History of Mines
The extensive property package spans 5,891 hectares and hosts multiple past-producing mines including the Regal Silver mine, the Allco Silver mine and the Snowflake mine.
The Regal Silver Mine has had a long and varied history with small amounts of production up to 1953. The Mine is largely developed with over 6,700 meters of horizontal adits, cross-cuts and raises over ten levels which cover a vertical distance of approximately 305 meters from the No 1 level at the 1,693.6 meter elevation down to the No. 10 level at 1,388.7 meter elevation. Very little work and no known production has taken place since 1971.
Mineralization within the mine is comprised of galena, sphalerite, pyrite, tetrahedryite, cassiterite, stannite, scheelite and various silver minerals in a quartz-carbonate matrix deposited in fracture zones. These zones are expressed as a series of sub-parallel structurally controlled veins, striking northwesterly and dipping to the northeast at angles varying between 65° near surface, flattening to nearly 25° at 300 meters of depth, which vary in width from 0.3 to 9.1 meters, with an average width of nearly 2.44 meters.
In 1982, reported reserves were 590,703 tonnes grading 71.6 grams per tonne silver, 2.66 per cent lead, 1.26 per cent zinc, 1.1 per cent copper, 0.13 per cent tin and 0.015 per cent tungsten (Minfile No. 082N 004)
(Note: The above resource and grades were prepared prior to adoption of NI 43-101 and are not compliant with current standards set out therein for calculating mineral resources or reserves)
A historical technical report written by M. C. Robinson, P. Eng. and J.D. Guild in May 1971 (”the Report”), contains a complete feasibility review of the Regal Silver Mine, including a reserve report, mine plan, processing recommendations and mill plans. The Report, which was prepared using a silver price of $1.75 per troy ounce ("troz") makes a positive recommendation for production, including the establishment of a 500 ton per day concentrator with a 400 ton per day silver, lead and zinc circuit and a 100 ton per day tin, tungsten and copper circuit. Metallurgical recoveries, based upon an extensive metallurgical study conducted by Energy, Mines and Resources in Ottawa and 10 others, which were subsequently reviewed by Bacon Donaldson, Vancouver (1983), are 86% for silver, 90% for lead and 70% for zinc with 64% recovery of tungsten, with the majority of the silver reporting with the lead.
Additional work by a "Qualified Person" under NI 43-101 will be required to upgrade or verify the Historical Estimate to current NI 43-101 standards, including confirming current potential for economic recovery for any mineralization to be classified as a 'Reserve' by way of a feasibility study. This work will include additional mapping, assaying and drilling to verify quantity, grade and category of mineral resource, review and updating of all cost data to current levels, as well a review of the proposed mine plan, metallurgical processing recommendations in the Report and economic, pricing and other factors related to the recommendations in the Report.
The Report appears to have been prepared in a competent and diligent manner and the Company considers it to be reliable, subject to verification and upgrading to current standards. The Company also considers the Report particularly relevant in that, after careful consideration, the Report authors found the project to be economically viable and recommended production at that time. Although the reported reserves will require re-verification, since the mine was never put in to production after the date of the Report, any resource that existed at that time is still in place.
The Allco Silver Mine is also part of the Regal property and was operated from 1936-1937 and produced 213 tonnes of concentrates containing 11 troz gold (1.55 g/t), 11,211 troz silver (1,637 g/t) and 173,159 lbs of lead (36.9%).