This large property, acquired by staking in 2003, surrounds the formerly producing Granduc copper property now owned by Castle Resources. The copper deposits at Granduc conform to the Besshi model, of which the world’s greatest example is the very large deposit at Windy Craggy in the extreme northwest corner of British Columbia (297.44 million tonnes grading 1.38% Cu, 0.2 g/t Au, 3.83 g/t Ag, 0.069% Co). Besshi deposits feature concordant massive sulphide sheets a few metres thick (often stacked like pancakes) which can extend for kilometers both along strike and down dip. Granduc has many similarities to Windy Craggy and may have an ultimate potential of around 150 million tonnes or greater.
The Silver Leduc claims cover extensions along strike both to the north and south, and along dip of the known Granduc mineralized bodies. Airborne geophysical surveys and diamond drilling results from the JK zone located on Silver Leduc ground, both suggest that Granduc-type mineralization extends onto Teuton’s property.
In 2009, Teuton concluded a royalty agreement with then owner Bell Copper (who subsequently sold the property to Castle Resources) whereby Teuton gave up a 100% interest in the Leduc Silver claims in exchange for a retained 1.5% NSR and an advance annual royalty payment equivalent to $50,000. As part of the arrangement, Teuton also received an NSR in certain other claims owned by Bell located north of the core Granduc mine property. When Castle defaulted on the agreement, a 100% interest in the Silver Leduc property, along with the adjoining Pearson claims, was returned to Teuton in 2015.
Mineral Potential of Leduc Silver Property
Granduc-type copper mineralization was discovered in the JK zone on Teuton’s Silver Leduc claims with subsequent drilling reporting intersections up to 5.3m of 1.13% copper. Bell Resources, operator of the program at the time reported the following: “All five drillholes intersected the JK Zone and at least one of two subparallel zones of magnetite-pyrite-chalcopyrite iron formation situated 80 meters and 140 meters further into the footwall. Drill intersections of the shallow JK Zone returned low grade metal values and are consequently not reported in the table above. However, both of the two footwall zones produced drill intersections containing substantial thicknesses of magnetite-pyrite-chalcopyrite iron formation that are very exciting to the Company and worthy of further exploration. High pressure subterranean water prevented two of the holes from reaching the deeper mineralized interval. Final surveying of the drillholes shows that all of the mineralized drill intersections fall on mineral tenures held by the Company under option from Teuton Resources, about 100 meters north of the Company’s crown granted Granduc claims.”