2012 Technical Report on the Red Chris Copper-Gold Project
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2012 Technical Report on the Red Chris Copper-Gold Project Drilling to the End of 2006 Red Chris Deposit British Columbia Liard Mining Division Latitude 57° 42' North, Drilling to the End of 2009 Longitude 129° 47' West NTS map sheet 104H/12W Authors: Greg Gillstrom, P.Eng. Raj Anand, M.Eng; P.Eng. Steve Robertson, P.Geo. Paul Sterling, P.Eng. Report Date: February 14, 2012 Drilling to the End of 2011 Amended and Restated Date: September 30, 2015 Effective Date for the Reserve/Resource Estimate: February 2, 2012 Imperial Metals Imperial Metals Corporation Suite 200, 580 Hornby Street Vancouver BC, V6C 3B6 www.imperialmetals.com BACK OF COVER PAGE This page was intentionally left blank to facilitate two sided printing of this document TABLE OF CONTENTS 1 SUMMARY .................................................................................................................................. 1-1 1.1 Summary Introduction ............................................................................................................................. 1-1 1.2 Location and Background ........................................................................................................................ 1-3 1.3 Exploration ............................................................................................................................................... 1-4 1.4 2012 Red Chris Resources ........................................................................................................................ 1-8 1.5 Feasibility Study ....................................................................................................................................... 1-8 1.6 Financial Conclusions .............................................................................................................................. 1-9 1.7 Key Updates since the 2005 Feasibility Study (to Feb. 14, 2015) ........................................................... 1-11 1.8 Ownership and Agreements ................................................................................................................... 1-12 1.9 Feasibility Mineral Reserves .................................................................................................................. 1-14 1.10 Mining ................................................................................................................................................ 1-14 1.11 Processing .......................................................................................................................................... 1-15 1.12 Tailings Storage Facility and Associated Structures ......................................................................... 1-15 1.13 Ancillary Facilities ............................................................................................................................. 1-15 1.14 Permitting Status ............................................................................................................................... 1-16 1.15 First Nations ...................................................................................................................................... 1-17 1.16 Capital Cost Summary ...................................................................................................................... 1-18 1.17 Operating Cost Summary .................................................................................................................. 1-19 1.18 Schedule ............................................................................................................................................. 1-20 1.19 Financial Analysis .............................................................................................................................. 1-21 1.19.1 Valuation Methodology ................................................................................................................... 1-21 1.19.2 Sensitivity Analysis ......................................................................................................................... 1-21 1.20 Recommendations .............................................................................................................................. 1-24 2 INTRODUCTION AND TERMS OF REFERENCE ...................................................... 2-25 3 RELIANCE ON OTHER EXPERTS .................................................................................. 3-28 i Red Chris 2012 Technical Report 4 PROPERTY DESCRIPTION AND LOCATION ............................................................ 4-29 4.1 Location and Claim Status ..................................................................................................................... 4-29 4.2 Claim Information (Mineral Tenure) .................................................................................................... 4-29 4.3 Permits and Agreements ........................................................................................................................ 4-34 4.3.1 Exploration Permits .............................................................................................................................. 4-34 4.3.2 Project Development, Operation and Closure Permits ......................................................................... 4-34 4.3.3 Agreements ........................................................................................................................................... 4-36 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ............................................................................................................................ 5-39 5.1 Northwest Transmission Line Project ................................................................................................... 5-40 6 HISTORY ................................................................................................................................... 6-41 6.1 Exploration History ................................................................................................................................ 6-43 7 GEOLOGICAL SETTING .................................................................................................... 7-47 7.1 Introduction............................................................................................................................................ 7-47 7.2 Tectonic Setting ...................................................................................................................................... 7-47 7.3 Property Geology ................................................................................................................................... 7-50 7.4 Local Geology ......................................................................................................................................... 7-53 7.4.1 Red Stock setting .................................................................................................................................. 7-53 7.4.2 Red Stock geology ................................................................................................................................ 7-56 7.4.3 Red stock structure ............................................................................................................................... 7-56 7.5 Deposit hydrothermal alteration ............................................................................................................ 7-58 8 DEPOSIT TYPE ....................................................................................................................... 8-61 8.1 Classification .......................................................................................................................................... 8-61 8.2 Exploration model .................................................................................................................................. 8-62 9 MINERALIZATION ............................................................................................................... 9-64 9.1 Mineral zones ......................................................................................................................................... 9-64 9.2 Mineralization textures and veins .......................................................................................................... 9-64 10 EXPLORATION ................................................................................................................... 10-66 ii Red Chris 2012 Technical Report 10.1 Geophysical Surveys ........................................................................................................................ 10-66 10.1.1 Titan 24 Geophysical Survey ......................................................................................................... 10-66 10.1.2 Airborne Magnetic Survey ............................................................................................................. 10-66 10.1.3 Proton Magnetometer Survey ........................................................................................................ 10-66 10.1.4 Acoustic Televiewer Survey .......................................................................................................... 10-67 10.2 Geochemical Sampling .................................................................................................................... 10-70 10.2.1 Composite Sampling Program ......................................................................................................