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AkieAkie (100% owned) The Akie claim block covers 106.4 square km and hosts the Cardiac Creek deposit, which is now road accessible. The Cirque deposit (also road accessible), which is a well defined zinc-lead asset owned under a 50-50 Joint Venture between Teck Resources and Korea Zinc, is located only 20 km to the Northwest of the Akie property. Both the Cirque and Cardiac Creek deposits have many similarities: age, SEDEX origin, mineralization within the same stratigraphic units, and considerable exploration potential. The Akie zinc-lead property is situated within the southern-most part (Kechika Trough) of the regionally extensive Paleozoic Selwyn Basin, one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead silver and stratiform barite deposits.
Drilling on the Akie property by Inmet Mining Corporation from 1994 to 1996 and by Canada Zinc Metals from 2005 to 2012 has identified a significant body of barite enriched lead-zinc-silver SEDEX mineralization which has been named the Cardiac Creek deposit. The deposit is hosted by variably siliceous, fine grained clastic rocks of the Middle to Late Devonian ‘Gunsteel’ Formation. Exploration completed to date suggests that the Cardiac Creek deposit is open for expansion, particularly the higher grade mineralization along plunge to the northwest and southeast. In the spring of 2012, the Company re-engaged Rob Sim, P. Geo., to re-evaluate, calculate and produce an updated 43-101 compliant resource on the Cardiac Creek deposit. Robert Sim is an independent qualified person for the purposes of NI 43-101.
The revised 43-101 compliant resource estimate consists of an indicated category of 12.731Mt grading 8.38% zinc, 1.68% lead, and 13.7g/t silver, at a cut-off grade of 5% zinc; and an inferred category of 16.287Mt grading 7.38% zinc, 1.34% lead, and 11.6g/t silver, at a cut-off grade of 5% zinc. Using this estimate, the deposit contains 2.4 billion pounds of zinc, 472 million pounds of lead and 5.6 million ounces of silver in the indicated category (at 5% zinc cut-off), and 2.6 billion pounds of zinc, 482 million pounds of lead and 6.1 million ounces of silver in the inferred category (at 5% zinc cut-off). The calculated mineral resource estimate, at a series of industry-standard cut-off Zn grades, can be seen in the table below.
Cardiac Creek 43-101 Resource Estimate at Various Zinc Cut-Off Grades
(1) “Base case” cut-off grade of 5% Zn highlighted in table Highlighted in the table is the “base case” cut-off grade of 5% zinc for the sulphide resource, which is based on assumptions derived from operations with similar characteristics, scale and location. The report further states that the resource occurs as a relatively continuous zone which is favourable with respect to selectivity and other factors when considering mining options. This, when combined with the results of previous geological, metal zoning and structural investigations and the results of drilling completed to date, suggest that the Cardiac Creek deposit has economic potential sufficient to warrant additional expenditures on exploration and development. The potentially economic portion of the deposit occurs over a known strike length of 1,300 metres, extends to at least 800 metres below surface and averages about 20 metres in thickness. The deposit currently remains “open” in all directions. The report recommends an additional surface drill program of 8 holes (3,000 meters) to be completed to infill the current base case resource (>5% zinc) to approximately 100 metre intervals, allowing at least part of the present inferred resource to be elevated to the indicated category, and to provide more information on continuity of the Cardiac Creek zone mineralization which will be necessary in order to guide the planned underground exploration program. Continued metallurgical testing and environmental base line studies are also recommended. Additional exploration drilling is recommended on the GPS showing and North Lead Anomaly targets present on the Akie property. These targets would involve approximately 2,000 metres of drilling in four drill holes.
The North Lead Anomaly and the Northwest Extension The northwest extension and the North Lead anomaly are two highly prospective zones on strike to the NW of the Cardiac Creek deposit that may in fact be extensions to the deposit. The zones are separated by about 800 meters and constitute approximately 2.5 kilometers of step-out from the current northern limit of the deposit. Mineralization in both zones occurs at the same stratigraphic position and is similar in character to that of the mineralization closely associated with the Cardiac Creek deposit. About the North Lead Anomaly: This large lead-in soil anomaly was defined through close-spaced soil sampling by Inmet and later tested by limited drilling in 1996. It is located some 2.3 km northwest of the nearest drill hole to penetrate the Cardiac Creek deposit. In 1996 Inmet intersected high grade zinc and lead mineralization in hole A-96-24 (11.60% zinc and 9.05% lead over an interval of 0.80 metre) within pyritic sulphide mineralization, hosted by Gunsteel Formation shale. Close examination of drill core revealed mineralized debris flow fragments and matrix associated with quartz-carbonate alteration, and widespread high lead/zinc ratios in overlying soils samples, suggesting the presence of a hydrothermal feeder zone/vent complex with possible Cardiac Creek styles of high grade mineralization at the transition between the vent complex and the laterally extensive bedded ore facies. Subsequent follow-up drilling by Canada Zinc in 208, 2010 and 2011 has attempted to expand the zone with initial success in 2008, with zinc and lead values, which increase up-dip, are locally as high as 9.82% and 0.17%, respectively). Drilling in 2010 tested the up and down-dip as well as the strike extent of the mineralization and alteration intersected in the previous drilling. While no additional alteration or vent-proximal features were intersected, thick, 125 metres intervals of laminar to bedded pyrite mineralization interbedded with Gunsteel Formation shale was encountered down-dip and along strike to the northwest in drill holes A-10-68 and A-10-76. This mineralization was highly anomalous with zinc values ranging from <1000 ppm to greater than 2%. A total of 7 holes have tested the zone. The North Lead Anomaly remains a high priority target for future drilling programs. The Company has initiated a detailed review of all drill holes in the North Lead Anomaly and plans to target a new series of drill holes to follow-up on significant mineralized intervals intersected in the 2013 drill program. The NW Extension target is situated between the Cardiac Creek deposit and the North Lead Anomaly. Nine drill holes were completed on this target in 2010 and 2011 totaling 3,255.72 metres. The 2010 program tested for Cardiac Creek style mineralization at the 1000 metre elevation where the bulk of the high grade mineralization occurs at the deposit. Proximal Facies mineralization was intersected in A-10-69 over 14.87 metres and returned highly anomalous zinc values, consistently in excess of 2,000 ppm and reaching 1.90%. In addition, a thin lens of massive sulphide mineralization was intersected in A-10-72 within the underlying Paul River Formation. This 1.17 metre interval returned 2.69% Zn, 0.60% Ni and 4.36 g/t Ag and contained highly anomalous values across a diverse suite of elements, including: molybdenum, copper, lead, cobalt, arsenic, uranium, cadmium, antimony, bismuth, vanadium, phosphorus, mercury, thallium, selenium, rhenium, gold and palladium. This mineralization is of similar character to the Nick Deposit in the Yukon. Follow-up drilling in 2011 returned intervals of proximal facies mineralization highly anomalous in zinc with values consistently in excess of 1,000 ppm. A thin 1.6 metre massive sulphide lens underlying the Proximal Facies mineralization was intersected in A-11-88, and returned 6.99% Zn, 0.25% Pb and 2.35 g/t Ag. The NW Extension mineralization remains open along strike and remains a high priority target for follow-up drilling. A total of 5 widely spaced holes have tested the zone.
SCHEMATIC LONG-SECTIONS FACIES TRANSITION ACROSS THE NW EXTENSION AND NORTH LEAD ANOMALY PROPERTY TARGETS. NOTE THE THICKENING OF THE PAUL RIVER FORMATION (BLUE GREY) TOWARDS THE NORTHWEST AND AT DEPTH
UNDERGROUND Click to enlarge images
AIRBORNE GEOPHYSICAL SURVEY In August 2012, Geotech Ltd. of Aurora Ontario completed a large-scale, 1,577 line kilometre airborne Vertical Time Domain EM (VTEM) geophysical survey over the Akie, Pie and Mt. Alcock properties. The survey had a nominal line spacing of 200 metres but was tightened to 100 metre spacing over key areas of interest such as the Cardiac Creek deposit. The primary goal of the survey was to obtain lithological and structural information both near surface and at depth across the three properties, as well as define a geophysical response directly from the Cardiac Creek deposit and other known occurrences of mineralisation.
In late 2012, the Company engaged Condor Consulting Inc. of Littleton, Colorado, recognized as experts in the field of airborne electromagnetics, to conduct a comprehensive processing, analysis and interpretation of the EM and magnetic data from the VTEM survey. Condor completed a number of processing steps to evaluate the data, including layered-earth inversion, time constant and depth imaging. Interpretative results generated from the VTEM data indicate an excellent correlation between the known geological and structural data and the EM conductivity response generated from the survey. The Devonian Gunsteel Formation black shale, known host to the mineralized occurrences in the belt, is easily identified as a conductive trend and can be traced across the Akie and Pie properties. Additionally, the western thrust panel of rocks, which have been tentatively assigned to the Gunsteel Formation and which host the GPS barite showing, have a similar conductive trend and is traceable across the two properties. Other key lithological units such as the Kechika Group siltstone and limestone of the Kwadacha Reef are also discernible by variation in conductivity and resistivity. The result of this detailed analysis has shown that areas of known mineralization such as Cardiac Creek and Mt. Alcock are located along conductive trends and exhibit elevated conductivity and depressed magnetic signatures. Three profiles across the Cardiac Creek deposit show a strong conductor ranging from the surface to about 300 m depth which is about the depth limit that the VTEM survey data can be resolved with confidence. Click to enlarge images
Despite the strong conductor seen at Cardiac Creek, it is not unique and is only a small portion of a larger conductive lineation seen through the VTEM survey block. Plan view images indicate the conductivity along the Cardiac Creek deposit is slightly lower than along the same conductor just north and south of the deposit. The decreased magnetic signature observed around the Cardiac Creek deposit is possibly due to magnetite destruction caused by hydrothermal fluids proximal to a source vent. Condor believes that the magnetic lows coincident with elevated conductivity are a significant geophysical signature that may accompany proximal mineralization and can be used as an exploration vector toward finding new zones. The detailed analysis also generated a series of 25 Target Zones (TZ) on all three properties. The target zones are groupings of conductors (either discrete conductor picks or wide features from depth imaging) that are prioritized based on the degree of correlation of the observed response with the defined target model. The target zones have been referenced against the known geological, structural and drill data. Several target zones are located along strike of known mineralization, including northwest and southeast of the Cardiac Creek deposit. The largest and strongest target zone identified in the survey is east of Cardiac Creek on an eastern panel of Gunsteel Formation that has seen only limited historical soil sampling with reconnaissance line spacing. TZ-17 is a long conductor, possibly positioned along a fold axis, which appears to be dipping east and is associated with an increased resistivity signature similar to that of Cardiac Creek. Another target zone, east of Cardiac Creek, is coincident with a very large and strong historical zinc-in-soil anomaly (South Zinc Anomaly) that remains largely untested by systematic exploration. Additional targets are present on the eastern side of Silver Creek, located opposite to the Cardiac Creek deposit, and within the prospective Gunsteel Formation. The eastern side of Silver Creek has seen only limited exploration including soil sampling that defined the South Zinc anomaly in 1996. This region was also highlighted in the 2012 hydrogeochemistry sampling program and will continue to be assessed for the upcoming 2013 exploration program. Several target zones are located in the vicinity of the GPS Showing where a single drill hole was attempted in 2011 to test surface mineralization at depth, but failed to reach the target depth due to poor near-surface ground conditions. This location remains a high priority drill target and will be retested from a new location. Several targets were also identified on the Pie property, most notably on the West Pie target area within the interpreted Gunsteel Formation shale. These targets will be assessed in the upcoming field season.
The results also defined the western panel of Gunsteel Formation shale and associated rocks on the Mt. Alcock property and suggest an increased level of structural complexity compared to the existing mapping. A prominent EM lineation is present along strike to the southeast of the Main Barite showing. Historical drilling on the Main Barite showing intersected 8.8 metres grading 9.3 % combined Zn+Pb and 1.2 opt Ag in drill hole 89-3 and 10.5 metres grading 6.8 % combined Zn+Pb and 0.7 opt Ag in drill hole 89-9(4). This EM lineation is situated outside of any historical surface work and remains untested and is a high priority target for follow-up work. Targets were identified on the Mt. Alcock property located northwest of the Main Zone in rocks interpreted to be Road River Group. This interpretation will be reassessed due to the similar EM conductivity pattern known from the Gunsteel Formation. These targets will be followed up in the field to determine the host lithologies and the possibility of a potential thrust repeat of the Gunsteel Formation shale. Based on these results the Company has plans to expand the 2012 VTEM coverage to include both the Yuen and Cirque East properties, and the northern half of its claim holdings located northwest of Mt. Alcock. A VTEM survey utilized in conjunction with the ongoing digital compilation of exploration data on the northern properties is expected to yield numerous, and possibly drill ready, high priority targets. (4) “Murrell, M., and Roberts, W. 1990 Summary Report 1989 Exploration Program on the Mt. Alcock Property in the Kwadacha Recreational Area, Northern British Columbia for Triumph Resources Ltd., British Columbia Geological Branch Assessment Report 19829.
HYDRO GEOCHEMISTRY
Click to enlarge images The above-quoted historical mineral resource estimates were prepared before the introduction of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). The key assumptions, parameters and methods used to calculate the historical resources are not known and the Company is not treating the historical estimates as current mineral resources or mineral reserves. These estimates are reported herein to demonstrate the exploration potential of the Kechika Trough but should not be construed to reflect a calculated resource (inferred, indicated or measured) under the current standard required of NI 43-101. The potential quantities and grades reported above are conceptual in nature and there has been insufficient work to date to define a NI 43-101 compliant resource. The economic viability of the historical resources is not demonstrated, furthermore, it is uncertain if additional exploration will result in discovery of an economic mineral resource on those properties. Ken MacDonald P.Geo., Vice President of Exploration, is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the technical information contained herein. Robert Sim, P.Geo., is an independent consultant and served as the Qualified Person responsible for the preparation of the 2012 NI 43-101 Technical Report on the Akie Project and is responsible for the 2008 and 2012 mineral resource estimates for the Cardiac Creek deposit, situated on the company’s 100% owned Akie property. |
