Del Norte Property

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Summary

The Del Norte property is one of Teuton’s original claim holdings dating back to 1983. It was staked to cover three gold-bearing streams (Nelson, Del Norte and Willoughby Creeks) which flow west-east from the Cambria Icefield into the White River.   A definitive source for the placer gold in these streams has not yet been determined.   Placer streams are relatively rare in the Stewart region but those that exist are often associated with major mineral deposits. As an example, Sulphurets Creek is a known gold placer stream and drains the area hosting the major KSM, Snowfield and Brucejack gold deposits of Seabridge Gold and Pretium Resources.  Bitter Creek, another placer stream, drains the Red Mountain gold deposit of IDM Mining, recently purchased from Seabridge Gold.  Nelson Creek, the most northerly placer stream on the Del Norte property, was reportedly worked for its gold content by Cominco during the 1930’s.

Over the past thirty years over $4.5 million has been spent at Del Norte, mostly by three companies who previously held the property under option.  During that time 92 holes were drilled, testing many different mineralized zones.  Most of these zones lie along a 12km long, north-south trending contact between sediments on the east and volcanics on the west.   Portions of the property are underlain by rocks broadly similar to those hosting the rich, silver-gold Eskay Creek mine 50 miles to the nothwest.

In 2002 the K zone was discovered.  Three holes drilled into this zone yielded intersections averaging 29.1 metres (95.6 ft.) grading 0.145 oz/ton gold and 6.13 oz/ton silver, or 0.243 oz/ton gold equivalent (at the current 62.5:1 gold-silver ratio).  No follow-up drilling has taken place because the zone was on the edge of an icefield.   Northwesterly, and at lower elevations, more than fifty holes were drilled into the LG vein system lying directly along the volcanic-sediment contact.   Intersections in the LG vein system ranged from nil to 15.5m (51.0 ft.) grading 0.192 oz/ton gold and 10.23 oz/ton silver, or 0.356 oz/ton gold equivalent. An intense, broad EM conductor detected just east and parallel to the LG vein exposures and situated within laminated mudstones has only been cursorily explored to date.

Area Map

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A recent geophysical analysis of the previously conducted airborne survey has defined 6 target areas for ground follow-up, including two in the vicinity of the K zone.  It is likely that the icefield surrounding the K zone will have melted back considerably over the last 12 years.   The current plan is to drill test the most viable zones discovered during the field examinations, contingent upon obtaining the necessary financing

Teuton now owns 100% of the Del Norte property after purchasing Sabina Silver & Gold’s 50% interest in the property for 500,000 shares and a 1% NSR in July of 2014..  Sabina had originally earned its interest in the property from Teuton by spending $2.5 million in an option agreement assigned from Lateegra Gold Corp.  (Lateegra also owns a 1% NSR in the property).

Location

The Del Norte property is located approximately 17 miles east of Stewart, British Columbia, in the upper drainage area of the White River system. Nearest road access is about five miles to the east, at the western end of a network of logging roads connecting to Highway 37.

History and Property Status

Gold and gold-copper showings were first discovered along Del Norte Creek in the 1930’s, but little development work was carried out due to the remoteness of the area at the time. Nelson Creek , in the northern portion of the property, was reportedly the subject of a placer mining operation by Cominco during the same period, but there are no public records regarding production. The LG Vein and Kosciuszko Zone are on slopes overlooking Nelson Creek and may be one of the sources of the gold in that stream.

Teuton staked the Del Norte property in 1983. After Hole #109 triggered a claim staking rush around Eskay Creek in 1989, companies in the Prime Equities stable optioned the Del Norte along with several other Teuton properties thought to have potential for Eskay Creek type deposits. Goodgold Resources Ltd., a Prime Equities company managed by Murray Pezim and Chet Idziszek, spent approximately $600,000 on the Del Norte from 1990-92. During this period the Humdinger, O, Grizzly, NMG and Crackle showings were located, among others. After the property was returned to Teuton, small programs were carried out from time to time resulting in the discovery of more showings. Due to low gold prices, the property was dormant for most of the late 1990’s.

The property became active again in 2002 after the discovery of the Kosziuszko Zone, and was optioned the following year to Lateegra Resources Corp. Lateegra financed two years of exploration on the property from 2003-2004, most of this work involving drilling of the LG-K zones.    In late September, 2005, while a ten hole program was under way (funded by Teuton), Sabina Silver Corp. (“SBB”-TSXV) (“Sabina”) took over the Lateegra option and was granted the right to earn a 50% interest in the property by spending an additional $2.5 million on the property prior to Dec. 31, 2008. It also agreed to refund the money to Teuton for the cost of the 2005 program already in progress (to be credited against Sabina’s work commitments). Teuton also received $90,000 on signing and a further $150,000 over the course of the option. In 2007 Sabina earned a 50% interest in the property.

Since 2007 the property has lain fallow.  Teuton purchased Sabina’s 50% interest in 2014 and plans to resume exploration, particularly around the K zone and LG vein.

Mineralized Showings

LG Vein and K Zones

The K (“Kosciuszko”) Zone was discovered in 2002 at the edge of a wasting icefield. The discovery chip sample across the northern end of the zone returned the following excellent results:

Interval
(metres)

Width
(metres)

Gold
(oz/ton)

Silver
(oz/ton)

Gold Equiv. *
(oz/ton)

0-2

2.0

0.176

16.5

0.412

2-4

2.0

0.052

1.2

0.069

4-6

2.0

0.124

2.4

0.158

6-8

2.0

0.277

45.1

0.921

8-10

2.0

0.266

26.9

0.650

0-10

10.0

0.179

18.4

0.442

*Based on 70-1 ratio between current gold and silver prices.

Three holes drilled from a single station about 12m south of the chip sample, returned the following:

Drill
Hole

Interval
(metres)

Length
(metres)

Length
(feet)

Gold
(oz/ton)

Silver
(oz/ton)

Gold Equiv. *
(oz/ton)

2002-1

11.9-43.0

31.1

101.8

0.104

5.61

0.185

including

36.0-43.0

7.0

23.0

0.133

15.96

0.361

2002-2

19.8-52.7

32.9

107.9

0.134

5.22

0.208

including

33.0-40.0

7.0

23.0

0.210

13.18

0.398

2002-3

1.3-24.7

23.4

76.8

0.223

8.09

0.339

including

16.0-24.7

8.7

28.5

0.219

14.82

0.431

*Based on 70-1 ratio between current gold and silver prices.

 

The K Zone is a quartz-carbonate-sulfide cemented breccia hosted in argillite at the base of the Salmon River Formation. A felsite dike marks the eastern edge of the zone. Mineralization includes pyrite, sphalerite, galena, tetrahedrite along with traces of arsenopyrite and realgar. Electrum (native gold-silver) has been observed in petrographic samples, forming mostly rounded grains ranging in size from 0.01 to 0.1mm in diameter.

Following the discovery of the K zone in 2002, the focus of work switched to the LG vein, a parallel structure first observed outcropping 1,000 feet further to the north (across a small icefield), and lying directly within the contact between volcanics (to the west) and mudstones (to the east). This work was funded by then optioneeLateegra Resources Corp., and concentrated on drill testing the LG structure further along strike to the north.

Drilling in 2005 by optionee Sabina Silver on the LG-K structures returned the focus of work to the south in the direction of the K zone, and in particular was aimed at determining what lay beneath the 1000 foot long icefield lying between the first outcrop of the LG vein and the K zone. Results of this work have been highlighted in the summary section above. For full details, please refer to the Corporate News section (see Nov.21, 2005 News Release ).

3 Ounce Zone

Prospecting in the 3 ounce area near the border of the Del Norte/Midas claims resulted in the 2003 discovery of quartz float boulders grading up to 3 oz/ton gold, near the same volcanic-sediment contact which hosts the LG mineralization some 6 miles to the north. One day of trenching in 2004 partially exposed a quartz vein mineralized with tetrahedrite.

In 2006, optionee Sabina Silver tested the structure on one section with three holes and intersected broad widths of gold mineralization in all holes. In 2006, optionee Sabina Silver drilled three holes into the 3 Oz showing on the Midas property, encountering promising intercepts of bulk tonnage-type gold mineralization spatially related to a gold-rich vein. The best result was in Hole SDN-06-02 which returned a wide interval of gold mineralization grading 2.52 g/t gold (0.07 oz/ton) over 32.4 meters. True width is estimated at 29.2 meters or 96 feet . Within this intersection, a sub-interval ran 26.77 g/t gold (0.78 oz per ton) over 0.7 meters. For detailed results refer to the Company news release dated Dec. 18, 2006.

Follow-up drilling in 2007 both to the north and south of the section drilled in 2006 returned similar widths but grades were not as high.

Bullion/Hardpan Creek Area

A number of other zones have been previously explored in the Bullion and Hardpan Creek areas, from half a mile to a mile south of the Kosciuszko zone. One of these, the “O” zone is exposed over 400 feet and has been partially tested by 11 trenches and four core holes. Values in trenches range to 16.4 feet grading 0.307 oz/t gold and 0.23% copper; values in holes to 50 feet grading 0.107 oz/t and 0.410% copper.

Trench results from the Humdinger zone have returned values up to 0.388 oz/t gold and 2.05 oz/t silver across 19.7 ft. Two holes tested the Humdinger zone at shallow depths but did not intersect economic mineralization. A reviewing geologist has stated these holes were probably incorrectly sited to intersect the zone.

The Hardpan Creek portion of the Del Norte property also hosts lead-zinc mineralization in structures oriented at right angles to the gold-silver-copper zones. Trenching in the Grizzly zone exposed a 49.2 foot width of galena-sphalerite mineralization assaying 3.74% lead and 4.35% zinc.

Approximately 0.6 mile to the south of the Hardpan Creek area, Teuton prospectors discovered an area with massive sulfide float boulders ranging in size to 5 feet and carrying gold values up to 2.0 oz/ton. The source of these boulders has not yet been found.

Horatio Zone

In 2003, a zone of massive sulphide float boulders was found on the eastern side of the upper reaches of the Nelson glacier. The boulders carried pyrite, sphalerite and galena and carried gold values up to 2+ oz/ton. Prospecting discovered lenticular zones of similar mineralization uphill from the boulders, none of which showed appreciable size or continuity. A grab sample taken from a small vein taken further uphill ran 5.0 oz/ton gold. Drilling of one hole with a portable drill collared south of the showings did not return appreciable values.