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Image of Treaty Creek’s
West Nunutak in the foreground and
Seabridge Gold’s KSM-Iron Cap in the background

Electrum - The Right Geology

Geological Reports

Technical Report Summary

Setting

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The Electrum Property is located approximately 40 km north of the town of Stewart, British Columbia, and lies in the prolific mining region referred to as the "Golden Triangle". The Electrum property has a haul road access leading directly from the property to a shipping terminal in Stewart, power nearby and a supportive mining town. The property consists of eight claim units covering an area of 6.5 km2, and hosts the historic East Gold Mine which was discovered in 1926. The East Gold Mine had intermittent small-scale production between 1939 and 1965; producing approximately 46 tons of hand-picked ore with returning grades of 1,661 g/t (48.5 oz/t) gold and 2,596 g/t (75.7 oz/t) silver. American Creek Resources Ltd. owns 100% interest in the property.

Property Geology

The Electrum property lies in the heart of the Early Jurassic Stewart-Unuk-Iskut metallogenic belt, which hosts a number of Au-Ag + Cu veins and porphyry deposits associated with Jurassic intrusions. The Electrum property is underlain by the Middle Andesite and the Upper Siltstone members of the Unuk River Formation. A feldspar-hornblende granodiorite porphyry intrudes the Middle Andesite and underlies part of the property. There is a general increase in strength of alteration from weak sericite + pyrite in the southeast to strong silicification ± sericite + pyrite toward the central and western portions of the property. Outcrop exposures on top of the ridges contain significant quartz veining, both narrow stockwork and larger, single continuous veins, in a low-sulphidation gold-silver epithermal mineralized system characterized by:

  • Pervasive phyllic alteration of the host, mainly quartz-sericite-pyrite overprinting siltstones and andesitic tuffs and flows.
  • Epithermal breccia-veins (quartz- carbonate veins carrying sulphide and precious metals mineralization).
  • Gossan developments.

The East Gold mine has been classified as an epithermal deposit hosting these vein types, but the system is still open in all directions, as it is developed widespread within the property, as intense sericite-carbonate-quartz-pyrite alteration and high grade gold-silver epithermal breccia-veins are conspicuous in almost the totality of the area covered within the claims.

Mineralization on the Electrum property is controlled by two major fault lines that locally produces bonanza type gold grades along with broader stockworked zones within a complex geological model. Like the nearby Brucejack deposit, gold and silver mineralization occurs as coarse electrum in several generations of quartz-carbonate veins and vein breccias hosted within a deformed island arc-related sequence. The intermediate to low sulphidation mineralization is present in most of the veins with pyrite, sphalerite, galena and chalcopyrite. Precious metal mineralization is found in surface with lengths near several tens of meters to over a hundred meters, pinching and swelling along strike. Drilling has encountered gold-silver mineralization at depths greater than 200 metres from surface.

Exploration

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Even though the Electrum has the same base geology as two nearby mines, it has had very little exploration on it.  The claims were originally staked in 1927, then optioned by Cominco in 1929. New owners in the 1930's began underground development to access the high-grade material Cominco had discovered. The project was named the East Gold Mine. Intermittent, small-scale production started in 1939. From 1939 to 1964, the East Gold Mine produced approximately 45 tonnes of hand-cobbed ore grading 1,661 g/t (48.5 oz/ton) gold and 2,596 g/t (75.7 oz/ton) silver.

The operator of the mine tragically died on site and the claims remained privately held as a family asset for decades. Very limited work took place until American Creek acquired and renamed the claims as the Electrum Property in 2004. American Creek has just started scratching the surface through programs in 2005-7, 2011, and 2015.  In 2016 the property was joint ventured with Tudor Gold (60%) which allowed serious exploration to begin that year.

Exploration programs starting in 2017 will allow the Electrum property to explored and developed as other similar deposits in the area have – which have subsequently become mines.

Exploration Highlights

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Significant drill results as high as 440 grams of gold per tonne and 400 grams of silver per tonne over 0.52 meters, as well as additional elevated silver values of 420 grams of silver per tonne over 0.91 metres and 384 grams of silver per tonne over 0.70 metres. Several other intervals ranged from 100 to 200 grams of silver per tonne. Some broader intervals include 1.06 g/t gold over 50 metres and 3.01 g/t with 2.05 g/t silver over 2.6 metres.

Chip sampling includes 1,926 g/t gold and 37,955 silver, 395 g/t gold and 46,601 silver, 383 g/t gold and 56,618 g/t silver, 396 g/t gold and 34,696 g/t silver, 360 g/t gold and 38,325 54.77 g/t gold and 14,903 g/t silver, 615 g/t gold with 616 g/t silver, 78.7 g/t gold with 114 g/t silver, 131 g/t gold with 2,862 g/t silver, 255.4 g/t gold with 299 g/t silver, 80.96 g/t gold with 80,818 g/t silver, 694 g/t gold with 550 g/t silver, 28.61 g/t gold with 1,272 g/t silver, 20.98 g/t gold with 1,944 g/t silver, and 19.91 g/t gold with 3,923 g/t silver.

These results match with similar grades found in drill core such as EL06-18, that intersected 440.78g/t Au over 0.52 meters, or high silver values such as; EL07-09 (583 g/t Ag and 2.44 g/t Au over 0.30 meters); EL07-12 (420g/t Ag and 4.88g/t Au over 0.91 meters); EL07-18 (374g/t Ag and 7.00g/t Au over 0.65 meters) and EL07-09 (384 g/t Ag and 2.49 g/t Au over 0.70 meters) amongst others.

Targeting High-Grade Gold

In 2015 American Creek's focus turned to high grade found on the property.  Now Tudor is evaluating the potential for outlining a high-grade zone of mineralization similar to the Premier and Brucejack projects. The Electrum property has potential for high-grade gold-silver mineralization in epithermal breccia-vein systems that consistently follow a 120-130 strike direction.

These types of results have been confirmed in drilling where epithermal breccia veins were intercepted like the drill intercept og 440.78g/t Au over 0.52 meters (EL06-18), or high silver values such as 583 g/t Ag and 2.44 g/t Au over 0.30 meters;(EL07-09); EL07-12 (420g/t Ag and 4.88g/t Au over 0.91 meters); EL07-18 (374g/t Ag and 7.00g/t Au over 0.65 meters) and EL07-09 (384 g/t Ag and 2.49 g/t Au over 0.70 meters).

2015 surface results

A compilation of the geological data identified a series of high grade surface showings:

24 samples taken from the Shiny Cliff averaged 248 g/t gold with 27,092 g/t silver.

Samples collected from a boulder 20m down slope from the Shiny Cliff averaged 10 g/t gold with 857 g/t silver.

11 samples were collected along a quartz vein at the Rico showing averaged 54 g/t gold with 11,512 g/t silver.

13 samples collected from the Mine Hill Showing, which is roughly halfway between the historic East Gold mine and Shiny Cliff Showing, averaged 6 g/t gold with 522 g/t silver.

2015 drill results

Hole #

Total Depth (meters)

From (meters)

To (meters)

Interval (meters)

Au g/t

Ag g/t

Target

EL15-02

 

9.0

10.0

 1

1.04

78.0

Shiny Cliff

EL15-03

 

16.5

17.5

1

6.09

242.0

Shiny Cliff

EL15-04

 

32.0

33.0

1

6.76

38.0

Shiny Cliff

EL15-05

 

28.0

29.0

1

1.31

189.0

Shiny Cliff

 

 

35.0

36.0

1

6.93

62.0

 

EL15-07

 

13.0

14.0

1

14.65

22.0

Mine Hill

 

 

14.0

15.0

1

6.59

461.0

 

 

 

25.0

36.0

1

3.47

58

 

EL15-08

 

1.0

2.0

1

1.05

89.0

Shiny Cliff


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2016 Exploration Program

The exploration program achieved the following three goals set for the 2016 field season:

  1. Diamond drilling aimed at furthering the exploration work previously carried out by American Creek,
  2. Trench sampling of a newly discovered mineralized surface exposure in what is now referred to as the “New Blast Zone” *Note 1
  3. Collection and analysis of a 4 tonne bulk sample from the New Blast Zone. *Note 2

In addition to the work aimed at achieving these goals, work carried out during the 2016 field season included the construction of temporary (removable) bridges and the stabilization and improvement of road access to ensure safe and efficient access to the property.

*Note 1

Twelve representative specimens were collected across a central vein system on the New Blast Zone. The trench is approximately 2m deep, 5 m wide and currently exposed for 15 meters along strike. The vein system is open in both directions and at depth. The central axis of the vein system is infilled with a fine-grained blackish, blue-grey mineralization. The northern contact of which is a 0.5m wide sharp edged quartz fragments in a foliated sulphide-quartz-carbonate matrix. The sulphides are pyrite, pyrrhotite, with thin galena/silver seams. The twelve representative specimens collected from the structure averages 3,461.92 grams (111.30 oz) silver per tonne and 2.24 grams gold per tonne. An 8 cm wide silver sulphide core seam returned 30,200 grams (1,065.3 oz) silver per tonne.

*Note 2

Following the success of the trench sampling program, a 4 tonne bulk sample was collected from the New Blast Zone. The sample was collected utilizing localized blasting resulting in an exposed face of approximately 120 square meters, and a total rubble pile of approximately 600 cubic meters, from which was selected approximately 4 tonnes of representative material.

The collected bulk material was then crushed to a size of “3 inch minus” using a crusher at a quarry in Mission, British Columbia. The crushed material was then provided to ALS Global’s metallurgical laboratory (‘ALS’) in Kamloops, BC for metallurgical processing and testing. The processing included the use of rod and ball mill grinding followed by both floatation and gravity separation.  The resultant material was then analyzed in four separate test runs over four consecutive days. The overall results of the analysis are 2.82 g/t gold with 539 g/t Silver and 1.96% lead and 1.97% zinc and 13.8%sulphur.