Building Value Through Discovery
Colorado Resources Ltd.

North ROK Property

Overview

PROPERTY SUMMARY

Property: 45 Claims totaling 21,179.89 hectares

Location: 15 km northwest of Imperial Metals Red Chris Mine Development in northwestern British Columbia 

Owned: Colorado Resources Ltd ("Colorado") holds a 100% interest in the claims on the Property, wherein certain claims are subject to a 2% NSR  (See news release "Colorado Expands North ROK Property to Include ROK-Coyote Copper Gold Property"- March 13, 2017)

Target: Porphyry copper-gold 

Rock Type: Upper Triassic Stuhini Group volcanic rocks intruded by early Jurassic monzonitic rocks 

Inferred Resource: 142.3 million tonnes averaging 0.22% Cu and 0.26 g/t Au¹ 

 

Previous Work

Although considerable exploration has taken place over the years in the area of the North ROK project, the Mabon Minfile occurrence was not identified until 1994 during a regional mapping program conducted by the British Columbia Geological Survey. A single sample taken from the showing during this program returned 0.33 % Cu and 0.42 g/t Au.

In late 2009, Brett Resources Inc. ("Brett") staked the North ROK claim group as part of an exploration agreement with Kinross Gold Corp. and in 2010 carried out a reconnaissance program over the claims to test for possible extensions of the neighboring ROK Coyote copper-gold system to the north and west. Silt samples coming from Mabon Creek and drainages off the northern end of the ridge east of Mabon Creek yielded anomalous copper, gold and molybdenum values. Rock grabs taken from Mabon showing confirmed the results of the British Columbia Geological Survey sample.

ROK-Coyote- Previous operators

The ROK- COYOTE porphyry copper – gold prospect has been intermittently explored since the late 1960’s. Work on the ROK portion of the property over the years 1976 – 1991  included geological mapping, geochemical surveys, grid-based geophysics (magnetics, IP, and VLF-EM), surface trenching (18 trenches totalling 1,184 m in length), 5 percussion drill holes totaling 293 m and a total of 1,533.7 m of diamond drilling in 17 holes. Work was concentrated on the Main and South Zone targets where trenching in 1990 returned values of 0.45% copper and 0.38 g/t gold over 114 m and diamond drilling in 1990 returned 1.03% copper and 1.54g/t gold over 38.37 m4.

Little exploration was carried out from 1992-2013.  Exploration activity increased in the area with the discovery of the North ROK porphyry in 2013. Five diamond drillholes (2582.15 m), an  airborne magnetic survey and ground based I.P Surveys were completed in 2013 and 2014. The 2013 and 2014 drilling consisted of deep (up to 749 m) near vertical conceptual drillholes.  This drilling did not test the obvious targets on trend of North ROK.

 

Work by Colorado 

In 2013, Colorado drilled 29 holes (totaling 11,448 m) with drill hole NR13-001 intersecting 333 m of 0.51% Cu and 0.67 g/t Au. 

In January 2014, Colorado announced an interred resource of 142.3 million tonnes of 0.22% Cu and 0.26 g/t Au (at 0.20% CuEq cut off) (see inferred resources table below). 

In May 2014, Colorado completed a 5 hole, 2191 m drill program on the Property. The 2014 drill program followed the recommendations of the NI 43-101 report target the expansion of the known inferred resources and to drill test kilometre scale geophysical anomalies that cluster around the existing inferred resources.

The 2014 drill program succeeded in:  

  1. Intersecting new mineralization at the West Mabon Zone. DDH NR14–031 was drilled into a 1.5 km long untested IP chargeability anomaly and returned 80.4 m of 0.124 g/t Au and 0.442% Cu. The Company’s technical team believes that, unlike the sub-vertically dipping North ROK Main Zone, the West Mabon zone has an apparent 45 degree southwest dip (Figure 3). This creates significant exploration potential along the western margins of the IP chargeability over a distance of more than 1.5 km from DDH NR14-034 to the Edon mineral occurrence.
  2. Demonstrating significant depth potential and continuity of gold-copper mineralization over 250 m below mineralization in DDH NR13-001. DDH NR14–034 returned 199 m of 0.416 g/t Au and 0.210% Cu, including 100.4 m of 0.736 g/t Au and 0.314% Cu (Figure 4). Copper – gold grades within selected intervals of both DDH NR14– 034 and DDH NR13–001 approach that which would allow bulk underground mining. These copper-gold mineralized zones are continuing to depths exceeding 400 m below surface.
  3. Defining the broad, deposit scale geometries and controls on mineralized zones. The presence of a second mineralized zone with a modest southwest dip, when linked to the vertically orientated Mabon Zone, may (i) significantly increase the preferred target area and net tonnage of mineralized rock and (ii) significantly decrease the overall strip ratio of any potential open pit development¹ (See Cautionary Note).
  4. Extending Mineralization southwest of DDH NR13-013. a modest copper-gold intersection from DDH NR14–032, which cored 38.9 m of 0.265% Cu and 0.238 g/t Au between 293.7 and 332.6 m, demonstrates that mineralization extends at least 100 m southwest of DDH 13-013 (160.9 m of 0.41% Cu and 0.28 g/t Au) into an area that previous drilling had indicated might be barren.
  5. Testing of Other Areas. Drill testing of the North Mabon chargeability anomaly (DDH NR14– 030) and tests of the extreme northeastern flank of the Mabon mineralized zone (DDH NR14– 033) produced no significant results.

Southwest Dipping Mineralization Implications - The existence of a southwest dipping mineralized zone in the West Mabon area suggests that the results of drilling in the Edon occurrence area, DDH’s NR13–010, 13–15 and 13–18 may require re-evaluation. All of these drill holes were collared on 220 degree azimuths and drilled at -45 degree dips. These drill holes could have potentially missed southwest dipping mineralization similar to the newly discovered West Mabon Zone. Similarly, DDH NR13–012 which was drilled at an azimuth of 220 degrees and a dip of – 45 degrees would not have been favorably orientated to intersect southwest dipping mineralization like the West Mabon Zone. 

 

Table of Results

See assay results tab.

 

Inferred Resource Estimate

On January 27, 2014 the Company released the results of an inferred mineral resource. North ROK Inferred Resource.

Using a 0.20 % Copper Equivalent cut-off the inferred resource* is 142.3 million tonnes averaging 0.22 % Cu and 0.26 g/t Au containing 690.30 million pounds of copper and 1.19 million ounces of gold as follows:

inferred Resource Table grey format.JPG
* Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves estimate.

**No metallurgical work has been undertaken to establish metal recoveries. For the purpose of developing a copper equivalent and calculating contained metal 100% recovery of both metals is assumed. The reader is cautioned that 100% recovery is never achieved. The metal prices used in the copper equivalent calculation are from a 100 day moving average as of January 27, 2014 and are listed below:

 
Gold (Au)      US$ 1318.00 per ounce
Copper (Cu)   US$ 3.25 per pound
Factor
42.37 $/gm
71.65 $/%
 
The equation to establish Cu Equivalent is then:
CuEq = (Cu% * 71.65) + (Au g/t * 42.37)
(71.65)

 

Cautionary Notes

¹Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. The mineral resource estimate referenced above uses the term "Inferred Mineral Resources". "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Colorado is not an SEC registered company.

 

Qualified Persons 

Dr. Jim Oliver, Ph.D., P.Geo., Company Chief Geoscientist is the Qualifed Person as defined by National Instrument 43-101 who supervised the work program and preparation of the technical data on this webpage. 

QA/QC Statement

The samples were analyzed by Acme Analytical Laboratories of Vancouver, British Columbia. Copper values were first determined using the AQ200 ICP-MS method which reports values as parts per million (ppm). Any samples containing greater than 2,000 ppm copper were assayed by the AQ370 method, which reports values as percent copper. The gold results were determined using the FA430 Fire Assay method which reports gold results in ppm and are equivalent to grams per tonne (g/t). The analytical results were verified with the application of industry standard Quality Control and Quality Assurance (QA-QC) procedures.