POLYMETALLIC – Boxxer Gold Corp. Sept. 17 provided an update on the second hole completed on the DOK copper-gold-molybdenum-silver project located in northwest British Columbia. Continental Precious Minerals has the right to earn up to a 75 percent interest in the DOK property if certain conditions are met. The 2014 diamond drilling program, consisting of two holes totaling 834.9 meters, has been completed. Hole DOK-2104-02, with a core length of 424.9 meters, intersected visible occurrences of chalcopyrite mineralization from a core depth of 36.6 meters to 389.5 meters; trace bornite was noted to occur in the core from 57.3 meters to 110.3 meters and from 389.5 meters to 424.9 meters (end of hole); the mineralization observed in DDH DOK-2014-02 is hosted in alternating strongly potassic and phyllic-altered volcanics of the Stuhini Group and multiple quartz monzonite intrusives; and hydrothermal biotite and gypsum veining as well as disseminated and fracture-controled pyrite and magnetite occur in variable concentration throughout the core. Assays from DDH DOK-2014-01 are pending. “The reported visible copper mineralization hosted in strong potassic and phyllic alteration from this drill hole is encouraging as it suggests continuity to the mineralization and alteration observed in DDH DOK-2014-01,” said Boxxer President Jason Riley. “The location of the DOK property between the large copper deposits to the south and the active exploration currently underway north of the Stikine River combined with the large dimensions of the surface mineralization, geochemistry, alteration, and geophysical signatures support the presence of a porphyry copper system on the DOK project. The assays for the core samples from the two drill holes will be required before any assessment of the significance of the reported mineralization in both drill holes can be completed.”
COPPER/GOLD/MOLYBDENUM – Carmax Mining Corp. Sept. 17 reported that long intervals of copper-molybdenite have been encountered during drilling at the Eaglehead copper-gold-molybdenum-silver property in northwest British Columbia. Hole DDH 0121 intersected bornite-chalcopyrite-molybdenite mineralization from 29.87 meters to the bottom of the hole at 551.08 meters; DDH 0122 intersected chalcopyrite with or without bornite and molybdenite mineralization from 9.01 meters to 441.96 meters; DDH 0123 intersected chalcopyrite with or without bornite and molybdenite mineralization from 51.57 meters to 621.18 meters. Carmax says the visual observation of copper and molybdenite mineralization in the 2014 drill holes show a strong correlation between the chargeability signature and the presence of copper mineralization. Carmax President Jevin Werbes said, “It appears that the historical and current drilling results demonstrate that the > 10mRad chargeability signature from the Titan-24 survey is reflecting the presence of copper-molybdenite mineralization. A significant portion of the signature remains untested thereby having significant implications on the potential size of the mineralized target at Eaglehead. The recently completed drill holes have extended the mineralization deeper and further to the east than the previous drill holes in the Eaglehead deposit. The analytical results for the core samples from these drill holes will be required before any assessment of the significance of the reported mineralization can be completed.” Carmax expects the first assay results for the 2014 drill holes by early October.
COPPER/GOLD – Seabridge Gold Sept. 16 reported initial results from its 2014 drill program on the Deep Kerr copper-gold deposit at its KSM project in northwestern British Columbia. Discovered in 2013, Deep Kerr has an inferred resource of 515 million metric tons grading 0.53 percent copper and 0.36 grams per metric ton gold. Drilling this season at Deep Kerr was designed to confirm the resource model and test for the limits of the deposit along strike. Seabridge said the results from the first three holes at Deep Kerr have successfully addressed these objectives; a step-out hole to the north has confirmed the north strike extension and deeper drilling on the south indicates potential strike extension in that direction while a third infill hole has returned results validating the resource block model. Hole K-14-39, located 140 meters north of 2013 drilling, cut 252 meters grading 0.69 percent copper and 0.55 g/t gold. Hole K-14-40 was drilled on the south end of the deposit within the limits of the 2013 model but deeper than previous intersections. This hole encountered mineralization in a pattern identical to the balance of the deposit, leading to the conclusion that 2013 drilling in this direction was too shallow and therefore did not establish the southern limit of the deposit as previously reported. Hole K-14-28C, a “daughter” hole wedged off a hole completed in 2013, was drilled to confirm the modeled grade distribution in the heart of the Deep Kerr deposit and returned mineralized widths as predicted, at slightly higher copper and gold grades (357.4 meters grading 0.63 percent copper and 0.50 g/t gold. Chairman and CEO Rudi Fronk said, “These results should enable us to grow the Deep Kerr resource which we believe is one of the keys to joint venturing KSM. Drilling continues on the Deep Kerr expansion, as well as on building an initial resource for this year’s discovery at the Iron Cap Lower Zone and testing additional higher grade core zone targets. Approximately 24 holes will be drilled this year. Thus far, results have only been released for five holes. We think the best is yet to come.”
GOLD/SILVER – Teuton Resources Corp. Sept. 16 provided an update on drilling activity at its High and Del Norte properties. Drilling at the Tuck zone on the High gold property, which is located 50 kilometers (32 miles) north of Stewart, British Columbia, is now complete. Altogether 16 holes were drilled into the zone, the majority at relatively shallow depth, with lengths ranging from about 23 to 170 meters. The 2014 drill program was designed to target higher grade areas within the southwest portion of the Tuck zone as indicated by increased sulfide content, consistent with results from surface sampling. Teuton said all 16 holes successfully encountered broad intersections of Tuck zone altered rocks (quartz stockwork, jarosite staining and sericite alteration) and some contained sections with massive to semi-massive, very fine-grained pyrite. Assays are pending. Continued prospecting over the High property has led to the discovery of a heavily altered gossan situated 1,500 meters northeast of the drilling area. This new zone shares many of the characteristics of the Tuck zone and may be related to it. Positive sample results would further qualify this newly discovered zone as an ideal candidate for drilling in the 2015 season. This would be in addition to follow up 2015 drilling planned for an area 200 meters to the north of the 2014 Tuck zone drilling, expected to be more widely exposed as the prevailing ice and snow cover continues to melt back. The drill has now been mobilized to the Del Norte gold-silver property and is currently on the second hole at that property. The first hole targeted the depth expression of a mineralized zone trenched in the early 1990s that returned a grade of 13.3 grams per metric ton gold across six meters. Galena has been identified intermittently in a large section of the first hole along with sporadic occurrences of tetrahedrite. Ruby silver (pyrargyrite) was also identified in two localities.
NIOBIUM – Taseko Mines Ltd. Sept. 15 reported proven and probable reserves of 84 million metric tons grading 0.50 percent Nb2O5 (niobium pentoxide) for its Aley niobium project in northern British Columbia. A 10,000-metric-ton-per-day processing plant has been designed for Aley. This plant consists of single stage crushing followed by three stage grinding and a multi-stage flotation process to produce an Nb2O5 concentrate. The flotation concentrate is then prepared prior to being processed in an on-site converter to produce ferro-niobium as a saleable product. Expected process recovery is 63 percent with annual production averaging 9,000 metric tons niobium over the mine life. The study demonstrating the reserve incorporates activities during a pre-production period of two years which include construction of the electricity transmission line; upgrading and extension of current road access and mine site clearing; site infrastructure, processing, and tailings starter dam construction; removal and storage of overburden; and pre-production waste development. The mine plan utilizes a conventional truck and shovel open pit mining operation. Following the pre-production period, total material moved averages 15,000 metric tons per day. Such a mine is anticipated to produce a pre-tax net present value of approximately C$860 million at an 8 percent discount rate; pre-tax internal rate of return of 17 percent with a 5.5-year payback; operating margin of US$21 per kilogram (US$21,000 per metric ton) of niobium. The current reserves support a 24-year mine life. Total pre-production capital cost are estimated to be C$870 million, including C$520 million for mine, concentrator and site infrastructure; C$180 million for the converter, C$100 million for offsite infrastructure including an electrical transmission line, and C$70 million for pre-stripping.
