Mining and Exploration Northern Highlights

Transcription

1 2011 Skeena Regional Overview Mining and Exploration Northern Highlights Omineca / Northeast Paul Jago, MSc. GIT Regional Geologist Skeena Region Jeff Kyba, BSc. GIT Regional Geologist May

2 2011 Skeena Regional Overview Outline Introductions Skeena Region highlights Omineca / Northeast Highlights Gold veining at Pretivm s Brucejack. Photo: C.Mooney Summary Question period Seasonal Barite Mining at Fireside, Photo: A.Allan

3 2011 Skeena Regional Overview Who are these guys anyway? Former Regional Geologist Paul Wojdak retired April 2011 Returned from Australia Oct 22 nd 2011, started work Oct 24 th Graduated from University of Victoria 2007 Grew up near Falkland BC Geological experience: Advanced Field School, 2005 Ni-PGE exploration, multiple property assessments, NW BC BCGS Terrace regional mapping with JoAnne Nelson Soft-rock geology in NE BC, natural gas, coal-bed methane Exploration, project generation and implementation in the Cloncurry Mount Isa copper-gold district, QLD Australia.

4 Paul Jago - Regional Geologist Omineca/Northeast Where I ve been... UBC MDRU ( ) Bagdad Mine, AZ ( ) Henderson Mine, CO ( ) M.Sc. Mt. Milligan deposit, BC ( ) Sierrita Mine, AZ ( ) Lorraine deposit, BC (2006, 2007) Climax Mine, CO ( )

5 Skeena Region 2011 Skeena Regional Overview

6 MILLIONS OF DOLLARS THOUSANDS OF METRES 2011 Skeena Regional Overview 2011 Skeena Highlights $220 million exploration expenditure 48% of provincial total $462 million 380,467 exploration metres drilled $500+ million mine development YEAR Northwest Transmission Line: clearing underway 11 major projects within or poised for E.A. 89 significant projects YEAR

7 2011 Skeena Region Select Projects Mines Mine Developments Exploration Huckleberry Endako Fireside Yellow Giant Dome Mountain Kitsault Dilworth Missouri Granduc KSM Mount Klappan Galore Creek Schaft Creek Red Chris Kutcho creek Tulsequah Chief Silvertip Brucejack Trapper Poplar Silver Queen Lone Pine Big Hammer 2011 Skeena Regional Overview

8 2011 Skeena Regional Overview Mines and Mine Developments Above: Smithers Exploration Group visits Huckleberry Mine. Photo courtesy of SEG. Below and right: Huckleberry Mine. Photos courtesy of Imperial Metals. Left: Endako Mine. Photo courtesy of Thompson Creek Metals.

9 Huckleberry Cu-Mo-Au-Ag porphyry Main Zone Optimization plan approved Adds % Cu Total reserves ~ 51.4 Mt 7 year mine life extension to Production: 19,427 tonnes Cu 3 tonnes Mo 109 kg Au 6,785 kg Ag 300 full time jobs 30 contract jobs 2011 Skeena Regional Overview

10 Huckleberry Cu-Mo-Au-Ag porphyry Main Zone Optimization plan approved Adds % Cu Total reserves ~ 51.4 Mt 7 year mine life extension to Production: 19,427 tonnes Cu 3 tonnes Mo 109 kg Au 6,785 kg Ag 300 full time jobs 30 contract jobs 2011 Skeena Regional Overview

11 2011 Skeena Regional Overview Red Chris Cu-Au porphyry Updated Measured + Indicated resource: % Cu g/t Au g/t Ag Mine Permit issued May 7 th 2012, clearing and camp construction underway

12 Red Chris Camp Site Photo Courtesy of Alex Cook 2011 Skeena Regional Overview

13 Red Chris 2011 Skeena Regional Overview

14 2011 Skeena Regional Overview Updated Measured + Indicated resource: % Cu g/t Au g/t Ag Red Chris Nearly permitted and ready to begin construction

15 Mo porphyry Kitsault EA application has been officially accepted and is under federal and provincial review $640 M (75% of estimated total $850 M ) project financing preliminary approval Existing infrastructure to mine site from previous operations 2011 Skeena Regional Overview

16 2011 Skeena Regional Overview Kitsault Proven + Probable reserves: % Mo Recent update in Measured + Indicated resources inclusive of reserves and Pb - Ag by-products: % Mo ppm Pb ppm Ag Exploration success at Roundy Creek 5 km west Higher grades averaging > 0.1% Mo g/t Ag over 66 m Best intercept: % Mo + 0.6g/t Ag Kitsault open pit, mined from , & Photo courtesy of Avanti Mining. Includes % Mo

17 2011 Skeena Regional Overview Mount Klappan Coal Partnered with multinational steel producer: POSCO Updated feasibility study and reserve estimate anticipated mid 2012 Environmental monitoring being conducted

18 2011 Skeena Regional Overview EXPLORATION - to travel for the purpose of discovery - a careful systematic search - a systematic consideration

19 2011 Skeena Regional Overview Brucejack - Snowfields Au vein Valley of the Kings Zone Indicated Resource: 8.9 g/t Au g/t Ag Inferred Resource: g/t Au g/t Ag Largest 2011 drilling program in the district Multiple intercepts grading over 1,000 g/t Au Highest grade to date: 0.6 m 18,755 g/t Au + 9,312 g/t Ag

20 Brucejack - Snowfields 2011 Skeena Regional Overview

21 Brucejack - Snowfields 2012: Over 25,000 m drilling completed in 2012 Aiming to upgrade indicated resources inferred to 7 rigs drilling access road from HWY 37 is under construction Brucejack camp and drill rig Bell 407 played a key logistical role. Photo: Joel Ashburner Underground development and bulk sample from VOK zone 5,000 tonnes Updated high-grade PEA g/t Au g/t Ag Metal Recoveries: 95.7% (Au) % (Ag) TOTAL 6.9 M oz Au over 24 yr mine life Complete feasibility study underway Visible gold in drill core. Photo: Cole Mooney 2011 Skeena Regional Overview

22 2011 Skeena Regional Overview Kerr-Sulphurets-Mitchell Au-Cu porphyry Joint provincial and federal EA application planned to be submitted by Q Updated feasibility study Proven + Probable reserves: 2, g/t Au % Cu g/t Ag ppm Mo Proposed 52 year mine life

23 KSM Proximal to Pretivm s Brucejack and Snowfields projects 2012 Drilling to target deep conceptual targets analogous to Grasberg highgrade core Geological Map, courtesy of Seabridge Gold Skeena Regional Overview

24 Summary Mines Mine Developments Exploration 2011 Skeena Regional Overview 3 producers 11 Mine Developments 75 significant Exploration projects

25 Omineca and Northeast Regions Omineca region comprises North-Central region of province Northeast region is primarily focussed on Peace River Coalfield Approved NoWs for 2012 Dawson Creek Smithers Prince George

26 Mineral Production - BC Industrial Minerals Thermal Coal Aggregate Gold Silver Copper Zinc Coal: the Black Queen Molybdenum $8.6 B Metallurgical Coal ~60% Omineca Region in 2011 doubling in exploration activity from 2010 $71.5 million in exploration expenditures m drilling activity Mineral Production in BC

27 Deposit types: SEDEX (Zn-Pb-Ag) Devonian Terranes (west to east): Pale green = Stikine Terrane (island arc) Orange = Cache Creek Terrane (oceanic) Bright green = Quesnel Terrane (island arc) Blue = ancestral North America -Exploration and Mining in British Columbia 2011 Gold veins late PreCambrian to Jurassic Rare Earth Metal (carbonatite belt) Devonian Cu-Au porphyry Triassic-Jurassic Nickel (serpentinite) Mississippean-Triassic Mo porphyry Jurassic-Cretaceous epithermal Au-Ag early Tertiary

28 Epithermal Au-Ag deposits Exploration: Nechako Plateau Blackwater: New Gold Inc - 96 Km S of Vanderhoof acq. Silver Quest Resources, Geo Minerals acq. Gold Reach Resources km 2 land position - completion of PEA and initiation of EA t/d open-pit operation planned - $86 million exploration budget m of drilling for 2012 (14-16 drills) - regional exploration at Capoose and Auro projects Au resource - Mar 3 rd, 2012: Mt at 0.98 g/t containing 5.5 Moz (ind.) - 92 Mt at 0.78 g/t containing 2.3 Moz (inf.) Ag resource - Mar 3 rd, 2012: g/t containing 25.8 Moz (ind.) g/t containing 11.2 Moz (inf.) 0.20 g/t grade shell $1300/oz Au pit shell courtesy of New Gold Inc

29 featuring Jeff Kyba! Regional Geologist visit to Blackwater gold project - Apr. 2012

30 Mo Porphyry Deposits Mine Operation / Mine Development Endako: Thompson Creek Metals - Sojitz Corp (25%) - 72 Km W of Vanderhoof - Mill Expansion Project completed (Apr, 2012) - 55,000 t/d design capacity throughput (77% increase) production guidance of M lb m drilling in 2011 (9% reserve increase) - mine life extended to planned super-pit, unifying the three existing pits Mt at 0.046% Mo (proven and probable)

31 Serpentinite-hosted Ni alloy Cache Creek terrane Decar: First Point Minerals Corp - under option to Cliffs Natural Resources Inc - 90 km NW of Fort St. James - rare mineral Awaruite (Ni 2 Fe to Ni 3 Fe, ~72-76% Ni) - serpentinized peridotite (ophiolite complex) - 11,166 m drilling in 2011, 16,500 m proposed (2012) - PEA by March man camp planned for 2012 Baptiste Deposit (Apr. 16, 2012) 1.2 billion tonne resource at 0.113% magnetically recoverable Ni (inf.)

32 Cu-Au porphyry deposits Mine Construction Mt. Milligan: Thompson Creek Metals km NW of Prince George - first major new BC metal mine in 15 years - C$1.5 billion capital cost - 4 th quarter 2013 production full-time jobs expected (600 during construction) tonnes/day over a 22 year mine life Mt at 0.18 % Cu, 0.33g/t Au (meas. and ind.) tot. resource Mt at 0.20% Cu, 0.39 g/t Au (proven and probable) - reserves courtesy of Thompson Creek Metals

33 Cu-Au porphyry cont d Mine Development Epithermal Au-Ag Mine Operation / Exploration Kemess Underground: AuRico Gold km N of Kemess South - Northgate Minerals acq. by AuRico in Oct same concentrator/tailings facilities as Kemess S. - block cave operation with 12 year mine life - full feasibility study to be completed in m drilling (geotechnical, environmental) - avg. annual production estimate: 41.4 million lb Cu and oz Au Shasta: Sable Resources Km NW of Mackenzie - 27 km N of Kemess South - underground Au-Ag operation - seasonal production - ore processed at nearby Baker mill courtesy of AurRico Gold Inc courtesy of Sable Resources

34 SEDEX (baritic Zn-Pb-Ag) Carbonatite-hosted REE Kechika Trough Rocky Mountain Carbonatite Belt Akie: Canada Zinc Metals Corp km N of Mackenzie - Kechika Group (includes Pie, Mount Alcock) - over 6000 m drilling of Cardiac Creek deposit - exploration and prep for underground access - open at depth, up-dip, and along strike Mt at 8.4% Zn, 1.7% Pb, 13.7 g/t Ag (ind.) Mt at 7.4% Zn, 1.3% Pb, 11.6 g/t Ag (inf.) Updated Mar 14, 2012 (NI compliant) Aley: Taseko Mines Ltd km N of Mackenzie - potential low cost, open-pit niobium mine - largest undeveloped Nb project in the world - $20 M exploration program Mt at 0.37% Nb 2 O 5 (meas. and ind.) Mt at 0.32% Nb 2 O 5 (inf.) Updated Mar 28, 2012 courtesy of Taseko Mines Ltd courtesy of Canada Zinc Metals Corp

35 Northeast Region: Peace River Coalfield Mine Operations and Expansion Projects: Trend Mine: 25 km S of Tumbler Ridge 1.4 Mt hard coking coal (2011 production) Horizon and Roman Mountain expansion courtesy of Peace River Coal Peace River Coal (Anglo Coal plc) Perry Creek Mine: 30 km SW of Tumbler Ridge Western Coal Corp 1.8 Mt hard coking coal (2011) (Walter Energy Inc) EB and Hermann deposits awaiting approvals capacity expandable to 3.5Mt/yr Brule Mine: 45 km SSW of Chetwynd 1.3 Mt ULV-PCI coal (2011) Mt Hudette/Brazion exploration Willow Creek Mine: 45 km W of Chetwynd 0.9 Mt PCI and coking coal (2011) planned capacity increase to 3.7 Mt/yr Willow Creek South and West exploration

36 Northeast Region: Peace River Coalfield Exploration expenditures doubled to $44.3 M m drilling in 2011 Huguenot: Colonial Coal Int l Corp - 70 km SE of Tumbler Ridge m drilling (2011) Mt of potential resources Quintette: Teck Coal - 20 km SW of Tumbler Ridge - feasibility study in 2011, reopen 2013? Mt/yr with yr mine life Murray River: HD Mining Int l Corp - JV with Cdn Kailuan Dehua Mines - 10 km SW of Tumbler Ridge m drilling (2011) Mt proven deposit - planned 6 Mt/yr underground operation Gething: Cdn Kailuan Dehua Mines - 25 km W of Hudson s Hope - 2 Mt/yr underground op with 40 yr mine life HD Mining Int l courtesy of Cardero Resource Corp Carbon Creek: Cardero Resource Corp - 40 Km W of Hudson s Hope m drilling (2011) Mt (measured and indicated), 167 Mt (inferred) - surface and underground 30 yr mine life

37 Omineca Region: Shasta gold-silver mine - Sable Resources Mt Milligan copper-gold mine Thompson Creek Metals Kemess Underground copper-gold AuRico Gold Inc Aley niobium deposit Taseko Mines Ltd Blackwater gold deposit New Gold Inc Decar nickel deposit Cliff s Natural Resources Akie zinc-lead-silver deposit - Canada Zinc Metals Kwanika copper-gold deposit Serengeti Resources Inc Chu molybdenum-copper deposit TTM Resources Northeast Region (Peace River Coalfield): Operating mines Trend Mine Peace River Coal (owned by Anglo American plc) Perry Creek Mine Western Coal Corp (subsidiary of Walter Energy Inc) Brule Mine - Western Coal Corp (subsidiary of Walter Energy Inc) Willow Creek Mine Western Coal Corp (subsidiary of Walter Energy Inc) Expansion projects and exploration projects Conclusion List of mines, and potential producers in next 10 years... Roman Mountain deposit - Peace River Coal (owned by Anglo American plc) Horizon Project - Peace River Coal (owned by Anglo American plc) EB Project Western Coal Corp - plans to develop EB mine by fiscal 2013 Hermann Project Western Coal Corp - developing a timetable for the Hermann Mine Quintette Mine Teck Coal Murray River Project Canadian Kailuan Dehua Mines / HD Mining International Corp Gething Project - Canadian Kailuan Dehua Mines Suska Project (aka. Sukunka) Xstrata Coal / JX Nippon Corp Carbon Creek Project Cardero Resources Corp Bullmoose River Project Canadian Dehua International Mines Group Wapiti River Project - Canadian Dehua International Mines Group Belcourt West Project Peace River Coal / Western Coal Wapiti Thermal Coal Mine Hillsborough Resources Ltd

38 2011 Skeena Regional Overview 2012 Outlook Sustained elevated commodity prices Increased demand for coal Political will to responsibly develop natural resources

39 2011 Skeena Regional Overview Acknowledgements Regional Geologists: Bruce Northcote, Southwest and South Coast Dave Grieve, Southeast Kootnay-Boundary Paul Jago & John DeGrace, Northeast-Omenica Jim Britton, Thompson-Oakanagan-Cariboo Bruce Madu, Mineral Development Office Vancouver Robin Chu, Mineral Development office, GIS support Ministry of Energy and Mines & FLNRO, Smithers and Pring George Offices Paul Wojdak, Dave Lefebure and JoAnne Nelson and the BC Geological Survey Gayle Febbo and Mireille Pelletier, Blue Metal Resources Tony Hitchins, Karen Diemert, Jane Lloyd-Smith, Scott and Ashley Jackson, Brenda Black, Florinio Lazo, Paul Carter, Doug Kirwin, Dale Sketchly, Barry DeWet, Graham Boyd, Jeff Clarke, Laural Arness, Shane Nielsen, Jesse Favia, Graham Corlette, Rohan Wolfe, Robert Friedland, Jim Luders, Munkbat Bataar, Tosi Firman, Egy Arbi, Tamal Pal, Steve Oliver, Darren Fynmore, Evan Brittlebank, Jason Wilson, Kelly Critchlow, Garret Daneen, Brodie Mulder, Cliff Kirby, Peter Edwards, Grant Cousten, Mat Brown, Geoff Phillips, Hamish Gillis, Jason Southern, Lisa McElligott, Olivia Turner Family All the companies operating in the Skeena, Omineca and Northeast Regions

40 2011 Skeena Regional Overview Mining and Exploration Northern Highlights Omineca / Northeast Paul Jago, MSc. GIT Regional Geologist Paul.Jago@gov.bc.ca Skeena Region Jeff Kyba, BSc. GIT Regional Geologist Jeff.Kyba@gov.bc.ca May

41 Questions? 2011 Skeena Regional Overview

42 Additional Projects 2011 Skeena Regional Overview

43 Western North America 2011 Skeena Regional Overview

44 British Columbia 2011 Skeena Regional Overview

45 Endako Mo porphyry Pre-commissioning of new mill underway $527 million cumulative expenditure on new mill construction Daily processing to increase 77% 9% reserve increase % Mo (Sept 2011) Estimated mine life until 2028 Produced 4,543 tonnes Mo in Skeena Regional Overview

46 2011 Skeena Regional Overview Endako Pre-commissioning of new mill underway $527 million cumulative expenditure on new mill construction Daily processing to increase 44% 9% reserve increase % Mo (Sept 2011) Estimated mine life until 2028 Produced 4,543 tonnes Mo in 2010

47 Dome Mountain Au vein 700 tonnes of ore ready to ship Completed infrastructure construction Water treatment plant Mine buildings Road Upgrade 2011 Skeena Regional Overview

48 2011 Skeena Regional Overview Continuing underground development Dome Mountain Permitted to process up to 205 tonnes per day (75,000 t/yr) 135,131 g/t Au Above: Daryl Hanson IN the boulder vein Left: Massive and semi-massive sulphide within Boulder vein Photos: J.Kyba

49 Granduc Volcanogenic Massive Sulphide (Cu-Au-Ag) 17 km tunnel rehab completed Historic ore zones extended New ore zones identified 2011 Skeena Regional Overview

50 Granduc 2011 drilling results to be compiled into update resource estimate Indicated resource from historic drilling data: % Cu Inferred resource: % Cu Sparsely drilled south zone returned encouraging results % Cu % Au g/t Ag Granduc operated from and produced 420 million lbs of copper. Photo courtesy of Castle Resources 2011 Skeena Regional Overview

51 2011 Skeena Regional Overview Schaft Creek Cu-Au-Mo-Ag porphyry Received approval for EA application requirements Updates Measured + Indicated resources: % Cu % Mo g/t Au

52 Galore Creek Cu-Au-Ag porphyry Teck acquired 50% ownership Infill drilling upgraded resource confidence Geotecnical drilling improved tunnel allignement 2011 Skeena Regional Overview

53 2011 Skeena Regional Overview CHIEFTAIN METALS INC. Tulsequah Chief Cu-Zn-Pb-Ag-Au massive sulphide Permitting amendments in progress Water treatment plant installed and operational

54 2011 Skeena Regional Overview CHIEFTAIN METALS INC. Tulsequah Chief 82 diamond drill holes totalling 31,181 m Updated feasibility study to be released early 2012 Will include 2011 drilling Optimized construction Improved metallurgy Photos courtesy of Chieftain Metals

55 2011 Skeena Regional Overview Kutcho Creek Koroko Type Cu-Zn-Ag- Au massive sulphide Submitted Project Description Formally initiated preapplication of EA

56 2011 Skeena Regional Overview Kutcho Creek Updated Pre-feasibility Mt 2.01% Cu % Zn g/t Ag g/t Au Mt Measured + Indicated 2.19% Cu % Zn g/t Ag g/t Au Kutcho Creek massive sulphide ore body models looking South. Image courtesy of Capstone Mining.

57 2011 Skeena Regional Overview 45 km north of the Golden Bear mine road Situated within Stikine terrane volcanic arc assemblage 42 drill holes completed in 2011 intercepted visible gold First round of drilling on the property Trapper

58 2011 Skeena Regional Overview Trapper Early stage, limited exploration 2 + km x 250 m Au-As in soil anomaly High-grade grab samples up to 33 g/t gold Extensive alteration traceable over several kilometres Small fraction of alteration zone covered by soil sampling Photos courtesy of Ocean Park Ventures.

59 2011 Skeena Regional Overview Silver Queen Au-Ag-Zn-Pb-Cu-Cd vein Drill tested geophysical anomalies Intercepted porphyrystyle mineralization

60 2011 Skeena Regional Overview Silver Queen Au-Ag-Zn-Pb-Cu-Cd vein Drill tested geophysical anomalies Intercepted porphyrystyle mineralization Molybdenite fragment with interstitial chalcopyrite hosted in quartz monzonite. Photo courtesy of New Nadina Explorations.

61 Poplar Cu-Mo Porphyry Inferred resource: % Cu % Mo Extensive 2011 intercepts % Cu g/t Au % Mo Updated resource anticipated early Skeena Regional Overview