mining and exploration overview 2019, q1 2020 southwest and … · 2020. 5. 21. · bonanza ledge...

Mining and Exploration Overview 2019, Q1 2020Southwest and South Central Regions

for *Cancelled* KEG Conference April 2020

[email protected](604) 660-2713

Bruce Northcote, P. Geo.Staff and Regional Geologist,Mineral Development Office

Presenter

Presentation Notes

Presentation for a cancelled conference. Is there anybody out there? Actually it is not a bad time for a review as we are starting to see official company responses to the COVID 19 pandemic in the Q1 reports

Outline

• Mineral potential in brief• Exploration statistics• Major mines• Proposed mines• Exploration• Impacts of COVID-19 so far

Presenter

Presentation Notes

Events of 2019 and Q1 2020 have been overshadowed by recent uncertainty

South Central and Southwest Regions

• 2 regional offices• 2 Regional Geos

normally• Current vacancy

in Kamloops

Presenter

Presentation Notes

Covering two regions. The Southwest typically has low levels of exploration, and a mining industry dominated by construction materials. The South Central is a major copper producing region

Geologically Diverse

Parts of:

• Crescent• Pacific Rim• Wrangellia• Coast Plutonic Complex• Harrison• Chilliwack• Bridge River• Cadwallader• Cache Creek• Quesnellia• Slide Mountain• Kootenay• Cariboo• Overlap

All contain potentially economic deposits, but …

Quesnel terrane

• Hosts most producing Cu porphyries

• (Late Triassic-Early Jurassic)

• Hosts Cu-Au and Cu-Mo types, alkalic and calc-alkalic

Distribution of 2019 projects

• Selected projects covered in 2019 reporting

• A few projects popping up on NVI

Exploration statistics2019 exploration spending $millions 2019 exploration drilling m x 1000

Spending by exploration stage

Exploration expenditures – 4 year trend

Presenter

Presentation Notes

Provincial peak was 2018 with 2019 very similar. That was largely the influence of the Northwest. Golden Triangle stuff. For us in the south a modest decline since 2017. Pretty sure 2020 will be lower

0 200 400Km

Atlin

Masset

Nelson

Kelowna

Nanaimo

Smithers

Kamloops

Victoria

Cranbrook

Vancouver

Revelstoke

Fort Nelson

Fort St. John

Prince George

Williams Lake

Prince Rupert

Stewart

Kitimat

Copper Mountain (Cu. Au, Ag)Myra Falls

(Zn, Cu, Pb, Au, Ag)

Campbell River

Rail

Major Roads

New Afton (Cu, Au, Ag)

Rail

Major Roads

Gibraltar (Cu, Mo)

Highland Valley Copper(Cu, Mo)

Mount Polley* (Cu, Au, Ag)

Bonanza Ledge* (Au)

Major mines: 5 porphyry copper (Mt Polly suspended May 2019)1 VMS Zn-Cu-Pb-Ag-Au1 gold vein (not producing 2019)1 thermal coal (Quinsam suspended June 2019)

Quinsam

New Afton Cu-Au-Ag porphyryNew Gold Inc.

Miocene volcanic

Kamloops Group

Kamloops Group Tranquille Fm

Battle Bluff Plutonic Complex

Ashcroft Fm

LTrJ ultramafic

Iron Mask Batholith

Guichon Batholith

Nicola Group

Miocene volcanic

Kamloops Group



Ashcroft Fm

LTrJ ultramafic

Iron Mask Batholith

Guichon Batholith

Nicola Group

• 2019 production FY 79.4 Mlb Cu, 68,785 oz Au• Q1 2020 production 18.5 Mlb Cu, 16,409 oz Au• Suspending 2020 guidance, COVID-19 safety

protocols developed

• 2019 exploration underground and surrounding area (Geochem and geophysics on Cherry Creek trend to west)

• Q1 2020 underground delineation drilling and refinement of targets for planned Cherry Creek drilling)

Highland Valley Copper – Cu-Mo porphyryTeck Resources Limited

Miocene volcanic

Kamloops Group



Ashcroft Fm

LTrJ ultramafic

Iron Mask Batholith

Guichon Batholith

Nicola Group

Miocene volcanic

Kamloops Group



Ashcroft Fm

LTrJ ultramafic

Iron Mask Batholith

Guichon Batholith

Nicola Group

• 2019 FY production 121,300 t Cu, 6.6 Mlb Mo• Q1 2020 production 27,100 t Cu, 1.2 Mlb Mo• However, Teck anticipates lower 2020 production,

suspends 2020 guidance• Crew reduction to result in reduction to 80-85% of full

output

• Possible mine life extension to 2040 (current mine plan to 2027)

• HVC 2040 feasibility, enters environmental assessment (pre-EA, project description)

• Permitted Bethlehem extension

Princeton Group seds

Princeton Group andesitic volcanic

Spences Bridge Group

K granite

LTrJ ultramafic

Copper Mountain intrusive suite

Nicola Group

Princeton Group seds

Princeton Group andesitic volcanic


K granite

LTrJ ultramafic

Copper Mountain intrusive suite

Nicola Group

Copper Mountain Cu-Au-Ag porphyryCopper Mountain Mining Corporation + Mitsubishi Materials Corporation

• 2019 FY production 72 Mlb Cu 26,747 oz Au, 271,835 oz Ag

• 2020 deferring ball mill installation which would have increased production from 40,000 tpd to 45,000 tpd

• For remainder of 2020: new mine plan preserving higher grade for anticipated higher prices

• Reduced mining rate by about 25% in Q2• New guidance 70-75 Mlb Cu in 2020

• Near-mine exploration (mainly New Ingerbelle) resulted in a new mine plan – now a projected 31 years or more (50 years if resources converted to reserves

Copper Mountain pits

New Ingerbelle

Gibraltar – Cu-Mo porphyryTaseko Mines Limited, Sojitz Corp., Dowa Holdings Co. Ltd., Furukawa Co. Ltd.

Chilcotin Group

K seds

Ste Marie Plutonic Suite

Ashcroft Formation

Dragon Mountain Succession

Mount Polley intrusive complex

Granite Mountain Batholith

Nicola Group

Cache Creek Complex

Snowshoe Group

Chilcotin Group

K seds


Ashcroft Formation




Nicola Group

Cache Creek Complex

Snowshoe Group

• 2019 FY production 125.9 Mlb Cu, 2.7 Mlb Mo

• Q1 2020 32.4 Mlb Cu, 412,000 lb Mo

• 2020 guidance of approx. 130 MlbCu +/-5%

• Discretionary spending suspended as part of revised mine plan for 2020

• About 18 years mine life

Chilcotin Group

K seds


Ashcroft Formation




Nicola Group

Cache Creek Complex

Snowshoe Group

Chilcotin Group

K seds


Ashcroft Formation




Nicola Group

Cache Creek Complex

Snowshoe Group

Mount Polley Cu-Au-Ag porphyryImperial Metals Corporation

• Care and maintenance• Production suspended May 2019• Imperial has option to acquire Commander’s

adjacent ground to north and east• Exploration proceeded in 2019 – mag,

mapping, soil geochem, deep IP survey

Bonanza Ledge – orogenic Au veinsOsisko Gold Royalties Ltd.

Chilcotin Group

K seds


Ashcroft Formation




Nicola Group

Cache Creek Complex

Snowshoe Group

Chilcotin Group

K seds


Ashcroft Formation




Nicola Group

Cache Creek Complex

Snowshoe Group

• Part of Cariboo Gold project• Barkerville Gold Mines acquired by

Osisko Gold Royalties• Not currently producing• Permitting for a phase 2• Underground development

Myra Falls – Zn-Cu-Pb-Ag-Au VMSNyrstar N.V.

Nanaimo Group

Island Plutonic Suite

Vancouver Gp ls, seds

Karmusen volcanic

Buttle Lake ls, calc seds

Mount Hall Gabbro

Sicker Group volcanic

Nanaimo Group


Vancouver Gp ls, seds

Karmusen volcanic

Buttle Lake ls, calc seds

Mount Hall Gabbro

Sicker Group volcanic

• Operating again in April 2019• Ongoing exploration drilling 2019• Trafigura Group Pte. now majority

owner of Nyrstar, their release of production stats, etc. is voluntary

Proposed Mines(projects in Environmental Assessment)

KT granite

Kqm

Fennell Assemblage

Eagle Bay Assemblage

Eagle Bay orthogneiss

Snowshoe Group

KT granite

Kqm

Fennell Assemblage

Eagle Bay Assemblage

Eagle Bay orthogneiss

Snowshoe Group

Yellowhead Cu-Ag-Au VMSTaseko Mines Limited

EA process terminated in 2018, but:• Taseko bought the company• Updated feasibility• Estimated $1.3 B capex• 90,000 tpd open pit with 25 year life, %1.3 B NPV (8%)• Discussions with potential JV partners• Unusually large, low grade remobilized VMS amenable to

bulk mining

Presenter

Presentation Notes

A remobilized VMS deposit, one of many VMS occurrences in Eagle Bay assemblage, Fennell assemblage

Chilcotin Group (Miocene-Pleistocene)

Eocene granodiorite

Late K quartz phyric intrusive

Anvil Mountain Suite (late K quartz diorite)

Powell Creek Fm

Jackass Mountain Group

Relay Mountain Group


Taylor Creek Group

Ladner Group

Cadwallader Group

Bridge River complex

Chilcotin Group (Miocene-Pleistocene)

Eocene granodiorite

Late K quartz phyric intrusive

Anvil Mountain Suite (late K quartz diorite)

Powell Creek Fm


Relay Mountain Group


Taylor Creek Group

Ladner Group

Cadwallader Group

Bridge River complex

New Prosperity Cu-Au• Planned 2019 work was halted

(new injunction)• Province granted12 month

extension of environmental certification

“The Tŝilhqot’in Nation and Taseko Mines are working with the B.C. government to reach a resolution to the long-standing conflict over the proposed New Prosperity gold-copper mine project southwest of Williams Lake.The Nation and the company have agreed to pause certain litigation and regulatory matters related to the project while discussions are underway to reach a long-term solution”

Presenter

Presentation Notes

This has gone quiet during talks – wait and see

Horsethief Creek GroupLimestone, marble, calcareous sedsUndivided metamorphicCoarse clasticMudstone, siltstone, fine seds

Horsethief Creek GroupLimestone, marble, calcareous sedsUndivided metamorphicCoarse clasticMudstone, siltstone, fine seds

Ruddock Creek – SEDEX Zn-Pb-AgImperial Metals Corporation, Mitsui Mining and Smelting Co. Ltd., Itochu

Corporation, Japan Oil, Gas and Metals National Corporation

• Multi-year deep drilling program continued with JOGMEC funding

• Approx 7000 m in 11 holes• Highlight 40.9 metres 16.83% zinc, 3.46% lead

and 4.74 g/t silver. • Followed high grade deep V zone results in 2018

Ruddock Creekresource area

V zone drilling

Drilling outside resource area

Presenter

Presentation Notes

Still in EA pre-application but exploration is ongoing

Kamloops Group

Mz sedments

Ashcroft Formation

Tr-J syenite

Nicola Group

Crooked Ampibolite

Quesnel Lake Gneiss

Snowshoe Group

Kamloops Group

Mz sedments

Ashcroft Formation

Tr-J syenite

Nicola Group

Crooked Ampibolite

Quesnel Lake Gneiss

Snowshoe Group

Spanish Mountain – sediment-hosted Au veinsSpanish Mountain Gold Ltd.

• PEA updated• 11 year life • Open pit• average 104,000 oz/y• Capex C$346M• Average grade 1.0 g/t

Quiet in the field but:

Presenter

Presentation Notes

Sensitive to gold price –will current high prices generate interest?

Cariboo – orogenic Au veinsBarkerville Gold Mines Ltd. (Osisko Gold Royalties

Ltd)

Slide Mountain Group

Snowshoe GroupBlack Stuart Group

Cariboo Group

Island Mountain

Cow MountainBarkerville Mountain

• Entered BC environmental assessment

• Proposed underground mine up to 4000 tpd, 11 year life. Would use QR mill, pre conc at site.

• Indicated 12.5 Mt 5.6 g/t Au • Osisko Gold Royalties Ltd acquired

Barkerville Gold Mines • About $12 M exploration spending

planned for 2020 (April 17 MD&A)

Exploration(selected projects)

Bendor Suite

K granodiorite

Taylor Creek Group

Cayoosh Assemblage

Cadwallader Group Hurley Fm

Cadwallader Group volcanic

Chism Creek Schist

Bralorne-East Liza Complex

Bendor Suite

K granodiorite

Taylor Creek Group

Cayoosh Assemblage

Cadwallader Group Hurley Fm

Cadwallader Group volcanic

Chism Creek Schist


Bralorne – orogenic Au veinsTalisker Resources Ltd.

• Talisker acquired Bralorne from Avino Silver & Gold Mines in 2019, started a new 11,000 m drill program, currently suspended

• 27.3 g/t Au over 0.6 m in first hole• acquired Royalle property to

southeast and Congress to north

Congress

Royalle

Bralorne

Presenter

Presentation Notes

Avino had been conducting a large drill program focused on Northeast Block. Focus shifted back to mine area

Princeton Group volcanic

Princeton Group sediments

Eocene granodiorite


K sediments

Tr-J granodiorite

Nicola Group

P-J diorite

Princeton Group volcanic

Princeton Group sediments

Eocene granodiorite


K sediments

Tr-J granodiorite

Nicola Group

P-J diorite

• Over 20,000 m in 2019• Up to 30,000 m planned 2020• Now 3 parallel zones in South zone• Approx 1300 m strike length• New targets developed• Drilling started, suspended• Covid 19 protocols developed • re-start planned

Shovelnose – Epithermal AuWesthaven Ventures Inc.

Alert Bay volcanic unit

Klashkish plutonic suite

Queen Chalotte Group

Holberg volcanic unit felsic

Holberg volcanic unit mafic

Bonanza Group


Vancouver Group Quatsine Fm

Vancouver Group Karmutsen Fm






Bonanza Group




Pemberton Hills – porphyry Cu-Mo-Au targetFreeport McMoRan Mineral Properties Canada Inc. and Northisle

Copper and Gold Inc.

• Exploration continued in the Pemberton Hills area with an IP survey, mapping, geochem, clay studies

• Identifying targets for further drilling

Surespan Gold (Zeballos) – Au veinsPrivateer Gold Ltd.

Eocene intrusive


Island Plutonic Suite granodiorite

Bonanza Group

Vancouver Group Quatsino Fm

Vancouver Group Quatsino Fm limestone

Vancouver Group karmutsen volcanic

Eocene intrusive


Island Plutonic Suite granodiorite

Bonanza Group

Vancouver Group Quatsino Fm

Vancouver Group Quatsino Fm limestone

Vancouver Group karmutsen volcanic

Past producersZeballos Camp • Drilling continued in 2019

• Approx 4400 m, 18 holes• Private co. consolidated formerly

fragmented Crown grant ownership in historic Zeballos camp

• Eocene magmatism (like Catface, Mt Washington)

Privateer Mine 1938

Teeta Creek Cu-Mo porphyryArcWest Exploration Inc.






Bonanza Group









Bonanza Group




• Recently-recognized NE-SW trending Miocene magmatism, Cu-Mo mineralization is more extensive than first recognized

• 21 g/t Au in grab sample• Earn-in agreement with Teck

Presenter

Presentation Notes

Part of the impetus behind staking activity on NVI. Note also Geoscience BC’s second NVI project

Ladner Gold Project– Au veins (orogenic)New Carolin Gold Corp.

Eocene granodiorite

Custer gneiss

Ladner Group

Spider Peak Fm volc

Hozameen Complex

Paleozoic-Mesozoic ultramafic

Eocene granodiorite

Custer gneiss

Ladner Group

Spider Peak Fm volc

Hozameen Complex

Paleozoic-Mesozoic ultramafic

• Approx 850 m underground drilling in two step out holes within mine footprint

• Surface mapping and sampling

Elizabeth-Blackdome - orogenic and epithermal AuTempus Resources Ltd.

Chilcotin Group

Eocene volcanic

Cretaceous-Eocene diorite


Shulaps Ultramafic Complex serp melange

Shulaps Ultramafic Complex harzberg

Bridge River Complex

Chilcotin Group

Eocene volcanic

Cretaceous-Eocene diorite


Shulaps Ultramafic Complex serp melange

Shulaps Ultramafic Complex harzberg


• Tempus acquired Sona Resources from Skeena Resources in 2019

• Due diligence and preliminary work (geochem) in 2019

• 2020 exploration is planned (incl. drilling)

• Review of Blackdome tailings project historical PEA

Blackdome

Elizabeth

Presenter

Presentation Notes

Two properties in this project. Existing mill and tailings facilities at Blackdome. Seeing some Australian investment in BC outside the coal fields.

BC Cobalt – Co-AuBlackstone Minerals Limited

Lake K granodiorite

Taylor Creek Group

Cayoosh assemblage

Cadwallader Gp - Hurley Fm





Lake K granodiorite

Taylor Creek Group

Cayoosh assemblage

Cadwallader Gp - Hurley Fm





• Stream sediment, soil sampling and mapping in 2019, following 2018 drilling

• Seeking JV partner

Presenter

Presentation Notes

Another Australian company active in BC

Copper King - Cu-Au porphyryCopper King Explorations Ltd.

Miocene volcanic


Kamloops Group


LTrJ ultramafic

Iron mask Batholih

Nicola Group

Miocene volcanic


Kamloops Group


LTrJ ultramafic

Iron mask Batholih

Nicola Group

• Drilling early 2020 10 holes +• Small past producer of high grade

Cu-Au-Ag in 1930s• Private co. operating on Crown

grants, not releasing results (yet)

New Craigmont– Cu-Fe SkarnNicola Mining Inc.

Kamloops Group

Eocene feldspar porphyry


Ashcroft Fm

Guichon Batholith

LTrJ granodiorite

Nicola Group

Kamloops Group

Eocene feldspar porphyry


Ashcroft Fm

Guichon Batholith

LTrJ granodiorite

Nicola Group

• Past Cu-magnetite producer 1961-1982• 5 holes in 2019 testing southwest edge of

Craigmont pit• Both skarn and porphyry style mineralization• Highlights include 19.25 m 0.7% Cu, 9 m

0.31% Cu, 34 m 0.38% Cu, 14 m 0.51% Cu• Testing sorted historic waste for copper and

magnetite feed for concentration

Presenter

Presentation Notes

They have a custom mill – possibly to be commissioned in 2020?

Lac La Hache – Cu-Fe-Au Skarn, porphyry Cu-Au-Ag , Au vein Engold Mines Ltd.

Quaternary volcanic

Chilcotin Group volcanic

Kamloops Group

Takomkane Batholith

Copper Mountain Suite

Nicola Group

Quaternary volcanic

Chilcotin Group volcanic

Kamloops Group

Takomkane Batholith

Copper Mountain Suite

Nicola Group

• 2019 drilling at Aurizon zone, highlight 4.55 m 6.18 g/t Au, 0.80% Cu, 2.63 g/t Ag

• Aurizon west soil geochem survey• 2020 drilling at porphyry target Ann North

604 m, short of target depth.• Mineralization and alteration intersected• Drilling to resume when safe• Extended land package

Spout CuG1 Cu

Ann North porphryry

Aurizon Au

Presenter

Presentation Notes

A large property with several active targets. Engold commissioning SRK to estimate resources at G1, a 2017 copper gold discovery. Spout to get a revised estimate.

Rateria-West Valley – Cu-Mo porphryryHappy Creek Minerals Ltd.

Kamloops Group


Guichon Batholith

LTrJ granodiorite

Nicola Group

Kamloops Group


Guichon Batholith

LTrJ granodiorite

Nicola Group

• Linked properties south of Highland Valley Copper

• 3D IP at West Valley – 2 locations• New West Valley prospects,

Pimainus and Abbot

RateriaWest Valley

Fox – W skarnHappy Creek Minerals Ltd.Wells Gray volcanic

Bayonne Suite

Nicola Group

Slocan Group sediments

Quesnel Lake Gneiss

Black Riders Mafic-Ultramafic Complex

Crooked Amphibolite serpentinite

Crooked Amphibolite greenschist

Snowshoe Group

Wells Gray volcanic

Bayonne Suite

Nicola Group

Slocan Group sediments

Quesnel Lake Gneiss

Black Riders Mafic-Ultramafic Complex

Crooked Amphibolite serpentinite

Crooked Amphibolite greenschist

Snowshoe Group

• 2 holes, 372.5 m at Nightcrawler zone• Highlight 6.3 m 0.43 WO3• Drilling is outside resource area(582,400 t 0.826% WO3 Indicated and 565,400 t 1.231% WO3 Inferred)

Nightcrawler

Resource areas (Ridley etc)

MPD – Cu-Au porphyryKodiak Copper Corp.

• Consolidation of properties (Man, Prime Dill)

• Name change from Dunnedin Ventures• Trenching returned 0.89% Cu over 46 m• 2019 drilling 1766 m in 3 holes• Highlight intersection 102 m 0.53% Cu,

0.16 g/t Au• Airborne survey planned so far in 2020

Big Kidd – Cu-Au porphyryJiulian Resources Inc.

Quaternary

K sediments

LTrJ diorite-granodiorite

Nicola Group

Quaternary

K sediments

LTrJ diorite-granodiorite

Nicola Group

• 3D IP survey• 4191.5 m in 9 holes• Porphyry style mineralization

intersected• Potassic alteration at depth suggests

possible deeper target

Spius Creek - Cu-Mo porphyryPacific Ridge Exploration Ltd.

Paleogene intrusive

mid K granite


Pasayten Group

Eagle Plutonic Complex

Ladner Group

Mount Lytton Complex

Dioritic intrusive

Limestone, marble

Paleogene intrusive

mid K granite


Pasayten Group

Eagle Plutonic Complex

Ladner Group

Mount Lytton Complex

Dioritic intrusive

Limestone, marble

• 1087 m drilling in 4 holes• Targeting soil geochem +IP

anomalies• Intersected increasing Cu

mineralization at depth

Amarillo – Cu porphyryTroubadour Resources Inc.

Penticton Group

Eocene granodiorite

Okanagan Batholith

Okanagan Batholith granite

Pennask Batholith

Nicola Group

Penticton Group

Eocene granodiorite

Okanagan Batholith

Okanagan Batholith granite

Pennask Batholith

Nicola Group

• Mapping, prospecting• 1075 m drilling in 4 holes• Additional drilling and geophysics

proposed for 2020

Elk – Au veinsBayshore Minerals Inc.

• Bayshore acquired property in 2019• Airborne survey• Environmental baseline studies• Seeking Mines Act and EMA permits• Open pit and underground resource

M+I 2.6 Mt 6.28 g/t Au

Kamloops Group

Eocene granodiorite

Osprey Lake batholith

Pennask Batholith

Nicola Group

Kamloops Group

Eocene granodiorite

Osprey Lake batholith

Pennask Batholith

Nicola Group

Impact of COVID 19(as of April 2020)

Companies conserving cash amid uncertainty

Work practically limited by physical distancing, avoiding sharing equipment, vehicles

Logistics of travel, shift changes, core handling, meals and accommodation can be worked out in some cases…

Presenter

Presentation Notes

S&P predicts world 2020 exploration budgets 29% lower year over year. More downside risk than upside

Suspended drilling at:Shovelnose (may re-start soon), Bralorne,Lac La HacheNot all programs halted - some exploration work going ahead, including drillingMines are taking precautionary measures and retracting 2020 production guidance, deferring development spending

A few breaks for the explorer

• Extension of time to file work• Extension of time to make lease payments• See Chief Gold Commissioner’s order at Mineral Titles website• Extension of work permits will be considered as needed: contact

inspectors• Effort to process permits continues• Incentives are under consideration (will maybe a bit late in

coming to support work this summer…)

mining and exploration overview 2019, q1 2020 southwest and … · 2020. 5. 21. · bonanza ledge...

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