SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): October 5, 1998
Commission file number 0-10104
LA TEKO RESOURCES LTD.
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(Exact name of registrant as specified in its charter)
BRITISH COLUMBIA, CANADA 87-0483319
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
SUITE 500, 625 HOWE ST.
VANCOUVER, B.C. V6C 2T6
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code:
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(604) 688-0833
NOT APPLICABLE
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(Former name, former address and formal fiscal year, if changes since last
report)
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ITEM 5. OTHER EVENTS
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On October 5, 1998, La Teko Resources Ltd. announced that five of the seven
drill holes completed on its Scheelite Dome gold property in the central Yukon
intercepted significant gold. Gerald Carlson, President, stated "I believe La
Teko is on the verge of a major new gold discovery. The values from this drill
program are significantly higher than those intercepted by the previous shallow
reverse circulation holes and further demonstrate the enormous potential within
the Tintina Gold Belt for large gold deposits."
SUMMARY
The seven widely spaced drill holes totaled 4,100 feet of HQ and NQ core testing
targets within a strong east-west trending gold mineralized system as outlined
by anomalous gold in soils and bedrock over an area 2.5 miles by 0.9 miles. The
geologic setting is very similar to the new Teck Corp./Sumitomo Metal Mining
Pogo discovery (4.5 million ounces of gold) as well as the Fort Knox mine and La
Teko/Newmont Gold Company's True North deposit in Alaska. All of these deposits
are within the evolving Tintina Gold Belt.
Highlights of the drill program are:
DRILL FROM TO LENGTH GOLD
HOLE (FEET) (FEET) (FEET) (OZ/TON)
- -------- ------- ------ ------ ------
98-10 263.3 312.4 49.1 0.030
Includes 263.3 273.9 10.6 0.055
299.2 309.1 9.9 0.076
98-11 328.5 368.3 39.8 0.031
Includes 328.5 343.3 14.8 0.066
98-12 53.7 79.0 25.3 0.107
98-14 215.9 281.8 65.9 0.030
The results from this initial reconnaissance drill program are very encouraging.
La Teko plans to move forward with a follow up program of drilling specifically
focussed on the targets identified in drill holes 98-10, 11 and 12 (see attached
map). La Teko has successfully met the objective of this drill program - to
prove the existence of potential ore grade intercepts within this large gold
system. Detailed geophysical surveys will be carried out to further define
these targets and to develop new drill targets in promising areas elsewhere
within the large gold anomaly.
La Teko has an option to earn a 100% interest in Scheelite Dome from Kennecott
Canada Exploration Inc. by spending C$800,000 on exploration over four years.
Kennecott, a wholly owned subsidiary of Rio Tinto, plc of London, England, can
either retain a 2% NSR or exercise a 49% back-in right upon completion of a
feasibility study.
BACKGROUND
The Scheelite Dome property contains a gold anomaly of impressive magnitude - 40
parts per billion (ppb) gold enclosing a core of 100 ppb gold in an area of 2.5
miles by 0.9 miles (4 km by 1.5 km) both in soils and in near surface bedrock.
The anomaly is related to mineralization within metasedimentary rocks adjacent
to several 90 million year old granitic intrusive rocks, a key feature in
virtually all major gold mines and deposits with the Tintina Gold Belt, an
arcuate belt which cuts across Alaska and the Yukon. Within this large gold
anomaly three structural features which may be of critical importance to the
gold mineralization event(s) have been identified. Various geophysical surveys
were utilized to further analyze the geology and mineralization within the
anomalous areas.
La Teko focussed on the above features - geochemical gold and various trace
element anomalies, favourable geological and structural environments and induced
polarization and magnetic geophysical anomalies - to select a limited number of
reconnaissance drill targets. The property is road accessible, 16 miles (25 km)
northwest of the town of Mayo in the central Yukon.
DRILL PROGRAM
Each of the drill holes intersected primarily quartzite and phyllite
metasedimentary units with minor dykes. The best drill intercept, 25.3 feet of
0.107 oz/ton gold (7.7m of 3.668 g/t gold) in hole 98-12 was also one of the
shallowest significant intercepts, located from 53.7 feet to 79.0 feet (16.3m to
24.0m). Within the drilling numerous sections were variably silicified and
sulphide mineralization, including arsenopyrite, pyrite, pyrrhotite and
stibnite, was present. Cross cutting quartz veins also occurred in various
sections. True widths cannot be calculated until further drilling is completed
to determine the orientation of the gold bearing unit(s). The drill holes varied
in length from 482 feet to 708 feet (147m to 216m). Four holes were vertical,
and the balance were drilled at an azimuth of 215o at a dip from 45o to 60o. The
rock units, alteration and structures observed indicate that the drilling
successfully tested the identified targets.
The drill hole locations are shown on the attached map and results are
summarized in the following table:
FROM TO LENGTH
DRILL -------------- --------------- -------------- GOLD GOLD
HOLE FEET meters FEET meters FEET meters OZ/TON g/tonne
- ------- ----- ------ ----- ------ ----- ------ ------ -------
98-09 82.9 25.2 110.6 33.6 27.6 8.4 0.024 0.829
164.6 50.0 171.2 52.0 6.6 2.0 0.022 0.751
190.9 58.0 200.8 61.0 9.9 3.0 0.021 0.712
98-10 263.3 80.0 312.4 94.9 49.1 14.9 0.030 1.043
Includes 263.3 80.0 273.9 83.2 10.6 3.2 0.055 1.886
And 299.2 90.9 309.1 93.9 9.9 3.0 0.076 2.620
98-11 328.5 99.8 368.3 111.9 39.8 12.1 0.031 1.073
Includes 328.5 99.8 343.3 104.3 14.8 4.5 0.066 2.258
561.2 170.5 563.9* 171.3* 2.7 0.8 0.048 1.650
98-12 53.7 16.3 79.0 24.0 25.3 7.7 0.107 3.668
98-14 215.9 65.6 281.8 85.6 65.9 20.0 0.030 1.037
Includes 219.2 66.6 247.5 75.2 28.3 8.6 0.038 1.295
* end of hole
Two holes did not have any intercepts greater than 0.03 oz/t. All holes,
including these two, had numerous intercepts with anomalous gold greater than
100 ppb gold. The laboratory analyses were completed by Chemex Labs.
PLANS
La Teko has fulfilled its 1998 commitments on the property. La Teko has an
option to earn a 100% interest in Scheelite Dome from Kennecott Canada
Exploration Inc. by spending C$800,000 on exploration over four years and paying
C$135,000 to the underlying vendor (fully paid). Kennecott can either retain a
2% NSR or exercise a 49% back-in right upon completion of a feasibility study.
La Teko will complete the analysis of the results from the 1998 drill program
during the fall. Subject to market conditions consideration will be given in
the next phase of work to include the following elements:
- - Step out drilling on mineralized zones discovered this year;
- - Drill test other similar targets in the immediate area of the successful 1998
drill program;
- - Drill test additional targets with geological, geochemical and geophysical
anomalies;
- - Conduct a more detailed induced polarization survey, a technique which
successfully highlighted targets within the larger gold anomaly;
- - Further develop other geochemically anomalous areas on the 44 square miles
(114 square kilometers) outside of the initial drill tested area of 1 square
mile, 1.3 miles by 0.8 miles (2.5 square kilometers, 2.1 km by 1.2 km).
La Teko is very pleased with the results of the first year's work it has
conducted on the Scheelite Dome property. It is fortunate that it was able to
acquire an asset of the quality of Scheelite Dome prior to the marked increase
in activity in the Tintina Gold Belt sparked by Teck Corp./Sumitomo Metal
Mining's announcement of the Pogo discovery (4.5 million ounces of gold) last
year. It is anticipated that the recent gold price recovery will further
increase the interest already demonstrated in the Scheelite Dome project.
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SIGNATURES
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Pursuant to the requirements of section 13 or 15(d) of the Securities Exchange
of 1934, as amended, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
LA TEKO RESOURCES LTD.
Dated: October 7, 1998 By: /s/ Gerald Carlson
Gerald G. Carlson, President & CEO
