Treaty Creek Project Update
The TUDOR GOLD Treaty Creek project is a 60:20:20 joint venture with Teuton Resources Inc. and American Creek Resources Ltd. (TUDOR GOLD is the operator). The Treaty Creek claims are located in an area of northwestern British Columbia known as the “Golden Triangle”; an area that has been the focus of exploration and mining for well over a century. The southern boundary of the TUDOR GOLD claims is adjacent to the claims of Seabridge Gold Inc. where the Kerr, Sulphurets, Mitchell, and Iron Cap deposits have proven and probable reserves in excess of 38.8 million ounces of gold, 183 million ounces of silver and 10.155 billion pounds of copper (as reported on the Seabridge Gold website citing its “most recent National Instrument 43-101 compliant estimates”- February 2017). The above metal quantities are contained within 2.198 billion tonnes of rock grading 0.55 g/t gold, 2.6 g/t silver and 0.21% copper. Note that Tudor’s Qualified Person has been unable to verify the information on deposits within Seabridge Gold’s KSM property and the information is not necessarily indicative of the mineralization on the Treaty Creek property.
Treaty Creek Exploration History
Although the first Treaty Creek claims were staked as early as 1928, it was only in the late 1980’s that the area was subjected to serious investigation using the scientific practices and methods then available. By the time TUDOR GOLD became involved in the Treaty Creek project in 2016, six main areas of mineralization had been identified and subjected to varying levels of exploration and scientific analysis. Importantly, none of the areas had yet been subject to a truly exhaustive analysis. The names of these six zones of mineralization are as follows:
- Copper Belle
- Konkin Gold Zone
- Goat Trail
In 2011, Seabridge Gold carried out a Magnetotelluric (MT) survey over a portion of the Treaty Creek claims. The survey was done as part of an effort to determine the feasibility of a 22-kilometre tunnel as a means of conveying ore from its claims to a proposed mill at a lower, more accessible elevation.
The results of the MT survey revealed, for the first time, that the Treaty Creek claims might host kilometre-scale mineral deposits. In her May 2, 2016 NI43-101 compliant report geologist Jill Pardoe observed that: “One significant low [area of low resistivity] is located some 1250 meters below the Orpiment zone extending for over 3 kilometers in length. This low appears to lie in the footwall of the Sulphurets Thrust fault and could mark a porphyry copper-gold deposit at depth.” While the Orpiment zone had attracted some attention in the past, only a single diamond drillhole had ever been used to test the mineralization. That drillhole bottomed at 231.5 metres, obviously well above the potential deposit.
Ms. Pardoe also noted in her 2016 report that the 2011 MT survey suggested: “a second large resistivity low trending to the south in the area of the Konkin Gold zone towards the Iron Cap copper-gold zone on the adjacent claims held by Seabridge”. That area of the Treaty-Creek claims has never been subjected to much more than a cursory examination, in part because of the presence of surface ice – much of which has now receded.
The 2011 MT survey also suggested extensive mineralization in the Copper Belle zone at a depth below that of any holes drilled in previous exploration programs. As noted in a press release dated December 22, 2016, TUDOR GOLD’s 2016 exploration program on the Treaty Creek claims had two key goals for the field-work portion of the program: The first goal was to carry out an MT survey of a much larger portion of the Treaty Creek claims. The second goal of the 2016 exploration program was to carry out further diamond drilling targeting areas identified by the 2011 MT survey (which were to the north-northeast of the Copper Belle zone) and targeting areas identified by the exploration work carried out by American Creek in 2007 and 2009. As also noted in the press release, those goals were achieved.
The data collection portion of the 2016 MT survey was completed in August 2016 and in the intervening months Simcoe Geoscience Ltd., the contractor responsible for the survey, has been interpreting the results and assimilating them with information gained from current and previous exploration programs.
Again as noted in the December 22, 2016 press release, the drilling in the Copper Belle zone produced very encouraging results, including: “Hole CB-16-02 encountered 224m of .403 g/t Au from 202m to the bottom of the hole at 426m. The last 18m averaged 0.883 g/t Au. Hole CB-16- 03, collared approximately 550m northeast of the historic Copper Belle Zone, returned 338m of 0.700 g/t Au from 88m to 426m”.
2016 MT Survey
It is important to understand that while an MT survey provides a sub-surface view of mineral claims, it does not provide report-ready mineral assays of the tested area. Instead, an MT survey generates a predictive model which, when validated through ongoing traditional diamond drilling, allows the user to develop exploration targets with greater confidence about what will be found.
The results from each new drill hole are in turn used to refine the results of the MT survey, thereby enhancing its overall predictive value. With that in mind, TUDOR GOLD is pleased to report that the 2016 MT survey fully achieved the goals set for it. Together with the results of prior exploration work, the 2016 MT survey has provided TUDOR GOLD with a better understanding of the geology of the Treaty Creek claims, and it has provided TUDOR GOLD with a solid foundation on which to build its 2017 exploration program.
The current understanding of the model generated by the 2016 MT survey suggests these things:
- The geology underlying the encouraging assays generated by the 2007, 2009, and 2016 drilling in the Copper Belle zone extends over a larger area than has yet been tested through diamond-drilling. The survey suggests the mineralization in the Copper Belle zone might extend for as much as seven hundred meters in the near-surface zone (less than 600 m depth), at it might extend for up to one kilometer at greater depths,
- The geology underlying the encouraging assays generated by the 2007 and 2009 drilling in the GR2 zone extends over a larger area than has yet been tested through diamond-drilling and might extend for several hundred meters,
- The geology underlying the encouraging assays generated by the 2007, 2009, and 2016 drilling in the Copper Belle zone extends towards the Seabridge Gold Iron Cap deposit. This echoes the observations of Ms. Pardoe in her 2016 report noted above.
TUDOR GOLD will continue to disclose any further insights gained about the Treaty Creek claims that might be revealed through the ongoing analysis of the results of the 2016 MT survey.
The 2017 exploration program
Taking into account the prior exploration work and the predictive models generated by the 2016 MT survey, TUDOR GOLD has set these main goals for its 2017 exploration program on the Treaty Creek claims:
- Carry out diamond drilling in the Copper Belle zone to both the south and north of prior drilling with the goal of developing a preliminary resource estimate for a low-grade bulk deposit along a strike length of approximately 1000 m,
- Carry out diamond drilling in the GR2 zone with the goal of determining how much fur-ther drilling or other exploration is required to develop a preliminary resource estimate for that zone, and
- Carry out diamond drilling to confirm that the mineralization in the Copper Belle zone extends towards the adjacent Seabridge Gold Inc. Iron Cap deposit.
The precise details of how these drilling programs will be carried out are still being developed. In addition to these drilling programs, TUDOR GOLD is also considering further exploration work in the Konkin Gold zone where early exploration produced grab samples, chip samples and trenching samples carrying in excess of 28 ounces of gold per tonne (these historical results are taken from a 1987 Assessment Report submitted to the provincial government by Mr. Cremonese, P. Eng., president of Teuton Resources Corp.; these historical results have not been independently verified by TUDOR GOLD). TUDOR GOLD is of the view that further exploration work will be beneficial in understanding the geology and mineralization of the Konkin Gold zone.
Walter Storm, President and CEO, stated: “The 2016 MT survey has proved to be of tremendous value to the company. It has helped us understand the complex geology of the Treaty Creek claims, and it gives us great confidence that we have set achievable goals for the 2017 exploration program”.
The Qualified Person
The Qualified Person for the technical content of this Press Release about the Treaty Creek property, is Jim Hutter, P. Geo. for the purposes of National Instrument 43-101.
About TUDOR GOLD
TUDOR GOLD is a precious and base metals explorer with properties in British Columbia’s Golden Triangle, an area that hosts producing and past-producing mines and several large deposits that are approaching potential development. The 17,913 hectare Treaty Creek project (in which TUDOR GOLD has a 60% interest) borders Seabridge Gold Inc.’s KSM property to the southwest and borders Pretium Resources Inc.’s Brucejack property to the southeast. The Company also has a 100% interest in the Electrum Project, earn in options and 100% interests in other prospective projects located in the Golden Triangle area.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including the completion and anticipated results of planned exploration activities. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connation thereof.
Such forward-looking information and statements are based on numerous assumptions, including among others, that the Company’s planned exploration activities will be completed in a timely manner. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.
The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.