Regional Geologists Kyba & Jago PDF - Minerals North
Regional Geologists Kyba & Jago PDF - Minerals North
Regional Geologists Kyba & Jago PDF - Minerals North
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
2011 Skeena <strong>Regional</strong> Overview<br />
Mining and Exploration<br />
<strong>North</strong>ern Highlights<br />
Omineca / <strong>North</strong>east<br />
Paul <strong>Jago</strong>, MSc. GIT<br />
<strong>Regional</strong> Geologist<br />
Skeena Region<br />
Jeff <strong>Kyba</strong>, BSc. GIT<br />
<strong>Regional</strong> Geologist<br />
May 24. 2011
2011 Skeena <strong>Regional</strong> Overview<br />
Outline<br />
• Introductions<br />
• Skeena Region highlights<br />
• Omineca / <strong>North</strong>east<br />
Highlights<br />
Gold veining at Pretivm’s Brucejack.<br />
Photo: C.Mooney<br />
• Summary<br />
• Question period<br />
Seasonal Barite Mining at Fireside,<br />
Photo: A.Allan
2011 Skeena <strong>Regional</strong> Overview<br />
Who are these guys anyway?<br />
• Former <strong>Regional</strong> Geologist Paul Wojdak retired April 2011<br />
• Returned from Australia Oct 22 nd 2011, started work Oct 24 th<br />
• Graduated from University of Victoria 2007<br />
• Grew up near Falkland BC<br />
• Geological experience:<br />
Advanced Field School, 2005<br />
– Ni-PGE exploration, multiple property assessments, NW BC<br />
– BCGS Terrace regional mapping with JoAnne Nelson<br />
– Soft-rock geology in NE BC, natural gas, coal-bed methane<br />
– Exploration, project generation and implementation in the<br />
Cloncurry – Mount Isa copper-gold district, QLD Australia.
Paul <strong>Jago</strong> - <strong>Regional</strong> Geologist – Omineca/<strong>North</strong>east<br />
Where I’ve been...<br />
UBC – MDRU (2005-2008)<br />
Bagdad Mine, AZ (2008-2009)<br />
Henderson Mine, CO (2010-2011)<br />
M.Sc. – Mt. Milligan deposit, BC<br />
(2005-2006)<br />
Sierrita Mine, AZ (2009-2010)<br />
Lorraine deposit , BC (2006, 2007)<br />
Climax Mine, CO (2010-2011)
Skeena Region<br />
2011 Skeena <strong>Regional</strong> Overview
MILLIONS OF DOLLARS<br />
THOUSANDS OF METRES<br />
2011 Skeena <strong>Regional</strong> Overview<br />
2011 Skeena Highlights<br />
250<br />
220<br />
• $220 million exploration expenditure<br />
– 48% of provincial total $462 million<br />
• 380,467 exploration metres drilled<br />
200<br />
150<br />
100<br />
50<br />
0<br />
7 10<br />
21<br />
55<br />
170<br />
140<br />
127<br />
100<br />
65<br />
172<br />
• $500+ million mine development<br />
YEAR<br />
• <strong>North</strong>west Transmission Line: clearing<br />
underway<br />
• 11 major projects within or poised for E.A.<br />
• 89 significant projects<br />
400<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
38<br />
57<br />
92<br />
374<br />
350 380<br />
310<br />
270<br />
169 197 144<br />
YEAR
2011 Skeena Region Select Projects<br />
Mines<br />
Mine Developments<br />
Exploration<br />
•Huckleberry<br />
•Endako<br />
•Fireside<br />
•Yellow Giant<br />
•Dome Mountain<br />
•Kitsault<br />
•Dilworth Missouri<br />
•Granduc<br />
•KSM<br />
•Mount Klappan<br />
•Galore Creek<br />
•Schaft Creek<br />
•Red Chris<br />
•Kutcho creek<br />
•Tulsequah Chief<br />
•Silvertip<br />
•Brucejack<br />
•Trapper<br />
•Poplar<br />
•Silver Queen<br />
•Lone Pine<br />
•Big Hammer<br />
2011 Skeena <strong>Regional</strong> Overview
2011 Skeena <strong>Regional</strong> Overview<br />
Mines and Mine Developments<br />
Above: Smithers Exploration Group visits<br />
Huckleberry Mine. Photo courtesy of SEG.<br />
Below and right: Huckleberry Mine.<br />
Photos courtesy of Imperial Metals.<br />
Left: Endako Mine. Photo courtesy of<br />
Thompson Creek Metals.
Huckleberry<br />
• Cu-Mo-Au-Ag porphyry<br />
• Main Zone Optimization plan<br />
approved<br />
– Adds 39.7 Mt @ 0.343% Cu<br />
– Total reserves ~ 51.4 Mt<br />
– 7 year mine life extension to<br />
2021<br />
• 2011 Production:<br />
‣ 19,427 tonnes Cu<br />
‣ 3 tonnes Mo<br />
‣ 109 kg Au<br />
‣ 6,785 kg Ag<br />
• 300 full time jobs<br />
– 30 contract jobs<br />
2011 Skeena <strong>Regional</strong> Overview
Huckleberry<br />
• Cu-Mo-Au-Ag porphyry<br />
• Main Zone Optimization plan<br />
approved<br />
– Adds 39.7 Mt @ 0.343% Cu<br />
– Total reserves ~ 51.4 Mt<br />
– 7 year mine life extension to<br />
2021<br />
• 2011 Production:<br />
‣ 19,427 tonnes Cu<br />
‣ 3 tonnes Mo<br />
‣ 109 kg Au<br />
‣ 6,785 kg Ag<br />
• 300 full time jobs<br />
– 30 contract jobs<br />
2011 Skeena <strong>Regional</strong> Overview
2011 Skeena <strong>Regional</strong> Overview<br />
Red Chris<br />
• Cu-Au porphyry<br />
• Updated Measured +<br />
Indicated resource:<br />
504.6 Mt @ 0.49% Cu +<br />
0.509 g/t Au + 1.4 g/t Ag<br />
• Mine Permit issued May<br />
7 th 2012, clearing and<br />
camp construction<br />
underway
Red Chris Camp Site<br />
Photo Courtesy of<br />
Alex Cook<br />
2011 Skeena <strong>Regional</strong> Overview
Red Chris<br />
2011 Skeena <strong>Regional</strong> Overview
2011 Skeena <strong>Regional</strong> Overview<br />
• Updated Measured +<br />
Indicated resource:<br />
504.6 Mt @ 0.49% Cu +<br />
0.509 g/t Au + 1.4 g/t Ag<br />
Red Chris<br />
• Nearly permitted and<br />
ready to begin<br />
construction
• Mo porphyry<br />
Kitsault<br />
• EA application has been<br />
officially accepted and is<br />
under federal and<br />
provincial review<br />
• $640 M (75% of<br />
estimated total $850 M )<br />
project financing<br />
preliminary approval<br />
• Existing infrastructure to<br />
mine site from previous<br />
operations<br />
2011 Skeena <strong>Regional</strong> Overview
2011 Skeena <strong>Regional</strong> Overview<br />
Kitsault<br />
• Proven + Probable reserves: 232.5 Mt @<br />
0.081% Mo<br />
• Recent update in Measured + Indicated<br />
resources inclusive of reserves and<br />
Pb - Ag by-products:<br />
– 321 Mt @ 0.071 % Mo + 236 ppm Pb<br />
+ 4.8 ppm Ag<br />
• Exploration success at Roundy Creek 5 km<br />
west<br />
– Higher grades averaging > 0.1% Mo + 1.3<br />
g/t Ag over 66 m<br />
– Best intercept:<br />
• 12 m @ 0.368% Mo + 0.6g/t Ag<br />
Kitsault open pit, mined from 1967-1972, &<br />
1981-1982. Photo courtesy of Avanti Mining.<br />
– Includes 6 m @ 0.705% Mo
2011 Skeena <strong>Regional</strong> Overview<br />
Mount Klappan<br />
• Coal<br />
• Partnered with multinational<br />
steel producer:<br />
POSCO<br />
• Updated feasibility study<br />
and reserve estimate<br />
anticipated mid 2012<br />
• Environmental monitoring<br />
being conducted
2011 Skeena <strong>Regional</strong> Overview<br />
EXPLORATION<br />
- to travel for the purpose of discovery<br />
- a careful systematic search<br />
- a systematic consideration
2011 Skeena <strong>Regional</strong> Overview<br />
Brucejack - Snowfields<br />
• Au vein<br />
• Valley of the Kings Zone<br />
– Indicated Resource:<br />
• 8.9 Mt @17.3 g/t Au + 14.5 g/t Ag<br />
– Inferred Resource:<br />
• 12.7 Mt @ 25.5 g/t Au + 11.6 g/t Ag<br />
• Largest 2011 drilling program in the<br />
district<br />
– Multiple intercepts grading<br />
over 1,000 g/t Au<br />
– Highest grade to date: 0.6 m<br />
18,755 g/t Au + 9,312 g/t Ag
Brucejack - Snowfields<br />
2011 Skeena <strong>Regional</strong> Overview
Brucejack - Snowfields<br />
• 2012:<br />
– Over 25,000 m drilling<br />
completed in 2012<br />
• Aiming to upgrade<br />
indicated resources<br />
inferred to<br />
• 7 rigs drilling<br />
– access road from HWY 37 is under<br />
construction<br />
Brucejack camp and drill rig<br />
Bell 407 played a key logistical role.<br />
Photo: Joel Ashburner<br />
– Underground development and bulk sample<br />
from VOK zone<br />
• 5,000 tonnes<br />
– Updated high-grade PEA<br />
• 11.8 Mt @ 18.9 g/t Au + 59.3 g/t Ag<br />
• Metal Recoveries: 95.7% (Au) + 75.5% (Ag)<br />
• TOTAL 6.9 M oz Au over 24 yr mine life<br />
– Complete feasibility study underway<br />
Visible gold in drill core.<br />
Photo: Cole Mooney<br />
2011 Skeena <strong>Regional</strong> Overview
2011 Skeena <strong>Regional</strong> Overview<br />
Kerr-Sulphurets-Mitchell<br />
• Au-Cu porphyry<br />
• Joint provincial and federal EA<br />
application planned to be<br />
submitted by Q3 2012<br />
• Updated feasibility study<br />
– Proven + Probable reserves:<br />
2,1924 Mt @ 0.55 g/t Au<br />
+ 0.21 % Cu + 3.04 g/t Ag<br />
+ 53.2 ppm Mo<br />
– Proposed 52 year mine life
KSM<br />
• Proximal to<br />
Pretivm’s<br />
Brucejack and<br />
Snowfields<br />
projects<br />
• 2012 Drilling to<br />
target deep<br />
conceptual<br />
targets analogous<br />
to Grasberg<br />
“highgrade core”<br />
Geological Map, courtesy of Seabridge Gold.<br />
2011 Skeena <strong>Regional</strong> Overview
Summary<br />
Mines<br />
Mine Developments<br />
Exploration<br />
2011 Skeena <strong>Regional</strong> Overview<br />
3 producers<br />
11 Mine<br />
Developments<br />
75 significant<br />
Exploration<br />
projects
Omineca and <strong>North</strong>east<br />
Regions<br />
• Omineca region<br />
comprises <strong>North</strong>-Central<br />
region of province<br />
• <strong>North</strong>east region is<br />
primarily focussed on<br />
Peace River Coalfield<br />
Approved<br />
NoWs for<br />
2012<br />
Dawson<br />
Creek<br />
Smithers<br />
Prince<br />
George
Mineral Production - BC<br />
Industrial <strong>Minerals</strong><br />
Thermal Coal<br />
Aggregate<br />
Gold<br />
Silver<br />
Copper<br />
Zinc<br />
Coal:<br />
“the Black Queen”<br />
Molybdenum<br />
$8.6 B<br />
Metallurgical Coal<br />
~60%<br />
Omineca Region in 2011<br />
• doubling in exploration activity from 2010<br />
• $71.5 million in exploration expenditures<br />
• 162 000 m drilling activity<br />
Mineral Production in BC<br />
1990-2011
Deposit types:<br />
SEDEX (Zn-Pb-Ag)<br />
Devonian<br />
Terranes<br />
(west to east):<br />
Pale green =<br />
Stikine Terrane<br />
(island arc)<br />
Orange = Cache<br />
Creek Terrane<br />
(oceanic)<br />
Bright green =<br />
Quesnel Terrane<br />
(island arc)<br />
Blue = ancestral<br />
<strong>North</strong> America<br />
-Exploration and Mining in British Columbia 2011<br />
Gold veins<br />
late PreCambrian to<br />
Jurassic<br />
Rare Earth Metal<br />
(carbonatite belt)<br />
Devonian<br />
Cu-Au porphyry<br />
Triassic-Jurassic<br />
Nickel<br />
(serpentinite)<br />
Mississippean-Triassic<br />
Mo porphyry<br />
Jurassic-Cretaceous<br />
epithermal Au-Ag<br />
early Tertiary
Epithermal Au-Ag deposits<br />
Exploration: Nechako Plateau<br />
• Blackwater: New Gold Inc<br />
- 96 Km S of Vanderhoof<br />
- 2011 acq. Silver Quest Resources, Geo <strong>Minerals</strong><br />
- 2012 acq. Gold Reach Resources<br />
- 900 km 2 land position<br />
- completion of PEA and initiation of EA<br />
- 60 000 t/d open-pit operation planned<br />
- $86 million exploration budget<br />
- 210 000 m of drilling for 2012 (14-16 drills)<br />
- regional exploration at Capoose and<br />
Auro projects<br />
Au resource - Mar 3 rd , 2012:<br />
- 174 Mt at 0.98 g/t containing 5.5 Moz (ind.)<br />
- 92 Mt at 0.78 g/t containing 2.3 Moz (inf.)<br />
Ag resource - Mar 3 rd , 2012:<br />
- 4.6 g/t containing 25.8 Moz (ind.)<br />
- 3.8 g/t containing 11.2 Moz (inf.)<br />
0.20 g/t grade shell<br />
$1300/oz Au pit shell<br />
courtesy of New Gold Inc
featuring Jeff <strong>Kyba</strong>!<br />
<strong>Regional</strong> Geologist visit to<br />
Blackwater gold project<br />
- Apr. 2012
Mo Porphyry Deposits<br />
Mine Operation / Mine Development<br />
• Endako: Thompson Creek Metals - Sojitz Corp (25%)<br />
- 72 Km W of Vanderhoof<br />
- Mill Expansion Project completed (Apr, 2012)<br />
- 55,000 t/d design capacity throughput (77% increase)<br />
- 2012 production guidance of 14-15 M lb<br />
- 21 500 m drilling in 2011 (9% reserve increase)<br />
- mine life extended to 2028<br />
- planned super-pit, unifying the three existing pits<br />
- 308.68 Mt at 0.046% Mo (proven and probable)
Serpentinite-hosted Ni alloy<br />
Cache Creek terrane<br />
• Decar: First Point <strong>Minerals</strong> Corp<br />
- under option to Cliffs Natural Resources Inc<br />
- 90 km NW of Fort St. James<br />
- rare mineral Awaruite (Ni 2 Fe to Ni 3 Fe, ~72-76% Ni)<br />
- serpentinized peridotite (ophiolite complex)<br />
- 11,166 m drilling in 2011, 16,500 m proposed (2012)<br />
- PEA by March 2013<br />
- 50 man camp planned for 2012<br />
Baptiste Deposit (Apr. 16, 2012)<br />
1.2 billion tonne resource at<br />
0.113% magnetically recoverable Ni (inf.)
Cu-Au porphyry deposits<br />
Mine Construction<br />
• Mt. Milligan: Thompson Creek Metals<br />
- 155 km NW of Prince George<br />
- first major new BC metal mine in 15 years<br />
- C$1.5 billion capital cost<br />
- 4 th quarter 2013 production<br />
- 400 full-time jobs expected (600 during construction)<br />
- 60 000 tonnes/day over a 22 year mine life<br />
- 706.7 Mt at 0.18 % Cu, 0.33g/t Au (meas. and ind.) – tot. resource<br />
- 482.4 Mt at 0.20% Cu, 0.39 g/t Au (proven and probable) - reserves<br />
courtesy of Thompson Creek Metals
Cu-Au porphyry cont’d<br />
Mine Development<br />
Epithermal Au-Ag<br />
Mine Operation / Exploration<br />
• Kemess Underground: AuRico Gold<br />
- 5.5 km N of Kemess South<br />
- <strong>North</strong>gate <strong>Minerals</strong> acq. by AuRico in Oct. 2011<br />
- same concentrator/tailings facilities as Kemess S.<br />
- block cave operation with 12 year mine life<br />
- full feasibility study to be completed in 2012<br />
- +6000 m drilling (geotechnical, environmental)<br />
- avg. annual production estimate:<br />
41.4 million lb Cu and 95 000 oz Au<br />
• Shasta: Sable Resources<br />
- 346 Km NW of Mackenzie<br />
- 27 km N of Kemess South<br />
- underground Au-Ag operation<br />
- seasonal production<br />
- ore processed at nearby Baker mill<br />
courtesy of AurRico Gold Inc<br />
courtesy of Sable Resources
SEDEX (baritic Zn-Pb-Ag) Carbonatite-hosted REE<br />
Kechika Trough<br />
Rocky Mountain Carbonatite Belt<br />
• Akie: Canada Zinc Metals Corp<br />
- 260 km N of Mackenzie<br />
- Kechika Group (includes Pie, Mount Alcock)<br />
- over 6000 m drilling of Cardiac Creek deposit<br />
- exploration and prep for underground access<br />
- open at depth, up-dip, and along strike<br />
- 12.7 Mt at 8.4% Zn, 1.7% Pb, 13.7 g/t Ag (ind.)<br />
- 16.3 Mt at 7.4% Zn, 1.3% Pb, 11.6 g/t Ag (inf.)<br />
Updated Mar 14, 2012 (NI 43-101 compliant)<br />
• Aley: Taseko Mines Ltd<br />
- 140 km N of Mackenzie<br />
- potential low cost, open-pit niobium mine<br />
- “largest undeveloped Nb project in the world”<br />
- $20 M exploration program 2012<br />
- 286 Mt at 0.37% Nb 2 O 5 (meas. and ind.)<br />
- 144 Mt at 0.32% Nb 2 O 5 (inf.)<br />
Updated Mar 28, 2012<br />
courtesy of Taseko Mines Ltd<br />
courtesy of Canada Zinc Metals Corp
<strong>North</strong>east Region:<br />
Peace River Coalfield<br />
Mine Operations<br />
and Expansion Projects:<br />
• Trend Mine: 25 km S of Tumbler Ridge<br />
1.4 Mt hard coking coal (2011 production)<br />
Horizon and Roman Mountain expansion<br />
courtesy of Peace River Coal<br />
Peace River Coal<br />
(Anglo Coal plc)<br />
• Perry Creek Mine: 30 km SW of Tumbler Ridge<br />
Western Coal Corp<br />
1.8 Mt hard coking coal (2011) (Walter Energy Inc)<br />
EB and Hermann deposits awaiting approvals<br />
capacity expandable to 3.5Mt/yr<br />
• Brule Mine: 45 km SSW of Chetwynd<br />
1.3 Mt ULV-PCI coal (2011)<br />
Mt Hudette/Brazion exploration<br />
• Willow Creek Mine: 45 km W of Chetwynd<br />
0.9 Mt PCI and coking coal (2011)<br />
planned capacity increase to 3.7 Mt/yr<br />
Willow Creek South and West exploration
<strong>North</strong>east Region: Peace River Coalfield<br />
• Exploration expenditures doubled to $44.3 M • 66 000 m drilling in 2011<br />
• Huguenot: Colonial Coal Int’l Corp<br />
- 70 km SE of Tumbler Ridge<br />
- 6871 m drilling (2011)<br />
- 241 Mt of potential resources<br />
• Quintette: Teck Coal<br />
- 20 km SW of Tumbler Ridge<br />
- feasibility study in 2011 , reopen 2013?<br />
- 3-3.5 Mt/yr with 15-17 yr mine life<br />
• Murray River: HD Mining Int’l Corp<br />
- JV with Cdn Kailuan Dehua Mines<br />
- 10 km SW of Tumbler Ridge<br />
- 18 000 m drilling (2011)<br />
- 789 Mt “proven deposit”<br />
- planned 6 Mt/yr underground operation<br />
• Gething: Cdn Kailuan Dehua Mines<br />
- 25 km W of Hudson’s Hope<br />
- 2 Mt/yr underground op with 40 yr mine life<br />
HD Mining Int’l<br />
courtesy of Cardero Resource Corp<br />
• Carbon Creek: Cardero Resource Corp<br />
- 40 Km W of Hudson’s Hope<br />
- 14 500 m drilling (2011)<br />
- 167 Mt (measured and indicated), 167 Mt (inferred)<br />
- surface and underground – 30 yr mine life
Omineca Region:<br />
Shasta gold-silver mine - Sable Resources<br />
Mt Milligan copper-gold mine – Thompson Creek Metals<br />
Kemess Underground copper-gold – AuRico Gold Inc<br />
Aley niobium deposit – Taseko Mines Ltd<br />
Blackwater gold deposit – New Gold Inc<br />
Decar nickel deposit – Cliff’s Natural Resources<br />
Akie zinc-lead-silver deposit - Canada Zinc Metals<br />
Kwanika copper-gold deposit – Serengeti Resources Inc<br />
Chu molybdenum-copper deposit – TTM Resources<br />
<strong>North</strong>east Region (Peace River Coalfield):<br />
Operating mines<br />
Trend Mine – Peace River Coal (owned by Anglo American plc)<br />
Perry Creek Mine – Western Coal Corp (subsidiary of Walter Energy Inc)<br />
Brule Mine - Western Coal Corp (subsidiary of Walter Energy Inc)<br />
Willow Creek Mine – Western Coal Corp (subsidiary of Walter Energy Inc)<br />
Expansion projects and exploration projects<br />
Conclusion<br />
List of mines, and potential producers in next 10 years...<br />
Roman Mountain deposit - Peace River Coal (owned by Anglo American plc)<br />
Horizon Project - Peace River Coal (owned by Anglo American plc)<br />
EB Project – Western Coal Corp - plans to develop EB mine by fiscal 2013<br />
Hermann Project – Western Coal Corp - developing a timetable for the Hermann Mine<br />
Quintette Mine – Teck Coal<br />
Murray River Project – Canadian Kailuan Dehua Mines / HD Mining International Corp<br />
Gething Project - Canadian Kailuan Dehua Mines<br />
Suska Project (aka. Sukunka) – Xstrata Coal / JX Nippon Corp<br />
Carbon Creek Project – Cardero Resources Corp<br />
Bullmoose River Project – Canadian Dehua International Mines Group<br />
Wapiti River Project - Canadian Dehua International Mines Group<br />
Belcourt West Project– Peace River Coal / Western Coal<br />
Wapiti Thermal Coal Mine – Hillsborough Resources Ltd
2011 Skeena <strong>Regional</strong> Overview<br />
2012 Outlook<br />
• Sustained elevated commodity prices<br />
• Increased demand for coal<br />
• Political will to responsibly develop natural<br />
resources
2011 Skeena <strong>Regional</strong> Overview<br />
Acknowledgements<br />
• <strong>Regional</strong> <strong>Geologists</strong>:<br />
– Bruce <strong>North</strong>cote, Southwest and South Coast<br />
– Dave Grieve, Southeast Kootnay-Boundary<br />
– Paul <strong>Jago</strong> & John DeGrace, <strong>North</strong>east-Omenica<br />
– Jim Britton, Thompson-Oakanagan-Cariboo<br />
– Bruce Madu, Mineral Development Office Vancouver<br />
– Robin Chu, Mineral Development office, GIS support<br />
• Ministry of Energy and Mines & FLNRO, Smithers and Pring George Offices<br />
• Paul Wojdak, Dave Lefebure and JoAnne Nelson and the BC Geological Survey<br />
• Gayle Febbo and Mireille Pelletier, Blue Metal Resources<br />
• Tony Hitchins, Karen Diemert, Jane Lloyd-Smith, Scott and Ashley Jackson, Brenda Black, Florinio<br />
Lazo, Paul Carter, Doug Kirwin, Dale Sketchly, Barry DeWet, Graham Boyd, Jeff Clarke, Laural Arness,<br />
Shane Nielsen, Jesse Favia, Graham Corlette, Rohan Wolfe, Robert Friedland, Jim Luders , Munkbat<br />
Bataar, Tosi Firman, Egy Arbi, Tamal Pal, Steve Oliver, Darren Fynmore, Evan Brittlebank, Jason<br />
Wilson, Kelly Critchlow, Garret Daneen, Brodie Mulder, Cliff Kirby, Peter Edwards, Grant Cousten,<br />
Mat Brown, Geoff Phillips, Hamish Gillis, Jason Southern, Lisa McElligott, Olivia Turner<br />
• Family<br />
• All the companies operating in the Skeena, Omineca and <strong>North</strong>east Regions
2011 Skeena <strong>Regional</strong> Overview<br />
Mining and Exploration<br />
<strong>North</strong>ern Highlights<br />
Omineca / <strong>North</strong>east<br />
Paul <strong>Jago</strong>, MSc. GIT<br />
<strong>Regional</strong> Geologist<br />
Paul.<strong>Jago</strong>@gov.bc.ca<br />
Skeena Region<br />
Jeff <strong>Kyba</strong>, BSc. GIT<br />
<strong>Regional</strong> Geologist<br />
Jeff.<strong>Kyba</strong>@gov.bc.ca<br />
May 24. 2011
Questions?<br />
2011 Skeena <strong>Regional</strong> Overview
Additional Projects<br />
2011 Skeena <strong>Regional</strong> Overview
Western<br />
<strong>North</strong><br />
America<br />
2011 Skeena <strong>Regional</strong> Overview
British Columbia<br />
2011 Skeena <strong>Regional</strong> Overview
Endako<br />
• Mo porphyry<br />
• Pre-commissioning of new mill<br />
underway<br />
– $527 million cumulative<br />
expenditure on new mill<br />
construction<br />
– Daily processing to increase 77%<br />
• 9% reserve increase<br />
– 340.3 Mt @ 0.046% Mo (Sept<br />
2011)<br />
• Estimated mine life until 2028<br />
• Produced 4,543 tonnes Mo in<br />
2010<br />
2011 Skeena <strong>Regional</strong> Overview
2011 Skeena <strong>Regional</strong> Overview<br />
Endako<br />
• Pre-commissioning of new mill<br />
underway<br />
– $527 million cumulative<br />
expenditure on new mill<br />
construction<br />
– Daily processing to increase 44%<br />
• 9% reserve increase<br />
– 340.3 Mt @ 0.046% Mo (Sept<br />
2011)<br />
• Estimated mine life until 2028<br />
• Produced 4,543 tonnes Mo in<br />
2010
Dome Mountain<br />
• Au vein<br />
• 700 tonnes of ore<br />
ready to ship<br />
• Completed<br />
infrastructure<br />
construction<br />
– Water treatment plant<br />
– Mine buildings<br />
– Road Upgrade<br />
2011 Skeena <strong>Regional</strong> Overview
2011 Skeena <strong>Regional</strong> Overview<br />
• Continuing underground<br />
development<br />
Dome Mountain<br />
• Permitted to process up to<br />
205 tonnes per day (75,000<br />
t/yr)<br />
• 135,131 tonnes<br />
@11.2 g/t Au<br />
Above: Daryl Hanson<br />
IN the boulder vein<br />
Left: Massive and<br />
semi-massive<br />
sulphide within<br />
Boulder vein<br />
Photos: J.<strong>Kyba</strong>
Granduc<br />
• Volcanogenic Massive<br />
Sulphide (Cu-Au-Ag)<br />
• 17 km tunnel rehab<br />
completed<br />
• Historic ore zones<br />
extended<br />
• New ore zones<br />
identified<br />
2011 Skeena <strong>Regional</strong> Overview
Granduc<br />
• 2011 drilling results to be<br />
compiled into update<br />
resource estimate<br />
• Indicated resource from<br />
historic drilling data:<br />
3.75 Mt @ 1.59% Cu<br />
– Inferred resource: 15.8 Mt<br />
@ 1.36% Cu<br />
• Sparsely drilled south<br />
zone returned<br />
encouraging results<br />
– 8 m @ 3.17% Cu + 0.37%<br />
Au + 7.5 g/t Ag<br />
Granduc operated from 1971 – 1984 and produced 420<br />
million lbs of copper. Photo courtesy of Castle Resources<br />
2011 Skeena <strong>Regional</strong> Overview
2011 Skeena <strong>Regional</strong> Overview<br />
Schaft Creek<br />
• Cu-Au-Mo-Ag porphyry<br />
• Received approval for EA<br />
application<br />
requirements<br />
• Updates Measured +<br />
Indicated resources:<br />
1010 Mt @ 0.27% Cu +<br />
0.017% Mo + 0.18 g/t Au
Galore Creek<br />
• Cu-Au-Ag porphyry<br />
• Teck acquired 50%<br />
ownership<br />
• Infill drilling upgraded<br />
resource confidence<br />
• Geotecnical drilling<br />
improved tunnel<br />
allignement<br />
2011 Skeena <strong>Regional</strong> Overview
2011 Skeena <strong>Regional</strong> Overview<br />
CHIEFTAIN METALS INC.<br />
Tulsequah Chief<br />
• Cu-Zn-Pb-Ag-Au<br />
massive sulphide<br />
• Permitting<br />
amendments in<br />
progress<br />
• Water treatment<br />
plant installed and<br />
operational
2011 Skeena <strong>Regional</strong> Overview<br />
CHIEFTAIN METALS INC.<br />
Tulsequah Chief<br />
• 82 diamond drill holes<br />
totalling 31,181 m<br />
• Updated feasibility<br />
study to be released<br />
early 2012<br />
• Will include 2011 drilling<br />
• Optimized construction<br />
• Improved metallurgy<br />
Photos courtesy of Chieftain Metals
2011 Skeena <strong>Regional</strong> Overview<br />
Kutcho Creek<br />
• Koroko Type Cu-Zn-Ag-<br />
Au massive sulphide<br />
• Submitted Project<br />
Description<br />
– Formally initiated preapplication<br />
of EA
2011 Skeena <strong>Regional</strong> Overview<br />
Kutcho Creek<br />
• Updated Pre-feasibility<br />
– 10.44 Mt reserves @<br />
2.01% Cu + 3.19% Zn +<br />
34.61 g/t Ag + 0.37 g/t<br />
Au<br />
– 11.28 Mt Measured +<br />
Indicated resources @<br />
2.19% Cu + 3.28% Zn +<br />
36.7 g/t Ag + 0.39 g/t Au<br />
Kutcho Creek massive sulphide ore body models<br />
looking South. Image courtesy of Capstone Mining.
2011 Skeena <strong>Regional</strong> Overview<br />
• 45 km north of the Golden<br />
Bear mine road<br />
• Situated within Stikine<br />
terrane volcanic arc<br />
assemblage<br />
• 42 drill holes completed<br />
in 2011<br />
– intercepted visible gold<br />
– First round of drilling on the<br />
property<br />
Trapper
2011 Skeena <strong>Regional</strong> Overview<br />
Trapper<br />
• Early stage, limited exploration<br />
• 2 + km x 250 m Au-As in soil anomaly<br />
• High-grade grab samples up to<br />
33 g/t gold<br />
• Extensive alteration traceable over<br />
several kilometres<br />
• Small fraction of alteration zone<br />
covered by soil sampling<br />
Photos courtesy of Ocean Park<br />
Ventures.
2011 Skeena <strong>Regional</strong> Overview<br />
Silver Queen<br />
• Au-Ag-Zn-Pb-Cu-Cd vein<br />
• Drill tested geophysical<br />
anomalies<br />
– Intercepted porphyrystyle<br />
mineralization
2011 Skeena <strong>Regional</strong> Overview<br />
Silver Queen<br />
• Au-Ag-Zn-Pb-Cu-Cd vein<br />
• Drill tested geophysical<br />
anomalies<br />
– Intercepted porphyrystyle<br />
mineralization<br />
Molybdenite fragment with interstitial<br />
chalcopyrite hosted in quartz monzonite.<br />
Photo courtesy of New Nadina Explorations.
Poplar<br />
• Cu-Mo Porphyry<br />
• Inferred resource: 245 Mt<br />
@ 0.27% Cu + 0.022% Mo<br />
• Extensive 2011 intercepts<br />
– 496 m @ 0.35% Cu + 0.1 g/t<br />
Au + 0.015% Mo<br />
• Updated resource<br />
anticipated early 2012<br />
2011 Skeena <strong>Regional</strong> Overview