Stratmat Technical Report and Resource Estimate

Transcription

Report to:
BEARTOOTH PLATINUM CORPORATION
Document No. 0887190300-REP-L0001-01
Report to:
BEARTOOTH PLATINUM CORPORATION
STRATMAT TECHNICAL REPORT
AND RESOURCE ESTIMATE
FEBRUARY 2009
Prepared by
“Original document, revision 01, signed
by Paul Daigle, P.Geo.”
Paul Daigle, P.Geo.
Date
Reviewed by
“Original document, revision 01, signed
by Gilles Arseneau, P.Geo.”
Gilles Arseneau, P.Geo.
Date
Authorized by “Original document, revision 01, signed
Date
by Tim Maunula, P.Geo.”
Tim Maunula, P.Geo.
February 17, 2009
February 17, 2009
February 17, 2009
330 Bay Street, Suite 900, Toronto, Ontario M5H 2S8
Phone: 416-368-9080 Fax: 416-368-1963
0887190300-REP-L0001-01
REVISION HISTORY
REV.
NO
ISSUE DATE
00
09/02/03
01
09/02/17
PREPARED BY
AND DATE
REVIEWED BY
AND DATE
APPROVED BY
AND DATE
P. Daigle
09/02/03
P. Daigle
09/02/17
G. Arseneau
09/02/03
G. Arseneau
09/02/17
T. Maunula
09/02/03
T. Maunula
09/02/17
DESCRIPTION OF REVISION
First Draft to Client
Final Report
0887190300-REP-L0001-01
TABLE OF CONTENTS
1.0 SUMMARY .......................................................................................................................... 1 2.0 INTRODUCTION AND TERMS OF REFERENCE .............................................................. 4 2.1 TERMS OF REFERENCE ......................................................................................................... 5 3.0 RELIANCE ON OTHER EXPERTS ..................................................................................... 6 4.0 PROPERTY DESCRIPTION AND LOCATION ................................................................... 7 4.1 4.2 4.3 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY .............................................................................................................. 11 5.1 5.2 5.3 5.4 5.5 6.0 ACCESSIBILITY .................................................................................................................... 11 CLIMATE ............................................................................................................................. 11 LOCAL RESOURCES ............................................................................................................ 12 INFRASTRUCTURE ............................................................................................................... 12 PHYSIOGRAPHY .................................................................................................................. 13 HISTORY........................................................................................................................... 14 6.1 6.2 6.3 7.0 PROPERTY LOCATION ........................................................................................................... 7 LOCATION ............................................................................................................................. 7 PROPERTY DESCRIPTION ...................................................................................................... 9 HISTORICAL PROPERTY OWNERSHIP ................................................................................... 14 HISTORICAL WORK COMPLETED .......................................................................................... 14 HISTORICAL RESOURCE ESTIMATE ...................................................................................... 15 GEOLOGICAL SETTING .................................................................................................. 17 7.1 7.2 REGIONAL GEOLOGY........................................................................................................... 17 PROPERTY GEOLOGY.......................................................................................................... 18 7.2.1 STRUCTURE ...................................................................................................... 20 8.0 DEPOSIT TYPE................................................................................................................. 21 9.0 MINERALIZATION ............................................................................................................ 22 10.0 EXPLORATION ................................................................................................................. 23 11.0 DRILLING .......................................................................................................................... 24 11.1 11.2 11.3 11.4 12.0 STRATMAT LTD., PRE-1961 ................................................................................................. 24 COMINCO, 1961 – 1981 ...................................................................................................... 25 NORANDA, 1986-1991 ........................................................................................................ 26 XSTRATA, 2005 .................................................................................................................. 28 SAMPLING METHOD AND APPROACH ......................................................................... 30 Beartooth Platinum Corporation
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13.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY............................................... 32 13.1 13.2 14.0 CUSTOM LABORATORIES LTD. ............................................................................................. 32 NORANDA EXPLORATION COMPANY, LIMITED ....................................................................... 32 DATA VERIFICATION ...................................................................................................... 34 14.1 14.2 DATA VERIFICATION ............................................................................................................ 34 SAMPLE ANALYSIS CHECK ................................................................................................... 34 15.0 ADJACENT PROPERTIES ............................................................................................... 36 16.0 MINERAL PROCESSING AND METALLURGICAL TESTING ......................................... 37 17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES .................................... 38 17.1 17.2 17.3 17.4 17.5 17.6 INTRODUCTION ................................................................................................................... 38 17.1.1 DATABASE ......................................................................................................... 38 17.1.2 SPECIFIC GRAVITY ............................................................................................. 38 EXPLORATORY DATA ANALYSIS ........................................................................................... 38 17.2.1 ASSAY VALUES .................................................................................................. 39 17.2.2 CAPPING ........................................................................................................... 41 17.2.3 COMPOSITES ..................................................................................................... 41 GEOLOGICAL INTERPRETATION ............................................................................................ 42 SEARCH ELLIPSE ORIENTATIONS ......................................................................................... 45 BLOCK MODEL .................................................................................................................... 45 17.5.1 BLOCK MODEL SIZE ........................................................................................... 45 17.5.2 INTERPOLATION PLAN ........................................................................................ 46 17.5.3 EQUIVALENCY FORMULA .................................................................................... 46 17.5.4 MINERAL RESOURCE CLASSIFICATION ................................................................ 47 VALIDATION ........................................................................................................................ 48 18.0 OTHER RELEVANT DATA AND INFORMATION ............................................................ 50 19.0 INTERPRETATION AND CONCLUSIONS ....................................................................... 51 20.0 RECOMMENDATIONS ..................................................................................................... 52 21.0 REFERENCES .................................................................................................................. 53 22.0 CERTIFICATE OF QUALIFIED PERSON ......................................................................... 55 22.1 22.2 CERTIFICATE FOR TIMOTHY MAUNULA, P.GEO. .................................................................... 55 CERTIFICATE FOR PAUL DAIGLE, P.GEO. ............................................................................. 56 Beartooth Platinum Corporation
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LIST OF TABLES
Table 1.1 Table 4.1 Table 6.1 Table 6.2 Table 14.1 Table 17.1 Table 17.2 Table 17.3 Table 17.4 Table 17.5 Table 17.6 Table 17.7 Table 17.8 Table 17.9 Table 17.10 Table 17.11 Table 17.12 Table 17.13 Table 17.14 Table 17.15 Table 19.1 Stratmat Property Inferred Resource Estimate at 5% ZnEQ Cut-Off .................. 3 Stratmat Project Mineral Claim Block .................................................................. 9 Summary of Work Completed on Stratmat Property ......................................... 15 Stratmat Property Historical Resource Estimate (Not NI 43-101 Compliant) .... 16 Comparison of Check Assay Results to the Original Assay Results ................. 35 Summary of the Drilling Data Records .............................................................. 38 Statistics on the Raw Assay Values from the Validated Dataset (No Zero
Values) .............................................................................................................. 39 Statistics on the Raw Assay Values from the Validated Dataset and Used in
Interpretation (No Zero Values) ......................................................................... 39 Capping Levels Summary ................................................................................. 41 Assay Sample Length Statistics (Derived from Validated Data) ........................ 41 Statistical Summary of All ZnEQ Composites ................................................... 42 Data Statistics from Composites ....................................................................... 42 Zone and Deposit Names ................................................................................. 42 Search Ellipse Parameters................................................................................ 45 Stratmat Block Model Coordinate Settings........................................................ 45 Statistics on the Distances to the Nearest Composite Sample ......................... 46 Stratmat Property Inferred Resource Estimate at 5% ZnEQR Cut-Off .............. 48 Volume Comparison between Wireframe Solid Models and Block Models ....... 48 Comparison of ID2 and NN Interpolation Values at 5% ZnEQR Cut-Off............ 49 Comparison of all Zn Composited Assay Values to ID2 and NN Values ........... 49 Stratmat Property Inferred Resource Estimate at 5% ZnEQR Cut-Off .............. 51 Beartooth Platinum Corporation
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LIST OF FIGURES
Figure 4.1 Figure 4.2 Figure 4.3 Figure 7.1 Figure 7.2 Figure 11.1 Figure 11.2 Figure 17.1 Figure 17.2 Figure 17.3 Property Location Map ........................................................................................ 7 Stratmat Property Location Map ......................................................................... 8 Stratmat Property Mineral Claim Map ................................................................. 9 Regional Geology of New Brunswick ................................................................ 18 Geological Map of the Stratmat Area ................................................................ 19 Longitudinal Section of the 1956 Drilling Campaign .......................................... 25 Longitudinal Section of the S-1 Deposit ............................................................ 29 Cumulative Probability Plot for ZnEQ ................................................................ 40 Stratmat Zones Looking West Down Strike....................................................... 43 Long Sectional View of the Multiple Solids used for the Resource Estimate
looking Towards the North ................................................................................ 44 LIST OF APPENDICES
APPENDIX A
MINERAL CLAIM BLOCK INFORMATION
APPENDIX B
PROBABILITY PLOTS AND RESOURCE CALCULATIONS
Beartooth Platinum Corporation
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1.0
SUMMARY
The Stratmat Property (Property) is located in Northumberland County in northeast
New Brunswick and is situated approximately 45 kilometres (km) southwest of
Bathurst, and 55 km northwest of Miramichi. The Property covers one mineral claim
group named Stratmat.
Beartooth Platinum Corporation (Beartooth) is a Canadian registered mining
company and publicly listed on the TSX – Venture Exchange.
Kria Resources Inc. (Kria) is a private Canadian registered base metal exploration
and development company focused on high quality base metal assets including lead
(Pb), zinc (Zn), copper (Cu) and nickel (Ni) in New Brunswick and Manitoba, Canada.
In July 2008, Kria entered into an agreement with Xstrata Canada Corporation Xstrata Zinc Canada Division (Xstrata) to purchase the Property subject to the
following conditions (Press Release, July 2008):
•
As of July 21, 2008, Kria paid to Xstrata US$1,000,000 and issued
3,500,000 Units at a value of Cdn$1.00 per Unit (one Unit is equal to one
common share and one half Warrant);
•
On or before July 21, 2009, Kria will pay to Xstrata US$4,000,000 and issue
additional Units with an aggregate value of Cdn$2,500,000;
•
additional Units with an aggregate value of Cdn$1,000,000;
•
On or before July 21, 2011, Kria will pay to Xstrata US$5,000,000.
Under the terms of the Agreement, Xstrata has first right and option to purchase all
or any portion of concentrates and other mineral products produced from the
Property. Xstrata will retain a 2% net smelter royalty (NSR) on the Property and a
portion of the Property has a 2.5% NSR to Teck Cominco Limited (Teck).
On October 23, 2008, Beartooth and Kria signed an agreement whereby Beartooth
will acquire all of the outstanding common shares of Kria in exchange for common
shares of Beartooth and effect a merger of the two companies under the name of
Kria Resources Incorporated.
Kria commissioned Wardrop Engineering Inc. (Wardrop), to produce a National
Instrument (NI) 43-101 compliant technical report and resource estimate for the
Stratmat Property in order to fulfill their obligation to become a reporting issuer in
Canada. Prior to Wardrop’s involvement there has been no prior NI 43-101
compliant technical report completed on the Property.
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The following technical report conforms to the standards set out in NI 43-101,
Standards and Disclosure for Mineral Projects and is in compliance with Form 43101F1. The resource estimate in this report conforms to the Canadian Institute of
Mining, Metallurgy, and Petroleum (CIM) Mineral Resource and Mineral reserve
definitions referred to in NI 43-101, Standards and Disclosure for Mineral Projects.
The designated Qualified Person for this report is Tim Maunula, P.Geo., Manager of
Mining Technical Services with Wardrop. The site visit was conducted between
August 5 and 7, 2008 by Mr. Christopher Moreton, Ph.D., former Senior Lead
Geologist with Wardrop.
The Property consists of 54 mineral claims in one mineral claim block located in
northeast New Brunswick and covers an area of 828.6 hectares (ha). The Property
is situated adjacent to the north of the former Heath Steele Mine site.
Access to the Property is excellent. There are limited flights to Bathurst although
there are several regular daily flights to both Moncton and Fredericton. The drive to
Bathurst from either Fredericton or Moncton is approximately two and a half hours.
The access to the Property is via an all weather paved road and gravel logging
roads.
The Stratmat area is underlain by rocks of Ordovician age that are known as the
Tetagouche Group; they form part of the Miramichi Zone of northern New Brunswick.
The Tetagouche Group is composed primarily of dacitic to rhyolitic volcanic rocks
that have been subdivided into aphyric/feldspar-phyric rhyolites of the Flat Landing
Brook Formation and quartz-feldspar porphyries of the Nepisiguit Falls Formation.
These units are disconformably underlain by quartz-wackes and pelites of the
Miramichi Group. Thin-bedded feldspathic wacke/shale and alkali basalts of the
Boucher Brook Formation conformably overlie the felsic package. The Tetagouche
Group rocks have been metamorphosed to the greenschist facies. The Ordovician
rocks of the Bathurst Mining Camp have undergone a complex history of polyphase
folding and faulting. At least five deformational events are recognized based on
overprinting relationships.
Mineralization of the deposit consists of banded pyrite-rich massive sulphides,
breccia-matrix pyrrhotite-rich sulphides (semi-massive), black argillite and chert.
Banded sulphides tend to contain the highest zinc concentrations. The stratigraphy
hosting the deposit is overturned such that the sulphide sheet is structurally overlain
by a pyrrhotite-chalcopyrite-quartz stringer zone that locally contains high copper
values.
Within the Bathurst Mining Camp, most deposits are zoned vertically and laterally from
a high temperature, vent proximal, veined and brecciated core to vent-distal
hydrothermal sediments. Metal zoning consists of:
1. Vent complex pyrrhotite, magnetite, pyrite, chalcopyrite, ±sphalerite, ±galena
2. Bedded ore pyrite, sphalerite, galena, ±chalcopyrite
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3. Bedded pyrite, ±sphalerite, ±galena
The vent complex is commonly underlain by a highly deformed sulphide stringer zone
that can extend hundreds of meters and cuts hydrothermally altered volcanic and
sedimentary rocks. Hydrothermal alteration is zoned and laterally widespread from 1 to
5 km.
All three types of mineralization are present on the Property. The copper-rich feeder
zone of the vent complex has been deformed into a planar unit, rather than a crosscutting unit. Direct observation was made during the site visit of the latter two
mineralization types in the drill core.
The results of the NI 43-101 compliant resource estimate are presented in Table 1.1
at a 5% zinc equivalent (ZnEQ) cut-off. The following metallurgical recoveries were
applied to the zinc equivalent for the resource estimate: 89.7% zinc, 72% lead, 60%
copper, 48.6% silver and 70% gold.
Table 1.1
Stratmat Property Inferred Resource Estimate at 5% ZnEQ Cut-Off
Location
Tonnes
ZnEQ
%Pb
%Zn
%Cu
Ag (g/t)*
Au* (g/t)
Stratmat
All Zones
5,524,500
8.16
2.59
6.11
0.40
54.21
0.62
*Ag – silver
g/t – grams per tonne
Au – gold
The resource estimate was conducted using MineSight 4.5 modelling software. The
geological wireframes were constructed based on geology and a zinc equivalent
grade cut-off of 2%. The mineral resource was estimated by interpolating grades into
3 m cube blocks using inverse distance weighting.
Wardrop concludes that the above resource estimate indicates the possibility of
hosting an economic deposit and warrants further investigation and development.
Wardrop recommends that a comprehensive review of the drill hole database be
conducted to verify the integrity of the dataset. As part of the review of the historical
data, Wardrop also recommends that a drilling program be established to increase
the level of confidence in the historical data where chain of custody and drill data are
lacking. To this end, Wardrop recommends the drill program include a minimum of
seven drill holes for an approximate total of 3,000 m. These holes will twin several
historic holes to confirm survey and/or assay data. Also these holes will serve to
further define the interior of the deposit, and to delineate the deposit longitudinally
where drilling is scarce. The budget is estimated at approximately $600,000.
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2.0
INTRODUCTION AND TERMS OF
REFERENCE
The Stratmat Property is located in Northumberland County, Northesk Parish, New
Brunswick; approximately 45 km southwest of Bathurst. The mineral claims are
located at latitude 47°13’ N and longitude 66°07’ W, and are adjacent to the Heath
Steele mine lease to the south.
Beartooth is a Canadian registered mining company and publicly listed on the TSX –
Venture Exchange.
Kria is a private Canadian registered base metal exploration and development
company focused on high quality base metal assets including lead, zinc, copper and
nickel in New Brunswick and Manitoba, Canada.
On October 23, 2008, Beartooth and Kria signed an agreement whereby Beartooth
could acquire all of the outstanding common shares of Kria in exchange for common
shares of Beartooth. In effect this is a reverse takeover of Beartooth by Kria where
the merged companies will be registered under the name of Kria Resources
Incorporated1. It was proposed in the agreement that Beartooth common shares will
be consolidated on the basis of one new common share for every 20 old common
shares.
Beartooth has agreed to issue one post-consolidation common share for each Kria
common share. Each outstanding Kria convertible security will be exercisable for
Beartooth common shares based on the exchange ratio. Upon completion of the
merger Kria shareholders will hold approximately 82.5% of the issued and
outstanding common shares of the combined company. Following completion of the
merger, the Kria board of directors and management team will become the board
and management team of the new combined company (Press Release, Oct 2008).
The Property is comprised of 54 contiguous mineral claims that are 100% held by
Xstrata, formerly Noranda Exploration Company Incorporated (Noranda), under
prospector license number 11544. In July 2008, Kria entered into an agreement with
Xstrata to purchase the Property and the Halfmile Lake Property subject to the
following conditions:
•
As of July 21, 2008, Kria paid to Xstrata US$1,000,000 and issued
3,500,000 at a value of Cdn$1.00 per Unit (one Unit is equal to one common
share and one half Warrant).
1
For purposes of simplicity, the ownership of the Stratmat Project, except where stated, shall be referred to as
“Kria”.
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•
additional Units with an aggregate value of Cdn$2,500,000.
•
additional Units with an aggregate value of Cdn$1,000,000.
•
On or before July 21, 2011, Kria will pay to Xstrata US$5,000,000.
Under the terms of the Agreement, Xstrata has first right and option to purchase all
or any portion of concentrates and other mineral products produced from the
Property. Xstrata will retain a 2% NSR on the Property. A portion of the Property
has a 2.5% NSR to Teck.
Also included in the agreement, Kria has the exclusive right, for a period of 30
months, to negotiate with Xstrata the purchase of 100% interest in the Heath Steele
Mining Lease, that is, the former Heath Steele Mine.
2.1
TERMS
OF
REFERENCE
Kria asked Wardrop to produce an NI 43-101 compliant resource estimate and
technical report for the Property. Prior to Wardrop’s involvement there has been no
NI 43-101 compliant technical report completed on the Property.
The following technical report conforms to the standards set out in NI 43-101,
Standards and Disclosure for Mineral Projects and is in compliance with Form 43101F1. The resource estimate in this report conforms to the CIM Mineral Resource
and Mineral reserve definitions referred to in NI 43-101, Standards and Disclosure for
Mineral Projects.
The designated Qualified Person for this report is Tim Maunula, P.Geo., Manager of
Mining Technical Services with Wardrop.
The site visit was conducted between August 5 and 7, 2008 by Christopher Moreton,
Ph.D., P.Geo., former Lead Senior Geologist with Wardrop. Mr. Moreton was
accompanied during the site visit to the Property by Dayle Rusk, Vice President
Exploration, and Steve Davies, Vice-President Operations for Kria; Sharon Taylor,
former geophysicist for Xstrata; and Phil Daigle, geotechnician.
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3.0
RELIANCE ON OTHER EXPERTS
Wardrop has relied upon others for information in this report. Wardrop has relied on
information provided by Kria for matters relating to property ownership, property titles
and environmental issues. Information from third party sources is referenced in
Section 21.0 – References. Wardrop used information from these sources under the
assumption that the information is accurate.
Wardrop has not conducted an examination of land titles or mineral rights.
References and maps pertaining to permit locations and areas were referenced on
the website of the Government of New Brunswick, Department of Natural Resources
from their online database (Websites: Mineral Claim Database).
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4.0
4.1
PROPERTY DESCRIPTION AND
LOCATION
PROPERTY LOCATION
The Property is defined by the mineral rights to 54 mineral claims, currently 100%
held by Xstrata, and covers an area of 828.6 ha.
4.2
LOCATION
The Property is situated as shown in Figures 4.1 and 4.2 below.
Figure 4.1
Property Location Map
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Figure 4.2
Stratmat Property Location Map
The Property is located:
•
Within National Topographic System (NTS) map sheet 21O/8W.
•
At latitude 47°13’ N and 66°07’ W in northeast New Brunswick, in eastern
Canada.
•
Approximately 155 km north of Fredericton, the provincial capital city of New
Brunswick.
•
Approximately 45 km southwest from Bathurst and 55 km northwest from
Miramichi, New Brunswick.
•
In the County of Northumberland.
•
Adjacent to the former Heath Steele Mine.
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4.3
PROPERTY DESCRIPTION
On July 28, 2008, Kria entered into an agreement with Xstrata to purchase its
mineral rights to the Property. The Property is comprised of the claims listed in Table
4.1 and illustrated in Figure 4.3. More information on the mineral claims can be
found in Appendix A.
Table 4.1
Stratmat Project Mineral Claim Block
Mineral Claim
Block
Number of
Claims
Area
(hectares)
Date
Recorded
Date of
Expiry
Stratmat
No. 1613
54
774.2
July 27, 1983
July 27, 2010
Mining Lease
No. 253
n/a
54.4
N/A
N/A
Total
828.6
Source: Government of New Brunswick, Ministry of Natural Resources
Figure 4.3
Stratmat Property Mineral Claim Map
Source: Government of New Brunswick, Department of Natural Resources
The Property consists of one mineral claim block, No. 1613 and one mining lease,
253, that are 100% held by Xstrata. The mineral claim block is comprised of 54
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contiguous claims, numbered 327300 to 327313 and 327316 to 327355. The
Property is entirely situated on government, or Crown, land.
The mineral claims have been in good standing for a number of years through
various owners. The mineral rights to all surrounding mineral claims are held
exclusively by Xstrata. The surface rights to the Property area are owned by the
federal government, known as Crown lands.
The mineralized zones are situated within the Property’s mineral claim block
boundaries and a historic open pit mine is situated in the mining lease.
Kria, at the time of writing this report, does not have any plans for further exploration
on the Property. Permits will be required should Kria decide to establish exploration
drilling programs or operations on the Property.
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5.0
5.1
ACCESSIBILITY, CLIMATE, LOCAL
RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY
ACCESSIBILITY
The Property is situated 45 km southwest from the city of Bathurst, the business hub
for north-eastern New Brunswick, and is easily accessible south from Bathurst, or
north from Miramichi, on Highway 430. Further access to the Property is gained via
numerous small logging roads that branch off Highway 430. There are a couple of
regular flights to Bathurst and several daily flights to Moncton and to Fredericton from
several major cities in Canada. Access to the property is via Highway 430, south from
Bathurst or north from Miramichi.
From Fredericton airport the Property can be accessed by following:
•
Lincoln Road west for approximately 12 km to join;
•
Highway 8 north and northeast for approximately 190 km to Miramichi to
join;
•
Highway 430 northwest for approximately 70 km to the former Heath Steele
Mine and to several logging roads that allow access to the Property.
From Moncton airport the Property can be accessed by the following:
•
Highway 15 northeast for approximately 13 km to Shediac to join;
•
Highway 11 northwest for approximately 120 km northwest to Miramichi to
join;
•
Highway 8 west for approximately 9 km to join;
•
Highway 430 for approximately 60 km to the former Heath Steele Mine and
to several logging roads that allow access to the Property.
The drive from either Fredericton or Moncton to the Property is typically two and a
half hours. The drive from Bathurst to the Property is roughly half an hour.
5.2
CLIMATE
The description of climate is taken from Cullen and Barr, 2005:
Northeastern New Brunswick is characterized by northern temperate zone
climatic conditions. Distinct seasonal variations occur, with winter conditions of
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freezing temperatures and substantial snowfall expected from late November
through late March. Spring and fall seasons are cool, with frequent periods of
rain. Summer conditions can be expected to prevail from late June through early
September. Environment Canada records for the 1971 to 2000 period for
nearby Bathurst show modest rainfall and daily mean temperatures in the 13
degrees Celsius (°C) to 19°C range during the summer months with an average
extreme summer maximum daily temperature of 36°C. Average winter
temperature minimums in the -30°C to -38°C range also occur.
Average yearly precipitation for the period is 1059 millimetres with an average of
314 centimetres of snowfall accumulation. Weather and site conditions during
the spring breakup period can prevent some exploration activities from being
carried out due to high water levels in streams, unsafe ice conditions and
impassable forestry access roads. For this reason, scheduling of field activities
to avoid this period is advisable.
5.3
LOCAL RESOURCES
Bathurst is the business and service hub for northeastern New Brunswick and is
located approximately 50 km northeast of the Property. Bathurst has a welldeveloped mining infrastructure and a skilled workforce since the development of
large lead-zinc deposits in the area in the mid-1950’s.
Currently, the only operating mine and concentrator working at, or near, full capacity
is Brunswick #12, owned and operated by Xstrata. This facility operates at 10,000
tonnes of ore per day (t/d) from underground operations. Xstrata also owns
Brunswick Mining and Smelting Limited, which operates a lead smelting facility at the
port of Belledune located 20 km east of the Property. This smelter processes
concentrate from the Brunswick #12 Mine.
Up until October 2008, Blue Note Mining Inc. (Blue Note) operated a 3,000 t/d
concentrator at their Caribou zinc mine, located 30 km north of the Property. The
concentrator at the mine may provide additional support for possible future mining
operations for the Property.
5.4
INFRASTRUCTURE
The area has a well-developed network of paved highways and secondary roads.
The property also has several unpaved logging roads that allow access to various
areas of the property.
There is a railway that passes along the coast of New Brunswick with rail yards
located in Bathurst and Belledune. Belledune also has a deep water port to permit
the shipment of concentrate ore. Bathurst also has a daily air service from Montreal.
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Electricity is available from the electrical generating station located in Belledune.
The Belledune station is coal powered and has a capacity of 458 Mega Watts (MW).
Water sources are abundant on and adjacent to the Property.
5.5
PHYSIOGRAPHY
The description of the physiography is adapted from Brown, 2007:
The area is situated on a gently rolling plateau with the highest elevations at 450 m
along a north-south trending ridge in the central part of the Property. Drainage is
predominantly to the southwest with sharp relief into the headwaters of the Northwest
Miramichi River flowing along the west boundary of the Property at an elevation of
350 m. The Property is drained by a system of small brooks which empties into the
Nepisiguit River 6 km to the northeast. The Property is dominantly covered by a thin
layer of glacial till (less than 2 m thick) with abundant fresh to weathered outcrop.
Vegetation throughout the Property consists mainly of spruce and balsam fir boreal
forest. Almost all of the Property has been clear-cut in the past and areas have been
replanted.
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6.0
6.1
HISTORY
HISTORICAL PROPERTY OWNERSHIP
The area covered by the Stratmat mineral claim group and mining lease 253 has
been the focus of exploration work since the staking rush of the early to mid-1950’s.
The Property was originally staked by Strategic Materials Limited, that is, Stratmat
Ltd., during the Heath Steele staking rush of 1954 and subsequently sold to Cominco
in 1959. From 1959 to 1985, Cominco held the mineral rights to the Property. On
January 1, 1986, Noranda optioned the Property from Cominco. In 2005, Noranda
was taken over by Xstrata in 2006.
The Property historically consisted of 51 contiguous mineral claims referred to as
Group 61. The mineral claims were converted to Mining Leases 1007 and 1008
sometime before 1958. The Mining Leases 1007 and 1008, which were restaked
and recorded on July 27, 1987 into mineral claims 327300 to 327355 inclusive
around the time Noranda acquired the property. During 1989, two claims, 327314
and 327315, and portions of claims 327309, 327310, 327313 and 327316 were
transferred to Mining Lease 253 to facilitate the development of the Boundary
Deposit. An agreement between Noranda and Cominco in 1986 allowed Noranda to
earn an interest subject to 25% net proceeds of production (NPP) to Cominco.
A 1989 agreement with Noranda/Brunswick Mining and Smelting Co. (BM&S)
extinguished Cominco’s 25% NPP in exchange for a 2.5% royalty on the property. In
July 2001, Cominco and Teck merged companies to form Teck Cominco Ltd. Mining
Lease 253 was excluded, for which Noranda paid Cominco cash to buy out the
royalty. Noranda negotiated an option agreement including the Property claim block
1613 with SLAM Exploration Ltd. covering the period November, 2003 to 2006. In
2005, Noranda changed their name to Falconbridge Ltd. and, in 2006, was
subsequently acquired by Xstrata. Xstrata negotiated an option agreement in 2006
with El Niño Ventures Inc. which again included the Stratmat claim block 1613. This
agreement was terminated in 2008.
6.2
HISTORICAL WORK COMPLETED
The property has been heavily explored by Xstrata, and its predecessor companies,
since the 1960’s. The Property was again extensively explored during the 1980’s
and 1990’s when the Heath Steele and Stratmat Mines were in production.
The following is a summary of work completed on the Property (Table 6.1). For a
more detailed description, please refer to individual property assessment reports
14
0887190300-REP-L0001-01
available on the Government of New Brunswick, Department of Natural Resources
website (Websites: Assessment Reports).
Table 6.1
Summary of Work Completed on Stratmat Property
Year
Assessment
File
Property
Company
1957
471509
Stratmat
Cominco
Geology, ground Electromagnetic (EM) and
Magnetic (Mag) geophysical surveys, 36
diamond drill holes (DDH)
1962
470989
ML 1007-8
Cominco
18 DDH
1963
472386
ML 1007-8
Cominco
7 DDH
1964
470991
ML 1007
Cominco
2 DDH
1964
471574
ML 1007
Cominco
Geology and soil geochemistry
1966
471515
Stratmat
GP 61
Cominco
5 DDH
1971
470999
ML 1008
Cominco
Gravity survey
1975
471355
ML 1008
Cominco
15 DDH
1981
472679
ML 1007-8
Cominco
Geological survey, 10 diamond drill logs
1986
473286
Stratmat
Group
Noranda
Three trenches, assays
1987
473385
Stratmat
Group
Noranda
Very Low Frequency (VLF), Horizontal Loop
EM (HLEM), gravity, and geochemical
surveys, 98 drill logs, ore reserve calculations
1988
473544
Stratmat
Group
Noranda
VLF, HLEM, Geochemical surveys, 76 drill
logs, ore reserve calculations, cross-sections
Noranda
University of Toronto EM (UTEM 3) survey,
elevation, contour, till geochemistry, Pionjar
overburden survey, 37 drill logs, mise à la
masse/Self-Potential (SP) survey, borehole
Pulse EM survey
473748
Stratmat
Group
1990
474129
Stratmat
Group
Noranda
Stratmat Group; downhole EM, mise à la
masse and gravity surveys, Pionjar
overburden survey, 53 diamond drill holes,
reserve calculations, petrographic analyses
19901991
474408
Stratmat
Group
Noranda
30 drill holes, whole rock geochemistry
19961997
Internal
1989
2004
6.3
Work Performed
5 holes drilled totalling 1347.9 m
Stratmat
Noranda
54 line kilometres of MegaTEM II Airborne
Geophysical survey
HISTORICAL RESOURCE ESTIMATE
The following historical resource estimate (Table 6.2) was prepared in 1998 by
Noranda, later taken over by Xstrata. These resource estimates are historical, and
were prepared before the implementation of the CIM Standards for Reporting Mineral
15
0887190300-REP-L0001-01
Resources and Mineral Reserves. These estimates do not all follow the categories
as defined under NI 43-101 and should not be relied upon. Wardrop has not verified
these historical resource estimates.
Table 6.2
Stratmat Property Historical Resource Estimate (Not NI 43-101
Compliant)
Location
Tonnes
%Pb
%Zn
%Cu
Ag (g/t)
Au (g/t)
712,984
4.21%
8.45%
0.84%
58.78
0.26
Main Zone Cu
152,233
0.07%
0.43%
3.21%
18.76
0.00
Main Zone Pb/Zn
725,947
3.08%
7.35%
0.32%
79.90
0.00
S1 Probable
1,504,828
3.15%
7.91%
0.32%
75.36
0.89
S1 Probable
1,146,695
3.22%
7.58%
0.50%
50.43
0.64
Totals
4,242,787
3.22%
7.55%
0.56%
64.58
0.53
Central Zones
Source: Dupras, Sandison
16
0887190300-REP-L0001-01
7.0
7.1
GEOLOGICAL SETTING
REGIONAL GEOLOGY
This portion of the report was taken from Davies et al, 1985, van Staal and Langton,
1990. The regional geology is also shown in Figure 7.1.
The Stratmat area is underlain by rocks of Ordovician age that are known as the
Tetagouche Group; they form part of the Miramichi Zone of northern New Brunswick.
The Tetagouche Group is composed primarily of dacitic to rhyolitic volcanic rocks
that have been subdivided into aphyric/feldspar-phyric rhyolites of the Flat Landing
Brook Formation and quartz-feldspar porphyries of the Nepisiguit Falls Formation.
These units are disconformably underlain by quartz-wackes and pelites of the
Miramichi Group. Thin-bedded feldspathic wacke/shale and alkali basalts of the
Boucher Brook Formation conformably overlie the felsic package. The Tetagouche
Group rocks have been metamorphosed to the greenschist facies.
The Ordovician rocks of the Bathurst Camp have undergone a complex history of
polyphase folding and faulting. At least five deformational events are recognized
based on overprinting relationships. D1 is evidenced by a dominant, layering parallel
foliation which is locally mylonitic and is interpreted to represent progressive
deformation associated with thrusting. The D1 structures are refolded by F2 folds into
tight structures defining flat and steep belts. These are refolded again by open
recumbent F3 folds. F4 and F5 folds and kinks at various scales overprint and refold
the initial three phases. This deformation can be attributed to orogenic movements
in the Appalachians during the Taconic and Acadian orogenies.
17
0887190300-REP-L0001-01
Figure 7.1
7.2
Regional Geology of New Brunswick
PROPERTY GEOLOGY
Figure 7.2 shows the geological map of the Stratmat area.
The Property is underlain by a magnetic east-west trending sequence of
predominantly felsic volcanic rocks and lesser sedimentary rocks which are host to
all massive sulphide deposits on the property. Recent Provincial Government
regional mapping projects have classified the rocks as belonging to the Flat Landing
Brook Formation of the Middle Ordovician Tetagouche Group, which places the
deposits stratigraphically above the Nepisiguit Falls Formation hosted Heath Steele
Deposits (Wilson, 1992) located 3 to 5 km to the south. Regional metamorphism is
lower greenschist facies.
18
0887190300-REP-L0001-01
Figure 7.2
Geological Map of the Stratmat Area
Source: Clark, 2006
Sulphide mineralization at Stratmat is hosted almost exclusively within argillites and
cherts of the Stratmat Sequence metasedimentary unit. The Stratmat Sequence
metasediments conformably overlie “Southwall” (footwall) lithologies which consist of
fine to coarse varieties of felsic lapilli tuff, argillaceous tuff and, more commonly in
the S-1 area, banded pyritic siliceous/cherty tuff. The metasediments are capped by
“Northwall” (hanging wall) rocks which comprise dominantly of dacitic feldspar crystal
tuff (with or without quartz shards) and locally, bedded pyroclastic rocks. Narrow,
locally sulphide hosting argillite partings in common within Northwall lithologies,
although they rarely host significant widths or tonnages of mineralization. A large,
predominantly aphyric rhyolite dome occurs immediately to the north of the Boundary
Deposit and is bounded to the south by Northwall crystal tuffs and a thin, mostly
barren sedimentary horizon (“Northlimb”, and possibly North Zone Horizon) at the
contact.
Coarse felsic fragmentals mantle the dome to the west whereas to the east the rocks
appear to grade into Northwall crystal tuffs (feldspar phyric rhyolites?) and fragmental
rocks observed north of the North Zone. This rhyolite has been called the
Tomogonops rhyolite and added to the rock code.
Coeval foliated gabbro intrusives are common in the eastern half of the property and
crosscut and locally assimilate portions of the favourable stratigraphy including parts
of the Main Zone. Narrow, magnetic to non-magnetic discordant diabase dykes
19
0887190300-REP-L0001-01
intrude western portions of the property, with many aligned parallel to or along eastsoutheast trending fault structures. A red to green unfoliated Silurian syenite dyke
trends east-southeast, west of the Boundary Deposit and cuts stratigraphy at least as
far south as the Heath Steele ACD Zones. The syenite dyke also displays a
magnetic signature. A quartz-feldspar porphyry dyke, reminiscent in many respects
of Heath Steele hanging wall rocks, was intersected in one hole northwest of the
Boundary Deposit. Distinctive intrusive rock types now number four.
7.2.1
STRUCTURE
Structurally, the property is highly complex with five periods of deformation being
documented in the area (McBride, 1976; de Roo et al 1990; Park, 1992). Tectonic
thickening and repetition of the mineralized horizon has both enhanced grades and
produced mineable widths of ore at the Boundary Deposit and N-5 Zones. In crosssection, property scale F2 folds manifest themselves as the Boundary antiform, S1/North Zone synform and the synform/antiform fold repetition of the favourable
horizon at depth, below the Boundary open pit. Best grades and widths of economic
mineralization at the S-1 Deposit tend to occur along the limbs of the major folds,
adjacent to the closure areas. The detailed structural study conducted by Adrian
Park on the N-5 and Boundary Deposits has indicated extremely complex structure
on the mine scale. Structures that exist at Boundary/N-5 no doubt persist elsewhere
along the Horizon and complicate the rudimentary interpretations of drill hole date.
Two consistent fault orientations have been documented. The Stratmat fault trends
east-northeast, and overall movement appears to be dextral strike-slip, with a small
dip slip component, down to the south (Park, 1992). Parallel structures are
interpreted at the S-1 Deposit and along with Stratmat fault, are believed to be the
earliest generation fault structures. A certain periodicity seems to be displayed by
these faults.
Periodic east-southeast trending faults are the second and presumably younger
orientation observed. Sinistral movement can be implied based upon ground
geophysics (Mag). Locally, these fault zones appear to be intruded by diabase and,
west of the Boundary Deposit, by syenite dykes. Although not believed to disrupt
stratigraphy, evidence from drilling suggests that a major fault crossing the baseline
at approximately 12300E appears to be a pivot or scissor fault because of dip
changes immediately east and west of the structure.
20
0887190300-REP-L0001-01
8.0
DEPOSIT TYPE
The Tetagouche Group rocks host over 30 base metal-rich sulphide deposits. These
occurrences are typically closely associated with the felsic volcanic and epiclastic
rocks of the Nepisiguit Falls and Flat Landing Brook Formations.
The Stratmat property is host to three known, delineated mineral deposits and
numerous showings occurring along the favourable horizon. Of the three deposits,
only the Boundary Deposit has been exploited to date. Reserves were depleted on
June 30, 1993. The two remaining deposits, the S-1 and Main Zone, remain
unexploited due to lower grades, unfavourable metal prices and engineering
parameters which render them uneconomic. The S-1 Deposit is host to the largest
mineral inventory on the property.
21
0887190300-REP-L0001-01
9.0
MINERALIZATION
The ore minerals consist of disseminated and massive sphalerite-galena-pyrite and
chalcopyrite. The sulphides are fine to medium-grained, and are coarser than those
typically found in deposits of the Bathurst-Newcastle district.
In contrast to most deposits of the region, the Boundary and N-5 deposits have
relatively low iron content, averaging 15% to 20% pyrite, and have an abundance of
talc and chlorite associated with the ore. The talc, confirmed by X-ray diffraction,
occurs as disseminated in phyllites directly associated with the ore, and as
monomineralic layers.
Disseminated mineralization, commonly of ore grade, occurs in the phyllitic
sediments as well as in the talc layers which locally grade into layers of massive
sulphides. A layer of massive pyrite-chalcopyrite, typically <1 m thick, occurs locally
on the stratigraphic footwall side of the ore zone. Copper grades in this unit average
1% to 2% with local intersections with copper grades as high as 10%. The
stratigraphic sequence is commonly overprinted by complex folding and shearing
that are commonly more intense within the ore and sedimentary package.
Stratigraphic relationships are based on observations of drill and rock exposures.
The copper-rich layer may be in contact with, or grade into pyrite-poor massive
sphalerite-galena ore that locally is up to a few meters thick (grades average 5% to
15% lead and 15% to 35% zinc). Gangue minerals include muscovite, talc, chlorite,
quartz, and carbonates. Many of the copper-rich and lead-zinc-rich massive sulphide
layers are separated by talcose or phyllitic sediments that commonly carry
disseminated ore-grade mineralization. A carbonate layer is locally associated with
the ore and generally contains disseminated sulphides. Calcite is the most common
carbonate, but ferroan dolomite and siderite also are present.
Overlying the ore is sedimentary layer, up to several meters thick, which is similar to
the greenish gray phyllites of the footwall. Disseminated pyrite constitutes 1% to 2%
of these hanging-wall metasediments. A brecciated and intensely quartz-veined
zone oriented sub-parallel to the contacts occurs in the hanging-wall sediments at
the Boundary zone. This zone may be a brittle zone associated with D1.
22
0887190300-REP-L0001-01
10.0 EXPLORATION
Neither Beartooth nor Kria has undertaken exploration on the Property. See
Historical Work Completed, Section 6.2, for details of exploration history.
Exploration has taken place on the Property by various companies since the 1950’s
up to 2005. Exploration programs included soil geochemical and geophysical
surveys and geological mapping and diamond drilling.
Since 2005, there has been no exploration conducted by Noranda, or subsequently
Xstrata, to the time of writing of this report. Kria has not conducted any exploration
programs since entering into a purchase agreement with Xstrata in July 2008.
23
0887190300-REP-L0001-01
11.0 DRILLING
The following description of drilling is adapted from Graves, 2008.
Diamond drilling on the Stratmat Property was carried out by four companies:
•
Stratmat Ltd. completed one drill campaign from August 1956 to January
1957 with drill holes numbered 61-1 to 61-36.
•
Cominco carried out nine or more drill campaigns from June 1961 through to
April 1980 with drill holes numbered DDH ST-1 through ST-119.
•
Noranda (for BM&S) carried out five large drill campaigns from June 1986
through December 1991. The ST series of drill holes was started by
Cominco and continued by Noranda from DDH ST-120 discontinuously to
ST-701.
•
Xstrata completed one drill campaign during March 2005 with two holes
numbered BJV-05-057 and BJV-05-059.
Underground drilling was carried out from the Boundary Deposit decline to complete
the feasibility study in preparation for mining. Details of this drilling are not included.
Following is a summary of drill results filed taken from filed Assessment Reports with
the New Brunswick Department of Natural Resources (Websites: Assessment
Reports).
11.1
STRATMAT LTD., PRE-1961
The original drilling by Stratmat Ltd was follow-up to airborne and ground EM surveys
and soil geochemical surveys conducted in 1955 which led to the discovery of the
Main Zone in 1956. A total of 14,156 ft (approximately 4,300 m) was reported in 36
diamond drill holes (Assessment File number 471509) and was conducted by Boyles
Bros. The drill holes are numbered 61-1 through 61-36 and include footage intervals
with geology description and assays for Au, Ag, Cu, Pb, Zn for mineralized zones.
Core size is not indicated in the drill logs.
Stratmat Ltd. began drilling in the summer of 1956. The Main Zone is described as
an elliptical body of fine grained massive pyrite replacing fractured, chloritized and
silicified intermediate volcanics. The massive sulphide dips between 40° and 80° to
the south, strikes N 45 E with a length of 500 ft and a highly variable width up to
100 ft. Massive sulphides have been delineated to a maximum depth of 450 ft. The
deposit displays zoning with a distinct copper rich zone (pyrite/chalcopyrite
±pyrrhotite) on the west and lead/zinc zone (pyrite with blebs and stringers of
sphalerite and galena) to the east. Specific gravity analysis are reported using
24
0887190300-REP-L0001-01
samples from four drill holes and one trench resulting in a general tonnage factor of
6.93 cubic feet per ton (ft3/t).
Figure 11.1
Longitudinal Section of the 1956 Drilling Campaign
Source: Mineral Assessment Report 471509-MAPS
11.2
COMINCO, 1961 – 1981
Drilling on the Stratmat Trend by Cominco began in 1961 (Assessment File 470989).
The first Cominco report describes diamond drill holes numbered ST-1 through ST11 for a total of 6,369.5 ft (approximately 1,940 m), drilled to test the West Zone or
Turam Anomaly, and located 300 m east of the Boundary Deposit, with a coincident
weak lead soil geochemical anomaly. The core size is not specified in the drill logs
but work reports from that era indicate the core size is predominantly AXT or AQ.
The drill logs describe geology intervals and mineralized zones with metal value
estimates but no core intervals are indicated as sampled and assays are not
included. Massive sulphide intervals up to 12 ft are reported, principally with pyrite
and up to 30% sphalerite and 10% galena. The logs indicate sulphides are
associated with argillite horizons within a felsic volcanic sequence of rocks.
25
0887190300-REP-L0001-01
A report submitted in 1963 describes a ground geophysical EM survey and seven
diamond drill holes for a total of 1,131 ft (approximately 345 m) (Assessment File
472386). The drill holes are numbered ST-12 through ST-18 and are targeted on the
extension of the West Zone described in the first Cominco report. A total of 45 core
samples are indicated on the drill logs as collected, however no assays are included
with the report. The sample intervals of the drill core are generally ten feet or less
often five feet.
Two drill holes numbered ST-28 and ST-29 were drilled in 1963 for a total of 1,002 ft
(approximately 305 m) (Assessment File 470991). No significant mineralization is
reported and no samples are reported as collected for analysis.
Five drill holes are reported as completed in the spring of 1964 numbered ST-56
through ST-60 for a total of 674 ft (approximately 205 m) (assessment file 471574).
A total of 32 core samples are indicated as collected ranging from 1 to 6 ft with most
samples 5 ft. No assay results are reported. Also included in the report are induced
polarity (IP) pseudo-sections and soil geochemical results with anomalous lead
results highlighted. Assessment File 471515 contains the same drill logs as
Assessment File 471574.
Fifteen diamond drill holes numbered ST-61 through ST-75 are reported in 1975 on
Mining Lease 1008 for a total of 9,892 ft (approximately 3,015 m) (Assessment File
471355). Assay results for all sulphide mineralized intervals are included for copper,
lead, zinc and silver. Some samples are also assayed for gold, cadmium and
bismuth. Core size is indicated as AQ.
Ten diamond drill holes completed in 1980 and numbered ST-110 through ST-119
are reported in 1981 on Mining Lease 1007 and 1008 for a total of 2,426.6 m of BQ
core (Assessment File 472679). Sample length is generally 1.5 m but can be 0.5 m.
Assay results for mineralized zones are reported for copper, lead, zinc, silver and
iron. Occasional samples are analyzed for gold. Seven holes were drilled into the
North Zone to explain coincident geophysical and geochemical anomalies. Three
holes were drilled to extend the Central zone.
11.3
NORANDA, 1986-1991
Noranda, operating for BM&S, began diamond drilling on the Property in 1986
(Assessment File 473385). A total of 79 NQ diamond drill holes totalling 14,171.5 m
were completed numbered ST-120 through ST-217. The drill program focused
mainly on the Boundary Deposit to define geological reserves. Five metallurgical HQ
holes totalling 447.14 m were completed on the Boundary Zone numbered ST-M1
through ST-M5. Twelve of the 79 holes are located on the Central Zone for a total of
3,142.6 m to evaluate mineralization located in previous work by Cominco. The S-1
lens was first intersected in this program with ST-206 and ST-207. Three holes were
also completed on the North Zone with disappointing results.
26
0887190300-REP-L0001-01
Delineation of the Boundary Deposit continued in 1987-1988 (Assessment File
273544) with drill holes numbered ST-242 to ST-281 and ST283 to ST-288.
Additional drilling included:
Main Zone:
Central Zone:
Boundary East Lens:
Boundary Fold Closure:
Turam Zone:
ST-218 to ST-224; 61-17 deepened; and ST-233 to ST-239
ST-225 to ST-232,
ST-282,
ST-83, HS-627 deepened, and
ST-230, ST-231, ST-240.
Diamond drilling totalled 11,402.3 m of NQ and BQ core in 31 holes. Results for
diamond drilling plus the exploration decline into the Boundary Deposit and 3,000
tonnes bulk sample were used for the feasibility study for Boundary Deposit and
evaluation of the other zones to determine geologic reserves.
Diamond drilling during 1988 and 1989 totalled 39 holes for a cumulative total of
23,791.2 m of predominantly NQ core in drill holes numbered ST-196 through ST345 and N-3-19 (Assessment File 473748) and included the deepening of some
holes. Most of the drilling targeted the Central Zone area including S-1. It was noted
that structure and stratigraphy of the Property is complex making it difficult to
correlate ore zones from section to section. Three holes were drilled on the North
Zone and five holes were deepened to continue the 200 m spaced evaluation.
Additional drilling to extend significant mineralized intercepts was not successful.
One hole each was drilled into the Main Zone and Turam Zone to extend the
mineralization at depth. Results are generally negative.
Diamond drilling during 1989 and 1990 (assessment file 474129) including wedges
and deepening of various holes totalled 30,147.3 m in 53 holes with DDH numbers in
the sequence of ST-192 to ST-385. Drilling is directed at the S-1 deposit which
represents the largest mineral inventory on the property and the focal point of the
exploration program. Deep drill holes targeting the S-1 Deposit and drilled to the
north are collared on the Heath Steele mining lease. A detailed reserve calculation
for the S-1 Deposit was completed. Seven holes were drilled on the Main Zone and
five holes on the Central Zone #2 Lens to test for extensions of mineralization. The
principal problem reported with drilling is excessive deviation caused by the S2
foliation. The problem can be severe on deeper holes.
Thirty seven diamond drill holes including wedge cuts and deepening were
completed for a total of 15,877.8 m of predominantly NQ core during the period of
August, 1990 to December 31, 1991 at which time exploration work was suspended
(assessment file 474408). A large percent of the drilling targeted the down dip
extension of the S-1 deposit and the stratigraphic horizon between the S-1 deposit
and the Boundary Deposit as well as Pulse EM geophysical anomalies. Reserve
summaries for S-1 and Central Zones are presented with the conclusion that
continued exploration at the S-1 zone be suspended unless it can be shown that the
27
0887190300-REP-L0001-01
deposit from surface to 600 m vertical is economic based on current drill results. An
economic study of the Central Zone #2 Lens is recommended to determine the
feasibility of a standalone small underground mining operation. Figure 11.2
illustrates the longitudinal section of the S-1 deposit.
11.4
XSTRATA, 2005
In 2005 two diamond drill holes were targeted on airborne MegaTEM anomalies
adjacent to the Main Zone along strike from the deposit (Assessment File 476044)
for a total of 708 m. The mineralized horizon was intersected in both holes with
negative results.
28
0887190300-REP-L0001-01
Figure 11.2
2
Longitudinal Section of the S-1 Deposit2
The resource in Figure 11.2 is historical and no longer relevant.
29
0887190300-REP-L0001-01
12.0 SAMPLING METHOD AND APPROACH
From Graves, 2008:
There is no reference in the work [government assessment] reports of Stratmat
Ltd. and Cominco Ltd. [of the description of the] sampling methodology
employed. The drill core directory for the Heath Steele core storage site does
not make reference to drill core from these operations. It is assumed that the
core is no longer available.
The Stratmat program was contracted to Boyles Bros. and resulted in 36 drill
holes for a total of 14,156 feet. The core size is not indicated in the logs or the
reports but was very probably AXT which was typical of that era. Drill core
selected for sampling was based on sulphide content and economic
mineralization, which is evident from the lithology description. The preferred
sample length is five feet with only a few of the samples of as little as one foot.
Sludge samples were often collected in massive sulphide zones with one
sample representing an entire interval. Eight holes did not intersect significant
mineralization and were not sampled.
Core size, where noted in the Cominco drill program, is AQ except for their last
drill campaign in 1980 when they went with BQ. This was probably split with a
hand operated core splitter with half of the core sample bagged and sent to the
lab. Sample size was variable with most being 5 feet or 1.5 m when logging was
in meters. Sampling of sulphide zones is consistent based on the lithology
description.
Sampling method and approach is also not documented for the work carried out
by Noranda Exploration Company Limited on behalf of Brunswick Mining and
Smelting. It is known that a core logging and storage facility was operated at the
Heath Steele mine site and this was used to process the Stratmat core. The NQ
core samples were identified and marked by the geologist to be split [by
diamond saw (pers. comm Moreton, C. Feb. 2, 2009)]. Core sample length is
highly variable dependent on the mineralization. Samples are mostly less than
or equal to 1.5 m. Half of the core sample would be bagged and samples would
probably be transported by truck to one of the lab facilities operated by Noranda,
Brunswick Mine or Custom Lab, a local lab adjacent to the Noranda office. The
drill core for most of the Noranda drilling is stored at the Heath Steele core
storage facility. The core is cross piled in the open and is in deteriorating
condition.
Xstrata operated a core facility at the Brunswick 12 Mine. A building was
dedicated for this use and was clean and well organized with experienced
personnel handling the samples. Samples of all sulphide mineralized zones
were split with a saw generally in sample lengths of one meter. The samples
30
0887190300-REP-L0001-01
were transported to the prep lab and later to the assay lab on the mine site by
mine personnel. Drill core is stored in the core storage facility at the Brunswick
12 Mine.
31
0887190300-REP-L0001-01
13.0 SAMPLE PREPARATION, ANALYSES,
AND SECURITY
Due to limited availability, the following is all the available information found by
Wardrop in regards to sample preparation, analysis and security.
13.1
CUSTOM LABORATORIES LTD.
The following is taken from Assessment Report 474129 (Websites: Assessment
Reports):
Rock and drill core preparation and analysis method for Cu, Pb, Zn, Ag, arsenic (As),
antimony (Sb), Ni, bismuth (Bi), cobalt (Co), and cadmium (Cd):
Preparation: All Samples crushed to less than ¼ inch (“) riffled down to
approximately 200 gram (g) cut, then pulverized to less than 100 mesh and
rolled.
Method: A sample weight of 1 g or 0.5 g. digested with HCl and nitric, taken to
dryness, picked up with H and water, brought to volume and read on Atomic
Absorption (AA).
Rock and drill core preparation and analysis method for Au:
Method: All Au samples at Custom Laboratories Ltd. are done with standard
Fire Assay Method, using 1/2 Assay Ton (14.60 g), fused at 2000 F, cupelled at
1680 F with AA finish, gravimetric when applicable with AA check.
Sample Storage: Drill Core and Rocks - Coarse rejects and remaining pulp are
stored for a maximum of 3 months.
13.2
NORANDA EXPLORATION COMPANY, LIMITED
The following is taken from Assessment Report 473544 (Websites: Assessment
Reports):
1. Manganese (Mn), Cu, Pb Zn Ag, Ni - A 0.5 gram sample is attached with 1:1
Nitric acid on hot plate for one hour. Sample is cooled, diluted and stirred.
Elements are determined directly from digest with conventional atomic
absorption spectrometric procedure.
2. Arsenic - An aliquot from Cu digest is diluted with potassium iodide and
analyzed with a Varian Hydride.
32
0887190300-REP-L0001-01
3. Antimony - A 0.5 gram sample is attacked with 1:1 hydrochloric acid. An
aliquot from digest is diluted with potassium iodide and analyzed with a Varian
Hydride.
4. Gold - A 10 gram sample is digested with aqua regia. Gold is extracted with
MIBK from the aqueous solution. AA is used to determine gold.
33
0887190300-REP-L0001-01
14.0 DATA VERIFICATION
14.1
DATA VERIFICATION
Wardrop carried out an internal validation from the original assay and the drill hole
database on 25 (4.55%) of the 505 drill holes in the total dataset provided by Kria.
Wardrop validated the dataset by comparing the original assay certificates against
the digital dataset. During the initial data verification it was found that the error
percentage was greater than 1%. As a result, a complete 100% check of the
database was performed by Wardrop.
In total only 382 drill holes were found to be of usable quality (75.64% of the dataset)
for the geological interpretation. Errors and missing values in the database were
corrected with values from their original sources (signed assay certificates and drill
logs) provided by the client.
Holes ST-1 to ST-109 have no assays recorded in the original logs and therefore,
Wardrop did not use them in the resource estimation. These holes were used in the
wireframe interpretation because the hole locations and geological logs could be
validated. Kria supplied Wardrop with assays for these holes electronically, but
because original certificates could not be located, the holes were not used in the
resource estimation. Transcription errors within the database in the collar, survey
and assay databases were corrected during the 100% data verification.
Wardrop was not able to validate any of the collar elevations provided in the dataset.
The collar elevations recorded on the original logs were based on an old survey
which has since changed. Prior to 1997, the elevations were relative to the survey
monument, which was given a value of 10,000 feet (ft) or 554 m. In 1997, elevations
were changed to reflect sea level. The elevations in the dataset provided by Kria are
recorded relative to sea level. Wardrop suggests a complete survey check be
completed on all the Stratmat collar locations.
Assay verification was completed on Ag, Au, Cu, Pb and Zn values. These values
were check against the values in the validation sample within the Access database.
14.2
SAMPLE ANALYSIS CHECK
Wardrop re-assayed historical half split core from five drill holes to verify the range of
historical values. The samples from the Stratmat deposit were sent to ALS Chemex
in North Vancouver (ISO 9001:2000). Wardrop is unaware of the QA/QC standards
undertaken by Noranda.
Wardrop was unable to locate the exact sample numbers for samples ST350, ST329,
and ST331. Based on the information available to Wardrop, an estimation of the
34
0887190300-REP-L0001-01
correct sample numbers was made. The two remaining sample numbers (ST362a
and ST362b) could not be determined. This sample population is too small to draw
any definite conclusions; however, it does indicate that Pb and Zn mineralization are
present on the Property.
Overall, results from this sampling showed a decrease of 0.77% lead, 1.14% zinc,
258 ppm copper, 19.04 ppm silver and 0.47 gold copper (Table 14.1).
Although the sample set is too small to draw any significant conclusions it does
indicate further work is warranted. The samples do confirm the presence of base
metal mineralization.
Table 14.1
Hole-ID
ST362a
ST362b
ST350
ST329
ST331a
Comparison of Check Assay Results to the Original Assay Results
Sample #
---
---
113929
114601
124532
Pb (%)
Zn (%)
Cu (ppm)
Ag (ppm)
Au (ppm)
Client
---
---
---
---
---
Wardrop
<1
<1
7450.00
5.86
0.65
Difference
---
---
---
---
---
Client
---
---
---
---
---
Wardrop
5.18
10.30
2620.00
86.00
0.64
Difference
---
---
---
---
---
Client
0.81
3.21
6800.00
96.34
1.65
Wardrop
<1
2.92
5220.00
64.40
1.45
Difference
---
9.03%
23.24%
33.15%
12.12%
Client
2.80
6.00
2700.00
65.14
1.47
Wardrop
2.62
5.39
2800.00
59.00
0.95
Difference
6.43%
10.17%
-3.70%
9.43%
35.37%
Client
5.71
14.62
700.00
131.29
1.37
Wardrop
4.35
12.10
1405.00
>100
0.68
Difference
23.82%
17.24%
-100.71%
---
50.36%
Overall
15.12%
12.15%
-27.06%
21.29%
32.62%
35
0887190300-REP-L0001-01
15.0 ADJACENT PROPERTIES
Adjacent to the south of the Property is the former Heath Steele lead-zinc mine. The
Heath Steele mining lease is 100% owned by Xstrata and is a volcanogenic massive
sulphide (VMS) lead zinc deposit similar to that of Stratmat.
The Heath Steele deposit was discovered in 1952 by prospectors working for
Matthew James Boylen and was the first discovery in Canada of a deposit by means
of an airborne EM geophysical survey.
American Metals Climax Inc. (American Metals) had financed Mr. Boylen's
exploration and, as a result of a 1953 agreement with (then) International Nickel
Company of Canada Ltd. (Inco), acquired a 75% ownership of the new mine. By
1957, a mine and milling operation were established to extract copper, lead and zinc
from the ore. Due to low metal prices and metallurgical issues, the mining operation
was suspended in April 1958. Mining resumed in June 1962. In 1969, the mine
started an ambitious expansion, and by 1979 was producing over 185,000 tonnes of
mineral concentrates per year.
As the ore body was gradually depleted, operations were increasingly dependent on
strong metal prices. In 1979, Noranda purchased American Metals 75% share in the
operation. In April 1983, it was forced to suspend operation due to declining metal
prices. In 1986, Noranda purchased all of the remaining interest in the mine. T he
mine operated sporadically between: 1989-1991; 1992-1993, and; finally, 1994-1999.
The underground mine was finally closed and allowed to flood in 1999 (Gallagher,
1999).
36
0887190300-REP-L0001-01
16.0 MINERAL PROCESSING AND
METALLURGICAL TESTING
No known mineral processing or metallurgical testing has been completed for the
Stratmat Property.
37
0887190300-REP-L0001-01
17.0 MINERAL RESOURCE AND MINERAL
RESERVE ESTIMATES
17.1
INTRODUCTION
Wardrop has estimated an NI 43-101 compliant resource for eleven interpreted
zones of massive sulphide for the Stratmat Deposits.
17.1.1
DATABASE
Kria supplied all of the digital data for the resource estimate. The data was imported
into MineSight 4.5, a software package designed by Mintec Inc.
The drill hole dataset included collar, survey and assay files. Table 17.1 summarizes
the drilling data records supplied to Wardrop. A 100% data verification was
conducted to remove any obvious errors prior to the interpretation. Due to
uncertainty associated with the historical data, Wardrop recommends that the
Stratmat resource be reported as an Inferred Mineral Resource.
Table 17.1
Summary of the Drilling Data Records
Drill
Holes
Total Length
Collar
Readings
Survey
Readings
Assay
Entries (all
elements)
Raw Data
505
143,310
505
3,407
10,544
After 100% verification
505
165.226
505
3,379
15,466
Data used in interpretation
382
122,654
382
2,623
12,179
Data Set
17.1.2
SPECIFIC GRAVITY
A tonnage factor of 3.5 g/cm3 was used to estimate the resource for Stratmat. This is
an estimated value based on experience with sulphide types within the area such as
the Heath Steele B-Zone. Density determinations will have to be carried out on the
various types of mineralization encountered within the Stratmat deposit as part of
future work programs on the project.
17.2
EXPLORATORY DATA ANALYSIS
Exploratory data analysis is the application of various statistical tools to elucidate the
characteristics of the data set. In this case, the objective is to understand the
population distribution of the grade elements through the use of such tools as
histograms, descriptive statistics and probability plots.
38
0887190300-REP-L0001-01
17.2.1
ASSAY VALUES
Statistical analysis was carried out on the validated dataset on those assay values
greater than zero. Statistics on the assay values from the validated dataset are
shown in Table 17.2. Statistics on the assay values from the validated dataset and
used in the geological interpretation are shown in Table 17.3. Note that values for
silver and gold have been converted from ounces per (short) ton to grams per
(metric) tonne.
Table 17.2
Statistics on the Raw Assay Values from the Validated Dataset
(No Zero Values)
Element
Minimum
Maximum
Average
Standard Deviation
Count
Zn (%)
0.01
28.00
1.33
2.74
9855
Pb (%)
0.01
40.86
3.01
5.78
10121
Cu (%)
0.01
29.66
0.27
0.64
9166
Ag(g/t)
0.34
884.61
24.29
46.89
9349
Au(g/t)
0.03
71.49
0.31
1.38
6277
Table 17.3
Statistics on the Raw Assay Values from the Validated Dataset and
Used in Interpretation (No Zero Values)
Element
Minimum
Maximum
Average
Standard Deviation
Count
Zn (%)
0.01
28.00
1.41
2.88
7948
Pb (%)
0.01
40.86
3.20
6.03
8184
Cu (%)
0.01
13.09
0.27
0.57
7476
Ag (g/t)
0.34
884.61
25.74
48.97
7765
Au(g/t)
0.03
71.49
0.32
1.31
5741
Cumulative probability plots were created for assay values (after capping, composite
values and block model values for zinc, lead, copper, silver, gold and zinc equivalent.
For comparison, the three probability plots were overlain on a single graph for each
metal. An example of the cumulative probability plot for ZnEQ is represented in
Figure 17.1. The cumulative probability plots for zinc, lead, copper, silver and gold
can be found in Appendix B.
39
0887190300-REP-L0001-01
Figure 17.1
Cumulative Probability Plot for ZnEQ
40
0887190300-REP-L0001-01
17.2.2
CAPPING
Cumulative probability plots were used to assess the need for capping. Typically, a
step in the profile, or a separation of the data points, is present if there are different
populations in the dataset. High value outliers will show up in the last few percent of
a cumulative probability plot (in the 97% to 100% range) and the break in the
population is used to set a capping level.
Examples of the cumulative frequency plots for the uncapped data at Stratmat are
given in Appendix B. Capping levels were set at 29% for Zn, 4% for Cu, 18% for Pb,
356.6 g/t for Ag and 5.14 g/t for Au. Table 17.4 summarises the capping effects for
the dataset.
Table 17.4
Element
17.2.3
Capping Levels Summary
Capped Value
Number of Samples Capped
Zn (%)
29
102
Cu (%)
4
33
Pb (%)
18
23
Ag (g/t)
356.6
22
Au (g/t)
5.14
16
COMPOSITES
Table 17.5 shows the statistics for the Zn assay sample lengths for Stratmat (no zero
length samples are included in the statistics). A composite length of 1 m was chosen
to ensure that at least three composite samples are available for each block during
the interpolation.
Table 17.5
Length (m)
Assay Sample Length Statistics (Derived from Validated Data)
Minimum
Maximum
Average
Standard Deviation
Count
0.01
7.6
1.03
0.71
8400
The number of composite samples used for block modelling is given in Table 17.5
while the statistical summary is given in Table 17.6. All composites were used in the
estimate; composites that were shorter than half the composite length only represent
5.2% of the ZnEQ composites used in the resource estimate. These composites
have a weighted ZnEQ average of 3.97%, which is higher than the 2% ZnEQ cut-off
grade used in the model interpretation. Wardrop believes that keeping these
remnant samples in the interpretation will not significantly affect the resource
estimate.
41
0887190300-REP-L0001-01
Table 17.6
Statistical Summary of All ZnEQ Composites
ZnEQ Capped
Minimum
Maximum
Average
Std Dev
Count
0
57.36
4.89
5.88
3224
The amount of composites used in the resource estimate at different ZnEQ cut-offs
are represented in Table 17.7.
Table 17.7
17.3
Data Statistics from Composites
Cut-off ZnEQ
Samples Above
Percent Above
Mean Above
0
3224
100.00
4.89
1
2518
78.10
6.13
2
1978
61.35
7.40
3
1562
48.45
8.72
4
1258
39.02
9.98
5
1048
32.51
11.09
6
874
27.11
12.20
7
744
23.08
13.19
8
618
19.17
14.35
9
499
15.48
15.74
10
410
12.72
17.10
GEOLOGICAL INTERPRETATION
Three dimensional polygons were created for all eleven zones interpreted at
Stratmat. These zones were determined by using uncapped ZnEQ values greater
than 2% as a modelling cut-off. Shoulder samples with values of less than 2% ZnEQ
were included where appropriate. Solids were then created by linking these
polygons together by using a linker tool in MineSight and then the solids were
validated. Validation of the solid models confirms the solids do not contain errors.
The formula used for the ZnEQ values is the same as that discussed in Section
17.5.3 of this report assuming 100% recovery. The end rings for each solid were
extruded for a distance of 12.5 m so that the values from drill holes on the edges of
the solids could be included. Note that multiple solids had to be created due to the
complexity of the geological relationships in this area (see Table 17.8).
Table 17.8
Zone and Deposit Names
Deposit (Historical)
Zone by Wardrop
Stratmat Central
40, 50
Stratmat S-1
10, 15, 20, 21, 22, 25, 30, 45
Stratmat Main
51
42
0887190300-REP-L0001-01
The following figures (Figure 17.2 and 17.3) illustrate the final geological
interpretation created from the three-dimensional polygons.
Figure 17.2
Stratmat Zones Looking West Down Strike
43
0887190300-REP-L0001-01
Figure 17.3
Long Sectional View of the Multiple Solids used for the Resource Estimate looking Towards the North
44
0887190300-REP-L0001-01
17.4
SEARCH ELLIPSE ORIENTATIONS
The search ellipse parameters for this resource estimate are shown in Table 17.9.
Note that the dips in red were measured from a vertical position so 10° is really 80°
(90°-10°).
Table 17.9
Search Ellipse Parameters
Zone
Azimuth
Dip (90-x)
Plunge
Major (m)
Minor (m)
Vertical (m)
10
65
10
0
50
15
80
15
70
10
0
50
15
70
20
80
15
-20
80
20
40
21
240
3
0
50
50
50
22
83
3
0
60
30
10
25
65
15
45
55
15
80
30
85
10
20
80
15
40
40
50
40
30
80
25
50
45
65
15
70
55
10
80
50
60
40
30
70
20
40
51
60
30
0
40
20
80
Table 17.9 exhibits two distinct methods of measuring dips. The dips recorded in red
have been measured from a vertical orientation while the dips in black have been
measured from a horizontal orientation. The two dip measurement types are relative
to the azimuth orientation.
17.5
BLOCK MODEL
One block model was created to cover all of the massive sulphide lenses at Stratmat.
Table 17.10 shows the MineSight coordinates for the model.
Table 17.10
Stratmat
17.5.1
Stratmat Block Model Coordinate Settings
Minimum
Maximum
Cell Size
Easting
10621
13000
3
Northing
9850
10876
3
Elevation
4476
5400
3
BLOCK MODEL SIZE
A block model size of 3 m x 3 m x 3 m was used to estimate the resources. This size
was chosen because portions of the deposit may be mined by underground methods.
45
0887190300-REP-L0001-01
17.5.2
I N T ER P O L A T I O N P L AN
In total, four interpolations were run to calculate the resources for Stratmat. The four
interpolations used were as follows:
•
Inverse Distance Squared (ID2) capped.
•
ID2 uncapped.
•
Nearest Neighbour (NN) capped.
•
NN uncapped.
For all inverse distance weighted interpolations run on Stratmat, there was a
minimum of three composite samples and a maximum of six composite samples
used to estimate a block. Two separate search ellipses were defined: for Pass 1 the
X, Y and Z ranges were set at 120 m, 120 m and 120 m respectively while the
ranges for Pass 2 are outlined in Table 17.9.
The statistics on the distances to the nearest composite sample are given in Table
17.11 below.
Table 17.11
17.5.3
Statistics on the Distances to the Nearest Composite Sample
Minimum
Maximum
Average
Std Dev
Count
0.19
158.6
44.8
31.79
69,718
EQUIVALENCY FORMULA
The metal prices are four-year moving averages (September 2004 to September
2008) taken from a database maintained by Wardrop. A 2% ZnEQ value was used
as a nominal cut-off to model the geological, or wireframe, solid models.
In order to create the wireframe models for the Stratmat deposit, a ZnEQ value was
created based on the raw, uncapped assay values. Metallurgical recoveries were
not employed in creating the ZnEQ values. The formula is given below:
ZnEQ = Zinc Grade + ((Copper Price * Copper Grade) / Zinc Price) + ((Lead Price *
Lead Grade) / (Zinc Price) + ((Silver ounces per tonne / 0.9071487) * Silver Price) /
(Zinc Price*22.046) + ((Gold ounces per tonne / 0.9071487) * Gold Price) / (Zinc
Price * 22.046)
ZnEQ:
Zn price:
Cu price:
Pb price:
Ag price:
Zinc equivalency
$1.11/lb
$2.75/lb
$0.78/lb
$11.70/oz
46
0887190300-REP-L0001-01
Au price:
Pounds per tonne:
1 ton =
$639.91/oz
2,204.622
0.971487 t
For reporting purposes, metallurgical recoveries were applied in the calculation of the
Zn equivalency (ZnEQR). The recovery factors used were derived from the Half Mile
Lake Project (Daigle, 2009).
ZnEQR = (Zinc Capped Grade * Zinc Recovery) + ((Copper Price * Copper Capped
Grade * Copper Recovery) / Zinc Price) + ((Lead Price * Lead Capped Grade * Lead
Recovery) / (Zinc Price) + ((Silver ounces per tonne Capped / 0.9071487) * Silver
Price * Silver Recovery) / (Zinc Price*22.046) + ((Gold ounces per tonne Capped /
0.9071487) * Gold Price * Gold Recovery) / (Zinc Price * 22. 046)
ZnEQR:
Zn price:
Cu price:
Pb price:
Ag price:
Au price:
Pounds per tonne:
Zinc equivalency recovery capped
$1.11/lb
Zn recovery:
$2.75/lb
Cu recovery:
$0.78/lb
Pb recovery:
$11.70/oz
Ag recovery:
$639.91/oz
Au recovery:
2,204.622
1 ton =
89.7%
60%
72%
48.6%
70%
0.971487 t
Assay values were capped based on the capping levels from Table 17.4.
17.5.4
M I N E R A L R ES O U R C E C L A S S I F I C A T I O N
Both ID2 and NN methods were used to interpolate the data in the block model. The
NN method is used as a cross-check for the ID2 method. The resource classification
is determined by drill density and spatial continuity, however, the mineral resource for
the Stratmat area was classified as an Inferred Resource based on the degree of
confidence in the raw data.
The ID2 resource estimates for all eleven zones were made at ZnEQR cut-offs from
5% to 10% and may be found in Appendix D. These cut-off values are believed to be
appropriate for a potential mine in northern New Brunswick. The following
metallurgical recoveries were applied to the zinc equivalent for the resource
estimate: 89.7% zinc, 72% lead, 60% copper, 48.6% silver and 70% gold.
The base case resource estimate was made at 5% ZnEQR cut-off and is shown in
Table 17.12. More information on the resource estimates can be found in Appendix
B.
47
0887190300-REP-L0001-01
Table 17.12
ZnEQR
Cut-Off
Stratmat Property Inferred Resource Estimate at 5% ZnEQR Cut-Off
Zone
Tonnes
Zn EQ (%)
Zn (%)
Pb (%)
Cu (%)
Ag (g/t)
Au (g/t)
10
266,800
7.07
5.20
2.17
0.32
60.59
0.63
5%
15
215,700
6.65
5.03
2.67
0.36
28.06
0.09
20
1,474,000
8.41
6.33
2.53
0.34
62.57
0.83
21
106,100
7.44
5.98
2.86
0.07
44.71
0.33
22
139,400
8.17
5.99
2.77
0.26
60.67
0.93
25
676,100
6.92
5.20
2.49
0.36
40.40
0.28
30
157,200
7.61
6.22
2.16
0.21
45.91
0.47
40
836,700
9.58
7.13
3.14
0.41
64.49
0.85
45
88,400
10.25
7.45
4.07
0.74
44.53
0.15
50
737,800
8.65
6.48
2.68
0.60
39.55
0.49
51
Totals
17.6
826,200
7.55
5.56
2.13
0.45
60.76
0.63
5,524,500
8.16
6.11
2.59
0.40
54.21
0.62
VALIDATION
The volume of the deposit was validated by comparing the block model volumes
against the initial wireframe model volumes. The differences were found to be within
a tolerance of less than 1.4% between all interpreted zones. Over the entire deposit
the comparison between the block model volume and the wireframe model volume
lies within a tolerance of 0.11%. The results of these comparisons are shown in
Table 17.13.
Table 17.13
Volume Comparison between Wireframe Solid Models and Block
Models
Wireframe
Block Model - Wireframe
Zone
Volume
Tonnes
# of
Blocks
Code %
Tonnes
% Difference
10
514,998.54
1,802,500
27,725
0.687777
1,802,000
0.03%
0.06%
15
299,335.77
1,047,700
21,199
0.522697
1,047,100
20
1,972,833.06
6,904,900
95,103
0.766626
6,889,800
0.22%
21
80,295.96
281,000
4,535
0.65228
279,500
0.53%
22
286,369.49
1,002,300
14,187
0.737707
989,000
1.33%
25
1,500,849.90
5,253,000
89,922
0.61796
5,251,200
0.03%
30
351,159.91
1,229,100
20,725
0.627334
1,228,600
0.04%
40
2,138,539.75
7,484,900
124,368
0.636632
7,482,200
0.04%
45
245,760.35
860,200
16,068
0.566253
859,800
0.05%
50
1,294,440.22
4,530,500
62,123
0.771575
4,529,600
0.02%
844,394.47
2,955,400
42,291
0.739308
2,954,600
0.03%
Total Tonnes
33,351,500
Total Tonnes
33,313,400
0.11%
51
48
0887190300-REP-L0001-01
The assay values were validated by making the comparison between the composited
values and those populated into the block model. The final resource estimate is
based on the ID2 method; however, the NN method was also made as a check. The
comparison between these three methods is shown in Table 17.14.
Comparison of ID2 and NN Interpolation Values at 5% ZnEQR CutOff
Table 17.14
Zn (%)
Pb (%)
Cu (%)
Ag (g/t)
Au (g/t)
2
ID
6.11
2.59
0.40
54.21
0.62
NN
6.00
2.49
0.38
51.09
0.58
As an additional validation, a comparison was made between all the raw zinc assay
values to the composite values, those values populated into the block model by ID2
method and the NN method. This comparison is shown in Table 17.15.
Table 17.15
Stratmat
All Zones
Comparison of all Zn Composited Assay Values to ID2 and NN
Values
Composites
Block Model NN
Block Model ID2
2.58
2.30
2.43
Zn %
49
0887190300-REP-L0001-01
18.0 OTHER RELEVANT DATA AND
INFORMATION
This section is not relevant to the report.
50
0887190300-REP-L0001-01
19.0 INTERPRETATION AND CONCLUSIONS
Wardrop has completed an NI 43-101 compliant Inferred resource estimate for the
Stratmat Project. The results of the resource estimate are presented in Tables 19.1
below at a 5% zinc equivalent cut-off. The following metallurgical recoveries were
applied to the zinc equivalent for the resource estimate: 89.7% zinc, 72% lead, 60%
copper, 48.6% silver and 70% gold.
Table 19.1
Stratmat Property Inferred Resource Estimate at 5% ZnEQR Cut-Off
Location
Tonnes
ZnEQ
%Pb
%Zn
%Cu
Ag (g/t)
Au (g/t)
Stratmat
All Zones
5,524,500
8.16
6.11
2.59
0.40
54.21
0.62
Wardrop concludes that the above resource estimates indicate the possibility of
hosting an economic deposit and warrants further investigation and development.
51
0887190300-REP-L0001-01
20.0 RECOMMENDATIONS
Wardrop recommends that a comprehensive review of the drill hole database be
conducted to verify the integrity of the dataset. As part of the review of the historical
data, Wardrop also recommends that a drilling program be established to increase
the level of confidence in the historical data where chain of custody and drill data are
lacking. To this end, Wardrop recommends the drill program include a minimum of
seven drill holes for an approximate total of 3,000 m. These holes will twin several
historic holes to confirm survey and/or assay data. Also these holes will serve to
further define the interior of the deposit, and to delineate the deposit longitudinally
where drilling is scarce. The budget is estimated at approximately $600,000.
52
0887190300-REP-L0001-01
21.0 REFERENCES
Adair, R. 1992. Stratigraphy, Structure, and Geochemistry of the Halfmile Lake
Massive-Sulphide Deposit, New Brunswick. Exploration Mining Geology, Vol. 1,
No.2 1992
Barr R. 2007. Assessment Report, Stratmat Block 1613, Consisting of: Diamond
Drilling and Borehole EM Surveys, March to April, 2005. June 2005. 20 pages.
Clark, D. 2006. Technical Report Form 43-101 F1. Xstrata Zinc – El Niño Ventures
Bathurst Option Agreement. Bathurst Area, New Brunswick. 1 Nov. 2006 (revised
30 Dec. 2006)
Côté, L. 2001. Noranda, Brunswick Mine Division. Internal Memo. Subject: Ontario
Securities Commission: Standard of Disclosure for Mineral Projects. 12 February
2001.
Cullen & Dunn, 2005. Technical Report on Mineral Resource Estimate, Slam
Exploration Ltd., Nash Creek Property, Restigouche County, New Brunswick,
Canada. Mercator Geological Services Limited. 15 August 2005
Daigle, P., Arseneau, G., Maunula, T., 2009. Halfmile Lake Technical Report and
Resource Estimate. Wardrop Engineering Inc. 26 January 2009.
Davies, J.L., et al, 1985. Massive Sulphide Deposits of the Bathurst-Newcastle Area,
New Brunswick, Canada, GAC-MAC Excursion #2, pp.1-14.
Dupras, N., Sandison, D.J. (not dated). Stratmat Property / New Brunswick /
Factsheet, Xstrata Zinc Canada, Bathurst Mine Office.
Gallagher, D. 1999. Heath Steele: The history of a base-metal mine in northern New
Brunswick and the people who worked there since the discovery in 1953. Noranda
(New Brunswick Divisions), Bathurst. 67 pp.
Goodfellow, W.D. and McCutcheon, S.R., 2003. Geologic and Genetic Attributes of
Volcanic Sediment-Hosted Massive Sulfide Deposits of the Bathurst Mining Camp,
Northern New Brunswick – A Synthesis, Economic Geology Monograph 11
Graves, G., 2008. Internal Report. Stratmat Report (Draft). October 2008.
Hamilton, A. 1992. Geology of the Stratmat Boundary and Heath Steele N-5 Zones,
Bathurst Camp, Northern New Brunswick, Exploration Mining Geology, Vol. 1, No. 2
53
0887190300-REP-L0001-01
Mann, R. 1998. Noranda Mining & Exploration Inc. Technical Report. Stratmat
Group. Claim Nos: 327300 - 327313, 327316-327355; NTS: 21 O/8E; Latitude:
47°13'N, Longitude 66°07'W. April 1998.
McCutcheon, S.R., Luff, W. M. and Boyle, R.W. 2003. The Bathurst Mining Camp,
New Brunswick, Canada: History of Discovery and Evolution of Geologic Models,
Economic Geology Monograph 11
Park, A.F. 1996. Geology and Structural Analysis of the A, C, N-3, N-6 and N-5
Zones at Heath Steele Mines and the Stratmat Boundary Zone (Part of NTS 21 O/8
East), Northern New Brunswick, NBDNRE Open File Report 96-17
Parkhill, M.A., Doiron A. 2003. Quaternary Geology of the Bathurst Mining Camp
and Implications for Base Metal Exploration Using Drift Prospecting, Economic
Geology Monograph 11
van Staal, C. R., Wilson, R. A., Rogers, N., Fyffe, L. R., Langton, J.P., McCutcheon,
S.R., McNicoll, V., Ravenhurst C.E., 2003. Geology and Tectonic History of the
Bathurst Supergroup, Bathurst Mining Camp, and Its Relationship to Coeval Rocks in
Southwestern New Brunswick and Adjacent Maine – A Synthesis, Economic Geology
Monograph 11
Wilson, R. A. 1993. Geology of Heath Steele – Halfmile Lakes Area (Part of NTS 21
O/8), Northern New Brunswick, NBDNRE Report of Investigation 25
PRESS RELEASES:
Kria Press Release, July 2008. Kria Resources Ltd. Kria Resources to purchase
Halfmile Lake and Stratmat Properties in the Bathurst Mining Camp from Xstrata.
29 July 2008.
Kria Press Release, Oct 2008. Beartooth Platinum and Kria Resources Agree to
Business Combination. 23 October 2008.
WEBSITES:
Government of New Brunswick, Department of Natural Resources
Assessment Reports:
http://dnremrne.gnb.ca/parisweb/AssessmentReportSearch.aspx
Mineral Claims Database:
http://www1.gnb.ca/0078/GeoscienceDatabase/claims/ClaimGroup-e.asp
Mineral Claim Maps:
http://www1.gnb.ca/0078/GeoscienceDatabase/Claims/ClaimMaps-e.asp
54
0887190300-REP-L0001-01
22.0 CERTIFICATE OF QUALIFIED PERSON
22.1
CERTIFICATE
FOR
TIMOTHY MAUNULA, P.GEO.
I, Timothy Maunula, P.Geo., of Oakville, Ontario, do hereby certify that as the coauthor of this report titled “Stratmat Technical Report and Resource Estimate”,
dated February 17, 2009, I hereby make the following statements:
•
I am a General Manager with Wardrop Engineering Inc. with a business address
at 900-330 Bay Street, Toronto, Ontario, M5H 2S8.
•
I am a graduate of Lakehead University, (B.Sc. Honours, 1979).
•
I am a member in good standing of the Association of Professional
Geoscientists of Ontario (License #1115).
•
I have practiced my profession continuously since graduation.
•
I have read the definition of “qualified person” set out in National Instrument 43101 (NI 43-101) and certify that, by reason of my education, affiliation with a
professional association (as defined in NI 43-101) and past relevant work
experience, I fulfill the requirements to be a “qualified person” for the purpose of
NI 43-101.
•
My relevant experience with respect to geology includes over 25 years of
exploration, operations and consulting experience including considerable
experience at base metal properties in Manitoba.
•
I am responsible for the preparation of all sections of this technical report titled
“Stratmat Technical Report and Resource Estimate” dated February 17,
2009.
•
I have no prior involvement with the Property that is the subject of the Technical
Report.
•
As of the date of this Certificate, to my knowledge, information and belief, this
Technical Report contains all scientific and technical information that is required
to be disclosed to make the technical report not misleading.
•
I am independent of the Issuer as defined by Section 1.4 of the Instrument.
•
I have read National Instrument 43-101 and the Technical Report has been
prepared in compliance with National Instrument 43-101 and Form 43-101F1.
Signed and dated this 17th day of February, 2009 at Toronto, Ontario.
Original document, revision 01, signed and
stamped by Timothy Maunula, P.Geo.
Signature
55
0887190300-REP-L0001-01
22.2
CERTIFICATE
FOR
PAUL DAIGLE, P.GEO.
I, Paul Daigle, of Toronto, Ontario, do hereby certify that as co-author of this report
titled “Stratmat Technical Report and Resource Estimate” dated February 17,
2009, I hereby make the following statements:
•
I am a Senior Geologist with Wardrop Engineering Inc. with the business address
900-330 Bay Street, Toronto, ON M5H 2S8.
•
I am a graduate of Concordia University, Montréal, Québec, Canada, with a
B.Sc. in Geology, Specialization.
•
I am a member in good standing of the Association of Professional Geoscientists
of Ontario (Registration #1592) and the Association of Professional Engineers
and Geoscientists of Saskatchewan (Registration #10665).
•
I have practiced my profession in geology continuously since graduation.
•
I have read the definition of “qualified person” set out in National Instrument 43101 (NI 43-101) and certify that, by reason of my education, affiliation with a
professional association (as defined in NI 43-101) and past relevant work
experience, I fulfill the requirements to be a “qualified person” for the purpose of
NI 43-101.
•
My relevant experience with respect to the Stratmat Project is based upon over
19 years of experience in a wide variety of geological settings. I have not made
a site visit to the Property.
•
I am responsible for the revision of sections 1 to 16 and 18 to 20 of this technical
report titled “Stratmat Technical Report and Resource Estimate”, dated
February 17, 2009.
•
I have no prior involvement with the property that is the subject of the Technical
Report.
•
As of the date of this Certificate, to my knowledge, information and belief, this
Technical Report contains all scientific and technical information that is required
to be disclosed to make the technical report not misleading.
•
I am independent of the Issuer applying the tests set out in Section 1.4 of
National Instrument 43-101.
•
I have read National Instrument 43-101 and the Technical Report has been
prepared in compliance with National Instrument 43-101 and Form 43-101F1.
Signed and dated this 17th day of February, 2009 at Toronto, Ontario.
Original document, revision 01, signed and
stamped by Paul Daigle, P.Geo.
Signature
56
0887190300-REP-L0001-01

Stratmat Technical Report and Resource Estimate

Transcription

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