Silver Reef
Property Description
The Silver Reef Property is located approximately 85 kilometers north of Hazelton, British Columbia or about 174 kilometers northwest of Smithers, British Columbia. The Silver Reef Property consists of 17 contiguous mineral tenures and covers over 23,000 hectares. The Company has an option to acquire a 100% interest in the Silver Reef Property (see news release of June 11, 2020 and below).
Silver Reef is a new discovery where limited exploration was carried out prior to the Company’s 2020 exploration program. At the time the Company optioned Silver Reef in June of 2020, a total of 51 rock grab samples have been collected on the property with the highest-grade grab sample yielding 1,892 grams per tonne silver, 2.01 grams per tonne gold, 4.46% lead, and 2.7% zinc from a massive sulphide vein subcrop. Grab samples are collected as niche samples of rock material of specific style or character of interest and are not necessarily representative of the mineralization hosted on the property.
Typical of the mines in the North American silver belt, the silver to gold ratio is approximately 100 to 1; gold is showing a strong association with arsenic; and silver is associated with both copper and lead. In light of the regional geology and results to date, the Phase One and Two drill programs (described below) have shown that the Silver Reef Property has excellent potential to host a significant high-grade silver-gold deposit.
2020 Exploration Program
The 2020 Silver Reef exploration program has been completed and consisted of mapping and prospecting, an airborne geophysical survey and a two-phase drill program.
Mapping and Prospecting
Mapping and prospecting at Silver Reef has expanded the footprint of mineralization. At the time the Silver Reef property was optioned in June of 2020, the Main Zone and Northwest Zone were originally thought to be extensions of the same zone, which was defined over 1.5 kilometers. The Main Zone and Northwest Zone have now been determined to be separate trends and part of a stacked system of multiple mineral horizons, which have now been defined over five kilometers. All zones encountered to date are hosted within moderately metamorphosed sediments located along the margins of felsic dykes. The Northwest Zone has been surface sampled for over 800 meters of strike length and is open for expansion. The felsic dyke associated with this zone has been mapped for over 2.5 kilometers and remains open. Likewise, the Main Zone has been extended almost two kilometers to the south where it remains open.
Surface grab sampling has shown that the Northwest Zone and southern extension of the Main Zone, known as Main Zone South, appear to be higher grade than the Main Zone, with grab sample values ranging in value up to 3.21 g/t gold and 3,885 g/t silver. Both zones remain open for expansion. The Northwest Zone was targeted as part of the 2020 exploration program Phase One and Phase Two drill programs, while the Main Zone South has yet to be drilled.
Airborne Geophysical Survey
The airborne geophysical survey identified numerous magnetic features, which are interpreted to be magnetite skarn developed within the sediments along the margins of dykes and intrusions. At the southern end of the property, two circular intrusions which host historical copper and molybdenum showings are clearly defined. These intrusions are thought to be part of the heat source for the epithermal mineralization seen elsewhere on the property.
The Main Zone follows the edge of a moderate magnetic lineament. This lineament projects to the south through Main Zone South, terminating against an east-west feature some two kilometers to the south. The Northwest Zone is located along the margin of a very strong magnetic lineament that extends over 10 kilometers to the south and at least two kilometers to the north. The association of mineralization with these linear geophysical features suggests the Silver Reef Project has extremely good exploration potential for extending the existing zones and finding new ones. Prospecting and mapping followed by drilling is being planned as part of the 2021 field season.
Plan maps showing the results of the 2020 exploration program surface sampling and airborne geophysical survey are available at Silver Reef Surface Sampling and Airborne Geophysical Survey.
Phase One Drill Program
The Silver Reef Phase One exploration drill program consisted of 10 holes totaling 1,315 meters and intersected up to 521 g/t silver. Eight of the drill holes targeted the Main Zone, with the remaining two holes targeting the Northwest Zone (see Table 1 of the news release of September 29, 2020 for Phase 1 drill results). Both zones host epithermal silver/gold/lead/zinc mineralization similar in style to other deposits in the North American Silver Belt.
Drilling demonstrated that the Main Zone and Northwest Zone structures are well defined with mineralization typical of silver deposits within the silver belt that runs from Idaho through British Columbia into Yukon. Select drill results from the Phase One drill program include:
- Hole SR-004 (Main Zone) intersected 1.18 g/t gold, 521.0 g/t silver, 0.71% lead and 2.17% zinc over 0.5 meters within a 1.3-meter interval grading 0.93 g/t gold, 245.25 g/t silver, 0.33% lead and 0.98% zinc; and
- Hole SR-010 (Northwest Zone) intersected 0.51 g/t gold, 27.6 g/t silver, 0.97% lead and 1.99% zinc over 0.8 meters within a 6.7-meter interval grading 0.23 g/t gold, 30.71 g/t silver, 0.47% lead and 1.04% zinc.
A plan map and drill hole sections of the Silver Reef 2020 Phase 1 drill program are available at Silver Reef Phase 1 Drill Program Results.
Phase Two Drill Program
The Silver Reef Phase Two exploration drill program consisted of four holes totaling 374 meters and intersected up to 410 g/t silver. Two of the drill holes targeted the Northwest Zone, with the remaining two holes targeting the Main Zone (see Table 1 of the news release of December 10, 2020 for Phase Two drill results).
Phase Two drilling at the Northwest Zone has shown grade is improving with depth and confirmed the continuity of the mineralization along strike. Hole SR-011, which was drilled approximately 70 meters down dip from hole SR-009 and approximately 50 meters down dip from hole SR-010, intersected 7.49 meters grading 188.5 g/t silver and 2.5% combined lead/zinc, grades which are significantly higher than those two previously reported holes (see news release of September 29, 2020). Hole SR-012 was collared approximately 125 meters along strike to the southeast of holes SR-009 and SR-010 and intersected a zone similar in grade and thickness as those holes, contained within a 22-meter-thick zone of anomalous mineralization.
Select drill results from the Phase Two drill program include:
- Hole SR-011 (Northwest Zone) intersected 0.24 g/t gold, 188.5 g/t silver, 0.99% lead and 1.51% zinc over 7.49-meters, including a 1.68-meter interval grading 0.55 g/t gold, 410.69 g/t silver, 2.38% lead and 3.18% zinc; and
- Hole SR-012 (Northwest Zone) intersected 0.21 g/t gold, 14.18 g/t silver, 0.20% lead and 0.39% zinc over 22.38 meters, including a 5.70-meter interval grading 0.11 g/t gold, 27.6 g/t silver, 0.28% lead and 0.43% zinc.
A plan map and drill hole sections of the Silver Reef 2020 Phase Two drill program are available at Silver Reef Phase 2 Drill Program Results.
Analysis of the results from the Phase One and Two drill programs along with the airborne geophysical survey will be used to refine the understanding of the structural controls of the mineralization and identify possible feeder zones that may be associated with the mineralization.
See news releases of September 29, 2020, December 9, 2020 and December 10, 2020 for Silver Reef 2020 exploration program results.
Quality Assurance
Amanda Tuck, P.Geo is the qualified person responsible for the Silver Reef Property and has reviewed, verified and approved the scientific and technical information on this web site relating to the Silver Reef Property. Ms. Tuck is a geological consultant to the Company and is a “qualified person” as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101”).
All samples from the 2020 Silver Reef exploration program were submitted for preparation and analysis by MSALABS at its facilities in Terrace, BC. All samples were analyzed using multi-digestion with ICP finish and fire assay with AA finish for gold. Samples over 100 ppm silver were reanalyzed using four acid digestion with an ore grade ICP analysis. Samples over 1,500 ppm silver were fire assayed with a gravimetric finish. Samples with over 10 ppm gold were fire assayed with a gravimetric finish. One in 20 samples was blank, one in 20 was a standard sample, and one in 20 samples had a sample cut from assay rejects assayed as a field duplicate at MSALABS in Langley, BC.
Option Terms
Under the terms of an option agreement with an arm’s length private vendor, the Company can acquire up to a 70% interest in Silver Reef over a 3-year option period by paying to the vendor:
- $50,000 (paid) and 200,000 shares (issued) in its capital on the signing of the option agreement;
- $200,000.00 and 200,000 shares in its capital on the first anniversary of the agreement; and
- $500,000.00 and 800,000 shares in its capital on the second anniversary of the agreement.
The Company is also required to incur exploration expenditures of $250,000.00 before the first anniversary of the agreement, $750,000.00 of cumulative exploration expenditures by the second anniversary of the agreement and $2 million of cumulative exploration expenditures by the third anniversary of the agreement.
Following exercise of the option, the Company has the right for a period of 120 days to acquire the remaining 30% interest in Silver Reef, for a 100% total interest, on payment of $7.5 million of which up to $4 million may be paid in shares of the Company at its election. If the Company elects to not purchase the remaining 30% interest, the Company and the vendor shall form a joint venture, with the Company appointed the operator. During the first 3 years of the joint venture, the Company will fund the vendor's participating interest in the joint venture. If the vendor fails to sell its interest in the joint venture during such 3 year period, the vendor’s interest will convert to a 3% net smelter returns royalty, provided that the Company will have the opportunity to purchase the vendor’s interest prior to such conversion for $7.5 million.
Technical Report
View and download the Technical Report on the Silver Reef Property dated September 20, 2020.
