Friday 28th April 2017

Resource Clips


Posts tagged ‘copper’

Golden Dawn Minerals reports up to 246 g/t silver, 2.69 g/t gold over 3.71 metres at B.C.’s Greenwood camp

April 26th, 2017

by Greg Klein | April 26, 2017

Once again confirming mineralization beyond the former May Mac mine’s #7 level, Golden Dawn Minerals TSXV:GOM boasts silver and gold 70 metres northwest, 20 metres above and up to 120 metres below the adit. Assays released April 26 follow a batch released in early March, part of 31 underground holes totalling 3,834 metres sunk since late last year to test the Skomac and parallel veins.

Golden Dawn Minerals reports assays from B.C.’s Greenwood camp

Located 15 kilometres from May Mac, Golden Dawn’s Greenwood
gravity-flotation mill has a 200-tpd capacity expandable to 400 tpd.

May Mac comprises one of several southern British Columbia past-producers that Golden Dawn hopes to resurrect, all within range of the company’s Greenwood mill. Golden Dawn has a 43-101 technical report underway on the entire portfolio, including an updated PEA for its Lexington and Golden Crown projects.

Some standout assays from May Mac’s current crop include:

Hole MU 17-12

  • 335 g/t silver, 7.53 g/t gold, 0.2% lead and 0.5% zinc over 0.46 metres, starting at 30.93 metres

MU 17-14

  • 252.6 g/t silver, 0.93 g/t gold, 9.9% lead, 4.3% zinc and 0.1% copper over 2.57 metres, starting at 105.92 metres
  • (including 494.5 g/t silver, 1.21 g/t gold, 19.6% lead, 8% zinc and 0.1% copper over 1.29 metres)

  • 49.5 g/t silver, 12.55 g/t gold, 1.4% lead, 2% zinc and 0.1% copper over 0.56 metres, starting at 129 metres

MU 17-16

  • 246 g/t silver, 2.69 g/t gold, 1.3% lead, 0.9% zinc and 0.1% copper over 3.71 metres, starting at 70.76 metres
  • (including 472 g/t silver, 4.42 g/t gold, 11.3% lead, 4.7% zinc and 0.1% copper over 0.35 metres)
  • (and including 911 g/t silver, 9.53 g/t gold, 1.1% lead, 1% zinc and 0.2% copper over 0.55 metres)

MU 17-21

  • 58.8 g/t silver, 16.17 g/t gold, 2.3% lead, 3.3% zinc and 0.1% copper over 0.56 metres, starting at 15.84 metres
  • (including 90.5 g/t silver, 23.7 g/t gold, 3.7% lead, 5.5% zinc and 0.1% copper over 0.31 metres)

True widths weren’t available.

Having transferred the rig from underground drill station #3 to #2, work continues before moving to station #1. Subject of focus are the Skomac, Rose and West veins in a campaign expected to finish next month.

Other May Mac work awaits permit approvals. One application concerns additional surface drilling northwest along strike of the mine, where the company sees potential for mineralization up to another kilometre on the Skomac and parallel structures. The company also seeks approval to extend the #7 level northwest for additional drilling and a bulk sample of up to 10,000 tonnes.

Metallurgical tests have taken place on a May Mac composite core sample, with additional tests of tailings now underway to support processing at the mill, 15 kilometres from the mine.

Also proximal to the mill is Golden Dawn’s Golden Crown property, which has an application pending for surface drilling up to 10,000 metres. The company has preparations underway for field work at the recent Kettle River acquisition, which hosts 70 showings including 29 historic mines.

Golden Dawn also plans to begin dewatering its Lexington mine once spring weather allows.

Along with the mill, the former May Mac, Golden Crown and Lexington mines constitute the focal points of Golden Dawn’s Greenwood portfolio. Given the infrastructure in place, the company might decide to undertake trial mining and processing without the de-risking of a feasibility study.

In February Golden Dawn received a US$4-million advance on a gold purchase agreement.

Rockcliff Copper drills new VMS zone on its northern Manitoba Snow Lake portfolio

April 26th, 2017

by Greg Klein | April 26, 2017

Rockcliff Copper drills new VMS zone on its northern Manitoba Snow Lake portfolio

A third hole from this year’s Phase II campaign hit a new volcanogenic massive sulphide zone on the Talbot property, Rockcliff Copper TSXV:RCU announced April 26. The company holds a 51% option with Hudbay Minerals TSX:HBM on the property, part of Rockcliff’s Snow Lake project in northern Manitoba’s Flin Flon-Snow Lake camp.

Hole TB-020 follows two holes released earlier this month. TB-020 and TB-019 tested the approximately 400- by 1,000-metre North Lens deep conductive plate, finding VMS mineralization 250 metres apart. Conductivity increases for an additional 800 vertical metres below TB-020, while mineralization remains open in all directions, Rockcliff stated.

Results for the newly released hole show:

  • 0.81% copper, 0.67 g/t gold, 1.91% zinc and 17.03 g/t silver for 2.4% copper-equivalent over 6.65 metres, starting at 1,030.13 metres in downhole depth
  • (including 1.44% copper, 1.66 g/t gold, 5.16% zinc and 26.5 g/t silver for 5.38% copper-equivalent over 1.92 metres)

  • 0.57% copper, 0.07 g/t gold and 5.77 g/t silver for 0.64% copper-equivalent over 16.91 metres, starting at 1,120.26 metres

Most large VMS mines in the Flin Flon-Snow Lake mining camp are comprised of multiple stacked VMS-rich lenses that were identified initially as geophysical conductive plates and the Talbot property appears to have those same attributes.—Ken Lapierre,
president/CEO of Rockcliff Copper

True widths weren’t available.

“Most large VMS mines in the Flin Flon-Snow Lake mining camp are comprised of multiple stacked VMS-rich lenses that were identified initially as geophysical conductive plates and the Talbot property appears to have those same attributes,” said Rockcliff president/CEO Ken Lapierre. The company plans further drilling this year to test the plate’s potential.

A January 2016 resource gives the Talbot deposit an inferred total for three zones:

  • 2.17 million tonnes averaging 2.8% copper, 2.4 g/t gold, 2.2% zinc and 54.6 g/t silver for 133.6 million pounds copper, 165,400 ounces gold, 107.4 million pounds zinc and 3.81 million ounces silver

Rockcliff’s Snow Lake project consists of several properties, with drilling planned this year on the Bur zinc project, Rail copper-polymetallic deposit and Penex zinc property, as well as Talbot. Other recent company news includes the discovery of a large conductive plate below the down-dip continuation of the historic Pen zinc deposit that neighbours Penex, and last month’s start of airborne and ground geophysics on the Laguna gold property.

Read more about Rockcliff Copper.

Opinions vary by region when it comes to mineral exploration and mine development

April 20th, 2017

With a provincial election weeks away, Peter Caulfield asked sources in three British Columbia regions to comment on the importance of mining for the Association for Mineral Exploration’s quarterly magazine, Mineral Exploration. In general terms, the responses differ from views commonly heard in cities geographically removed but hardly independent of resource economies and the commodities they produce. In that respect, the relevance of Caulfield’s article applies far beyond B.C. The article is posted here with the permission of AME.

 

Opinions vary by region when it comes to mineral exploration and mine development

by Peter Caulfield

In a province that is as large and diverse as British Columbia, it’s natural that opinions on most topics—including mineral exploration and development—will be diverse too.

What the average person in Oak Bay or Yaletown thinks about a new mine or pipeline will be very different from what’s going through the head of somebody who lives in the northwestern corner of British Columbia or in the Kootenays in southeastern B.C.

As the province’s May 9 election approaches, Mineral Exploration wanted to know what’s on the mind of voters who live in the parts of the province that are most dependent on resource development. We talked to three well-connected observers of local politics in four provincial constituencies: Kamloops-North Thompson and Kamloops-South Thompson, Stikine and Kootenay East. We asked each of them what the hot-button issues are in their respective constituencies and whether mineral exploration and mine development is important to their fellow voters.

The following interviews have been condensed and edited for clarity.

 

Stikine

Maria Ryder, District of Stewart councillor for 2.5 years, chief of the volunteer fire department and 25-year Stewart resident

Opinions vary by region when it comes to mineral exploration and mine development

(Photo: Carl Ryan/AME)

The main projects in the Stewart region are Brucejack (Pretium Resources TSX:PVG), the Premier mine (Ascot Resources TSXV:AOT), Red Mountain (IDM Mining TSXV:IDM) and the Red Chris mine (Imperial Metals TSX:III).

Along with Terrace and Kitimat, Stewart is one of the largest communities in the district. We are growing in population, especially in the summer, when workers and their families descend on the town, drawn by mineral exploration and hydro projects and by Stewart’s two ports.

It’s very different here from urban British Columbia, and the people from down south who come up here to work find out just how different it is. And some of them discover how different some of our opinions and concerns are from theirs.

Because we get a lot of snow in the winter, much of the employment in Stewart is seasonal and the people who live here adjust their lives accordingly. Every year between March and November we’re busy, and between November and March things are pretty slow. But we’re used to it and we adjust.

The main election issue here is sustainable job creation through industrial development. We want jobs that stay and that provide stability to Stewart.

 

Kootenay East

Lois Halko, District of Sparwood second-term councillor and former mayor, born and raised in Sparwood

Opinions vary by region when it comes to mineral exploration and mine development

(Photo: Malcom Lennox/AME)

The main economic drivers of the region are the mining of metallurgical coal, which is B.C.’s single biggest export, and the activities of the local suppliers to the coal industry.

There are five Teck [Teck Resources TSX:TECK.A and TSX:TECK.B] metallurgical coal mines in the region: Coal Mountain, Elkview, Fording River, Greenhills and Line Creek. In addition, there are four mining companies that are interested in developing mines in the Elk Valley area: CanAus Coal, Centermount Coal, NWP Coal Canada and Riversdale Resources.

The five Teck mines have a total of 3,600 full-time employees, of whom 2,400 live in four communities in the Elk Valley area.

Because it is used to make steel, and because steel is such an essential product in everyone’s life, metallurgical coal should be recognized as a critical resource. It’s certainly critical to the people who live in Sparwood.

Teck has earned its social licence to continue mining here. The public has accepted the company’s efforts to mitigate any of the effects of coal mining, such as contaminants leaching into the water supply. Teck has done a lot of work to reduce the problem.

At the same time, we know that we need to diversify our economy. It’s something the local municipalities talk about a lot. The Sparwood regional economy is one of the least diversified in the province, which has made us very vulnerable to a cycle of boom and bust. The region has lots more to offer than just coal deposits, and we’re trying to leverage our mountains and natural beauty to build a thriving tourist industry.

 

Kamloops-North Thompson and Kamloops-South Thompson

Ryan Scorgie, president of the Kamloops Chamber of Commerce

The Kamloops Chamber of Commerce and its 850 members take a great deal of interest in all kinds of resource development, including mineral development in Kamloops-North Thompson and Kamloops-South Thompson.

The main mineral projects in the area are the Ajax project (KGHM International), the New Afton mine (New Gold TSX:NGD) and Highland Valley Copper (Teck).

Opinions about resource development are mixed in Kamloops. Most of the working people here are for it, but many of the academics at Thompson Rivers University are against, so the Chamber of Commerce hears both sides of the argument. Our position is that if a project goes through the appropriate review process and passes it, then we support it.

In fact, the Chamber thinks process is so important that our Policy Development Committee developed a policy regarding resource development in 2016 called Supporting Canada’s Responsible Resource Development.

The policy statement is more important than its brevity might indicate, because it was adopted provincially just a few months after it was written.

Opinions vary by region when it comes to mineral exploration and mine development

(Photo: Neil Leonard/AME)

The committee writes, in part: “The Chamber believes that it is critical that B.C. maintains its reputation as a jurisdiction open to investment. Achieving the investments needed to ensure Canada’s competitiveness will require an efficient regulatory review process that ensures continued health and environmental protection of Canadians while generating jobs, economic growth and prosperity.

“A streamlined process will encourage investment by providing businesses with a clear and predictable process to protect the environment while making the best use of limited government resources.

“Inefficient and unpredictable processes may turn away potential investors and prevent businesses from being able to make informed location and logistic decisions. For example, the World Economic Forum has cited inefficient government bureaucracy as one of the biggest impediments to improving Canada’s economic competitiveness.

“We need to make sure that the regulatory review process is efficient and has a clear scope, reasonable timelines and the flexibility to address unforeseen circumstances.”

Originally published in the spring 2017 edition of Mineral Exploration. Posted here with the permission of the Association for Mineral Exploration.

Pistol Bay readies geophysics, resource update at Ontario’s Confederation Lake

April 12th, 2017

by Greg Klein | April 12, 2017

Taking to the skies to probe deeper underground, the first airborne survey in 20 years will bring state-of-the-art technology to Pistol Bay Mining’s (TSXV:PST) Confederation Lake greenstone belt land package. Geotech Ltd will carry out an initial 1,128-line-kilometre VTEM Plus campaign, the first phase of a belt-scale helicopter-borne program. That’s part of a multi-disciplinary approach planned over the next few years for Pistol Bay’s portfolio, at 9,450 hectares the largest holdings in Confederation Lake.

Pistol Bay readies geophysics, resource update at Ontario’s Confederation Lake

VTEM Plus penetrates deeper and offers better conductor resolution than previous VTEM systems, the company stated.

“We will essentially be exploring a new depth slice of this greenstone belt, with its numerous VMS deposits and occurrences, that has never been explored before,” said president Charles Desjardins. “This newer technology increases the chances of potentially finding a new zinc-copper-silver deposit like the Arrow zone or the former producing South Bay mine.”

Last week Pistol Bay announced an update had begun on Arrow’s 2007 resource, one of the portfolio’s seven historic estimates.

The company’s currently financed with a $548,436 private placement that closed last month and a recent payment of $750,000 from a Rio Tinto NYSE:RIO subsidiary as part of its 100% option on Pistol Bay’s uranium properties in Saskatchewan’s Athabasca Basin.

Read more about Pistol Bay Mining.

Visual Capitalist: The re-awakening of the Golden Triangle

April 6th, 2017

by Jeff Desjardins | posted with permission of Visual Capitalist | April 6, 2017

The re-awakening of the Golden Triangle

 

Many years ago, a remote and mountainous region in northwestern British Columbia gained considerable attention as an emerging mineral district. With a rich mining history, one of the world’s largest silver mines (Eskay Creek, discovered in 1988) and million-ounce gold deposits, this area of incredible wealth became known as the Golden Triangle.

However, despite its obvious potential, the vast majority of land in this highly prospective region has been left mostly untouched by humans. A combination of factors, including low gold prices and a lack of infrastructure, led to the area lying dormant for decades.

Today, things are changing dramatically. The Golden Triangle is a new hotbed for mineral discovery, where over 130 million ounces of gold, 800 million ounces of silver and 40 billion pounds of copper have been found. The amazing part is that this is only scratching the surface of the region’s ultimate potential.

Skeena Resources TSXV:SKE and IDM Mining TSXV:IDM have generously helped put together the story on the re-awakening of the famed Golden Triangle.

The new gold rush

Why is the Golden Triangle at the centre of attention again? There are five main reasons:

1. New deposits found

The old adage is that the best place to find a new mine is near an existing one. Here are three major deposits in the Golden Triangle that have geologists and financiers buzzing:

KSM

Seabridge Gold’s (TSX:SEA) KSM project is the largest gold project in the world. In 2014 it received the green light from Canada’s federal government to go ahead. A porphyry-style deposit, it has reserves of 38.8 million ounces of gold, 10.2 billion pounds of copper and 183 million ounces of silver.

Red Chris

This $700-million copper and gold mine entered production in 2015. Owned by Imperial Metals TSX:III, it will be in production until 2043 based on current mine life estimates. In 2016 alone, it produced 83 million pounds of copper, 47,000 ounces of gold and 190,000 ounces of silver.

Valley of the Kings

The latest, and perhaps most interesting, discovery in the Golden Triangle is slotted to reach commercial production in 2017. The Valley of the Kings, unlike the above porphyry-style deposits, contains extremely high-grade gold. With 15.6 million tonnes grading 16.1 g/t gold, this deposit has some of the richest ore in the world.

2. New Infrastructure

In recent years, the Golden Triangle has received three massively important infrastructure upgrades:

  • Paving of the Stewart-Cassiar Highway (north from Smithers)

  • Opening of ocean port facilities for export of concentrate at Stewart

  • Completion of a $700-million high-voltage transmission line to bring power into the Golden Triangle

3. Declining snow cover

Glacial ice and snow have been retreating in many parts of the region, revealing rocks never seen before by human eyes. Especially in a mineral-rich region such as the Golden Triangle, this is a very exciting prospect for mineral geologists.

4. A new geological explanation

The Golden Triangle region has complex geology that had befuddled explorers for decades—but recent work has made the picture much clearer. Geologist Jeff Kyba has put forth the following theory: Geological contact between Triassic-age Stuhini rocks and Jurassic-age Hazelton rocks is the key marker for copper-gold mineralization.

Most of the Triangle’s copper-gold deposits, whether they are large-scale porphyry and intrusion-related, are found within two kilometres of this contact. It’s been named the Red Line, and this new interpretation of the region’s geology could contribute to B.C.’s next mega deposit.

5. Gold price recovery

Since the “sleepy” days of the Golden Triangle, gold prices have increased three times, even after adjusting for inflation. Combined with new infrastructure, exciting projects and world-class mineral potential, the Golden Triangle is awake again.

What’s happening today?

Today, the Golden Triangle is buzzing with activity.

  • The Red Chris mine is now in operation

  • Valley of the Kings is entering production in 2017

  • KSM, the world’s largest gold deposit, is nearing potential construction

  • Historic mines like the Snip Mine and Granduc are being explored using modern methods

  • New high-grade gold is being found. Red Mountain and the old Premier gold mine are the sites of some of these discoveries

  • Dozens of companies are on the ground performing all phases of exploration

Many types of mineral deposits are being tested for, including high-grade gold veins, large-scale porphyries and VMS (volcanogenic massive sulphide) deposits. The Golden Triangle is once again a centre of attention and it could be poised to become one of the world’s most prolific concentrations of mineral wealth.

Posted with permission of Visual Capitalist.

See an infographic about the Golden Triangle’s mining history.

Rockcliff Copper reports gold, polymetallic results from its Snow Lake camp

April 6th, 2017

by Greg Klein | April 6, 2017

As Phase II drilling continues, Rockcliff Copper TSXV:RCU released assays from two holes on the VMS-rich Talbot project, part of the company’s Flin Flon-Snow Lake portfolio in northern Manitoba. The company holds a 51% option on Talbot from Hudbay Minerals TSX:HBM. The standout assay drew 7.3 g/t gold and 7.49% copper-equivalent over 3.94 metres. That came from the first hole on the North Lens deep conductive plate, one of the property’s largest geophysical anomalies.

Along with assays for hole TB-015 on the North copper zone, the results show:

TB-015

  • 0.31% copper, 0.01 g/t gold, 0.02% zinc and 0.02 g/t silver for 0.33% copper-equivalent over 8.09 metres, starting at 463.82 metres in downhole depth
  • (including 1.15% copper, 0.01% zinc and 0.01 g/t silver for 1.16% copper-equivalent over 0.32 metres)

TB-019

  • 1.8% copper, 0.14 g/t gold and 20.9 g/t silver for 2.15% copper-equivalent over 0.41 metres, starting at 668.61 metres

  • 0.24% copper, 7.3 g/t gold, 0.88% zinc and 112.5 g/t silver for 7.49% copper-equivalent over 3.94 metres, starting at 772.45 metres
  • (including 0.16% copper, 10.35 g/t gold, 0.23% zinc and 156.02 g/t silver for 9.94% copper-equivalent over 2.54 metres)
  • (which includes 0.54% copper, 77.78 g/t gold, 0.01% zinc and 1,219.5 g/t silver for 73.76% copper-equivalent over 0.32 metres)
Rockcliff Copper reports gold, polymetallic results from its Snow Lake camp

While drilling continues at Talbot, Rockcliff plans to put
rigs to work on at least three other Snow Lake properties.

True widths weren’t available.

With downhole and surface geophysics showing that conductivity strengthens below TB-019 intercepts, Rockcliff has another hole testing the plate 250 metres deeper, closer to the plate’s centre. The North copper zone also has additional drilling planned.

The news follows assays for TB-017, released in mid-February, which featured 3.48% copper-equivalent over 16.08 metres. Talbot hosts a January 2016 resource with an inferred total for three zones:

  • 2.17 million tonnes averaging 2.8% copper, 2.4 g/t gold, 2.2% zinc and 54.6 g/t silver for 133.6 million pounds copper, 165,400 ounces gold, 107.4 million pounds zinc and 3.81 million ounces silver

Reporting on another of its Snow Lake assets, last month Rockcliff announced that a surface EM survey on its recently staked Penex zinc property found a large conductive plate below the down-dip continuation of the neighbouring historic Pen zinc deposit. The company plans further exploration prior to drilling Penex this year.

Also last month, the company began airborne and ground geophysical surveys over the Laguna gold project, a former mine where 2016 grab samples graded as high as 25 g/t and 34.77 g/t gold.

With several properties comprising its Snow Lake portfolio, Rockcliff plans drilling this year on its Bur zinc project and Rail copper-polymetallic deposit, in addition to Talbot and Penex.

Read more about Rockcliff Copper.

Golden Dawn Minerals expands property, prepares for trial mining at B.C.’s Greenwood camp

April 5th, 2017

by Greg Klein | April 5, 2017

As the company anticipates near-term underground test mining at its nearby Lexington project, a new acquisition expands Golden Dawn Minerals’ (TSXV:GOM) Amigo property and complements the contiguous Boundary Falls turf. Boundary Falls hosts the past-producing May Mac mine—along with Lexington, Golden Crown and the Greenwood mill, one of the focal points of the company’s plan to revive the historic southern British Columbia camp. Subject to approvals, the 487-hectare addition brings Amigo to 656 hectares, costing Golden Dawn 100,000 shares.

May Mac reportedly produced 4,228 tonnes averaging 5.35 g/t gold and 227 g/t silver between 1903 and 1983. The mine also produced lead, zinc and copper.

Golden Dawn Minerals expands property, prepares for trial mining at B.C.’s Greenwood camp

A haul truck remains from the Greenwood
camp’s former mining and milling operations.

Since 2015 Golden Dawn has sunk 904 metres of surface drilling on Amigo, along with 6,155 metres of surface and underground work on May Mac’s Skomac vein system.

More assays are pending following a batch released early last month. Meanwhile the project undergoes permitting for surface drilling, underground drilling, drifting and bulk sampling. Should results for the three historic mines prove fortuitous, May Mac feed would complement that of the Lexington and Golden Crown past-producers. Processing would take place at Golden Dawn’s Greenwood mill, a 200-tpd facility expandable to 400-tpd located 15 kilometres east.

Last month the company released initial metallurgical test results for May Mac showing recoveries of 98% for gold and 97.7% for silver.

Last week Golden Dawn announced a “milestone” in receiving a dewatering permit for Lexington, which allows underground test mining to assess the project’s viability. Dewatering’s expected to begin in late April or early May.

The previous operator shut down Lexington and the Greenwood mill in December 2008 after eight months of operation, apparently because of the financial crisis, start-up problems and debt, Golden Dawn stated. Having bought the assets at a substantial discount, the company declares itself “optimistic that all or most of the start-up issues experienced by the former operator will be avoided.”

Golden Dawn doesn’t plan a feasibility study but has commissioned a technical report to consolidate four properties into one project. Over the last few months the company received US$4 million from RIVI Capital LLC as an advance payment for future gold production from Lexington and Golden Crown.

Proximal to Highway #3, the Greenwood portfolio sits about 500 kilometres east of Vancouver.

Mountain Boy advances B.C. polymetallic, industrial minerals projects

March 30th, 2017

by Greg Klein | March 30, 2017

Among other plans announced March 30, Mountain Boy Minerals TSXV:MTB intends to conduct metallurgical studies for its Surprise Creek joint venture in northwestern British Columbia. Tests will evaluate one interval of drill core reported in February that shows barite, silver, copper and zinc. Barite is mainly used as an ingredient in drilling mud for oil and gas exploration.

Metallurgical results will guide further Surprise Creek exploration, expected to include surface sampling and drilling. Mountain Boy acts as operator on the 7,472-hectare property in a 50/50 JV with Great Bear Resources TSXV:GBR.

Mountain Boy advances B.C. polymetallic, industrial minerals projects

Rugged terrain and high grades
characterize the former Montrose mine.

In southern B.C., Mountain Boy has begun discussions with the Lower Similkameen Indian Band prior to PEA studies on the Manuel Creek zeolite project acquired last December. With numerous agricultural uses for the commodity, this 1,062-hectare project holds the advantage of location in the Okanagan farming region.

Back in the province’s northwest, two companies have surface sampling and drilling planned this year for Red Cliff, held 35% by Mountain Boy and 65% by Decade Resources TSXV:DEC. Amid mountainous terrain, plans call for a drone and climbers to locate a 1988 drill collar to sample the zone and confirm previous results from the former gold-copper mine.

Underground drilling will test above and below the property’s 1,000 mine level, which has previously revealed several high-grade intercepts. Some examples include:

  • 37.26 g/t gold and 6.07% copper over 0.91 metres

  • 21.94 g/t gold and 0.76% copper over 4.42 metres

  • 29.93 g/t gold and 1.57% copper over 1.9 metres.

Additional drilling will help define the property’s Montrose zone. Even higher values have been found here:

  • 5.18 g/t gold and 0.43% copper over 12.65 metres

  • 43.91 g/t gold and 1.46 % copper over 7.47 metres

  • 14.53 g/t gold and 0.27% copper over 30.64 metres

Metallurgical studies will also take place.

From 1939 to 1941, mining at Montrose extracted 65 tons averaging 2.45 ounces per ton gold, 2.95 ounces per ton silver, 0.91% copper, 3.5% lead and 4.41% zinc.

Mountain Boy and Great Bear also share the nearby BA VMS project, from where they reported high-grade polymetallic samples in January.

Along with 80% partner Jayden Resources TSXV:JDN, Mountain Boy holds a 20% interest in another property in B.C.’s Golden Triangle, Silver Coin. Using a 0.3 g/t gold cutoff, the project’s 2011 resource shows a measured and indicated total of 842,416 ounces gold, 4.46 million ounces silver and 91.17 million pounds zinc. The inferred category comes to 813,273 ounces gold, 6.69 million ounces silver and 128 million pounds zinc.

Mountain Boy’s regional portfolio also includes the MB project, with historic, non-43-101 estimates for copper, lead, zinc, silver and barite. Grab samples from last year assayed as high as 31,192 g/t silver. The company additionally holds a 50% stake in the George property, which has historic, non-43-101 estimates for copper, silver and gold.

In mid-March the company closed a private placement totalling $231,619.

The Rio deal

March 29th, 2017

Cashed-up Pistol Bay Mining consolidates and updates Confederation Lake

by Greg Klein

From a Rio Tinto NYSE:RIO subsidiary comes money for an unprecedented campaign in Ontario’s Confederation Lake greenstone belt. That’s where Pistol Bay Mining TSXV:PST has region-wide exploration with modern methods about to begin on a VMS-rich area that’s previously seen piecemeal, unco-ordinated work with old school technology. President/CEO Charles Desjardins sees plenty of promise in his portfolio’s historic resources. But he also likes the blue sky possibility of a new discovery.

Funding the campaign will be $750,000 from Rio, along with this month’s private placement of $548,436. Proceeds go to the largest land package in Confederation Lake, a region of base metals deposits that Desjardins considers to be clamouring for up-to-date exploration.

Cashed-up Pistol Bay Mining consolidates and updates Confederation Lake

Deep penetration brings blue sky potential to Pistol Bay’s
Confederation Lake portfolio. (Photo: Geotech Ltd)

Rio’s portion comes as the giant exercises more of its 100% option on the junior’s C4, C5 and C6 uranium properties in Saskatchewan’s Athabasca Basin. The deal originally called for $5 million by the end of 2019 and a 5% net profit interest to acquire the final 25%. Now Rio pays the $750,000 along with either $1.5 million by 2017 year-end, $2 million by 2018 year-end or $2.25 million by 2019 year-end, plus the 5% NPI.

“That’s less money than the original option, but I can create so much value with it now,” says Desjardins. “And I’m doing it without dilution.”

First item on the agenda—and long overdue, Desjardins believes—will be helicopter-borne VTEM Max, penetrating to depths of 500 to 700 metres. “There have been major Canadian discoveries over the last decade with this kind of geophysics,” he points out. “But very little of this belt, less than 5% of it, has been explored beyond 200 metres. There’s only one zone examined to 300 metres and that was with downhole geophysics by Noranda.”

He expects the first of three airborne campaigns to begin within four weeks. While Pistol Bay’s package comprises 9,450 hectares, “we’re going to fly this whole belt,” he adds. “I’m looking for something bigger, something that hasn’t been found.”

As for the deposits that have been found, they’re overdue for upgrading to 43-101 status. First priority is the polymetallic Arrow deposit, which has a 2007 estimate that Pistol Bay considers historic and non-43-101:

3% zinc-equivalent cutoff

  • indicated: 2.07 million tonnes averaging 5.92% zinc, 0.75% copper, 21.1 g/t silver and 0.58 g/t gold

  • inferred: 120,552 tonnes averaging 2.6% zinc, 0.56% copper, 18.6 g/t silver and 0.4 g/t gold

5% zinc-equivalent cutoff

  • indicated: 1.76 million tonnes averaging 6.75% zinc, 0.79% copper, 22.3 g/t silver and 0.61 g/t gold

  • inferred: 51,631 tonnes averaging 3.86% zinc, 0.79% copper, 23.9 g/t silver and 0.58 g/t gold

10% zinc-equivalent cutoff

  • indicated: 633,000 tonnes averaging 14.3% zinc, 1.11% copper, 31.7 g/t silver and 0.85 g/t gold

Desjardins expects about a month to redo the resource, incorporating another 20 holes.

About eight kilometres west of Arrow, the Fredart zone, also known as Copperlode A, has an historic, non-43-101 estimate showing 385,000 tonnes averaging 1.56% copper and 33.6 g/t silver.

Roughly 24 kilometres farther west, the Dixie property’s historic, non-43-101 estimate comes to 136,000 tonnes averaging 14% zinc.

Estimates for other zones, all with historic, non-43-101 caveats, include:

  • Dixie 3: 83,000 tonnes averaging 10% zinc and 1% copper

  • Copperlode D: 33,000 tonnes averaging 7.58% zinc and 0.26% copper

  • Copperlode E: 145,000 tonnes averaging 8.28% zinc and 1.02% copper

  • Diamond Willow: 270,000 tonnes averaging 4% zinc

There have been major Canadian discoveries over the last decade with this kind of geophysics. But very little of this belt, less than 5% of it, has been explored beyond 200 metres.—Charles Desjardins, president/CEO of Pistol Bay Mining

Past work has left an extensive legacy of other data too. Historic records for the recently optioned Joy North property show intriguing electromagnetic and geochemical anomalies. Pistol Bay’s team has been poring over details of about 850 Confederation Lake holes sunk between 1962 and 2007. A Noranda database of rock chemical analysis, meanwhile, could offer insight into the belt’s VMS mineralizing process and help define zinc-copper targets.

Along with February’s Joy North option, Pistol Bay’s acquisitions continue with the Lucky 7 and Moth properties picked up this month. Now yellow metal shows its Confederation Lake potential with one 2016 grab sample assaying 13.84 g/t gold and 3.21% copper.

As for drilling, the already-permitted Joy North might be first, depending on the review of historic info. Eight other areas have permitting underway. The rigs will take part in Pistol Bay’s threefold near-term agenda: the Arrow resource, the VTEM Max and a drill program, all of which should fuel a steady news flow. “We’ve got lots of work coming up and, thanks to the Rio payment, money to do it with no dilution,” says Desjardins.

Apart from growing the existing deposits, he clearly believes in the potential for a new discovery. “The opportunity here is in consolidating the belt and exploring the whole thing at depth, which hasn’t been done. There’s lots of blue sky at Confederation Lake.”

Pistol Bay expands Confederation Lake package, adding gold to base metals potential

March 22nd, 2017

by Greg Klein | March 22, 2017

The largest portfolio in western Ontario’s Confederation Lake greenstone belt just got larger as Pistol Bay Mining TSXV:PST increased its holdings to about 9,450 hectares. Two claim groups, Lucky 7 and Moth, cover “a 53-kilometre length of favourable volcanic geology,” the company stated.

Pistol Bay expands Confederation Lake package, adding gold to base metals potential

Neighbouring Pistol Bay’s Garnet Lake and Garnet East properties, the 640-hectare Lucky 7 hosts a copper-gold sulphide zone that was drilled in 1980 and 2002. A zone of massive to disseminated sulphides, the Hilltop copper-gold zone, was trenched but apparently never drilled. One of two Hilltop grab samples taken last year assayed 13.84 g/t gold and 3.21% copper.

Five kilometres from Lucky 7, the 1,360-hectare Moth claims underwent at least 14 holes between 1970 and the mid-1990s, revealing widespread hydrothermal alteration and numerous cases of zinc and/or copper mineralization, Pistol Bay stated. One interval graded 2.86 g/t gold over 0.3 metres. Located two kilometres from the former South Bay zinc-copper-silver mine, Moth sits near the Confederation belt’s most accessible area.

[Assays] suggest that we might be getting into an area with a potential for gold as well as base metals. This is something that hasn’t been widely recognized before in the Confederation Lake belt.—Charles Desjardins,
CEO of Pistol Bay Mining

Assays from both properties “suggest that we might be getting into an area with a potential for gold as well as base metals,” said CEO Charles Desjardins. “This is something that hasn’t been widely recognized before in the Confederation Lake belt.”

Together, the two properties will cost $72,000 and 2.3 million shares over three years. Pistol Bay may buy half of the 1.5% NSR for $400,000.

Last month the company acquired an historic data set for its recently optioned Joy North copper-zinc project. Mostly consisting of drill logs and ground geophysics maps, the info will go into a digital database including drill information, geology, assays, rock chemistry, petrology and geophysics. Now under consideration is an airborne EM and mag survey to penetrate deeper than earlier systems and better discriminate bedrock from overburden conductivity.

Pistol Bay’s overall strategy is to apply modern methods and a regional approach to properties that had previously been explored individually by different companies using earlier techniques.

The company also holds the C4, C5 and C6 uranium properties in Saskatchewan’s Athabasca Basin, where a Rio Tinto NYSE:RIO subsidiary advances towards a 100% interest.

On March 20 Pistol Bay closed a private placement totalling $548,436.

Read more about Pistol Bay Mining.