Kechika Regional

In addition to the Akie property, the Company owns 100% of a large contiguous group of mineral claims that aggregate to a total of 10 properties that cover 68,000 hectares. The mineral claims stretch a distance of 140 km from the Pie property on the north boundary of the Akie claims to the Thro property, near the northern reaches of the Gataga River. The properties cover the extent of the prospective Gunsteel Formation shale which is the known host of SEDEX mineralization in the Kechika Trough. The southernmost project boundary is located approximately 260 kilometers north-northwest of the town of Mackenzie.

The Kechika project includes several properties with significant historical drill intercepts, including the Mt. Alcock property which has yielded a drill intercept of 8.8 metres grading 9.3% zinc+lead, numerous zinc-lead-barite occurrences, and several regional base metal anomalies(1). Historical drilling on the Bear-Spa property returned several drill intercepts of >10 metres grading 2.53 to 2.96% combined Zn-Pb and up to 20.6 g/t Ag (2). There has been no modern follow-up exploration on many of these properties.

Click Here to see “The Pie Property NI 43-101 Technical Report”

On June 15th, 2012 the Company took receipt of a NI 43-101 compliant technical report entitled “NI 43-101 Technical Report on the Mt Alcock Property” dated May 31, 2012 and authored by Tanya Strate, P.Geol., an independent qualified person for the purposes of NI 43-101.

The Technical Report highlights the history of previous exploration on the property since the 1970’s and identifies it as being prospective to host SEDEX Zn-Pb-Ag mineralization. The report documents the results of assessment work completed on the property in 2011, and makes recommendations for further work, including drill testing of the Main barite zone previously drill tested in 1989 and 1990. The property hosts several large soil geochemical anomalies that have never been drill tested and other zinc-lead-silver mineralization targets.

Click Here to see “The Mt. Alcock Property NI 43-101 Technical Report”

Regional Exploration Program – 2012

Regional exploration in 2012 was focused on several properties in the southern Kechika Trough including Akie, Pie, Yuen and Mt. Alcock. Exploration activities consisted of an airborne geophysical survey flown over Akie, Pie and Mt. Alcock and an extensive hydrogeochemistry survey involving water sampling across several properties. These programs are briefly described below.

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.

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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.


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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(1). 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.


Hydro Geochemistry

Following up on the results of the 2011 baseline hydrogeochemistry, a total of 121 water samples were collected from primary and secondary drainages on the Akie, Pie, Yuen, and Mt. Alcock properties. Based on the initial field observations of turbidity, several areas returned highly anomalous levels of sulphate. These include the northern area of Central Pie, West Pie and Mt. Alcock. An additional sample was taken downstream of the GPS showing confirming its anomalous nature. Interestingly, certain drainages underlain by rocks of the Road River Group, generally thought to be non-prospective, returned anomalous values on the Pie, Mt. Alcock and Yuen properties. These areas will need to be investigated further in order to determine a possible source. The field observations are at this point preliminary results and will be confirmed by the analytical results at a future date, upon which final interpretations will be made. Based on the final interpretation, future sampling will focus on tertiary drainages in order to pinpoint the source of the sulphate anomalies and the presence of possible SEDEX style mineralization.

 
 

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Drill Core Review

In addition to the water sampling program, a review of the 2006 Pie drill core was undertaken. The 2006 Pie drill program was conducted by Ecstall Mining, and focused on the Central Pie area, immediately west of the main showing and along strike to the southeast near the southern property boundary. The review was intended to confirm the style and character of mineralization previously observed and to obtain a better understanding of the lithologies present within the Central Pie. This information will be used to guide future exploration drill holes on the Central Pie target area.

Regional Exploration Program – 2011

Regional exploration in 2011 was focused on specific properties including Akie, Pie and Mt. Alcock. Exploration activities included mapping, prospecting, soil and rock sampling and review of historical data and drill core. The results from this program are summarized briefly below.

Pie & Mt. Alcock Exploration

The Pie and the Mt. Alcock properties were primary targets of the 2011 regional exploration program conducted on the Kechika group of properties. Work focused on the prospective black shales of West Pie; the nickel-in-rock anomalies of East Pie; and evaluation of the historical work conducted on the Mt Alcock property.

Mapping of the western side of the Pie property defined a significant panel of interpreted Gunsteel Formation shale encompassing 8 kilometers of strike length. A comprehensive 14.9 line kilometer soil sampling program was completed across this panel, with a total of 317 samples taken at 50 metre spaced intervals, along 400 metre spaced lines. The results of this survey identified a semi-continuous zinc anomaly situated along the important Gunsteel Formation – Road River Group contact, with values reaching 991 ppm. In addition, nodular barite occurrences have been discovered within this panel, indicating the presence of exhalative activity in the area.

Channel sampling was completed on these occurrences. Results returned nominal zinc values though locally they reached 2,200 ppm. It is important to note that the interpreted Gunsteel Formation shale present at the West Pie property, which also host the GPS bedded barite showing, are situated directly along strike from the Cirque deposit. Additional prospecting, mapping and select soil sampling have been carried out in the vicinity of the nickel-in-rock anomalies of East Pie in an attempt to discover the source of these anomalies.

Work on the Mt. Alcock property included a property-scale silt sampling program designed to provide geochemical information from key drainages. A soil geochemistry survey provided infill and extension soil sampling with a total of 259 samples taken at 50m spaced intervals, along 400 metres spaced lines. An evaluation of the historical drill core for due diligence purposes was also undertaken. An effort was made to preserve the remaining historical drill core from further deterioration. Historical drilling on the Mt. Alcock property has yielded a historic drill intercept of 8.8 metres grading 9.3% zinc+lead and 1.2 oz per ton silver in drill hole 89-3. (1)

The results of the soil sampling program effectively linked previously known soil anomalies between the two historical soil sampling grids along the eastern edges of the property. The silt sampling program returned highly anomalous zinc values in excess of 1,500 ppm across the central and southeastern edges of the property while nominal silt values were obtained from the northwestern edge of the property. Future exploration efforts will focus on the underexplored central area of the property as well as expanding the soil coverage across the prospective eastern panel of Gunsteel shale.

Hydrogeochemistry

Late in the 2011 exploration season a small orientation water geochemistry survey was completed on the Pie and Akie properties with the purpose of testing for increased levels of sulphate in the water column downstream from known mineral occurrences. The Cardiac Creek (Akie), GPS (Akie) and Barite Breccia (Pie) showings were all tested. These occurrences returned elevated to highly anomalous levels of sulphate indicating that this method can be used as an effective regional exploration tool. Based on the results of the orientation survey an extensive sampling program was planned and executed for the 2012 exploration seasons.

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.

(1) Murrell, M., and Roberts, W., 1990; Summary Report, 1989 Exploration Program on the Mt. Alcock Property, British Columbia Ministry of Energy, Mines and Petroleum Resources, Assessment Report 19829A & B, 133p.

(2) Carne, R.C., 1980; Report on Diamond Drilling on the Bear and SI Claim Group, British Columbia Ministry of Energy, Mines and Petroleum Resources, Assessment Report 8626, 51p.

©2008 Canada Zinc Metals Corp.
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