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Regional Geologists Kyba & Jago PDF - Minerals North

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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

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