Mineral Exploration

Winter 2016

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

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Winter 20 1 6 51 PHOTO GOVERNMENT OF BRITISH COLUMBIA copper-molybdenum deposit. Farther north, OK2 Minerals Ltd. completed the first reverse-circulation drill program at the Pyramid gold-copper prospect. Near Atlin, Global Drilling Solutions Inc. acquired the environmental-assessment- certified Adanac molybdenum project and targeted diamond drilling beyond current resource limits. Near Stewart, Teuton Resources Corp. completed three diamond drill holes and a magnetotelluric survey at the Del Norte project. Porphyry projects explored by prospecting, geological mapping and geophysics include Ball Creek (Evrim Resources Corp.), Todd Creek and Oweegee (Millrock Resources Inc.), Ootsa (Gold Reach Resources Ltd.) and S2 (Vale Canada Limited). Polymetallic base and precious metals JDS Silver Inc. is on the verge of producing silver-lead-zinc concentrate from Silvertip. Construction of the processing facility and related infrastructure is largely complete and ready to be commissioned. Silvertip will be the first mine in B.C. to use natural-gas- fired power plants to supply electricity. Brixton Metals Corporation completed two phases of exploration at its Thorn property. Diamond drilling tested the Outlaw and Aberlour gold targets while rock chip sampling and an induced- polarization (IP) geophysical survey evaluated the newly identified Chivas zone. Jade Seasonal placer and in-situ jade mining continued east of Dease Lake in the Kutcho and Provencher camps. Multiple quarries are permitted for trenching, drilling and excavating between 200 and 2,000 tonnes of raw jade. At Cassiar, jade mining is in concert with ongoing reclamation activities of the past-producing asbestos mine. NORTHWEST REGION (SKEENA) NORTH CENTRAL (OMINECA) AND NORTHEAST REGIONS Precious metals For Blackwater, New Gold Inc. continued engineering and environmental studies to support provincial and federal environmental assessments (under review) and to advance further permitting. The 2014 feasibility study describes open- pit mining with a 60,000-tonne-per-day processing plant and a 17-year mine life. PPM Phoenix Precious Metals Corp. completed an NI 43-101 technical report for Lawyers with an updated resource estimate in the inferred category of 550,000 tonnes grading 4.51 grams per tonne gold and 209.15 grams per tonne silver (Cliff Creek North zone), and 58,000 tonnes grading 4.3 grams per tonne gold and 139.13 grams per tonne silver (Duke's Ridge zone). The newly discovered P2 vein returned a mineralized interval of 2.4 metres, including 293.4 grams per tonne gold and 7,622 grams per tonne silver over 0.7 metres. Grassroots exploration was conducted in the Nechako Plateau area at 2 X Fred and Copley (Theia Resources Ltd., Kootenay Silver Inc.), Big Bear (Parlane Resource Corp.), Nechako Gold (Tower Resources Ltd.) and Trout (Venerable Ventures Ltd., late 2015), and at the Barkerville Gold Belt property (Gitennes Exploration Inc.) and Lil (Canasil Resources Inc.). Porphyry (copper-gold, copper-molybdenum, molybdenum) projects In March, AuRico Metals Inc. announced an updated feasibility study for the proposed Kemess Underground (KUG) panel cave mine. The mine would have a 25,000-tonne- per-day production rate generating 1.4 million ounces of gold, 573 million pounds of copper and 4.5 million ounces of silver over 12 years. The project entered into the review stage of environmental assessment. An updated resource estimate for Kemess East features a 19.2-million- tonne high-grade core zone in a 39.2-million-tonne indicated resource grading 0.4 per cent copper and 0.5 grams per tonne gold. Exploration drilling continued with three drills targeting the high-grade core for infill and expansion, and refinement of the geological model. Coincident geophysical anomalies were drilled near the southern part of the Hogem intrusive complex at Later (Cap- Ex Iron Ore Ltd., Pacific Empire Minerals Corp.), Q7a (Vale Exploration Canada Inc.) and North Grid (Thompson Creek Metals Company Inc.) near the Mt. Milligan mine. At Kwanika, Serengeti Resources Inc. completed a deep-penetrating ground IP survey line to confirm a modelled chargeability anomaly north of the Central Zone. Drilling followed to test for continuity and extensions of the Central Zone high- grade core. Mineralized intercepts included 438 metres grading 0.71 per cent copper, 0.83 grams per tonne gold and 2.0 grams per tonne silver. An updated PEA was to be completed by year end. At Kwanika Prospect panorama: Inel at Colorado Resources Ltd.'s KSP gold property.

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