Blende Property Description
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The Blind Creek Resources Blende property consists of 100 Quartz Mining Claims covering approximately 2087 hectares. The original claims were staked by prospector Bernie Kreft and were transferred to Eagle Plains under terms of a purchase agreement and Bill of Sale. The Blende property is 100 percent owned by Eagle Plains, subject to a 1.0 percent net smelter royalty (NSR). |
| Significant Zn-Pb-Ag mineralization occurs in two zones which have the following mineral resources as calculated by Billiton based on their drilling to the end of the 1991 field season. |
Mineral Resources from 1991 Billiton Report / Price 2004
Zone |
RESOURCE
tonnes |
ZINC
% |
LEAD
% |
SILVER
grams / tonne |
West Zone |
15,300,000 |
3.04 |
3.23 |
67.5 |
East Zone |
4,300,000 |
3.05 |
1.31 |
15.1 |
TOTALS |
19,600,000 =21,500,000 |
3.04 |
2.80 |
56.0 |
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tons |
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These mineralization estimates are considered reliable and relevant, but were prepared prior to the institution of National Instrument 43-101 standards.
Barry Price, P.Geo was retained by Eagle Plains in 2004 to review the historic resource calculations on the Blende property, which formed part of the basis for his 2004 Technical Report Blende Zinc – Lead – Silver Deposit (“the Price Report”). Price concluded that the historic resource calculations conform with the definition of an Inferred Mineral Resource. The work and conclusions are detailed in Sharpe Report and Sharpe Report Vol II Appendices.
Robert J. Sharp, M.Sc., P.Geol. Consulting Geologist, of Transpolar Geological Consultants Inc. of Calgary, Alberta Canada, was subsequently retained to review and update previous assessment reports. The “Price Report”, the historic data, the resource calculation methodology, sampling methodology and protocol, drill hole locations and diamond drill core were examined in detail by Sharp, who agrees with Prices’ conclusions that the historic calculations constitute an Inferred Mineral Resource as defined in National Instrument 43-101 (Sharp 2006).
A little explored third area, the Central Zone, had widely spaced drill holes and intersected short intervals of Zn-Pb-Ag mineralization. The Far East Zone has received minimal exploration and requires more work and ultimate drill testing of the Shanghai showing area.
Underground Development Potential
| Although initially explored as an open-pit target, management of Eagle Plains and Blind Creek feel that there may be potential to develop part of the property as an underground operation. Numerous high grade intersections have been reported by past operators, including: (amongst others of lower value) |
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•Hole 88-02, which assayed 282 g/t (8.22 oz/t) silver, 12.2% lead, and 4.4% zinc over 19.8m from a depth of 70.7 to 90.5m.
•Hole 88-03, which returned 8.5 m grading 550.1 g/t (16.04 oz/t) silver, 15.3% lead and 4.6% zinc from 118.0 to 126.5m, and hole 90-15 intersected 9.5 m grading 351.2 g/t (10.24 oz/t) silver, 14.11% lead, and 6.59% zinc from 60.1 to 69.6m.
In 1991, Billiton considered focusing future exploration on an underground resource which had 4.1 million tonnes grading 6.67% lead, 4.62 % zinc, and 3.11 oz/ton (106.6 grams/tonne) silver. A number of high grade silver intercepts were seen in some of the deeper holes, and these are unrelated to any significant lead-zinc content. The possibility exists for zonation at the property, and deeper favourable limy horizons may be present. In addition, copper rich zones, particularly at the lesser explored west end of the West deposit, may indicate zonation associated with one or more of the mafic Hart River sills. Step-out drilling in 1994 confirmed the continuation of ore-grade mineralization westward from the previous limit of the West Zone, with the addition of significant copper values:
•Hole 94-81 contained 14.9m of mineralization which assayed 228.4 g/t (6.66 oz/t) silver, 9.71% lead, 5.48% zinc, and 0.78% copper from 9.2m to 24.1m,
•Hole 94-84 intersected 8.5m which returned 136.1g/t (3.97 oz/t) silver, 6.74% lead, 3.65% zinc, and 2.43% copper from 45.5-54.0m.
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The Central Zone and areas immediately to the east of the East Zone are under-explored and are drill targets. Infill and step-out drilling to improve the correlation and modeling of mineralized horizons needs to be completed to test the feasibility of an economic underground target and to plan for an underground bulk sample and underground development. |
The previous evaluations of the property focused on the open pit potential with the recovery of only sulfide minerals. Advances in metallurgical practices for recovering non-sulfide zinc and lead may improve the economics of the known mineralization and will be further investigated. The potential for mining underground to improve grade by decreasing dilution is being considered.
Infrastructure
The Village of Mayo was established in 1903 and Incorporated 1984. Mayo, Yukon is located in the central part of the Yukon Territory, which is in the Na Cho Nyak Dun traditional territory. The highway serving the region connects the communities of Stewart Crossing, Mayo, Keno City, and the mining ghost town of Elsa. The Village of Mayo offers services, including two motels, eating facilities, post office, liquor store, propane and gas, grocery store, swimming pool, nursing station, RCMP, airport, and float plane services. There is also a lodge located at Halfway Lakes, 26 km north of Mayo.
Winter Access
The Federal Government guarantees a right of way to mineral lands and so application was made by Archer Cathro and Billiton for an access route through this area. A winter trail was then constructed from the Beaver River along Williams Creek for about 8 km to the property. This was completed in November, 1991. This trail will assist in any future transportation of heavy equipment to and from the property and could be upgraded to a haulage road.
Environmental Considerations
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In 1991 Archer Cathro and Billiton Canada obtained approval of the Resource Management office through a Land Use Permit; however, work within the claim boundaries has to date been undertaken through the regulations of the Quartz Mining Act (1924) which require no extra permitting. Low impact activities, such as prospecting, line |
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| cutting, geochemical and geophysical surveys are generally permitted without delay. |
Billiton Canada retained a consultant to undertake water quality monitoring in the early 1990s. These studies have consistently shown that there are no water quality anomalies in the surface waters draining the Blende property and heavy metal concentrations continue to be low or non-detectable. This is directly related to the carbonate rock which hosts all mineralization on the Blende property and effectively buffers the pH of streams draining the area. Blind Creek / Eagle Plains re-initiated and expanded the Billiton program in 2006.
The potential for any appreciable acid drainage from normal exploration activities is therefore considered to be minimal. If more advanced development activities are contemplated in the future, additional environmental studies will likely then be undertaken.
Aboriginal History
The First Nation of Nacho Nyak Dun represents the most northerly community of the Northern Tutchone language and culture group. The NND First Nation resides in the community of Mayo, Yukon, a town that had its beginnings during the boom years of the various silver mines in the area. Mayo was serviced by sternwheeler boats until the Klondike Highway/Silver Trail was built in the 1950's. The Nacho Nyak Dun has a number of members who claim Gwichin ancestry from the north and Dene ancestry from the east as well as their Northern Tutchone ancestry.
The Nacho Nyak Dun in the Mayo area are closely affiliated with the adjoining Northern Tutchone First Nations of Selkirk at Pelly Crossing and the Little Salmon Carmacks First Nation at Carmacks. The three First Nations form the Northern Tutchone Tribal Council, an organization which deals with matters and issues that affect them by sharing their vision and resources. The First Nation has been very active in the Land Claims movement since its beginnings in 1973. Members of the Nacho Nyak Dun First Nation were instrumental in helping to guide the Council of Yukon First Nations and its member First Nations to their 1993 agreements.
The NND today has a membership of 434. As a self-governing First Nation, the Nacho Nyak Dun has the ability to make laws on behalf of their citizens and their lands. Under the land claims agreement, the First Nation now owns 1830 square miles of settlement lands and will receive $14,554,654.00 over 15 years. The First Nation has been actively involved in affairs of the Mayo community, attempting to promote a better, healthier lifestyle for its future generations and a strong economy based on its rich natural resources. The Blende property lies north and east of one of the large settlement land blocks.
About Blende
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Sharpe Report and Sharpe Report Vol II Appendices
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