Gold (oz/ton) |
| CLO3-1 |
5.0 |
0.769 |
| CLO3-2 |
27.8 |
2.357 |
| CLO3-3 |
5.0 |
0.159 |
| CLO3-4 |
5.0 |
3.023 |
In November 2005 Canasia Industries Corp. entered into an option agreement with Teuton Resources Corp and Silver Grail Resources Corp, the owners of the Clone Property. Terms of the option require Canasia to spend a total of $1,800,000 over five years to vest a 50% interest in the property. To date, Canasia has spent $400,000 on the Clone. Teuton-Silver Grail will act as operator during the term of the option.
The first half of Canasia' 2006 drilling program was completed mid-September and the drill cores sent in for assaying. Pending results, Canasia intends to complete the second half of the Clone 2006 drilling program in late October.
Significantly, all 7 holes of the 3,240 foot, 2006 drill program cut gold-bearing intercepts, varying in length from 3 to 35.5 feet, as follows:
| Hole # |
From (feet) |
To (feet) |
Interval (feet) |
Gold (oz/ton) |
CL06-1
...including |
392.5
409.0 |
409.0
405.0 |
16.5
3.0 |
0.125
0.303 |
| CL06-2 |
233.0 |
236.0 |
3.0 |
0.153 |
CL06-3
...including |
32.0
42.0 |
52.0
48.5 |
20.0
6.5 |
0.178
0.390 |
CL06-4
...including |
33.5
39.5 |
49.5
42.5 |
16.0
3.0 |
0.114
0.300 |
CL06-5
...including
and |
40.5
50.0
107.0 |
76.0
73.0
110.5 |
35.5
23.0
3.5 |
0.178
0.232
0.579 |
CL06-6
|
113.0
157.0 |
116.0
162.0 |
3.0
5.0 |
0.629
0.448 |
CL06-7
|
113.0
151.0 |
116.0
156.5 |
3.0
5.5 |
0.332
0.824 |
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