Exploration & Mining in BRITISH COLUMBIA

by Ellsworth Dickson

Ever since gold was discovered in the mining revenues for the BC mining industry are $795 million, including contingency of Fraser River in 1858, an event that resulted increased by 25% from 2010 ($7.9 billion) $87 million. in thousands of Californians heading to $9.9 billion in 2011, according to a report Anglo Swiss Resources Inc. [ASW- north, British Columbia has been recog- by PricewaterhouseCoopers. Capital expen- TSXV] controls precious and base metal nized as a mineral-rich region. Although ditures increased by 135% from $1,252 and flake graphite exploration properties, the placer gold rushes were relatively million in 2010 to $2,943 million in 2011. including the 100%-owned Kenville Gold short-lived, they jump-started politicians, Despite a slight pullback in 2012 explora- Mine property and Blu Starr flake graphite both in BC and in England, to make the tion, there are still some 350 active mineral project in southeast BC, and its Lansdowne western part of Canada a province in 1871. exploration sites and about 25 potential new House nickel-copper-PGE, Ring of Fire Since those early years, BC has been mine projects throughout BC. Project, northwest Ontario. a major source of coal, copper, zinc, Below is a selection of companies explor- Auramex Resource Corp. [AUX-TSXV] molybdenum, gold and silver. With the ing for a variety of mineral commodities. has two prospects in BC: the Brandywine benefits provided by the old Vancouver Abacus Mining & Exploration Corp. property 90 km north of Vancouver with Stock Exchange, the city eventually grew [AME-TSXV], 20%, and KGHM International targets prospective in silver, zinc and gold into the exploration capital of the world, Ltd., 80%, are developing the feasibility- mineralization and the 40,000+ hectare home to many geologists, mining engi- stage Ajax Mine near Kamloops. A feasibility Stewart properties, a grassroots exploration neers, assayers, plus some 1,200 junior study concluded that the project has proven project near Stewart, northwest BC. On the exploration companies and a few majors. and probable mineral reserves of 3 billion Stewart properties, drill permits are in hand While there has been a bear market in the lbs copper and 2.7 million oz gold at 0.27% for the Tide North property, the Georgie junior mining sector, since last spring, the copper and 0.17 g/t gold. The study sug- River property and for several locations in Emining industry still plays a crucial role in gested a 23-year mine life at a processing the Bear River/Surprise Creek claim block: the economic health of the province. The rate of 60,000 tpd or 21.9 million tpa at a the Breccia Zone, Gravel Anomaly, West 2012 figures are not in yet; however, gross stripping ratio of 2.4:1. Initial capital costs George Copper and Grey Copper. The com-

22 www.resourceworld.com DECEMBER 2012/JANUARY 2013 LEFT PAGE: Coal seam and trial cargo pit at the Arctos Anthracite Project in northern BC. Arctos is a collaborative international development project by the Arctos Anthracite Joint Venture between Fortune Minerals (80%) and POSCAN (20%), the Canadian subsidiary of Korea’s POSCO, one of the world’s largest steel producers. Photo courtesy Fortune Minerals Ltd.

RIGHT PAGE: A helicopter slings equipment into the LH prospect on Slocan Lake, southeast British Columbia, a gold exploration project of International Bethlehem Mining. Photo courtesy International Bethlehem Mining Corp.

ranged up to 15,280 g/t gold (445.7 oz/ton) in a grab sample. Berkwood Resources Ltd. [BKR- TSXV] has completed its summer 2012 field program at the Prospect Valley gold property near Merritt. The field team extended the soil sampling grid, 1 km to the northeast, along the projected Discovery Zone Trend and has completed additional prospecting, trenching, rock sampling and other fieldwork. The soil grid consisted of 10 lines at 100-metre spacing, with samples taken at 25-metre spacing along the lines, for a total of 61 soils per line. Several highly anomalous gold areas have been outlined and were targeted in follow up trenching. Bralorne Gold Mines Ltd. [BPM-TSXV] has a 100% interest in the producing, underground, high-grade, Bralorne Gold Mine near Goldbridge, 150 air miles north of Vancouver. The company recently entered into an agreement with Metallic Commodities Corp. for the sale of its gold flotation concentrate securing cash flow for the entire volume of concentrate over the pany is seeking a joint venture partner. equivalent production of 114,000 oz/year. coming year. The first part of the contract Banks Island Gold Ltd. [BOZ-TSXV] BC Gold Corp. [BCG-TSXV] has released includes the sale of current inventory of has two projects in BC; the 100%-optioned panel sampling assay results from levels 6 approximately 600 wet tonnes, assaying an Yellow Giant Gold Project and the Red and 7 of the company’s 100%-owned, past average of 136 g/t gold and 60 g/t silver. The Mountain gold property 18 km east of producing Engineer Mine near Atlin, far second half of the contract is for the sale of Stewart. The Yellow Giant gold prop- northern BC. The company dewatered lev- concentrate produced between November erty, located off the northwest coast of els 6 and 7 of the mine, which have been 2012, and December, 2013; once completed, BC, is moving into a bulk sample and submerged since the mine closed in 1928, both parties will discuss future sales. pilot mining stage in early 2013. Multiple to access the down-plunge extent of the Brixton Metals Corp. [BBB-TSXV] has mineralized zones are open at depth and 505-3 and 505-5 gold shoots hosted within completed the Phase II 2012 drill program strike. The Red Mountain prospect has the Engineer vein. BCGold geologists col- and soil sampling program at its Thorn the potential of becoming a low-cost gold lected 190 panel samples along the length Project, northwest BC. A total of 1,738 mine. A Preliminary Economic Assessment of the vein for 74 metres on level 6 and metres were drilled in 13 NQ diamond drill for 1,800 tpd underground gold mine was 173 m on level 7. A number of the sam- holes. Highlights included hole THN12-84 recently completed and contemplates gold ples returned very high gold grades that that intersected 123.0 metres of 402.52 g/t

DECEMBER 2012/JANUARY 2013 www.resourceworld.com 23 silver equivalent (190.68 g/t silver, 1.19 g/t 5 billion lbs copper and remains open lat- of Korea’s POSCO. A 17.5% increase in run- gold, 1.74% lead and 3.25% zinc & 0.06% erally and at depth. of-mine metallurgical coal reserves totals copper) within a broader interval of 201.00 Discovery Ventures Inc. [DVN-TSXV] 124.9 million tonnes (Mt) and a 13.8% m of 303.64 g/t AgEq and 310.00 metres of has four projects in BC: the 80%-optioned, increase in 10% ash product reserves total 233.52 g/t AgEq. The interpreted apparent advanced-stage Willa gold-copper-silver 69.2 Mt in the Lost Fox deposit area. Initial width of the Oban Zone has increased up to near Silverton, southeast BC; the Red rail capital for the project totals $330 mil- 140 metres, depth to 325 metres and a strike Bird/Rabbitt gold and VMS project near lion for the upgrade and extension of the length of 130 metres. Princeton; the Bralorne gold project Dease Lake Rail Line to the mine site. Coal Castle Resources Inc. [CRI-TSXV] near the community of Bralorne; and the will be shipped to Asia through the Port of reported that recent drilling at its Granduc 50%-optioned Big Creek copper-gold Prince Rupert. The project is currently in Copper Project located near Stewart, porphyry prospect near Williams Lake, the BC Environmental Assessment process. northwest BC returned 9.02 metres of central BC. Goldcliff Resources Corp. [GCN- 1.35% copper. The company is focused on Dolly Varden Silver Corp. [DV-TSXV; TSXV] has acquired the Goldrop claims the exploration and re-development of the DOLLF-OTCBB] has been diamond drill- and, consequently, the Goldrop copper- 100%-owned, past-producing Granduc ing the Dolly Varden deposit in northwest silver-gold-lead-zinc showing. The claims Copper Mine. BC. The Dolly Varden Silver Project con- adjoin Goldcliff’s 26,333-hectare Tulameen Commerce Resources Corp. [CCE- sists of 9,400 hectares which includes four Project, the company’s 100%-owned hold- TSXV] has reported increased indicated historic, well-defined, high-grade silver ings in the Copper Mountain district near resources for the Upper Fir tantalum and deposits, two of which have seen historic Princeton. The Goldrop showing is high- niobium deposit near Blue River, eastern production totaling 20 million oz. All four lighted by surface and drill sample values of BC. Study results show indicated resources mineral deposits have remaining historic 0.77% copper, 1.30 g/t silver, 0.14 g/t gold totaling 51.8 million tonnes at 192 ppm silver resources. In addition, airborne and 8.85% zinc. Goldcliff also owns the

Ta2O5 and 1,490 ppm Nb2O5 and inferred geophysics has been carried out as well Panorama Ridge Gold Project in the Hedley resources totaling 8.8 million tonnes at 186 as surface geological mapping and under- Gold Camp and the Ainsworth Project in the

ppm Ta2O5 and 1,660 ppm Nb2O5. ground rehabilitation. Ainsworth-Kaslo Silver Camp. Consolidated Woodjam Copper Corp. Dynasty Gold Corp. [DYG-TSXV; D5G- Gold Reach Resources Ltd. [GRV-TSXV] [WCC-TSXV] owns a 49% interest in the FWB] can acquire a 100% interest over has received assay results for holes S12- Woodjam North and Woodjam South prop- four years in the Strike prospect near 124 to S12-129 at its 100%-owned Ootsa erties near Williams Lake which are under Stewart, northwest BC. Chip sampling of property, located adjacent to the Imperial option to Gold Fields which owns a 51% the Baseline Vein/Breccia Zone in 1992 by Metals producing Huckleberry Mine interest and may earn a further 19% to total Navarre Resources returned 7.58 g/t gold, south of Smithers, northern BC. Drill hole a 70% interest in the properties. The proj- 2,123.6 g/t silver, 0.31% copper, 10.02% S12-125 intersected 375.3 metres of 0.64% ect has an initial Southeast Zone NI 43-101 lead and 13.8% zinc. Other zones also copper equivalent, including 198 metres of compliant inferred resource of 146.5 million returned good assays. 0.86% copper equivalent. tonnes of 0.33% copper (pit constrained). First Point Minerals Corp. [FPX-TSX] Happy Creek Minerals Ltd. [HPY-TSXV] Copper Fox Metals Inc. [CUU-TSXV] is reports drilling at the Decar nickel-iron has released final drill results from its 100%- preparing a feasibility study on the 100%- alloy project 80 km north of Fort St. James, owned, 162 km2 Fox tungsten property 75 owned Schaft Creek Project in northwest central BC, returned 563 metres of 0.156% km northeast of 100 Mile House. During BC, one of the largest undeveloped cop- DTR (Davis Tube magnetically Recovered) 2012, 29 holes were completed. Previously per, gold, molybdenum and silver deposits nickel, 550 metres of 0.153% DTR nickel released holes from the RC prospect outlined in North America. The feasibility study is and 534 metres of 0.140% DTR nickel. a zone of continuous mineralization. The BN being led by Tetra Tech Wardrop on a mini- Fortune Minerals Ltd. [FT-TSX] is prospect is 1 km south of the RC prospect. mum 120,000-tonne-per-day open-pit mine. focused on the development of the Arctos New results include F12-27 with 4.10 metres

Copper Mountain Mining Corp. Anthracite Project in northwest BC and of 1.78% WO3 (tungsten trioxide) at sur-

[CUM-TSX] operates the 75%-owned the NICO gold-cobalt-bismuth-copper face, 14.8 metres of 4% WO3 starting at 83.2

Copper Mountain Mine near Princeton, deposit in the Northwest Territories. The metres and 24 metres of 0.79% WO3 start- southwest BC. The company has a strategic company recently reported results of an ing at 136 metres. A 250-metre step-out to

alliance with Mitsubishi Materials Corp. updated Definitive Feasibility Study (DFS) the west returned 2.1 metres of 0.52% WO3 which owns the remaining 25%. The mine for the Arctos Project, formerly known as starting at 56 metres in F12-29. The BK pros- began production in summer 2011 and the Mount Klappan Project, which is a col- pect is 1 km north of the RC prospect, and

has continued to improve its operations. It laborative project by the Arctos Anthracite F12-20 returned five metres of 0.68% WO3 attained design capacity in summer 2012. Joint Venture between Fortune (80%) and starting at 28 metres. Results indicate there The 18,000-acre site has a resource of some POSCAN (20%), the Canadian subsidiary are multiple (stacked) mineralized zones,

24 www.resourceworld.com DECEMBER 2012/JANUARY 2013 potentially economic grades in three areas zinc-silver-gold prospect is in the Osoyoos Known as the Big Bear Project, the pros- over a 2 km distance and 250-metre width, Mining Division and the Scandie silver- pect is situated between two mineralized and all mineralized zones are open in extent. lead prospect is in the Grrenwood Mining systems – New Gold Inc.’s Blackwater Gold Huldra Silver Inc. [HDA-TSXV] has Division – both 100% optioned. Project and the Capoose properties. In been commissioning its 200-tonne-per-day PJX Resources Inc. [PJX-TSXV] is November, the company began a drilling silver, lead and zinc crushing, grinding exploring the historical mining areas program on five target areas and expects to and flotation mill in Merritt, southern BC. of Cranbrook and Kimberley, southeast complete the planned 1,500 metres of core The company owns the Treasure Mountain BC. PJX has four gold properties in the drilling by the end of December. Mine 70 km south of Merritt. Under the Cranbrook area. Gold discoveries on the Pretium Resources Inc. [PVG-TSX, supervision of a metallurgical engineering large Dewdney Trail property will be NYSE] has released the 2012, Valley of the consultant, the company has been mak- the primary focus of exploration for the Kings, mineral resource estimate for its ing minor modifications to the processing company. Zones with gold mineralization wholly owned Brucejack Project in north- plant. Huldra recently hired additional will also be explored to develop targets west BC. Indicated mineral resources in managers, consultants and employees to on the Vine, Zinger and Eddy properties. the Valley of the Kings increased by 66% begin operating the mill 24 hours a day, Multiple target areas with gold and base to 8.5 million ounces of gold at a cut-off seven days a week, upon approval of the metal potential on the Eddy property will grade of 5.0 grams of gold equivalent/ Ministry of Energy and Mines. be the first to be drill tested. tonne since the interim September 2012 Imperial Metals Corp. [III-TSX] New Gold Inc. [NGD-TSX, NYSE] met mineral resource estimate. High-grade has operating mines, development and its targeted June 2012 production start gold resources in the Valley of the Kings exploration projects in BC. The com- at the underground New Afton gold- total 8.5 million oz gold in the indicated pany operates the Mount Polley open pit silver-copper mine near Kamloops and resource category (16.1 million tonnes copper-gold mine in central BC and the began commercial production ahead of grading 16.4 g/t gold) and 2.9 million oz Huckleberry open pit copper-molybde- schedule in July 2012. The company is also gold in the inferred resource category (5.4 num mine in northern BC (50% interest). exploring its Blackwater Project 150 km million tonnes grading 17.0 g/t gold). The development project is the Red Chris southwest of Vanderhoof where indicated Romios Gold Resources Inc. [RG-TSXV] copper-gold project in northern BC. resources total 7.1 million oz gold with recently reported results from its dia- Exploration projects include the Catface inferred resources at 2.5 million oz. mond drill program at the Ken Zone on copper-moly project on Vancouver Island New Carolin Gold Corp. [LAD-TSXV] the Newmont Lake Project located in the and the Ruddock Creek zinc-lead project has entered into a letter of intent for Golden Triangle District of northwest BC, 155 km northeast of Kamloops. Shoreline Resource Management Group which included 3.28 metres of 1.39 grams International Bethlehem Mining of Oakville, Ontario to establish a tailings gold/tonne, 0.43% copper, and 5.34 grams Corp. [IBC-TSXV] recently completed an gold processing facility at its past-produc- silver/tonne. infill diamond drill hole on the 100%- ing Carolin Mine near Hope, southwest Seabridge Gold Inc. [SEA-TSX]. See owned LH property 7 km south of BC, in 2013. The NI 43-101 resource study article on page 50. Silverton, southeast BC, on the east side of delineated an indicated resource estimate Sego Resources Inc. [SGZ-TSXV] has Slocan Lake. The 19 Crown grants cover of 23,700 oz gold in 445,378 tons at a cut- been exploring its the Miner Mountain about 350 hectares, plus some staked off grade of 1.0 g/t gold and an inferred Project, a copper-gold porphyry pros- claims. Previous drilling the in 1980s resource estimate of 5,000 oz gold in 93,304 pect near Princeton, southwest BC, 15 km returned up to 1.0 oz gold/ton over 1.0 tons at a cutoff grade of 1.0 g/t. north of the Copper Mountain Mining- metres. New drill core assays are pending. New Nadina Explorations Ltd. Mitsubishi producing Copper Mountain Intigold Mines Ltd. [IGD-TSXV] holds [NNA-TSXV] has made a significant cop- Mine. Drill results include 100.39 metres five exploration projects in BC, includ- per-moly-gold porphyry discovery at its grading 0.964% copper, 0.55 g/t gold and ing Beaverdell, Donnamore, Evening Star, past-producing Silver Queen Mine near 3.473 g/t silver in DDH 21, including 35.05 Goldpost and Scandie. Intigold can earn Houston, BC. The mine has historic non-NI metres of 2.457% copper, 1.35 g/t gold a 100% interest in the Beaverdell claims 43-101 resources of 523,900 tonnes grad- and 8.896 g/t silver. in south-central BC from St. Elias Mines ing 3.70 g/t gold, 257.60 g/t silver, 0.49% Serengeti Resources Inc. [SIR-TSXV] Ltd. [SLI-TSXV] by making payments copper, 1.49% lead and 6.53% zinc. New is focused on exploration for copper and (cash and shares) and work commitments. Nadina is following up on its new discovery. gold deposits in the Quesnel Trough of cen- The 100%-optioned Donnamore leas-zinc- Parlane Resource Corp. [PPP-TSXV] has tral BC. The company has 15 100%-owned silver prospect is in the Adams plateau completed the acquisition of an undivided properties totaling 87,000 hectares and 12 region in Kamloops Mining Division. The 100% interest in 31 claims covering 14,366 properties in the Quest joint venture (64%) 100%-optioned Evening Star gold vein hectares in the Omineca mining division, totaling 41,000 hectares with Fjordland prospect is in the Slocan region. The lead- southwest of Prince George, central BC. Exploration Inc. [FEX-TSXV] (36%).

DECEMBER 2012/JANUARY 2013 www.resourceworld.com 25 Silver Mountain Mines Inc. [SMM- Assessment process, one of the largest unde- g/t silver and 45 g/t gold. TSXV] reported results of the remaining veloped gold-copper deposits in the world. Troymet Exploration Corp. [TYE- 32 drill holes completed as part of the In addition, the Aley niobium project in TSXV] has completed the fall drilling 2012 diamond drill program on its 100%- nortyhern BC and the Harmony gold project program on its 100%-owned Key gold owned Ptarmigan property near Radium, in Haid Gwaii are two longer term develop- project, 125 km southwest of Vanderhoof, eastern BC. Drilling intersected additional ment opportunities. northern BC. The prospect is adjacent to high-grade, silver-bearing veins and Teck Resources Ltd. [TCK.B-TSX; New Gold’s Blackwater Project. A total of semi-massive-to-massive pyrite-enriched TCK-NYSE] has a 97.5% interest in the 867 metres of reverse-circulation drilling manto-style mineralization. The most Highland Valley Copper Mine near Logan (RC) were completed in 16 holes. Drilling significant mineralized zones were in the Lake, south central BC. The open pit oper- tested gold-in-soil anomalies plus or minus Ptarmigan Mine area and a mineralized ation produces copper and molybdenum coincident induced polarization anomalies fault structure in the East Ptarmigan area. concentrates. A new life of mine plan has in the Buzz (10 holes), SGN (two holes), P1A Highlights from the Ptarmigan Mine area recently been developed extendeding the (two holes) and Blue (two holes) target areas. include 1,576 g/t silver and 0.74 g/t gold mine life to 2025, assuming additional per- Assays are pending. over 0.60 metres in PT 12-72; 433 g/t sil- mit amendments. Teck and 50/50 partner Westhaven Ventures Inc. [WHN-TSXV] ver and 0.54 g/t gold over 1.40 metres, NovaGold Resources Inc. [NG-TSX] have has completed drilling on its 16,421-hect- including 666 g/t silver and 0.79 g/t gold been evaluating the Galore Creek Project are Shovelnose gold property 30 km south over 0.90 metres in PT12-74. Other holes 150 km north-west of Stewart. Teck oper- of Merritt. The property is a gold-silver reported good assays. ates a number of coal mines: five mines in epithermal-style exploration target that cov- Sona Resources Corp. [SYS-TSXV] has BC and one in Alberta. Teck wholly owns ers prospective stratigraphy in the southern been advancing the Blackdome-Elizabeth the Coal Mountain, Cardinal River (AB), Spences Bridge gold belt. Drilling comprised Gold Project in the Clinton and Lillooet Fording River and Line Creek mines, and five holes totaling 778 metres of diamond Mining Districts, about 220 km north have a 95% partnership interest in the drilling. The Tower Creek valley, a promi- of Vancouver. Sona recently received a Elkview Mine and an 80% joint venture nent structural feature located between the conditional Special Use Permit for the interest in the Greenhills Mine. Tower and Mik zones, was identified as a construction of ~5 km of road, which will Thompson Creek Metals Company priority target for further evaluation. The connect the past-producing Blackdome Inc. [TCM-TSX; TC-NYSE; A6R-Frankfurt] drill program further evaluated this area, as Gold Mine and the Elizabeth gold deposit is in the process of constructing the Mt. well as targets within the property that have property by existing forest service roads Milligan copper-gold mine in northern BC, been identified based on gold and associated to facilitate the transportation of mineral- expected to be in production in Q3 2013. pathfinder element soil values. ized rock from Elizabeth to the processing Copper reserves are 2.1 billion lbs with gold Yellowhead Mining Inc. [YMI-TSXV] mill at Blackdome. Construction of the reserves of 6 million oz. The company also has a 100% interest in the Harper Creek road is scheduled for summer 2013. Sona has a 75% interest in the open pit molyb- copper-gold-silver development project in has also been granted an effluent discharge denum Endako Mine, 188 miles west of south-central BC, approximately 150 km by permit Prince George. Thompson Creek also owns highway north of Kamloops. Harper Creek Spanish Mountain Gold Ltd. [SPA- two exploration-stage prospects in BC; the is one of the largest copper development TSXV; S3Y-Frankfurt] has completed a Berg property, a copper-molybdenum-silver projects in Canada. A detailed feasibility positive preliminary economic assessment deposit with significant resources located study was completed in March 2012 that (PEA) (NI 43-101 compliant) for the 100%- in west-central BC, and the Davidson prop- envisioned an estimated production over owned Spanish Mountain gold project, erty, a high-grade molybdenum deposit life-of-mine of 3.63 billion lbs copper, central BC. Results of the PEA demon- located under Hudson Bay Mountain, near 372,000 oz gold and 14 million oz silver in strate the potential technical and economic Smithers. concentrate. Mine life would be 28 years at a viability of establishing a new gold mine Tower Resources Ltd. [TWR-TSXV] milling rate of 70,000 tpd. Total proven and and mill complex on the project. (See p. reported assay results from grab samples probable reserves are 704.4 Mt at 0.262% 64) taken at its 100%-controlled Waterloo copper, 0.029 g/t gold and 1.14 g/t silver at a Taseko Mines Ltd. [TKO-TSX; TGB- property, 65 km east of Kelowna, near 0.14% copper cut-off. There is adjacent rail, NYSE MKT] is the 75% owner and the historic Lightning Peak silver and road, power and town infrastructure. n operator of the Gibraltar Mine 65 km north gold mining camp. The 2012 pre-drilling of Williams Lake, the second largest open exploration program was focused near pit copper-molybdenum mine in Canada. the historic Waterloo Mine and consisted A Japanese consortium owns the remaining of geological mapping, prospecting, geo- 25%. Taseko also owns the New Prosperity physical surveys, and confirmation soil Project, currently in the Environmental geochemistry. Assays ranged up to 3,095

26 www.resourceworld.com DECEMBER 2012/JANUARY 2013