galore creek: a complex high grade cu-au alkalic ......agenda • galore creek deposit in a global...

Galore Creek: A Complex High Grade

Cu-Au Alkalic Porphyry System

Sarah Henderson

March 6, 2018

Cautionary Note Concerning Forward Looking and

Reserve & Resource Statements

Certain information regarding the Company contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections or guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company’s control, and that future events and results may vary substantially from what the Company currently foresees.

This presentation uses the terms “proven & probable reserves”, “measured”, “indicated”, “inferred” and “historical” resources. United States investors are advised that, while these terms are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission (the “SEC”) does not recognize them. Under United States standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the “inferred resources” will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically.

National Instrument 43-101 – Standard of Disclosure for Mineral Projects (“NI 43-101”), is a rule developed by the Canadian Securities Administrators that governs disclosure of scientific or technical information in relation to mineral projects by Canadian public companies. Unless otherwise indicated, reserve and resource estimates have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101 requires disclosure of mineral reserves and resources to fall within specifically defined categories. The requirements of NI 43-101 related to reserve determination are not the same as those of the SEC, and reserves reported by NOVAGOLD and/or Teck in compliance with NI 43-101 may not qualify as reserves under SEC standards.

U.S. investors are urged to consider closely NOVAGOLD’s and/or Teck’s latest SEC filings. You can review and obtain copies of these filings from NOVAGOLD’s website at www.novagold.com Teck’s website at www.teck.com, or the SEC’s website at www.sec.gov.

2

Agenda

• Virtual Reality Fly-Over

• Galore Creek Deposit in a Global Context

• Current Activity at Galore Creek

• Deposit Introduction

• Alkalic Porphyry Characteristics

• Property Geology

• Lithology

• Alteration & Mineralization

• Exploration Potential

3

Agenda

Galore Creek Virtual Tour

Agenda





• Property Geology:

• Lithology



5

Agenda

Galore Creek vs. Global Copper Size of the Prize (Resources)

6

Teck Global Cu Endowment Database

• One of 30 Undeveloped Deposits with significant contained copper in Resources

• One of few with development permit, reserves, and completed PFS/FS studies

• Strong Tahltan relationship, significant remaining exploration potential

358.6 Mt contained copper in 30 deposits

Resources could be inclusive of Reserves

1 Mt

30 Mt

2012-2017 Design and Engineering

• Significant investment in design, engineering, and infrastructure related

studies to improve development case

2013-2014 Resource Development and Deposit Modeling

• Significant investment in drilling (39,549 m), geological and resource

modelling, and deposit understanding

2016-2017 Review of Key Development Components

• Integrated planning and development studies focused on key issues

including access

2017 Know your Asset Programs

• Invested in protection of 393,000m of drill core to provide ready access

for modeling work and review

• Surface mapping and target identification in the Galore Valley

2018 Planned Activity

• Compiling substantial past design, engineering, and drilling work into an

Integrated Summary to inform go-forward development options

• Maintaining our strong working relationship with the Tahltan

7

Renewing our Appreciation of Galore Creek Bringing Momentum Back to the Asset

Agenda






• Lithology



8

Agenda

Galore Creek Deposit Location Stikine Terrane

9

Kamloops

Mt Milligan

Prince George

Dease Lake

Lorraine

Mount Polley

Iron Mask (Afton,

Ajax)

Copper Mountain

Highland

Valley

(saturated)

Galore

Creek

Vancouver

Bella Coola

• Belt of porphyries formed

within the Quesnel and

Stikine terranes

• Stikinia volcanic arc

accreted to the North

American craton margin in

Middle Jurassic (~180-170

Ma)

• Stikine Terrane composed of

3 volcanic arcs

• Stikinia basement (Paleozoic)

• Stuhini Group (Triassic)

• Hazelton Group (Jurassic)

• Galore Creek hosted in a

late-Triassic volcanic island

arc sequence (Stuhini)

N

Mt Milligan

Galore Creek Deposit Location Stikine Terrane

N

40 km

Galore

Creek

Ch’iyōne

Camp

Khoh

Camp Isbā

Camp Dech’uwe

Camp

Copper

Canyon

Spectrum

GJ

Red

Chris

Ball

Creek

Mt Edziza

Provincial

Park

Snip Eskay

Creek

Schaft

Creek

Stewart

Iskut

Uhtlān

Camp

Premier

Red

Mountain

Granduc Scottie

Gold

Johnny

Mountain

Meziadin

Junction

Bell II

Bob Quinn

Airstrip

Spatsizi Plateau

Wilderness Park

Stikine River

Park

Mingunsaw

Park

Snowfield

KSM

Valley of the Kings

Telegraph

Creek

• Located in the “Golden

Triangle” within the Stikine

arch in NW BC

• Extensive tenure:

~ 45 km x 35 km

• Mineral claims 100% within

Tahltan traditional territory

• Northwest Transmission Line

now extends along Hwy 37

to Iskut

• 5 camps in place from 2007

road building

• Stikine River along western

property boundary, Iskut

River to east and south

• Canada / US Border to West

GCMC Access

Road

NW Transmission Line

Galore Creek Property Located in Northwest BC’s Golden Triangle

• 528 Mt Proven & Probable

Reserves at 0.585% Cu, 0.32

g/t Au, 6.02 g/t Ag

• 287 Mt Measured & Indicated

Resources (exclusive of

Reserves) at 0.33% Cu, 0.27

g/t Au, 3.64 g/t Ag

• 347 Mt Inferred Resources at

0.42% Cu, 0.24 g/t Au, 4.28

g/t Ag

• Resources contained in a

conceptual optimized pit shell

– same economic and

technical parameters as

Reserves

Prefeasibility Study (2011) Reserves and Resources

N

1 km

North

Junction

Cu %

Central

Zone

Junction

Southwest

West Fork

Middle

Creek

Source: Galore Creek Project NI 43-101 Technical Report on Pre-Feasibility Study (Amec, 2011)

Agenda






• Lithology



12

Agenda

13

PFS Pit

Alkalic Cu-Au Porphyry Deposits Common Geological Characteristics

Galore Creek

Central Southwest West Fork Bountiful Ridgeway Cadia Quarry Cadia Hill Cadia East Cadia Far East

Cadia/Ridgeway

1 km 1 km

• Deposit Distribution: commonly occur in clusters - structural, stratigraphic,

breccia and intrusive controls

• Geometry: highly variable, small to large, significant vertical extents

• Host rocks: commonly medial to distal subaqueous volcanic sequences

• Intrusions: compositionally varied alkaline porphyry intrusions

• Alteration: complex assemblages and zonation, restricted footprints, subtle

• Mineralization: highly variable Cu-Au ratios within deposits and across clusters

>0.3% Cu grade shell

14

Galore Creek Deposits Alkalic Clusters

Agenda



• Project Introduction



• Lithology



15

Agenda

• Host to highly anomalous deposit;

large for an Alkalic system

• Silica-undersaturated end member

of the alkalic porphyry class

• Pseudoleucite bearing volcanic and

intrusive rocks common in and

around the deposit – found only in

silica-undersaturated environments

• Leucite is a foid mineral unstable at

surface conditions – typically

breaks down to a pseudomorph of

nepheline and orthoclase

Leucite K[AlSi2O6]

“Typical” porphyry qtz veins,

Highland Valley Copper, BC Volcanic-hosted disseminated

sulphides, Galore Creek, BC

Geological Environment Silica Undersaturated Alkalic Complex

17

V1

1 cm

Augite

Phenocryst

gar

kspar

Augite-Bearing Volcanic

(V1)

Augite bearing mafic flows (local pillows), and volcaniclastic rocks

V1

1 km

N

Property Geology: Lithology V1 – Augite Bearing Volcanic

18

sericite

core

Pseudoleucite

Phenocryst

Ksp rim

1 cm

Pseudoleucite-Bearing Volcanic

(V2)

Precipitation of mineralization preferentially in this unit

Silica under-saturated system, crystallization of leucites at depth

Leucite replaced by kspar, and volcanic textures often obliterated by intense alteration

V1 V2

N

1 km

Property Geology: Lithology V2 – Pseudoleucite Bearing Volcanic

19

1 cm

Orthoclase-Bearing Volcanic

(V3)

V1 V2

V3

V3 may be cogenetic/coeval with dark syenite porphyry bodies (i4)

N

1 km

Property Geology: Lithology V3 – Orthoclase Bearing Volcanic

20

Main Stage Mineralization Event: 210±1 Ma (U-Pb zircon, Mortensen et al. 1995)

Bornite core & outer Cpy-Py halos oriented NNE along structures in Central and

Junction zones, +/- pulse of i3 or i4a intrusion.

V1 V2

V3

V2

i4

NNE

NNE

Junction

Central Zone

N

1 km

Main Stage Mineralization Central and Junction Zones

21

1cm

Pseudoleucite

Dark Syenite Intrusion

(i4)

V1 V2

V3

V2

Emplacement of late i4b (Dark Syenite Porphyry) phase. Voluminous intrusion in

the south of the valley (West Fork, Bountiful, Central South)

i4

N

1 km

Property Geology: Lithology i4b – Dark Syenite Porphyry

22

1cm

Orthoclase Syenite Megaporphyry (i9)

V1 V2

V3

V

Emplacement of i9 body west of the Central zone: 205±1.8 Ma (U-Pb sphene)

Post-mineral intrusion to the main stage mineralization (Central and Junction zones)

and pre-mineral host to Southwest, Middle Creek & West Fork.

i4

i9

N

1 km

Property Geology: Lithology i9 – Orthoclase Syenite Megaporphyry

23

V1 V2

V3

V

Second Stage Mineralizing Event: ~202.8 ± 2.1 Ma (U-Pb sphene, Byrne, 2014)

Cement and Matrix-bearing breccias in i9 intrusion host Cu & Au grades in Southwest,

West Fork & Middle Creek deposits.

Cement and Matrix-bearing Breccias (CBX, MBX)

i4

i9

WNW

WNW

Middle Creek

N

Southwest

West Fork

1 km

Second Mineralizing Event Southwest, Middle Creek, and West Fork Breccias

1 km

i9

North

Junction

Junction

South

West

West

Fork

Central

Zone

Bountiful

Legacy

N

V1

V2

V3

Middle

Creek

V2

24

• 2 distinct mineralizing events:

• NNE oriented Main event, volcanic hosted replacement

• NW oriented Second event, intrusion & breccia hosted

Butte

West

Rim

North

Rim

Saddle

• Several undeveloped satellite

targets in-valley

Main Event (NNE)

2nd Event (NW)

210±1 Ma

202.8 ± 2.1 Ma

Galore Creek Deposit Mineralization Summary

Copper Canyon (212 Ma)

6km east of Central Zone • Cu-Au alkalic porphyry

deposit

• 44 drill holes

• Inferred Resource

• Au:Cu 1:1 Source: Resource Estimate Copper Canyon Property (Morris, 2010)

25

• Main mineralizing event in the Central and Junction zones

• Affecting V1-V3, Seds & i1-i4

• Potassic alteration (kspar (or)-bio-mag-anh±spec±hem)

• Replacement of mafics (bio & mag) by sulphides (chalcopyrite & bornite)

• Au-rich mineralization with most of Au hosted in bornite

• Cu:Au = 2:1

• Simple sulphide zonation: bornite core chalcopyrite halo cpy + py halo

bn

cpy

kspar

mag

bio

Information source: Micko et al, 2014

Main Stage Potassic Alteration Disseminated & Replacement Style Mineralization

26

• Secondary Main mineralizing event/phase in the core of the Central zone

• Affecting V1-V3, Seds & i1-i4

• Calc-potassic alteration phase (gar-diop-bio-mag-anh±epi±plag)

• Characteristic dark brown-black garnet (Ti-andradite, grossular), often zoned

• Cpy ± minor bn precipitate last, replacing bio-mag & form youngest

hydrothermal cement in breccias

• Bornite precipitation lower = lower Au grades Cu:Au = 5:1

• Sulphide zonation: Chalcopyrite ± bn core chalcopyrite ± py py halo

bornite chalcopyrite garnet

Magnetite (repl gar?)

anhydrite

Biotite (repl diop?)

Information source: Micko et al, 2014

Main Stage Calc-Potassic Alteration Replacement & Cemented Breccia Mineralization

27

• Second distinct mineralizing event creating the Southwest deposit

• Host rock: i9 (megacrystic porphyry) and MBx (matrix-rich breccia)

• Cu-Au hosted in cement of phl-mag-kspar-ap-bornite-cpy-py

• CBx (cemented breccia) host to Cu-Au grades: chalcopyrite ± bornite core

chalcopyrite > pyrite pyrite > chalcopyrite pyrite only

• High Au:Cu ratio 2:1

• Likely similar age to West Fork, Middle Creek and Saddle cemented breccias

cpy

phl

Kspar py

Information source: Byrne and Tosdal, 2014

Second Stage Mineralization Cement Breccia-Hosted

28

GC04-0480 @ 55m:

27.8% Cu, 4.81 g/t Au, 176 g/t Ag

bornite chalcopyrite

magnetite

anhydrite

Additional Mineralization Style West Fork Opulent Vein

Agenda



• Project Introduction



• Lithology



29

Agenda

Target Description

Central North

V1/V2 Contact Untested contact; where tested elsewhere has

resulted in discovery of new zones

Bountiful

Bornite Core High grade bornite core of sulphide zonation open to

depth

SW Zone

Down Plunge Extension of Cemented Breccia open and untested

SW Zone - CBX2

Parallel Zone Hole ending in cemented breccia, parallel zone?

(0.7% Cu, 0.4 g/t Au, GC05-0628 )

Junction

South Extension Open to south along trend, closest hole: GC62-0028:

128m @ 0.33% Cu, 0.48g/t Au

Junction

Gap Gap open to SE, between current drilling and i9

body, min 250m wide

Cu Canyon

Moraine Zone Inferred resource, wide spaced drilling. Expansion:

Follow-up to hole CC07-0033

Saddle

Magnetite Breccia Mag-cpy cemented brx tested by 4 holes, include:

85m at 0.5% Cu, 1.05g/t Au, 7.45 g/t (GC90-0370)

Butte High grade intercepts, limited follow-up intercepts

include 158m @ 0.70% Cu, 0.25g/t Au (GC07-0778)

Saddle

Au-Ag Anomaly High Au and Ag grades in rock samples from north

trending ribs along 400m strike

North Rim Mag-diopside cemented breccia; numerous rock

samples over 1g/t Au and 1% Cu

South of

West Fork New exposures with glacial retreat, strong ksp alt’n,

up to 5% fine diss py > cpy

South 110 Outcropping Cu between Galore Cr and Cu Canyon.

Strong gossans

Central

North

V1 / V2

North

Rim

Junction

Gap

Junction

South

Extension

Bountiful

Bornite

Core

SW Zone

Down Plunge

South of

West Fork

South

110

Saddle

Breccia

Saddle

Au-Ag

N

1 km

Butte

Exploration Potential Resource Expansion & Exploration Targets

Central

Zone

Junction

Southwest

West Fork

Copper

Canyon

N

2 km 31

Galore Alkalic Complex Footprint Property Scale Geology

• Surface expression of

syenite and monzonites

from the alkalic intrusive

complex

• Spatial extents of this

complex is approximately

8km E-W x 5km N-S

• Bound between Butte

Thrust to the west, and

the Copper Canyon

Thrust to the east?

• The spatial extents of the

complex are prospective

for the discovery of new

mineralized alkalic

porphyry centres.

Butte

Central

Zone

Junction

Southwest

West Fork

Copper

Canyon

N

2 km 32

Galore Alkalic Complex Footprint Property Scale Geology

• Surface expression of

syenite and monzonites

from the alkalic intrusive

complex

• Spatial extents of this

complex is approximately

8km E-W x 5km N-S

• Bound between Butte

Thrust to the west, and

the Copper Canyon

Thrust to the east?

• The spatial extents of the

complex are prospective

for the discovery of new

mineralized alkalic

porphyry centres.

Butte

Copper

Canyon

Thrust

Butte

Thrust

• The Galore Creek deposit

is intimately associated

with the silica

undersaturated alkalic

complex

• How spatially extensive is

this complex?

• Radiometrics can help

with defining bounds of the

high K system

Central

Zone

Junction

Copper

Canyon

N

2 km

Southwest

West Fork

Potassium

2004 Radiometrics

Prospective Geology Silica Undersaturated Alkalic Complex

• The Galore Creek deposit

is intimately associated

with the silica

undersaturated alkalic

complex

• How spatially extensive is

this complex?

• Radiometrics is one

expression of the potential

high K system

• Does the system extend to

the east and west?

Central

Zone

Junction

Copper

Canyon

N

2 km

Southwest

West Fork

Potassium

2004 Radiometrics

Prospective Geology Silica Undersaturated Alkalic Complex

35

• Volcanic contacts can be modeled using geochemical signatures

• Improved geological understanding of controls on mineralization

• Contact plots demonstrate that the highest Cu-Au grades occur within

100m of volcanic contacts & adjacent to structures

Volcanic Stratigraphy & Grades Cu Statistics at V1/V2 Contact – Central Zone

V1/V2 Contact – validate geology with extensive

geochemical database

500m

V1

V2 Cr ppm in

drill holes

3D View – looking west

(Central North)

Cu-Au Statistics (elevated grade) at V1/V2 Contact

Distance from contact (m)

Cu (

%)

or

Au (

g/t

)

V1 V2

Conta

ct

100 m

36

• Cu-Au bearing hydrothermal fluid derived from a magma source

• Followed orientation of alkalic intrusive contacts and NNE structural conduits cross-

cutting Stuhini volcanic packages

• Mineralization preferentially precipitates along volcanic contacts and within

permeable (clastic) facies of volcanic packages

• Central zones (North, South, Bountiful, Legacy) hosted at V3/V2 & V2/V1 contacts

Looking west

Legacy

S N

2011 PFS Pit

Exploration Potential Volcanic Stratigraphy & Resource Expansion

• Core samples and a Virtual Reality fly-over of the Galore Creek area

are available for viewing at Teck’s booth (2509)!

The End Questions?

galore creek: a complex high grade cu-au alkalic ......agenda • galore creek deposit in a global...

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