Blind Creek Resources Ltd. Corporate Presentation · Corporate Presentation Blende Zn-Pb-Ag...
Transcript of Blind Creek Resources Ltd. Corporate Presentation · Corporate Presentation Blende Zn-Pb-Ag...
Blind Creek Resources Ltd. Corporate Presentation
Blende Zn-Pb-Ag Deposit, Yukon
June, 2017
This presentation does not constitute an offer to sell or solicitation of an offer to buy securities of Blind Creek Resources Ltd.
Mr. Brian Fowler, P.Geo. a Qualified Persons as defined by National Instrument 43-101, has verified the authenticity and validity of the technical data herein.
FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statements". These forward-looking statements are made as of the date of this presentation and BCGold Corp. does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements include, but are not limited to, statements with respect to the timing and amount of estimated future exploration, success of exploration activities, expenditures, permitting, and requirements for additional capital and access to data. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; the ability to enter into joint ventures or to acquire or dispose of property interests; future prices of mineral resources; accidents, labor disputes and other risks of the mining industry; ability to obtain financing; and delays in obtaining governmental approvals or financing.
2
Cautionary Statement
Blind Creek – The Company
• Focused on lead-zinc-silver property acquisitions, exploration and development in Western Canada.
• Established in 2004.
• 100% ownership in 2 quality resource-stage properties.
• Recently acquired and enlarged the historic high-grade gold Engineer Gold Mine Property.
• Highly experienced Board of Directors and Management.
• 20.1 million shares issued; no warrants.
• 43% shares held by Company insiders.
3
Board of Directors and Management
• Brian P. Fowler – President
Mr. Fowler, P.Geo. has 38 years of mineral exploration experience from grassroots work to feasibility studies and mine development, and has fulfilled roles in the exploration industry from field geologist to corporate executive and director. Mr. Fowler’s career includes project identification, acquisition and advancement throughout Canada and internationally, exploring for a wide range of commodities including gold, silver and base metals. Mr. Fowler has consulted for 23 years and worked for major companies such as Placer Dome Inc. and Quadra Mining Ltd. in management roles for 15 years. For the past 11 years Mr. Fowler has worked primarily as a mining executive and founded a number of publicly traded junior exploration companies.
• Thomas Kennedy – CEO, Director
Mr. Kennedy, B.Comm., J.D., is a graduate of the University of British Columbia. After an initial career at the Federal Department of Justice, Mr. Kennedy has primarily focused as a legal, financial and business consultant to publicly-traded companies. Mr. Kennedy is currently a member of the Law Society of British Columbia, the Canadian Bar Association, the British Columbia Bar Association, and an Associate member of the American Bar Association. Mr. Kennedy is also an officer and/or director of several TSX, TSX-V, CSE and OTCQB publicly traded companies.
• Christopher P. Cherry - CFO, Director
Mr. Cherry has over 14 years of corporate accounting and audit experience. He has extensive corporate experience and has held senior level positions for several public mining companies including Director, Chief Financial Officer, and Secretary. Mr. Cherry has been a Chartered Accountant since February 2009 and a Certified General Accountant since 2004. In his former experience as an auditor, he held positions with KPMG and Davidson and Co. LLP in Vancouver, where he gained experience as an auditor for junior public companies, and an IPO specialist.
• Andrew H. Rees - Director
Mr. Rees, B.Comm, has been involved with public resource companies since 1998. Mr. Rees also serves as President of WellStar Energy Corp. and serves as Director for several other resource companies.
• Glen Macdonald - Director
Mr. Macdonald to the Company's board of directors. Mr. Macdonald is a geological consultant with over 35 years' experience in prospecting, property evaluation, exploration and development of open pit and underground mines. Mr. Macdonald also has mill processing experience as an operator and project manager. He has held numerous positions with public companies listed on the TSX and TSX Venture Exchanges as an officer and a director.
4
Why Invest in a Zinc Explorer?
• Zinc was the second-best performing commodity in 2016, with a staggering 65.7% return.
• Used primarily in galvanizing steel, Zinc is up 38% over the year to $1.17/lb.
• The zinc price is near a 5 year high as inventories are also near a 5 year low at ~380,000 tonnes (LME).
• Two of the largest zinc mines in the world have closed in the last few years (Century and Lisheen) due to ore depletion, removing ~4 % of world supply.
• “The next two years, 2016 and 2017, represent the ‘pinch point’ of concentrate supply, with mine-closure related cuts expected to outweigh new output from projects.” Wood Mackenzie Analyst, Jonathan Leng.
• Wood Mackenzie, a leading research firm has a peak price target of $4000 US/tonne ($1.80 per lb) in 2018.
• “The best way for investors to play a zinc price move would be to invest in zinc equities.” James Fraser, editor of Mining Stocks Investor Guide
5
6
• Central Yukon
• Southern Wernecke Mtns
• 410 km North of Whitehorse
• 110 km North East of Mayo
• 63 km North of Keno Hill
• 100% owned by Blind Creek
Blende Property Location
Blende Project Highlights
7
• 100% owned, winter-road accessible 5,346 ha property situated 63 km northeast of Keno Hill, Yukon.
• One of the largest undeveloped Ag-Pb-Zn deposits in Western Canada.
• >$9.2M in past exploration ($5.2M by Blind Creek); includes 24,334m drilling in 125 drill holes.
• Billiton (1991) historic open pit resource* of 19.6Mt averaging 3.04% Zn, 2.80% Pb and 56 g/t Ag (shallow, sulphide-only). Past drilling indicates an overall grade increase at depth, and that the deposit remains open along strike and at depth.
• Mineralization extends 8 km along strike and provides potential for a combined open pit / underground mining operation.
• Recent advances in oxide Zn and Pb recovery processes offers significant resource upside.
• 2017 exploration program to focus on additional metallurgical studies, geochemical analyses, geological mapping, sampling, geological modeling, step-out and down dip drilling and resource estimation. Results to be documented in a NI43-101 technical report and provide the basis for a PEA (Preliminary Economic Assessment).
*The above mentioned estimates do not conform with National Instrument 43-101. Neither Blind Creek nor its consultants have completed sufficient work to verify the Historical estimates and these should not be relied upon for investment decisions. The estimates are referred to as Historical Resources. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Company is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
8
Winter Road Access
• 58 km along Wind River
Winter Road
Blende Property History
• 1961 GSC noted Zn-Pb mineralization
• 1975 Cyprus Anvil Staked
• 1981 Archer-Cathro Restaked
• 1987 NDU Resources Purchased
• 1989 Billiton Resources Optioned
• 1993 NDU Reassumed Control
• 1998 NDU merged with Keno Hill Mines which went into receivership and allowed claims to lapse
• 2002 Restaked by Eagle Plains Resources Ltd.
• 2005 Eagle Plains – Blind Creek Resources Option
• 2008 Blind Creek acquired 100% Ownership 9
Blende Property - Billiton (1991) Historical Resource Estimate
10
Blende Property, Yukon Billiton (1991) Historical Resource Estimate*
Tonnes Zinc (%)
Lead (%)
Silver (g/t)
Total Zinc (M lbs)
Total Lead (M lbs)
Total Silver (M oz)
West Zone 15,300,000 3.04 3.23 67.5 1,023 1,087 33.2
East Zone 4,300,000 3.05 1.31 15.1 287 120 2.1
TOTALS 19,600,000 3.04 2.80 56.0 1,310 1,207 35.3
*The above mentioned estimates do not conform with National Instrument 43-101. Neither Blind Creek nor its consultants have completed sufficient work to verify the Historical estimates and these should not be relied upon for investment decisions. The estimates are referred to as Historical Resources. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Company is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
Blende Mineralization
• Strata-bound carbonate-hosted Zn-Pb-Ag deposit.
• Spatially associated with a middle Proterozoic structural zone characterized by shearing, brecciation, veining and wall rock replacement.
• Mineralization is epigenetic and consists of sphalerite, galena, smithsonite and minor chalcopyrite.
• Gangue minerals are dolospar, siderite and quartz
11
Blende Property Geology
12
Blende Pb-Zn-Ag Mineralization
• Highest grade of mineralization associated with veining and breccia zones with typical grades of 8 to 20% Pb + Zn over 1-2 m.
• Grades up to 9.5m @ 351g/t Ag, 14.1% Pb, 6.6% Zn; 14.9m @ 228 g/t Ag, 9.71% Pb, 5.5% Zn, 0.78% Cu (Far-West).
• Zn-Pb Showings and mineralization extend 8 km along a structural zone, open in all directions.
• Discovery of Shanghai (Far-East) Zone in 2004 extends known trend.
13
14
INSET
Blende Pb-Zn-Ag Mineralization
Blende West Zone
15
FUTURE DRILLING TO TEST NEW TARGETS, INFILL EXISTING DRILLING AND TO EVALUATE UNDERGROUND MINING POTENTIAL.
HIGHEST GRADE OF MINERALIZATION ASSOCIATED WITH VEINING AND BRECCIA WITH TYPICAL GRADES OF 8% TO 20% LEAD+ZINC OVER 1-2 METRES.
LEAD-ZINC SHOWINGS & MINERALIZATION EXTEND 6 KM ALONG A STRUCTURAL ZONE.
Blende Exploration Upsides
• Historic 1991 Billiton resource based on open pit mining method, no deep drilling.
• No oxide mineralization included in Billiton (1991) resource calculation.
• Deposit size and tenor could significantly increase through incorporation of recent metallurgical advances made in oxide material processing and recoveries.
• Recent discovery of new mineralization 3km to east (2004).
• Base metal grades increase with depth, with notable copper and silver grade increase at depth in West Zone.
• Excellent potential for a combined open pit / underground mining operation.
16
Proposed 2017 Blende Exploration Program
• Metallurgical study to assess processing and lead / zinc recovery upsides from oxide material.
• Geological mapping and sampling program along extensions of the main Blende mineralization corridor.
• Extensional and deeper drilling to increase deposit size and grade.
• Geological and resource model development and updates, with the intention of developing a NI43-101 compliant resource estimate by year end.
17
Blende Property Camp
18
Blende 1990 and 1991 Drill Core Stored on Site at Old Camp Area
19
East Zone Drilling
20
Engineer Gold Mine – Yesterday and Today
21
The Engineer Gold Mine
• On April 26th, 2017 Blind Creek announced it had completed the acquisition of the fully-permitted, historic high-grade Engineer Gold Mine and mill, situated 32 km southwest of Atlin, B.C.
• Engineer Gold Mine produced 18,000 ounces gold and 9,000 ounces silver averaging 39 g/t Au and 18 g/t Ag, respectively, in the 1920’s.
• “Porgera-style” epithermal system with > 25 known veins and 2 major shear structures providing excellent exploration upside for additional high-grade and large bulk-tonnage gold deposits.
• Blind Creek recently tripled the Engineer property size to 11,668 ha.
• Small, 3-year, high-grade gold production opportunity defined by previous owner BCGold Corp.
• Excellent exploration potential for additional high-grade, narrow-vein, and shear-hosted bulk-tonnage gold deposits to occur on the property.
22
Engineer Gold Mine, B.C.
23
• Mine is situated in northwestern B.C., 32 km southwest of Atlin.
• Access by float / ski-equipped plane, helicopter, boat and barge.
• Historic mine situated on patented crown grants.
• >$4.7M expenditures by previous owner(BCGold).
Engineer Gold Mine, Tagish Lake B.C.
24
Engineer Gold Mine Claim Map
25
• Blind Creek recently tripled property size to 11,668 ha.
• Property overlays the entire Engineer Gold Mine Camp.
Regional and Engineer Gold Mine Crown Grants Property Geology
26
Hub A Hub B
• Adjacent to Llewellyn Fault; major domain boundary between Stikine and Nisling Terrains.
• Black sediments intruded by quartz monzonite to diorite dykes and stocks
• Property cut by Llewellyn-related shear zones up to 150 metres wide hosting hydrothermal breccia and low-grade gold.
• > 25 narrow, dilational veins discovered to date with high-grade gold mineralization.
Engineer Gold Mine Production History
• Past production was primarily from 2 high-grade gold (39 g/t Au) and silver (19 g/t) veins on 8 mine levels.
• Mine workings access 7 veins, all open at depth. Four veins with high-grade mineralization above the 5th Level (main haulage).
• Veins and high-grade gold mineralization has been confirmed by the previous owner to extend below the deepest mine level by recent drilling, (22.32 g/t Au over 0.96 metres), mine dewatering, bulk sampling and on-site milling.
• Previous owner BCGold test-mined and milled 5 bulk samples totaling 246 tonnes from remnant pillars of the Engineer Vein in 2011, producing 826 kg of gold gravity concentrate (containing 68 oz gold) which was monetized for US$107,000 (Net).
27
Engineer Gold Mine – Shear Zones, Veins, Surface Drilling & Underground
Development (Level 5)
28
Hub B
Shear B
Hub A
Shear A
• 5,500 m of underground development on 8 levels.
• 5th Level portal with rail.
• 2 styles of epithermal gold mineralization.
• Narrow high grade veins (0.3 – 3.0 m, >35 g/t Au).
• Broad, low grade shear structures with hydrothermal breccias (0.45 g/t over 34 m).
• Unexplored below 200 m from surface.
• BCGold conducted 1,850 m drill program in 2008 (Shear Zone A), 1,100 m UG drill programs in 2010 (Engineer & Double Decker Veins) & mined and milled 6 bulk samples (246.1 tonnes) as part of a 2011, $1.1 million exploration program.
Engineer Exploration Model and Upside
• The historic Engineer Gold Mine has the earmarks of a large epithermal gold mineralizing system (bulk tonnage gold and narrow vein high-grade gold and roscoelite) similar to world-class epithermal gold systems such as the Porgera (+10M oz Au), Cripple Creek and Emperor gold deposits.
• Property has >25 known veins and >8 km of untested, 2nd order shear structures known to host large bodies of hydrothermal breccias with low-grade gold and silver.
• Overall less than 5,000 metres of drilling on the property – mostly by the previous owner (BCGold).
• Previous owner focused on a small tonnage, high-grade gold production opportunity. The Engineer Gold Mine has never been properly assessed by a modern day, deliberate and well-funded exploration program.
• The exploration potential for additional high-grade gold mineralization at the Engineer Gold Mine is strongly supported in 2 recent geological papers published by Dr. Leo Millonig et.al. as part of a post-doctoral research study at U.B.C.
29
Engineer Exploration Model and Upside
• BCGold drilling in 2008 defined a continuous low-grade gold-bearing hydothermal breccia body over a 400 metre strike length in Shear Zone A, with first-pass drill intercepts up to 0.45 g/t Au over 34 metres.
• First-pass soil geochemical surveys by the previous owner has defined numerous un-explained Au-Ag-As-Sb soil anomalies proximal to Engineer Mine.
• Numerous un-explained magnetic and EM resistivity anomalies occur in proximity to the soil anomalies and along strike of Shear Zone “A”.
• Blind Creek is positioned to drill test 4 separate bulk tonnage gold targets, radiating from a central intrusive core immediately south of the mine workings, believed to represent the heart of the Engineer mineralizing system.
30
Bonanza-style Epithermal Gold Veins
31
3 cm
Engineer Vein Gold Boulder Vein Sheet Gold
Vein mineralogy
quartz-carbonate-muscovite
roscoelite
arsenopyrite
arsenic
antimony
realgar
allemontite (native arsenic+stibarsen)
stibnite
pyrrhotite
Ore minerals: Au, Ag (electrum)
Occurs free in quartz, and bonanza grades with roscoelite
UBC / Mitacs Engineer Gold Mine Postdoctoral Research Study
Dr. Leo Millonig (Postdoc Fellow)
– Supervisors: Dr. Lee Groat, UBC / Dr. Robert Linnen, UWO
• 1 year / $85,000 postdoc thesis studied:
– Gold deportment / Vein mineralogy / Geochemistry / Chronology
– SEM / Microprobe / XRD / LA ICP-MS / Isotope analysis
– Triggers to gold deposition / Consequences for exploration
• Results include:
– Auriferous aspy grading 6 ppm to 683 ppm Au
– Strong Au / As / Cu correlation
– Age dates: Ar/Ar 49 Ma; 54 Ma U/Pb
– Bonanza gold system open to depth.
• Final report received – April, 2015.
• 2 scientific papers published. 32
Engineer Gold Mine Underground Workings, Veins and Mined Areas
33
Engineer Gold Mine Property VulcanTM Model & 2010 Underground
Drilling
34
43-101 Engineer Gold Mine Resource Estimate
35
Cut-Off Category Vein Tonnes Au (g/t) Contained
Au (oz)
5 g/t Au
Inferred Engineer 30,800 20.6 20,400
Inferred Double
Decker 10,100 13.1 4,400
Total(3) 41,000 19.0 25,000
25 g/t Au
Inferred Engineer 10,400 60 20,100
Inferred Double
Decker 3,600 30 3,500
Total(3) 14,000 52.5 23,600
ENGINEER MINE INFERRED MINERAL RESOURCE ESTIMATE *
Note: Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
* April 18th, 2011 Snowden NI 43-101 estimate
Engineer Gold Mine Camp
36
All-season 20 man trailer camp on property
Permanent industrial dock for loading and offloading float planes and barges.
Engineer Gold Mine Mill Complex
37
Fully functional, permitted 30 tpd gravity separation mill on site
Engineer Gold Mine Shaft and Mining Equipment
38
• Loci, mucker and 4-1 ton ore cars on site
• 10 ton Truck and 931 Cat Dozer
• Level 5 portal and shaft
BCGold Bulk Sampling and Mine Dewatering Programs
39
• BCGold test-mined and milled 5 bulk samples totaling 246 tonnes from remnant pillars of the Engineer Vein in 2011, producing 826 kg of gold gravity concentrate (containing 68 oz gold) which was monetized for US$107,000 (Net).
• 5th Level bulk sampling in 2011 defined the tops of 2 high-grade gold shoots in Engineer Vein, estimated to contain up to 17,000 oz. gold grading between 30 – 60 g/t gold between 5 and 7 Levels.
• Production drifts already in place on 6, 7 and 8 Levels of Engineer Vein.
• BCGold successfully dewatered 6 and 7 Levels of underground workings in 2012, confirming gold grade and depth extent of 3 high-grade gold shoots on Engineer Vein. This further “de-risked” continued high-grade mining on Engineer Vein.
Engineer Vein Resource, 2011 Bulk Sample Mining Grades and New Mining Targets
40
Engineer Vein, Bulk Sample Gold / Roscoelite and Gold Stream on Finishing
Table (2011)
41
Gold
0 3 6 9 12 15
cm
Engineer Gold Mine Resource, Bulk Sample and Underground Exploration Targets
42
Double Decker Vein Long Section 2010 Underground Drilling Results
43
• High-grade gold confirmed 21 metres below deepest mine level (8 Level).
Shear Zone ‘A’ – Bulk Tonnage Gold Exploration Drill Results and Targets
44
Previous Property Boundary
(Adjoining Ground Acquired
in 2013)
Shear Zone ‘B’ – Bulk Tonnage Gold Exploration Drill Results and Targets
45
Engineer Gold Mine Property Airborne Magnetics (TMI)
46
Engineer Gold Mine Proposed Drilling 8 holes – 2,400 m; 4 Bulk Tonnage Targets
47
New Magnetic High (Intrusive Stock) Diamond Drill Target
Current Drill Holes
Proposed Drill Holes
Former Property Boundary
Hub A Silica Cap
Shear B
Hub B Silica Cap
500 m
Shear “A” Axis
Resistivity High Drill Target
Engineer Gold Mine Property EM Resistivity (100m Depth Slice)
48
Engineer Gold Mine Proposed Drilling 8 holes – 2,400 m; 4 Bulk Tonnage Targets
49
New Magnetic High (Intrusive Stock) Diamond Drill Target
Current Drill Holes
Proposed Drill Holes
0.5km X 1.0km Resistivity High on Shear Zone A south of 2008 drilling
Hub A Silica Cap
Shear B
Hub B Silica Cap
500 m
Shear “A” Axis
Shear Zone “A” Resistivity Long Section
50
High Res Drill
Target Area
BC Gold-Silver-Arsenic-Antimony MMI Anomaly Defined
• “BC” gold-silver-arsenic-antimony MMI anomaly defined by 2016 MMI soil survey.
• Measures 300m x 250m; open to the east.
• Occurs 450 m east of mine, near intersection of Shear A and Shear B structures.
• Blind Creek to conduct follow-up soil sampling and trenching program in 2017.
51
Proposed Engineer 2017 Exploration Budget and Timeline
52
Expenditure Comments
Diamond
Drilling $600,000
8 holes, 2,400 m drilling on 4 bulk
tonnage targets
MMI Soil
Sampling $140,000
Define drill targets on Shear A and
Happy Sullivan Structures
Trenching $60,000 Wann / Happy Sullivan access and
Trenching
$800,000
Activity June July August
Mobe X
Drilling ---XX XXXX
Soil Survey --XX XXX
Trenching -XXX XX
Blind Creek Resources Ltd. Engineer Gold Mine Once Again
53
BLIND CREEK RESOURCES - CORPORATE INFORMATION
TSX.V: BCK – 20.1MM shares issued
Suite 804, 750 West Pender Street
Vancouver, BC, CAN, V6C 2T7
54
Contacts
Brian Fowler, P.Geo. – President
(604) 617-8191
Corporate Communications
Brook Bellian (778) 883-7869
Nelson Da Silva (604) 722-0041
www.blindcreekresources.com