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Yukon - Tintina Gold Belt
Brewery Creek, Yukon Project
Project Overview
The Brewery Creek Project is a past producing heap leach gold mining operation. From 1996 through 2002 a total of 278,484 oz Au were produced from seven near-surface oxide deposits along the Reserve Trend. Operating under Viceroy Resource Corporation, the Brewery Creek mine shut down in 2002 due to low gold prices. The 793 claim, 12,656 ha., project is located 55 km due east of Dawson City in the northwestern region of Yukon, Canada. Access to the site is by paved and gravel roads from the junction of the North Klondike and Dempster Highways.
The Project is in receipt of all necessary permits, including its Class 3 Mining Land Use permit which is required to conduct additional exploration. The Brewery Creek Project is authorized under a Type A Water License with an expiry date of December 31, 2021, subject to the restrictions and conditions contained in the Yukon Water Act and Regulations. The Project also has a production license with an expiry date of December 31, 2021 and the ninety-three mining leases covering mine facilities, pits, waste dumps and adjacent drill indicated deposits have expiry dates beginning in 2016. In addition, Viceroy Resources Corp. ("Viceroy") negotiated the terms for a Socio-Economic Accord with Tr'ondek Hwech'in First Nation with respect to the Brewery Creek Project.
In June 2009, The Company signed a Letter of Intent with Alexco Resources Corp. to acquire up to a 75% interest in the Brewery Creek Project. The Company can also earn a 50% interest in certain barite deposits present on the claim group. The Brewery Creek Project is subject to two underlying royalty agreements with third parties: a "sliding scale" royalty on the next 21,516 oz Au production; and a 5% net profits royalty on profits from gold production.
Historic Exploration
The claims comprising the Brewery Creek Project were initially staked in 1987 by Noranda Exploration Limited ("NPL") and by 1989, most of the mineralized zones eventually mined were identified through detailed geochemical surveys. Since 1989, more than 175,000 m of trenching and drilling was completed on the Project with much of the exploration drilling completed to depths of 50 m or less and focused on defining the near-surface oxide potential.
Viceroy officially opened the Brewery Creek Mine on June 12, 1997 and between 1996 and 2002 the mine produced 278,484 oz Au. Viceroy conducted ongoing reclamation to the site which closed in 2002. Small exploration programs focusing on deeper sulphide gold mineralization have been conducted by various operators. From 2005 to 2009, Alexco completed reclamation activities on the majority of the previous operations.
Mineralization and Geology
On the Brewery Creek Project, Tombstone Suite, Cretaceous monzonite and quartz monzonite intrudes lower Paleozoic Earn Group and Road River Group stratigraphy as a series of semi-conformable sills. Cretaceous biotite monzonite and syenite stock-like bodies occur locally in the south-central part of the project. This suite of coeval granitic rocks is known to be associated with gold mineralization at Fort Knox in Alaska and Dublin Gulch, Clear Creek and Gold Dome (Scheelite Dome) in Yukon. Similar aged intrusive rocks host much of the mineralization at the world class Donlin Creek deposit in Alaska.
At Brewery Creek, fracture controlled gold mineralization is hosted within porphyritic monzonite, quartz monzonite, biotite monzonite and interbedded fine-grained, siliclastic sediments. Local replacement mineralization is also hosted within calcareous siltstones. Major ore controlling structures in intrusives are related to a post Tombstone age (91 Ma), NNW compressional event that produced ESE and NE striking conjugate shears and ENE listric normal faulting localized along graphitic argillite/intrusive sill contacts. Moderate south dipping to overturned, north dipping short limbs of south vergent folds are believed to be the main controls to mineralization in the sediments. Approximately 85% of the mined out mineralization was hosted by the various Cretaceous-aged quartz monzonite sills with the balance contained in silicified and brecciated Earn Group sediments.
A Technical Report on the Brewery Creek Project by prepared in July 2009 by Richard M. Diment and Ronald G. Simpson, titled "Technical Report on the Brewery Creek Gold Project, Yukon Territory, Canada", contains a National Instrument 43-101 Indicated Resource of 3.98 million tonnes grading 1.135 gpt Au (145,000 contained ounces) and an Inferred Resource of 2.2 million tonnes grading 2.01 gpt Au (142,000 contained ounces), using a cutoff grade of 0.5 gpt Au.
Current Work
The acquisition of the Brewery Creek Project presented two immediate targets for potential resource development. Expansion potential remains on the un-mined near surface oxide gold mineralization, and deeper sulphide gold mineralization. The latter has only been targeted in recent programs and further exploration to test this target has is recommended by Diment and Simpson (2009). The Technical Report states that while the regional structural model for Brewery Creek offers potential for the discovery of higher grade sulphide deposits, the depth of drilling to date has been inadequate in testing this model.
Following the acquisition of the Brewery Creek property in early June, 2009, The Company personnel visited the property in preparation for a Phase 1 diamond drilling program. From August through mid-October 2009, a total of 13 holes were completed in the Pacific, North Slope and Blue zones targeting deeper, sulphide mineralization such as found at Donlin Creek, Alaska. This program was completed using a diamond drill rig from Kluane Drilling Ltd of Whitehorse. The drill for this phase of the drill program was moved with low ground pressure ATVs to minimize disturbance in the recently reclaimed areas of the property. The program was successful in that gold mineralization was intersected in every hole and the zones generally showed good continuity between holes with some variation in both grade and width.
The program was halted for a 15 day period in October, 2009 to allow freeze-up conditions to occur, after which a skid mounted variation of the diamond drill was commissioned. Seventeen holes were completed in the Fosters and South Fosters areas and targeted near surface oxide mineralization. Ten of the seventeen holes completed between mid-October and early December intersected gold mineralization along the southern margin of the un-mined South Fosters zone. Two holes ended in mineralized intrusive rocks and the thickness of these mineralized zones remains to be determined. The South Fosters zone hosts an Indicated Resource of 961,900 tonnes at a grade of 1.387 gpt Au for a total in-situ resource of 42,900 oz Au. Diment and Simpson (2009).
The Company's planned Phase I 2010 program at Brewery Creek includes 5,000 m of RC drilling designed to extend the oxide deposits at the East and West Big Rock and Bohemian zones, and 1,000 m of diamond drilling along the Reserve Trend to test the deeper sulfide-hosted gold targets.
Summary of Results
Highlights of the 30 hole diamond drilling program conducted from early August through December, 2009 include:
Pacific zone
- 5.53 gpt Au over 1.69m from BC09-132
- 3.20 gpt Au over 4.70m from BC09-133
- 5.39 gpt Au over 2.0m from BC09-134
North Slope zone
- 20.17 gpt Au over 1.90m from BC09-137
- 4.72 gpt Au over 9.71m including 6.86 gpt Au over 4.26m from BC09-139
Blue zone
- 4.06 gpt Au over 8.81m including 7.81 gpt Au over 2.81m from BC09-142
- 2.64 gpt Au over 7.76m from BC09-144
South Fosters zone
- 6.07 gpt Au over 8.30m including 16.42 gpt Au over 3.05 m from hole BC09-147;
- 1.80 gpt Au over 6.73m from BC09-151
- 3.41 gpt Au over 4.00m from BC09-153
- 6.79 gpt Au over 2.83m from BC09-159
- 2.41 gpt Au over 3.89m and 3.24 gpt Au over 7.14m from BC09-160
- 1.59 gpt Au over 8.13m and 2.47 gpt Au over 3.05m from BC09-161
See table below for a complete summary of gold mineralization intersected at Brewery Creek during the 2009 diamond drill program.
2009 Drill Highlights from the Brewery Creek Project, YT
Select Significant Intercepts > 0.5 gpt Au |
| Drill Hole # |
From
(m) |
To
(m) |
Interval (m) |
Au
gpt |
Interval
(ft) |
Au
opt |
|
BC09-132 * |
116.37 |
122.58 |
6.21 |
2.53 |
20.37 |
0.074 |
| Including |
116.37 |
118.06 |
1.69 |
5.53 |
6.76 |
0.161 |
| BC09-133 * |
110.85 |
112.85 |
2.00 |
3.51 |
6.56 |
0.102 |
| |
155.02 |
160.08 |
5.06 |
2.60 |
16.60 |
0.076 |
| |
162.08 |
168.08 |
6.00 |
1.67 |
19.69 |
0.049 |
| |
172.08 |
176.78 |
4.70 |
3.20 |
15.42 |
0.093 |
| |
227.00 |
229.00 |
2.00 |
0.79 |
6.56 |
0.023 |
| BC09-134 * |
215.30 |
217.30 |
2.00 |
1.89 |
6.56 |
0.055 |
| |
221.30 |
223.30 |
2.00 |
5.39 |
6.56 |
0.157 |
| |
227.30 |
229.30 |
2.00 |
1.47 |
6.56 |
0.043 |
| BC09-135 * |
135.03 |
137.55 |
2.52 |
0.63 |
8.27 |
0.018 |
| BC09-136 * |
151.03 |
155.03 |
4.00 |
1.00 |
13.12 |
0.029 |
| |
156.88 |
163.40 |
6.52 |
0.72 |
21.39 |
0.021 |
| |
172.46 |
174.76 |
2.30 |
3.53 |
7.55 |
0.103 |
| BC09-137 ** |
142.96 |
144.96 |
2.00 |
1.06 |
6.56 |
0.031 |
| |
221.41 |
222.85 |
1.44 |
1.72 |
4.72 |
0.050 |
| |
226.00 |
228.00 |
2.00 |
1.45 |
6.56 |
0.042 |
| |
243.62 |
245.52 |
1.90 |
20.17 |
6.23 |
0.588 |
| BC09-138 ** |
149.30 |
151.00 |
1.70 |
2.14 |
5.58 |
0.062 |
| |
212.30 |
214.56 |
2.26 |
2.89 |
7.41 |
0.084 |
| BC09-139 ** |
263.86 |
273.57 |
9.71 |
4.72 |
31.86 |
0.138 |
| Including |
267.31 |
271.57 |
4.26 |
6.86 |
13.98 |
0.200 |
| BC09-140 ** |
425.30 |
427.30 |
2.00 |
4.02 |
6.56 |
0.117 |
| BC09-141 ** |
268.00 |
270.00 |
2.00 |
2.70 |
6.56 |
0.079 |
| BC09-142 ** |
45.00 |
53.81 |
8.81 |
4.06 |
28.90 |
0.118 |
| Including |
49.00 |
51.81 |
2.81 |
7.81 |
9.22 |
0.228 |
| BC09-143 ** |
68.40 |
70.40 |
2.00 |
2.59 |
6.56 |
0.076 |
| |
75.63 |
80.47 |
5.11 |
1.31 |
16.77 |
0.038 |
| |
123.57 |
125.57 |
2.00 |
1.63 |
6.56 |
0.048 |
| |
133.85 |
135.85 |
2.00 |
2.42 |
6.56 |
0.071 |
| |
142.36 |
144.36 |
2.00 |
1.64 |
6.56 |
0.048 |
| BC09-144 ** |
154.40 |
162.16 |
7.76 |
2.64 |
25.46 |
0.077 |
| |
187.14 |
195.14 |
8.00 |
1.21 |
26.25 |
0.035 |
| BC09-146*** |
28.96 |
36.28 |
7.32 |
1.13 |
24.02 |
0.033 |
| Including |
49.70 |
51.15 |
1.45 |
1.08 |
4.76 |
0.032 |
| BC09-147*** |
46.05 |
54.35 |
8.30 |
6.07 |
27.23 |
0.177 |
| Including |
47.24 |
50.29 |
3.05 |
16.42 |
10.01 |
0.479 |
| BC09-148***(†) |
76.20 |
78.94 |
2.74 |
0.97 |
8.99 |
0.028 |
| BC09-149***(†) |
53.75 |
57.91 |
3.40 |
1.34 |
11.15 |
0.039 |
| BC09-151*** |
39.27 |
44.40 |
6.73 |
1.80 |
22.08 |
0.053 |
| |
50.20 |
52.20 |
2.00 |
0.52 |
6.56 |
0.015 |
| |
54.00 |
55.58 |
1.58 |
0.57 |
5.18 |
0.017 |
| BC09-153*** |
30.90 |
34.90 |
4.00 |
3.41 |
13.12 |
0.099 |
| BC09-156*** |
37.85 |
41.85 |
4.00 |
1.06 |
13.12 |
0.031 |
| |
43.10 |
46.20 |
3.10 |
1.90 |
10.17 |
0.055 |
| |
48.20 |
50.29 |
2.09 |
0.94 |
6.86 |
0.027 |
| BC09-159*** |
42.03 |
44.86 |
2.83 |
6.79 |
9.28 |
0.198 |
| BC09-160*** |
26.42 |
30.31 |
3.89 |
2.41 |
12.76 |
0.070 |
| |
54.86 |
62.00 |
7.14 |
3.24 |
23.43 |
0.095 |
| BC09-161 |
28.32 |
36.45 |
8.13 |
1.59 |
26.67 |
0.046 |
| |
57.77 |
60.82 |
3.05 |
2.47 |
10.01 |
0.072 |
| |
| * Reported in October 15, 2009 News Release |
| ** Reported in December 10, 2009 News Release |
| *** Reported in January 27, 2010 News Release |
| (†) Hole ended in mineralization |
Ken Galambos, PGeo, is the Qualified Person as defined under National
Instrument 43-101 who has reviewed and verified the information on the
Company's Brewery Creek Project.
2010 Photos
(Above photos By Cathie Archbould, Archbould Photography)
2009 Photos
News Releases
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Brewery Creek, Yukon
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