A joint venture has been formed with Tudor Gold holding an immediate 60% interest and each of American Creek (“AMK”) and Teuton Resources Corp. (TSXV: TUO – “Teuton”) holding an immediate 20% interest in the joint venture. Both Teuton’s and AMK’s 20% interests are fully carried during the exploration period until a production notice is given. This means that neither Teuton nor AMK will have to contribute any money to the project until such time as Tudor Gold takes the property to a production notice. Thereafter, each will be responsible for 20% of the costs going forward under and subject to the terms of the joint venture.
Teuton has also been granted a 2% NSR on 49% of certain claims within the property and a 1% NSR on 49% of other claims within the property (the 49% represents Teuton’s original interest in the Treaty Creek property). There is no buyback on these NSRs. Teuton will also receive 500,000 shares of Tudor Gold.
Tudor Gold has agreed to complete a minimum of $1,000,000 in exploration expenditures on the Treaty Creek property during 2016.
Tudor Gold (“TUD”-TSXV, is a new company headed by Walter Storm, the German financier who had his last great success in gold mining with Osisko Gold. Mr. Storm’s stated goal is to become a significant explorer in the rapidly developing Golden Triangle Area of northwestern British Columbia.
The Treaty Creek property sits northeast, and along geological trend of, Seabridge Gold’s KSM gold-copper property, home to two world-class porphyry copper-gold deposits (the Mitchell and the Deep Kerr) and north of Pretium Gold’s Snowfield-Brucejack property. Like the KSM and Snowfield-Brucejack properties, the Treaty Creek property is marked by abundant, large alteration zones (gossans) which can be seen from miles away and are conspicuous because of their bright yellow, orange and red colours. The Sulphurets thrust fault, recognized by BC government geologists as being spatially related to all of the large copper-gold deposits on Seabridge’s KSM property, passes northeast into the Treaty Creek property.
Exploration work has shown potential for discovery of deposits of both high-grade gold-silver and porphyry copper-gold (of the type being developed on the neighbouring KSM property). A magneto-telluric survey was the last work to be carried out on the property in 2012 and disclosed the beginning of a significant anomaly close to a 2009 drill hole (last year of drilling on the property) which ran 241m of 0.8 g/t gold. The central Treaty gossan, hosting the Eureka zone, is among the largest of its kind in the region.
About the KSM Property and neighbouring Snowfield-Brucejack Property
Seabridge’s KSM property has rapidly developed over the past ten years, and is now host to Canada’s largest undeveloped resource of gold and copper. The giant Mitchell deposit now has proven reserves of 476 million tonnes grading 0.67 g/t gold and 0.17% copper (10.3 million ounces of gold and 1.80 billion pounds of copper) , and probable reserves of 935 million tonnes grading 0.57 g/t gold and 0.16% copper (17.2 million ounces of gold and 3.30 billion pounds of copper). On the adjacent Snowfield-Brucejack property owned by Pretium Resources, the Snowfield zone, thought to be the faulted-off upper portion of the Mitchell deposit, presently has a measured and indicated resource of 1,370 million tonnes grading 0.59 g/t gold and 0.10% copper (25.9 million ounces of gold and 2.98 billion pounds of copper) with additional credits in silver, molybdenum and rhenium.
Seabridge Gold’s Iron Cap deposit lies just 800m from the common boundary with Teuton’s Treaty Creek property and remains open in all directions. It has a probable reserve of 193 million tonnes grading 0.45 g/t gold and 0.20% copper (2.8 million ounces of gold and 0.83 billion pounds of copper). In 2014, Seabridge drilled the Lower Iron Cap zone and found 163 million tonnes grading 0.27 % Cu and 0.59 g/t gold.
In the southern portion of the KSM property the Deep Kerr is rapidly being developed and keeps growing larger with each year of drilling. After results of the 2015 work were compiled a new inferred resource was calculated at 1.01 billion tons grading 0.53% copper (11.8 billion pounds of copper) and 0.35 g/t gold (11.3 million ounces of gold). This deposit is now among the largest copper deposits in the world.
Seabridge intends to continue drilling deeper to investigate the “core zones” to its many deposits.
To the east of the Deep Kerr lies one of the largest, undeveloped high-grade gold deposits in the world—the Valley of the Kings deposit owned by Pretium Gold. It presently has proven and probable reserves of 13.6 million tons grading 15.6 g/t gold, containing 6.9 million ounces. The deposit has been approved for mining by both provincial and federal authorities and is presently the site of an approximately $1billion CDN development project. Production is estimated to commence in late 2017.
Regional exploration work by Pretium in 2015 has established similar mineralization in another zone about 1km east of the Valley of the Kings. This zone, called the Flow Dome, may be a separate body or could be connected to the Valley of the Kings at depth.
2014 Geological Report on Treaty Creek by E.R. Kruchkowski, P.Geo.
In 2014, Teuton commissioned a geological assessment of the Treaty Creek property by E. Kruchkowki, P. Geo. This report is now complete and will be presented to the British Columbia government as part of the Company’s submission in regard to Seabridge Gold’s proposed construction of twin tunnels through the Treaty Creek property. The tunnels are estimated to be 22.8km long connecting Seabridge Gold’s KSM property to their proposed millsite. Of this length, approximately 12.2km will pass through the Treaty Creek property.
Mr. Kruchkowski’s report details historical work on the Treaty Creek property and also incorporates recent geoscientific investigations on the property and areas to the south by the BC Geological Survey. These investigations include Paper 2014-1, pp 111-140, by J. Nelson and J. Kyba, entitled “Structural and stratigraphic control of porphyry and related mineralization in the Treaty Glacier – KSM – Brucejack – Stewart trend of western Stikinia”. Nelson and Kyba state that: “The Treaty Glacier-KSM-Brucejack-Stewart trend is one of the most productive and promising in northwestern British Columbia”.
Mr. Kruchkowski, P. Geo., has worked extensively in the Sulphurets-Mitchell valleys as well as Treaty Creek valley. He was involved in the geochemical program that identified the Sulphurets, Snowfield and Iron Cap zones during surveys in the early 1970’s (on ground now owned by Seabridge Gold and Pretium Resources). He also located the first gold showings at Brucejack Lake and staked the claims that now host numerous gold deposits. He worked on the Iron Cap Gold zone in 1980 and supervised drilling on the Snowfield zone in 2007. Mr. Kruchkowski, P.Geo., was responsible for the discovery of the Mitchell East zone (Cu-Au) which appears to be the northern extension of the Snowfield zone. He also supervised several work programs on the Treaty Creek property itself, including two drill programs.
Excerpts from the Kruchkowski report follow: “Based on government mapping, the porphyry copper-gold and gold deposits south of the Treaty Creek Property occur in rocks below a major structural feature called the Sulphurets Thrust Fault. This major structural feature trends across the southeast edge of the Treaty Creek claims. As a result, the geology in the northern and northwest portion of the claims below the thrust fault is unknown but may host deposits similar to those found immediately south of the property.
“A twin tunnel called the Mitchell Treaty Tunnel (MTT) has been proposed across some of the Treaty Creek Tenures held by Teuton Resources Corp. The portion on the Teuton Resource Corp claims would be 12.2 km long. The MTT alignment within the Treaty property tenures is approximately underlain by one half Hazelton and Stuhini Group volcanic rocks (southwest portion) and Bowser Group sediments (northeast portion). The geology and mineral occurrences in the southwest portion have affinities to mineralization occurring at the Kerr – Sulphurets – Mitchell – Iron Cap, Snowfield and Brucejack Lake zone areas, approximately 5-10 km to the south- southwest.
“In 2012, a magnetotelluric survey was conducted along the trace of the proposed MTT route. A total of 16 stations roughly 500 metres apart were surveyed over an 8 kilometre length. Results indicate the start of a large resistivity low trending to the south in the area of the Konkin Gold zone towards the Iron Cap copper-gold zone on the adjacent claims. The magnetotelluric survey was terminated at this location and 2 kilometres of Teuton tenures between the Konkin Zone and potential extension of the Iron Cap zone remain un-surveyed.
“The area below the Sulphurets Thrust fault remains unexplored at Treaty Creek. Potential for discovery of additional zones of alteration or mineralization along the MTT below the Sulphurets Trust is considered excellent. It is inconceivable that 13 kilometres of porphyry mineralization along the McTagg anticlinorium abruptly terminates at the claim boundary between the trend of the Kerr- Sulphurets-Mitchell-Iron Cap zones and the Treaty Creek claim boundary.”
Mr.Kruchkowski, P.Geo., recommends that the magnetotelluric survey be completed along the entire MTT route on the Treaty Creek tenures. He also recommends that drill holes 250 metres apart along the 6.1 kilometres of volcanic rocks on the MTT trend be completed, with holes at least 750 – 1000 metres in depth. All drill core recovered should be assayed.
Mineralization at Treaty Creek
The long corridor of bright, “red-thumb” gossans extends from the KSM and Snowfield-Brucejack properties of Seabridge Gold and Pretium Resources into the Treaty Creek property and continues therein for another 9 kilometres. At the center lies the very large (1 sq. km) Treaty Central gossan which is marked by native sulphur and alunite in its uppermost reaches. A key structure, the Sulphurets fault, thought to be related to all of the deposits on the Seabridge Gold ground, extends northeastwards into the Treaty Creek ground up to and including the Central Gossan (Eureka) area. In the Treaty Ridge area, similar geology to that which underlies the Eskay Creek property also occurs on the property (pillow basalts, bi-modal volcanics, pyjama beds).
Descriptions of the some of the main zones at Treaty Creek follow:
The Copper Belle target was first discovered in 2006 and drilled in 2007 and 2009. The sulphide and gold rich areas are found on surface and at depth and trend roughly northeast, dipping steeply to the northwest. Several NE-SW fault zones offset the mineralized zones. The best and most consistent gold values are found in chlorite-sericite-pyrite altered volcanic breccias
A number of holes into the zone have intersected lengthy gold and copper-gold porphyry-type mineralization of the kind found to the south on the KSM property. Best hole to date is #CB09-14 which had an intersection running 241m of 0.8 g/t gold and which also ended in mineralization.
The GR2 target is located in the vicinity of the Copper Belle, at higher topographic and stratigraphic level. Marked structural and lithological control, textures in sulphide mineralization as well as very elevated concentration of pathfinder elements such as arsenic, antimony and manganese values indicates an epithermal system with features of the feeder zone of a Volcanogenic Massive Sulphides (VMS) style of mineralization.
The Eureka zone lies along the southwest flank of the large Treaty Central Gossan. A large AeroTEM airborne anomaly shows evidence of a porphyry style mineralization with epithermal overprinting. The AeroTEM airborne survey indicates that the anomaly is located just beneath the main gossan in the Treaty Nunatak. Sulphide enrichment at depth and towards the center of the anomaly found in drill core and the lack of base metals in soils may indicate surface leaching and presence of the sulphide mineralization at depth (porphyry style with high grade Au-Ag epithermal overprinting).
Trenching Results from AW, Konkin Gold and GR-2 Zone
|Structure||Trench/Chipline||Width||Gold (g/)||Silver (g/)|
June 26, 2017, Vancouver, BC: Teuton Resources Corp. (“Teuton”) (“TUO”-TSX-V) (“TFE”-Frankfurt) (“TEUTF”—OTCBB) is pleased to announce that a major drill program is set to begin on the Treaty Creek joint venture property, located north of the KSM property of Seabridge Gold and the Brucejack property of Pretium Resources in the...
April 4, 2017, Vancouver, BC: Teuton Resources Corp. (“Teuton”) (“TUO”-TSX-V) (“TFE”-Frankfurt) (“TEUTF”—OTCBB) is pleased to report the following update on the Treaty Creek Project and plans for 2017 exploration at Treaty Creek as prepared by the majority joint venturer, Tudor Gold Corp. (“Tudor Gold”). Background The Treaty Creek project is...
Teuton Reports 54 Meters Grading 1.12 G/T Gold and 122 Meters Grading 0.965 G/T Gold Within Broader Zone of 0.53 G/T Gold Over 630 Meters at Treaty Creek
October 26, 2016, Vancouver, BC: Teuton Resources Corp. (“Teuton”) (“TUO”-TSX-V) (“TFE”-Frankfurt) (“TEUTF”—OTCBB) is pleased to announce that the complete assays for drill hole CB-16-03 on the Treaty Creek property have now been received. The Treaty Creek property is situated north of the KSM property of Seabridge Gold and the Brucejack...