Saturday 25th October 2014

Resource Clips


North ROK rocks the market

Colorado Resources’ copper-gold discovery heats up B.C.’s Golden Triangle

by Greg Klein

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Geology has a way of stimulating even the most discouraged investors, as shown by the way North ROK excited an otherwise dismal market. The very first hole from the Colorado Resources TSXV:CXO project sent company stock soaring from an April 24 close of $0.16 to a May 6 high of $1.25. Along with the excitement comes revived interest in the northern part of British Columbia’s Golden Triangle, in the region around the discovery hole and Imperial Metals’ TSX:III development-stage Red Chris project, 15 kilometres east.

For anyone coming out of cryogenic slumber, here’s the first North ROK hole announced April 25:

  • 0.51% copper and 0.67 grams per tonne gold over 333 metres, starting at 2 metres in downhole depth
  • (including 0.63% copper and 0.85 g/t gold over 242 metres, starting at 2 metres)
  • (which includes 0.76% copper and 1 g/t gold over 180.47 metres, starting at 63.53 metres)
  • (and including 0.2% copper and 0.19 g/t gold over 91 metres, starting at 244 metres).

True widths haven’t been determined.

Still to come are assays for a second hole 350 metres west. Geophysical data, however, suggests drilling “may have been stopped short of adequately testing the IP chargeability anomaly.” Colorado now plans to deepen the second hole and sink a series of 100-metre-spaced step-outs from the 333-metre intercept.

Colorado Resources’ copper-gold discovery heats up B.C.’s Golden Triangle

Spectacular assays have put Colorado Resources on top of the world.

Could North ROK be a one-hole wonder? Maybe, but other companies aren’t wasting time getting in on the action. The region “may become the next significant mining district in British Columbia,” according to TAD Mineral Exploration TSXV:TJ. On May 6 the company reported staking a 876-hectare copper-gold prospect near the village of Iskut, north of North ROK. TAD could be a tad opportunistic, having announced on April 11 it staked 4,000 hectares in the region of Patterson Lake South, the Fission Uranium TSXV:FCU/Alpha Minerals TSXV:AMW uranium discovery that sparked the southwestern Athabasca Basin acquisition rush.

Also on May 6, Teuton Resources TSXV:TUO reported it optioned its Yellow Chris South claims to Redhill Resources TSXV:RHR. Located “a few kilometres northeast” of Colorado’s discovery hole, Yellow Chris South shares a similar geophysical setting, Teuton stated. The company added that its optionee “plans an aggressive program of property-wide soil sampling, geological mapping and IP surveying” beginning immediately. Subject to regulatory approval, the option allows Redhill to earn an initial 50% by paying Teuton $300,000 and 1.4 million shares, as well as spending $4.5 million over four years.

Teuton still has several blocks in the Red Chris and Yellow Chris area totalling 10,256 hectares. “We’re currently negotiating with a number of other companies,” IR officer Gary Assaly tells ResourceClips. “We have several properties that are optioned in the Stewart region [roughly 190 kilometres south] and there will be a lot of work done by other companies on our properties,” he says. But there’s been sudden interest in the North ROK area. “The phone started ringing a week ago, on the weekend.”

Teuton president Dino Cremonese adds, “We feel that our claims have a lot of potential, especially those which have discrete mag highs, some associated with flanking mag lows, the latter suggesting an area where alteration has been so intense that the magnetite has been replaced. So far, because our attention has been on our many claims further south, we have done only very minor soil geochem. This, however, has also been positive, with a few areas reporting values to 271 parts per million copper.”

A company that diversifies its opportunism, Pistol Bay Mining TSXV:PST was advancing an Ontario graphite property while a big-name joint venture partner drilled one of its Athabasca Basin uranium projects. Then the Colorado Resources discovery drew Pistol Bay back to its Summit Lake B property contiguous to North ROK.

“When this hit we went back and looked at the results from our 2010 program,” Pistol Bay president/director Charles Desjardins tells ResourceClips. “When you look at the showing in North ROK and compare it to our Kitty showing, we have some good numbers.”

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