North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Pebble Partnership copper gold molybdenum mine project Alaska Northern Dynasty NAK NDM

Margaux gets Wildsky approval for Cassiar

 

Last updated 7/5/2019 at 5:25am

Margaux Resources Ltd.

Snow-capped mountains reflect off of the water on a tailings facility from previous high-grade gold mining at the Cassiar property in northwestern B.C.

Margaux Resources Ltd. June 24 announced a milestone in achieving its plans to acquire and explore the Cassiar gold project in northern British Columbia from Wildsky Resources Inc., formerly China Minerals Mining Corp.

The 56,000-hectare (138,380 acres) Cassiar property hosts both lower grade bulk tonnage and high-grade vein occurrences across a 15-kilometer (nine miles) structural corridor.

Bisected by Highway 37, the property also boasts significant existing infrastructure, including a 270-metric-ton-per-day flotation and gravity mill that has been on care and maintenance since 2005, tailings storage facility, 30-man camp with grid power and several ancillary buildings.

The most advanced bulk tonnage target at Cassiar, Taurus, hosts 32.4 million metric tons of historical inferred resource averaging one gram per metric ton (1.04 million ounces) gold, using a cut-off grade of 0.5 g/t gold. This historical resource for the Taurus deposit does not include results of drilling completed within the resource area in 2009 or 2012.

Table Mountain, a high-grade vein occurrence, hosts 21,470 metric tons of historical indicated resource averaging 18.02 g/t (13,650 oz) gold and 65,750 metric tons of inferred resource averaging 24.3 g/t (56,360 oz) gold, using a cut-off grade of 3 g/t gold.

Most of this resource calculated for Table Mountain in 2010 is accessible by a modern underground ramp development, which is linked by road to the mill facility.

Roughly 350,000 oz of gold has been produced at Cassiar from 920,000 metric tons of hardrock material averaging 11.9 g/t gold. Most of this gold mining happened from 1979 to 1997.

Numerous other veins have been identified on the Cassiar property, which have been tested by only limited drilling. In addition, Margaux believes there to be good potential to discover new veins and new areas of low-grade gold mineralization.

To acquire this property and associated infrastructure, Margaux has entered into an option agreement to acquire all the shares of Cassiar Gold Corp., a subsidiary of Wildsky Resources that holds the property.

In order to exercise the option, Margaux must issue 58.2 million shares to Wildsky over an 18-month span following TSX Venture Exchange approval of the agreement.

Additionally, Margaux has agreed to invest at least C$400,000 into a 2019 work program at Cassiar. This work is expected to focus on the bulk tonnage gold target at Taurus.

Margaux Resources Ltd.

Margaux Resources President Tyler Rice (left) and Wildsky Resources President Wenhong (Wilson) Jin shake hands at the sign for the historical mine on the Cassiar property.

"Obtaining ... approval from the shareholders of Wildsky is a major milestone which affords Margaux the opportunity to activate the 2019 field season with a focus on completing an updated resource estimate for the Taurus zone," said Margaux Resources President and CEO Tyler Rice.

By the end of the first year of the execution of the option agreement, Wildsky will have the right to appoint to directors to the Margaux board and one person to the Margaux management team.

Wildsky will also retain a 30 percent net profit interest on all minerals processed from the TM-TSF No. 1 tailings storage facility at Cassiar, after capital payout of up to C$500,000.

Based on historical mill records, it has previously been estimated that TM-TSF No. 1 hosts 400,000 to 500,000 metric tons of tailings averaging 0.97 to 1.25 g/t gold.

–SHANE LASLEY

 

Reader Comments
(0)

 
 

Powered by ROAR Online Publication Software from Lions Light Corporation
© Copyright 2019

Rendered 07/20/2019 01:38