Mineral Exploration

Winter 2016

Mineral Exploration is the official publication of the Association of Mineral Exploration British Columbia.

Issue link: http://digital.canadawide.com/i/756078

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Page 48 of 71

Winter 20 1 6 49 PHOTO GOVERNMENT OF BRITISH COLUMBIA Precious metals The Brucejack gold-silver underground mine, owned by Pretium Resources Inc., is in full-scale construction, employing more than 700 people. Construction is on schedule, with commissioning anticipated in late 2017. An updated resource estimate for the Valley of the Kings zone increased measured resources by 58 per cent. Immediately to the west, Seabridge Gold Inc. continued to grow the KSM gold-copper project. Deep drilling tested extensions to the world's largest (by reserves) undeveloped gold-copper complex and supported an updated preliminary feasibility study (PFS) and a preliminary economic assessment (PEA). The PFS retained permitted mine designs for the 2.2 billion tonnes of proven plus probable reserves. The PEA proposed underground block cave mining to recover inferred resources from the Deep Kerr and Lower Iron Cap deposits. The limits of the Iron Cap deposit expanded further with exploration drilling north of Iron Cap that returned over 555 metres averaging 0.8 grams per tonne gold and 0.24 per cent copper. A 2.1-km underground exploration adit permitted at Deep Kerr will assist future evaluation of deeper resources. Gavin Mines Inc. is scheduled to resume mining at the Dome Mountain gold project by the end of 2016. Roughly 100 tonnes per day will be mined from developed underground workings while permitting an on-site mill proceeds. The first 190 tonnes of ore was processed in September at Nicola Mining Inc.'s custom milling facility in Merritt. Ascot Resources Ltd. drilled 50,858 metres near the past-producing Premier gold mine and nearby Northern Lights area. Drill results indicate high-grade gold remains close to the former underground workings, which are the focus of an underground resource estimate. Drilling is continuing as of press time. IDM Mining Ltd. advanced the Red Mountain gold project with a PEA, over 5,000 metres of underground resource drilling and a grassroots discovery. Infill drilling supported an updated resource estimate of the four known deposits (Marc, AV, JW and 141 zones). A feasibility study detailing a 1,000-tonne-per- day underground operation is due in early 2017. Additionally, porphyry-style mineralization was discovered about four kilometres south of the deposits in recently deglaciated terrane referred to as the "Lost Valley." A nine-metre rock channel sample averaged 22 grams per tonne gold plus 81 grams per tonne silver. Colorado Resources Ltd. continued exploring the KSP property jointly owned with Seabridge Gold Inc. Colorado drilled 7,874 metres in 53 holes at the Inel prospect and identified six auriferous trends extending across approximately 20 per cent of a 1.5-km 2 anomaly averaging 1.27 grams per tonne gold-in-soil. Sampling and mapping were completed across other target areas in the KSP project, including Black Bluff, Tami, Nee and Pins. Colorado, in partnership with Centerra Gold Inc., also drilled the Heart Peaks epithermal gold prospect. Seabridge Gold Inc. acquired the past-producing Johnny Mountain gold mine from Snip Gold Corp., renaming it the Iskut project. Drilling targeted areas below former underground workings and along a structural corridor thought to have influenced intrusion-related mineralization. In addition to exploring for new zones in recently deglaciated areas, Seabridge started reclamation planning of the abandoned Johnny Mountain mill. Exploration near the past-producing Snip gold mine restarted after Barrick Gold Inc. optioned the property to Skeena Resources Limited. More than 6,000 metres of drilling targeted interpreted extensions of high-grade gold-bearing structures and returned results of up to 4.5 metres grading 31 grams per tonne gold. Skeena intends to continue exploration from existing underground development once it attains 100 per cent ownership of the property. The Treaty Creek gold project is under a new partnership agreement with operator Tudor Gold Corp., which owns 60 per cent. Exploration activities included diamond drilling and a magnetotelluric geophysical survey. Results include 110 metres grading 0.9 grams per tonne gold from hole CB-16-03. Other exploration drilling programs targeting precious metals in the Stewart area included Tudor Gold Corp., which drilled the Electrum gold project; Mountain Boy Minerals Ltd. in partnership with Decade Resources Ltd., who drill tested the Red Cliff, Scottie Gold and Morris Summit areas; Rotation Minerals Ltd., which drilled two holes at 4J's; Teuton Resources Corp., which drill tested the Big Gold project; and Makena Resources Inc., which drilled the Clone gold prospect. In the Alice Arm area, Dolly Varden Silver Corporation continued exploring the Dolly Varden silver system. Various precious metal projects were subject to grassroots exploration work, including Colorado Resources Ltd. at Kingpin, Garibaldi Resources Corp. at King and OK2 Minerals Ltd. at Big Bulk. Porphyry (copper-gold, copper-molybdenum, molybdenum) projects West of the Red Chris mine, Skeena Resources Limited completed exploration drill programs at the Spectrum and GJ gold-copper projects. Infill drilling at both projects aimed to expand the maiden resource at Spectrum and the revised resource at GJ. Northeast of Red Chris, Carmax Mining Corp., in partnership with Copper Fox Metals Inc., re-logged and re- sampled historic drill core and continued metallurgical testing at the Eaglehead NORTHWEST REGION (SKEENA) Newly exposed terrane: Lost Valley of IDM Mining's Red Mountain gold project, looking west-southwest.

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