The Fiji property borders northwest, along geological trend, of the Homestake Ridge property of Homestake Resources Corporation, currently being explored under option by Agnico Eagle Mines, and upon which an NI 43-101 compliant indicated resource has been calculated.
Prospecting by Teuton-Silver Grail personnel in 2006 on the Fiji has identified two promising zones of high grade gold-bearing mineralization in an area lying just west of the common border with the Homestake Resources property. One of these areas was drilled by Teuton-Silver Grail in 2007; the other area did not come out of the snow that year (nor in subsequent years).
Future work on the property is being held in abeyance pending further results on the Homestake Ridge property. Fiji is available for option.
The Fiji property is situated 28 kilometres southeast of the deepwater port of Stewart, British Columbia, at the northwest end of the Kitsault River valley. Recent construction of hydroelectric facilities in the immediate area has served to open up the region.
The Kitsault district is famous for two former silver producers, the Dolly Varden and Torbrit mines.
Two properties are currently being actively explored in the region. The first is the Homestake Ridge property of Homestake Resources and Agnico Eagle Mines. The second comprises an amalgamation of various old properties in the Torbrit-Dolly Varden silver camp now controlled by Dolly Varden Silver. Hecla Mining owns a substantial interest in Dolly Varden Silver.
Both properties lie along a northwest trending belt of Betty Creek and Salmon River Formation rocks marked by quartz, sericite and potassic alteration zones. The Fiji property is at the northwestern end of this belt.
Homestake Resources has aggressively explored the Homestake Ridge project over the past eight years and, by the end of 2013, along with JV partner Agnico Eagle Mines Ltd., had completed 262 diamond drill holes on the project for a total of 74,973 metres of drilling. Exploration has focused on identifying and upgrading the three known mineral deposits on the property, which include the Main Homestake deposit and the Homestake Silver deposit. A third deposit, at South Reef, was identified in late 2011, outlined by drilling in 2012. In 2013, Hole #253 intersected bonanza grade silver in a new target, located 400m to the south of the Homestake Silver Zone which has been named the Slide Zone. This new find is to be the focus of much of the 2014 exploration and drilling.
NI43-101 compliant resources have been calculated for the various deposits currently being explored by Homestake Resources on the Homestake Ridge property. The inferred resource contains 911,000 ounces gold and 20,366,000 ounces of silver; the indicated resource 124,000 ounces gold and 939,000 ounces silver*.
*The current estimate was prepared by Roscoe Postle Associates Inc. (RPA). Mineral resources utilize three separate block models constrained by 3D wireframes of the mineralized zones. The block models are comprised of an array of blocks measuring 5 m x 5 m x 5 m, with grades for Au, Ag, Cu, AuEq and NSR values interpolated using ID3 weighting. The models identified an indicated resource of 604,000 tonnes averaging 6.4g/t Au, 48.3g/t Ag and 0.18% Cu and a cumulative inferred resource of 6,765,000 tonnes averaging 4.2g/t Au, 93.6g/t Ag, 0.11% Cu. NSR and Gold equivalence for the 2013 resource were calculated using Au, Ag and Cu metallurgical recoveries of 92% Au, 88% Ag and 88% Cu in blocks where Cu%>0.1%; and where calculated using just Au and Ag recoveries in blocks with <0.1% Cu
In the Torbrit-Dolly Varden silver camp, Dolly Varden Silver is planning a comprehensive 2014 exploration program following up on several high-grade silver intersections obtained during the 2013 drilling.
History and Property Status
The Fiji property was staked by Teuton-Silver Grail in the mid-1990’s as part of a regional effort spurred by the Red Mountain gold discovery. Minor prospecting and trenching at the time yielded highly anomalous gold and base metal values within what was tentatively identified as a Goldslide Intrusion, the same type which is associated with the Red Mountain discovery (now owned by Seabridge Gold). No further work was done until 2006, when additional prospecting of new areas exposed by retreating snowfields showed the mineralization to be more widespread than originally thought.
Prospecting samples taken in 2006 from two mineralized zones on the Fiji have returned an unusually high proportion of high-grade gold values. Five out of sixteen samples returned gold values higher than 11 g/t, ranging from 11.21 to 47.1 g/t gold (see map attached, “Fiji Property Gold Zones” or click on the map below to see a full-sized version). One of the zones features fracture-controlled pyrite mineralization in what appears to be a highly altered intrusive. The second zone, in an area exposed by meltback of a snowfield, features sphalerite, galena, tetrahedrite, pyrite and barite mineralization hosted in altered volcanic rocks.
The first of these zones was drilled in 2007 with 7 holes, 3 of which contained gold and/or silver values as follows:
|Hole||From (feet)||To (feet)||Interval (feet)||Zinc (%)||Silver (g/t)||Gold (g/t)|
Very little additional work has been done on the claims in the intervening years. The Company is monitoring events on the adjacent Homestake Ridge property.
Fiji is available for option.