The Silver Coin project is a gold-silver project located in the "Golden Triangle" area of the Skeena Mining Division of British Columbia. Silver Coin is situated 10 km north of the past-producing Silbak-Premier mine and 34 km south of the Brucejack lake deposits presently being developed. The property is owned 80 % Jayden Resources with Mountain Boy having a 20 % carried interest.
The property is located along volcanic rocks on the boundary with the Texas Creek Batholith, part of the Texas Creek Plutonic suite in the Stewart Area. This suite of rocks is related to alteration and mineralization at the former producing Premier mine 5 km southwest of the property and the KSM copper-gold porphyries and Brucejack Lake gold deposits 34 kilometres north of the property. Jurassic age intrusions (193-195 Ma Premier Porphyries near Stewart; Mitchell intrusions at Kerr-Sulphurets-Mitchell deposits and Brucejack Lake) are related to these mineralizing events in the Stewart area and Sulphurets-Mitchell valleys. The Brucejack Lake gold deposits owned by Pretium Resources Ltd are located 30 kilometres north of the property. There are 2 main deposits, namely the VOK deposit which contains 1.2 million ounces of gold in the measured mineral resource category (two million tonnes grading 19.3 g/t gold), 7.5 million ounces of gold in the indicated mineral resource category (13.4 million tonnes grading 17.4 g/t gold) and 4.9 million ounces of gold in the inferred mineral resource category (5.9 million tonnes grading 25.6 g/t gold). The West zone has reported resources of 4.9 million tonnes at a grade of 5.85 g/t Au in the measured and indicated category and 4 million tonnes in the inferred category at 6.44 g/t.
It is also 10 kilometres northwest of the Premier mine property presently being developed by Ascot Resources. The Premier mine produced 2,192,612 oz Au and 40,877,602 oz Ag from 3,289,578 tons in the period 1918 -- 1967. From 1989 -- 1996, the Premier mine produced 258,372 oz Au and 3,556,425 oz Ag from 3,039,680 tons (average grade 0.085 oz/t Au and 1.67 oz/t Ag). A high grade resource is presently being developed in the area of the old mine workings and a large low grade resource is reported north of the old mine. The low grade resources reported on Sedar includes 2,204,000 oz Au in the indicated category from material averaging 0.85 g/T and 443,000 oz Au in the inferred category from material averaging 0.74 g/T.
Originally, Mountain Boy owned a 100 % interest in the Silver Coin group and earned a 55 % interest in the Indi claims. After a farm out agreement with Pinnacle Mines Ltd (now Jayden Resources Inc.) and the subsequent purchase of the Kansas claim, the company owned a 49 % interest in the Silver Coin mineral claims, a 26.95 % interest in the Indi mineral claims and a 29.4% interest in the Kansas mineral claims. These 26 contiguous claims cover 1,247 hectares and comprise the present Silver Coin project.
On July 6, 2009, Mountain Boy signed an agreement with Jayden Resources Inc. (formerly Pinnacle Mines Ltd.) ("Jayden") to sell 19% of the Silver Coin project (including the necessary adjustments to the Kansas and Indi claims percentages) to Jayden for $350,000 and the Silver Coin field office to Jayden for $90,000. Jayden now owns a 70% interest in the Silver Coin project as a whole with Mountain Boy owning the remaining 30% interest. In addition, Jayden forgave $203,428 of accounts payable owed to them by Mountain Boy.
Jayden can earn an additional 10% interest in the project by completing $4,000,000 in exploration related expenditures within five years of the date of the agreement. If Mountain Boy is reduced to a 20% interest, it is carried for all future exploration expenditures.
The Company has filed an updated NI 43-101 technical report in regards to the Silver Coin project (the "Report"). The Report was prepared by Minarco-Mine Consult ("Minarco") and is available on www.sedar.com
. The Report includes an updated resource estimate incorporating the assay results of eighteen holes that the Company's joint venture drilled during the fall of 2010 which had not previously been reported or included in resource estimates. This updated resource estimate represents an overall increase in the average gold grade of 10.9% and an 11.1% increase in the number of resource ounces previously reported, from 191,300 measured oz, 644,300 indicated oz and 655,200 inferred oz, to 218,410 measured oz, 624,006 indicated oz and 813,273 inferred oz. The updated resource estimate incorporates a total of 732 drill holes (88,645 meters) plus 76 trenches (1,447 meters). The Silver Coin project includes 26 contiguous claims with a net area of 1247 ha and is a joint venture with Jayden Resources Inc. (TSXV: JDN) (Jayden 70% with an option to earn an additional 10%).
To date, the property has been explored by 88,563 m of drilling in 766 surface and underground diamond drill holes. Based on this drilling a resource estimate has been prepared as follows:
Using a base case cut-off grade of 0.3 grams gold per tonne ("gpt") the Report identifies the following gold, silver and zinc resource:
|SILVER COIN CLASSIFIED RESOURCES April 2011
0.3 g/t Au Cut-off
|M & I
At the 0.3 gpt cut-off grade the estimated Measured and Indicated resource is 24.13 million tonnes grading 1.08 gpt gold for a total of 842,416
ounces of gold, 4.45 million ounces of silver and 91.17 million pounds of zinc. The estimated Inferred resources comprise an additional 813,273
ounces of gold, 6.69 million ounces of silver, and 128 million lbs of zinc.
The resource remains open along strike to the north and south. The two southernmost holes from the 2010 drilling, both located within 150m of the currently modelled southern pit boundary, intersected excellent intervals of gold mineralization including 55m grading 8.42 gpt gold in hole SC10-311 as reported in the Company's news release of October 14, 2010. Readers are advised to access the Report for detailed technical information. Some highlights of past drilling are included as follows:
Exploration plans for 2011 include infill drilling to move the inferred resource into the measured and indicated category to aid in a pre-feasibility study.
In 2011, a total of 109 drill holes were completed but a new resource was not prepared. In 2013, Jayden filed a technical report on resources using a 2 g/t Au cutoff. Results of this are available on SEDAR and are as follows:
The tables below show estimated mineral resources for the high grade core of the Silver Coin deposit at the different zone locations.
Tabulation of estimated mineral resources for the Main Zone at cut off 2 g/t Au
Tabulation of estimated mineral resources for the North Zone at cut off 2g/t Au
Tabulation of estimated mineral resources for the East and West Zones at cut off 2g/t Au
This resource estimate does not comprise all narrow gold zones suitable for underground extraction occurring within the Silver Coin deposit, and there are additional zones of high grade mineralization found east and west of the Main Zone and North Zone which may have a significant impact on overall potential of the Silver Coin deposit. The above resource estimate was prepared by Jayden Resources and it has not been confirmed by the Company. The reader is cautioned to use the information as reference and is not to be relied on.