TV and Jeff Prospects

The Jeff showing lies 4 km south-southeast of the Lulu zone. The TV showing 1.5 km south of Jeff. TV and Jeff form a trend of auriferous VMS deposits on the eastern limb of the Eskay anticline; the Tet and C10 showings continue this trend to the south.

Jeff has upper and lower mineralized zones within the dacite breccia and peperitic mudstone of the Brucejack Lake felsic unit of the Betty Creek Formation (Figure 10), with stringer style zones within the Unuk River andesite. The mineralized zone at TV is stratigraphically correlated with the Upper Brucejack Lake Mineralized Zone at Jeff. Normally graded conglomerate rock within the Betty Creek Formation indicates stratigraphic down is to the west. Historic drilling has intercepted sandstone of the Spatsizi Formation to the east. The presence of the Iskut River Fm up-stratigraphy from TV and Jeff is inferred by the presence of high bluffs to the east, and the bluff-forming geomorphic expression of felsic rocks of the Iskut River Formation elsewhere on the property.

Sulphide and sulfosalt minerals invariably cross-cut primary magmatic and peperitic textures (Figures 11 and 12), consistent with subseafloor replacement-type mineralization proximal to a VMS hydrothermal upflow zone. Gold occurs as electrum, and silver in electrum, tetrahedrite, pyrargyrite, and miargyrite; these minerals are visible to the naked eye (Figures 13 and 14).

Figure 10: Stratigraphic sections of TV and Jeff looking down-dip.

Figure 11: Precious metal-bearing samples from TV. A. TV20-39 116.85-117.07 m is a dacitic peperite with semi-massive sulphide replacement. B. TV20-35 196.09-196.27 m is a peperite with massive sulphide replacement. C. TV20-36 is a mud-dominated peperite with dacite fragments and disseminated to stringer-style sulphide minerals.

Figure 12: Precious metal-bearing drill core from Jeff. A. J20-34 38.41-38.63 and B. J20-34 39.73-39.83 are peperitic dacite breccia with semi-massive sulphide replacement between breccia fragments.

Figure 13: Electrum, the Ag-sulfosalt minerals pyrargyrite and miargyrite within a dacite breccia from the Upper Zone at Jeff.

Figure 14: Photomicrographs of electrum and tetrahedrite from drill hole J20-34. Mineralogical investigations show that Au primarily occurs as electrum, and Ag occurs within electrum, and tetrahedrite.

Figure 15: Core log with assays and select geochemical data for drill hole J20-33.

Figure 16: Legend for core log of drill hole J20-33.

Investigation of drill core shows that Au-Ag occurs as replacement-style mineralization within peperitic basalt and dacite horizons, consistent with VMS mineralization in a near-seafloor environment (Figures 15 and 16). These findings show that Au-Ag-bearing VMS systems were active well before the Eskay Creek deposit formed, and that the entire Hazelton Group stratigraphy is prospective for Au and Ag.

A SkyTEM survey conducted in 2020 of the area shows that known mineralized zones correlate with distinct high conductivity anomalies (Figure 18). Many such conductivity anomalies lie on trend with TV and Jeff and are morphologically similar to those at TV and Jeff exhibiting a stacked lumpy appearance in map view. Several of these anomalies are in rock inferred to be the Iskut River Formation, the host rock for high-grade precious metal deposits at Eskay Creek and SIB-Lulu and are likely the up-stratigraphy continuation of the mineralized systems currently known.

Figure 18: SkyTEM conductivity map of the Jeff and TV region.

An IP survey conducted in 2020 delineated moderate to high-chargeability anomalies that generally correlate with stratiform mineralized zones (Figure 19). The extremely high chargeability anomaly down-stratigraphy from the Lower Zone at Jeff lies below the unconformity between the Betty Creek Formation and underlying Stuhini Group sedimentary rocks intercepted by drillhole J20-36. At TV, a similar extremely high chargeability anomaly also corresponds with Stuhini Group rocks intercepted at the same stratigraphic level by historic drill holes TV95-08 and TV95-10. Conversely, mineralized zones generally correspond to moderate- to low-resistivity anomalies identified by IP, and the unconformity with the Stuhini Group indicated by very-low resistivity anomalies. There are cases where mineralized zones correlate with high-resistivity anomalies. In these cases, examination of drill core suggests resistivity correspond with hydrothermal silicification associated with the VMS system.

Figure 19: Line 8000N IP chargeability (top) and resistivity (bottom) cross-sections showing the correlation between mineralized zones and Stuhini Group rocks with IP response at Jeff. Similar IP correlations with mineralized zones occur at TV, C10, and Spearhead.

TV and Jeff will be the focus of the 2021 program, including a refined Skytem survey, and systematic drilling to delineate the extent of known mineralization and to test the potential for additional mineralized zones along strike and up-stratigraphy from known mineralization.