Discover, Develop, Operate

Overview

Ruddock Creek is a high grade zinc-lead project, that when developed will be an underground mining operation. The first step in project permitting was initiated in July 2014 with the submission of the Project Description to the BC Environmental Assessment Office (BCEAO). In October 2014, the BCEAO issued a Section 11 Order which established the formal scope, procedures and methods for the environmental assessment of the Ruddock Creek project. In February 2016 the BCEAO office accepted the Valued Component Summary report submission identifying components of the project requiring special focus in future studies. During 2016 and 2017, the Company conducted baseline data collection and monitoring well testing in support of the environmental assessment process.

The Ruddock Creek project is operated by way of a joint venture with Imperial (50%), Mitsui Mining and Smelting Co. Ltd. (30%) and Itochu Corporation (20%). Imperial operates the project through its wholly owned subsidiary Ruddock Creek Mining Corporation. The property is located 155 km NE of Kamloops, British Columbia, encompassing 21,156 hectares and consisting of 42 mineral claims.

2018 Drill Program

Japan Oil, Gas and Metals National Corporation agreed to fund Imperial’s share of the 2018 drill program, for the assignable right to be vested in an approximate 1.57% Participating Interest in the joint venture. Imperial’s interest would then be reduced to approximately 48.43%.

The three hole drill program targeted the deep extension of the V-Zone, located near the western edge of the Ruddock Creek massive sulphide horizons which have an indicated strike length of about 5 km, and is approximately 2 km west of the Creek Zone, the nearest zone of detailed drilling. Little or no exploration drilling has been conducted along the intervening section of the horizon. The V-Zone strikes east-west and dips at about 70° to the north. The zone had been traced with surface showings and by shallow drilling for a horizontal distance of about 700 metres, and with this recent intersection, to a depth of approximately 425 metres.

Drill hole RD-18-V41 targeted the V-Zone mineralization 425 metres below surface and about 300 metres below the deepest previous mineralized intercept in the zone. RD-18-V41 was collared near the valley floor of Oliver Creek at an elevation of approximately 1191 metres above sea level, and drilled to a final depth of 828.8 metres. Due to the steep terrain, long nearly flat drill holes from near the valley bottom were designed to test the zone at depth. RD-18-V41 was drilled using an underground diamond drill rig bolted to a road accessible cliff face at an azimuth of 27° and a dip of plus 10°. Core size was HQ to a depth of 450 metres.

The decision to drill test the V-Zone at such a depth beneath the nearest intercept was supported by the highly predictable nature of the zinc-lead mineralization intercepted in the shallower helicopter supported surface diamond drill holes, electromagnetic and magnetic geophysical anomalies, and a re-interpretation of the geology. The V-Zone in RD-18-V41, projected to be intersected at a depth of 750 metres, was intercepted at 751.5 metres, confirming the anticipated predictability of the zone at depth. The highest grades previously intersected in the V-Zone were in drill holes RD-12-V38, which intercepted 17.77% zinc and 3.72% lead over a true width of approximately 7.6 metres, and RD-12-V40, which intercepted 10.00% zinc and 1.80% lead over a true width of approximately 10.9 metres.

Select intervals:

Hole # Total
Length (m)
Interval
From (m)
Interval
To (m)
Interval
Length (m)
Estimated
True Thickness (m)
Zinc
(%)
Lead
(%)
Silver
(g/t)
RD-18-V41 828.8 751.5 784.4 32.9 32.7 12.01 2.47 1.74
including 751.5 773.2 21.7 21.5 16.99 3.44 2.41
and 756.9 767.3 10.4 10.3 25.70 5.41 3.44
RD-18-V42 1,003.9 805.0 956.0 no sig. intersection
RD-18-V43 831.5 751.4 751.9 0.5 * 6.31 0.50 11.00
and 767.2 767.7 0.5 * 5.89 0.04 not sig.

*intervals are approximate true thickness

RD-18-42 was drilled at -10° below RD-18-41 to a final depth of 1,003.9 metres, targeting the mineralization 300 metres below the intersection in hole RD-18-41, at an estimated in hole depth of 834.0 metres. Unfortunately, the hole intersected a late stage pegmatite dyke or sill from a depth of 805-956 metres with no significant base metal mineralization intersected. RD-18-43, drilled at 0° (flat) in between RD-18-41 and 42 to a final depth of 831.5 metres, targeted the mineralization 120 metres below the intersection in hole RD-18-41 at an estimated in hole depth of 790-800 metres. The favorable calc-silicate host rock was intersected from 747-775 metres with narrow 2-10 cm, stringer semi-massive sphalerite-galena mineralized bands intersected but not comparable to the intersection in hole RD-18-41.

SJ Geophysics completed an in-hole EM and Magnetic survey in hole RD-18-43 but RD-18-41 and 42 were not able to be surveyed due to hole conditions. The survey outlined a significant off-hole EM and Magnetic response for such a zinc rich system in the area of the favorable calc-silicate host and stringer style zinc-lead mineralization.

Plans for further exploration of the western edge of the massive sulphide horizons have been developed, and are being discussed with our joint venture partners.

Jim Miller-Tait, P.Geo., VP Exploration, the designated Qualified Person (as defined by National Instrument 43-101), has reviewed and approved disclosure of this information. Samples for the 2018 drilling reported were analyzed at Bureau Veritas Mineral Laboratories in Vancouver. A full QA/QC program using blanks, standards and duplicates was completed.

Update Apr | 2019
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