Discover, Develop, Operate

Overview

Ruddock Creek is a high grade zinc-lead project, that when developed, will be an underground mining operation. 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. Since 2016 the Company has been conducting 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 (48%), Mitsui Mining and Smelting Co. Ltd. (30%), Itochu Corporation (20%), and Japan Oil, Gas and Metals National Corporation (2%). 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 22,195 hectares and consisting of 43 mineral claims.

2019 Exploration

An 8,000 metre drill program initiated in June 2019 is expected to be completed by the end of September 2019. This diamond drill program is focused on expanding the Q and V zones located on the western-most edge of the five kilometre long deposit, and is following up on results from RD-18-V41 which intercepted 21.7 metres grading 16.99% zine and 3.44% lead, and 2.41 g/t silver in 2018 (ref: NR Sept 19/18; Mar 29/19).

2018 Exploration

The drill program in 2018 completed three holes targeting the deep extension of the V-Zone. Results from the first surface diamond drill hole RD-18-V41 included 21.7 metres grading 16.99% zinc, 3.44% lead and 2.41 g/t silver, including 10.4 metres grading 25.70% zinc, 5.41% lead and 3.44 g/t silver. The drill hole targeted the V-Zone mineralization 425 metres below surface and about 300 metres below the deepest previous mineralized intercept in the zone. Drill hole 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. The V-Zone is located near the western edge of the Ruddock Creek massive sulphide horizons which have an indicated strike length of about five kilometres, and is approximately two kilometres 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.

Due to the steep terrain, long nearly flat drill holes from near the valley bottom were designed to test the zone at depth. Hole 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. When the core size was reduced to NQ size, the hole was drilled to a final depth of 828.8 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 hole RD-18-V41, which was 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 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

Drill hole RD-18-42, drilled at -10° below RD-18-41 to a final depth of 1,003.9 metres, targeted the mineralization 300 metre below the intersection in hole RD-18-41, at an estimated in hole depth of 834 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.

Drill hole 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 cm to 10 cm, stringer semi-massive sphalerite-galena mineralized bands intersected but not comparable to the intersection in hole RD-18-41. The best two intervals intersected were 6.31% zinc, 0.5% lead and 11.0 g/t silver over 0.5 metres from 751.44 metres to 751.94 metres, grading 5.89% zinc and 0.04% lead over 0.5 metres from 767.18 metres to 767.68 metres. The intervals are approximately true thickness.

SJ Geophysics completed an in-hole EM and Magnetic survey in hole RD-18-43 but holes 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.

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. Ruddock Creek samples are analyzed at Bureau Veritas Mineral Laboratories in Vancouver. A full QA/QC program using blanks, standards and duplicates was completed.

Update Aug | 2019
.