Drilling of the Tennyson property from 2011 to 2013 has demonstrated it has excellent potential to host porphyry gold-copper mineralization of the type now being explored by Seabridge Gold and Pretium on their Sulphurets area properties 15km to the north.
Location and Access
The Tennyson property is located 6 km due west of the former Granduc Mines millsite, approximately 50 km by road from Stewart, British Columbia.
Drilling in 2011
In 2011, Teuton drilled 16 holes into the northern porphyry zone, most of which returned appreciable values in copper and gold over lengthy intercepts. Subsequent to this success, the property was optioned to Brigade Resources, a private Hunter Dickinson company. Under the terms of the option Brigade can earn an initial 50% interest by incurring C$6 million in exploration expenditures and making $300,000 in staged payments over a three year period. Upon Brigade fulfilling its first interest, it may acquire Teuton’s remaining 50% interest by issuing such number of shares to Teuton that reflects a 50% project interest based on Brigades market capitalisation and attributable project value.
Robert Dickinson, chairman of Hunter Dickinson Inc., said: “We are excited having acquired a promising project located in a highly prospective mineralized belt and more specifically along strike to the south of Seabridge Gold’s KSM properties (measured and indicated resources of 49 million ounces gold, 12.7 billion pounds copper) and Pretium Resources’ Brucejack (measured and indicated resources of 5 million ounces gold, 31 million ounces silver) and Snowfield (measured and indicated resources of 26 million ounces gold, 76 million ounces silver and 3 billion pounds copper) properties”
At a cost of approximately $1,000,000, Brigade recently completed its first year program consisting of geological mapping, geochemical sampling, magnetometer and IP surveys, and re-logging of all historical holes on the property. Brigade also purchased the adjoining Tide property, which separates the Tennyson from the Granduc mining road, for $3 million.
In a progress report dated November, 2012, Brigade geologists stated: “The lithological, alteration, veining and metal endowment characteristics recorded in outcrop and drill core, in consideration of surface geochemical and geophysical data collected within the same area, are all consistent with the presence of a large copper-gold porphyry-style deposit within the Tennyson property. As such further systematic exploration is warranted.
|Drill Hole||Interval (metres)||Width (metres)||Gold (g/t)||Copper (%)||Copper Equiv. *(%)|
|TN11-01||2.1 to 15.2||13.1||0.32||0.44||0.66|
|TN11-02||1.5 to 71.6||70.1||0.17||0.32||0.43|
|TN11-03||0 to 81.7||81.7||0.32||0.33||0.55|
|TN11-04||0 to 229.5||229.5||0.25||0.32||0.50|
|TN11-05||0.9 to 95.7||94.8||0.17||0.30||0.42|
|130.5 to 157.9||35.2||0.27||0.34||0.53|
|TN11-06||0.6 to 99.1||98.5||0.22||0.43||0.58|
|TN11-07||0.6 to 126.5||125.9||0.27||0.40||0.59|
|TN11-08||3.1 to 106.7||103.6||0.31||0.42||0.64|
|TN11-09||0.5 to 101.5||101.0||0.26||0.32||0.50|
|TN11-10||0.3 to 192.3||192.0||0.20||0.32||0.46|
|TN11-11||0 to 119.8||119.8||0.19||0.30||0.43|
|TN11-12||1.2 to 68.9||67.7||0.21||0.30||0.45|
|TN11-13||98.1 to 158.11||60.0||0.14||0.22||0.32|
|TN11-14||54.6 to 161.22||106.6||0.24||0.42||0.59|
|TN11-15||51.2 to 262.73||211.5||0.15||0.22||0.33|
|TN11-16||32.0 to 152.14||120.1||0.12||0.21||0.29|
|1Ice from 0 to 35.4m
2Ice from 0 to 54.6m
3Ice from 0 to 51.2m
4Ice from 0 to 32.0m
Drilling in 2013
Various targets on the Tennyson property were tested by Brigade Resources in 2013, including the main porphyry copper-gold zone drilled by Teuton in 2010-11 and a subsidiary zone (the “skarn zone”) located 700m to the southeast.
Highlights of this drilling include:
- 205.54m of 0.227 g/t Au and 0.300% Cu (0.465% Cu Equivalent*) in TN13-09 (main zone)
- 103.62m of 0.129 g/t Au and 0.246 Cu (0.335% Cu Equivalent*) in TN13-12 (skarn zone)
Hole TN13-09 was collared vertically about 200m southwest of the northwest-trending axis of drilling in 2011. Holes TN13-02, 03A, 04A, 05, 06, and 07 tested the potential of the main porphyry copper-gold zone in the area south and southwest of the 2011 drilling (see accompanying map for drill collar locations). A tabulation of significant results from the 2013 drilling program is presented below:
|Drill||Interval||Length||Silver||Gold||Copper||Copper Equiv. *|
|TN13-02||1.76 to 18.90||17.14||1.1||0.157||0.295||0.407|
|61.61 to 134.36||72.75||5.5||0.17||0.249||0.42|
|incl.||110.06 to 118.46||8.4||1.6||0.25||0.496||0.674|
|143.90 to 171.34||27.44||1.1||0.091||0.175||0.245|
|183.54 to 311.59||128.05||1.3||0.256||0.388||0.565|
|incl.||247.56 to 280.11||32.55||2.3||0.537||0.686||1.054|
|323.78 to 332.93||9.15||0.6||0.556||0.023||0.384|
|TN13-03a||64.01 to 97.56||33.55||8||0.417||0.157||0.513|
|112.80 to 128.05||15.25||1.8||0.227||0.241||0.406|
|164.63 to 246.95||82.32||1||0.217||0.216||0.365|
|Incl.||164.63 to 207.32||42.69||1.1||0.292||0.254||0.452|
|TN13-04a||90.24 to 96.34||6.1||10.8||2.21||0.021||1.55|
|154.27 to 190.58||36.31||1.4||0.401||0.035||0.306|
|TN13-05||114.30 to 245.543||131.13||2.6||0.192||0.173||0.325|
|Incl.||126.49 to 163.07||36.58||6.8||0.251||0.196||0.433|
|TN13-06||312.50 to 330.79||18.29||0.7||1.367||0.026||0.903|
|TN13-07||325.91 to 414.33||88.42||1.9||0.199||0.188||0.336|
|Incl.||344.21 to 380.79||36.58||2.7||0.208||0.287||0.45|
|447.87 to 478.35||30.48||0.8||0.201||0.167||0.304|
|493.60 to 524.09||30.49||0.4||0.102||0.185||0.253|
|533.23 to 547.68||14.45||0.3||0.095||0.215||0.279|
|TN13-09||46.90 to 252.44||205.54||1.8||0.227||0.3||0.465|
|Incl.||69.51 to 81.71||12.2||4.5||0.334||0.783||1.046|
|Incl.||148.78 to 191.46||42.68||2.1||0.361||0.473||0.727|
|261.15 to 273.78||12.63||0.7||0.071||0.262||0.315|
|TN13-12||36.58 to 140.20||103.62||0.6||0.129||0.246||0.335|
|Incl.||95.19 to 115.82||20.63||1.1||0.198||0.538||0.677|
|*Metal Prices: Cu=$US 2.75/lb, Au= $US 1,200/oz, Ag=$US 21.35/oz. Copper Equivalent = Cu % + (Au g/t x 38.58/60.63) + (Ag g/t x 0.686/60.63)|
The area west of a hole drilled in 2011 by Teuton (#TN11-14), which ran 106.6m of 0.24 g/t gold and 0.42% Cu (0.57% Cu Equiv.*), is considered by Teuton geologists to be a prime area for further work. This area was not tested during the 2013 program.An additional eight holes were drilled during the program but did not encounter significant mineralization. These include four holes on a target located about 1.5km north of the main porphyry copper-gold zone (Holes TN13-11, 13, 14 & 15); two holes collared about 200m northeast of the main porphyry copper-gold zone on the other side of a major fault (Holes TN13-08 and 10); and, two holes peripheral to the skarn zone mineralization (TN13-01 and 16).
Current Legal status of Tennyson Property
In September of 2013, Teuton sold its remaining interest in the Tennyson property to Brigade Holdings Ltd. (“Brigade”) for $7 million, being $500,000 plus $6.5 million in subscription receipt units (shares and warrants) of Brigade. When Brigade becomes a public company, these subscription receipt units will be converted into shares and warrants of Brigade, with Teuton holding a 29% interest in Brigade.
Subsequent to the sale, Brigade informed Teuton that it did not plan to do any further work on the Tennyson property. Accordingly, in 2014 the property was returned to Teuton in consideration for Teuton relinquishing its subscription receipt units.
Teuton management considers the Tennyson property retains excellent potential for expansion of the known porphyry copper-gold mineralization. Further work is contingent upon the availability of financing or the completion of another option agreement with a third party.