enhanced exploration targeting at hope brook, newfoundland : application of multi-disciplinary...
TRANSCRIPT
Enhanced Exploration Targeting at Hope Brook, Newfoundland:
Application of Multi-Disciplinary Industry Academic Investigations
Growing Projectsin Canada
November 21, 2013
2
Forward Looking Statements and Technical Disclosures
The information presented contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; and limitations on insurance coverage.
Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.
Dr. Bill Pearson, P.Geo. who is a Qualified Person as defined by NI 43-101 and reviewed and approved the scientific and technical information contained in this presentation.
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources.
The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
3
COASTAL GOLD EXPLORATION TEAM
Bill Pearson, Ph.D., P.Geo., President & CEO
Dave Copeland, M.Sc., P. Geo., Chief Geologist
Blake Hylands, Staff Geologist
Jeff Burke, Staff Geologist
Noah Rowsell, Project Manager
Chris Hale, Ph.D., P.Geo., Chief Geophysicist
John Gilliatt, P.Geo., Consulting Geophysicist
UNIVERSITY RESEARCH PARTNERS
Western University
Dr. Neil Banerjee, Assistant Professor
Erika Cayer, Geology Student
Memorial University
Dr. Steve Piercey, Associate Professor
Using Science to Advance Exploration
GROUND GEOPHYSICS QUANTEC TITAN 24 COD IP TEAM
4
Overview of Presentation
Geological Setting of Hope Brook
Use of Geophysics to outline Mineralized Zones
Application of 3-D Inversion Models
Nature & Distribution of Mineralization
Isotopic Composition of Mineralization; what it tells us about fluid source and origin
Lithogeochemistry and Alteration; tie-in to Geophysics and how to vector to higher grade areas
Working Exploration Model for Hope Brook
5
Hope Brook Gold: The Flagship Project
100% ownership in 1,005 claims covering 25,125 ha
Historical production (1987 –1997) of 752,163 ounces gold plus copper concentrate from 1993-1997
Current Mineral Resource
– Indicated: 12.3 million tonnes @ 1.48 g Au/t for 590,000 oz
– Inferred: 8.3 million tonnes @ 2.07 g Au/t for 548,000 oz
Deposit hosted in SW part of Late Proterozoic Avalon Zone
6
Geology of Avalon Zone
Late Neo-Proterozoic (760-540Ma) assemblage of active plate margin sequences (O’Brien et al. 1998)
Sequences accumulated prior to development and closure of the Lower Proterozoic Iapetas Ocean
Most significant magmatic activity from 640-560Ma
Volcanic and plutonic rocks in this period evolved in back-arc or continental arc settings
Broad association with terrestrial or marine siliciclastic sequences
Related in time to develop of Gold mineralized systems in Avalon Zone of which Hope Brook is a major example
Intense post mineral deformation
7
Published Models for Hope Brook
1985 to 1990 – BP-Selco (Colin McKenzie, Alan Yule) – Identification of Pre-shearing, synvolcanic/intrusive Acid Sulphate Hydrothermal Alteration Developed atop the Roti Intrusive Suite.
1992 – Peter Stewart Ph.D. Thesis – Major Descriptive Study of the Hope Brook Deposit and Characterization of Alteration - Postulated Importance of Chetwynd Granite.
1996 to 1998 – Dr. Benoit Dube (GSC) and Dr. Sean O’Brien (NLGS) – Description of Deposit as a High-Sulphidation Epithermal System within the Neoproterozoic Avalon Zone.
2010 – present – Coastal Gold - Further Identification as High-Sulphidation Mesothermal to Epithermal Deposit Developed within a Neoproterozoic Arc System – de-mystification of the Chetwynd Granite. Commonalities with younger world class high sulphidation systems globally.
8
Hope Brook Stratigraphy and Age
After Dube et al., 1998
9
Major Gold Mineralized Structuremore than 8 km in Length
This is an extensive mineralized system that is very under-explored
10
Airborne Magnetics
Strongly silicified gold mineralized zone in late Proterozoic rocks are marked by a prominent magnetic low (in blue)
11
Property Geology
12
Large Scale Mineralized System
High sulphidation gold deposit formed from a long lived magmatic- hydrothermal system
Mineralized zone open along strike and at depth
Alteration pattern similar to large scale epithermal systems
Considerable upside for outlining additional higher grade mineralization within extensive lower grade mineralization
Helicopter for scale
Open Pit (behind
hill)
Altered & Mineralized Shear Zone 500+m wide
Cinq Cerf Fault Zone
Silurian Rocks
Neoproterozoic Rocks
13
Exploration Drill Targets at Hope Brook
14
General LithostratigraphyPyrite Zone – Felsic Fragmental, highly siliceous with 2-15% stringer Pyrite.
30-80 metres thick
Cinq Cerf Fault
Silicified Mineralized Zone Massive v. fine grained silica, vuggy, microbrecciated with 2-4% Py and up to 4% Cp, Bn. Cut by unaltered mafic dykes.
15-80 metres thick
Advanced Argillic Zone Variably textured, white to grey, pyrophyllite, alunite, kaolinite; 2-5% diss. Py. Blue Qtz crystals, occasional preserved felsic fragments and quartz porphyry.
Up to 300 m thick
15
Gold Mineralization at Hope Brook
Gold mineralization hosted in silicified zones within Late Proterozoic Whittle Hill Sandstone – Third Pond Tuff succession
Two major gold-bearing stages:– Earlier pervasive buff coloured silicification with lower
grade mineralization (~0.5 – 1.0 g Au/t) 15-80m thick– Later vuggy grey silicification with local siliceous breccia
(>2.0 – 5.0+ g Au/t and significant Cu) 5-25m thick
16
Mine Zone Geological Section 11400E
Extensive mineralized system that is very underexplored
17
New Structural Model with Major Folds
Drilling and geophysics have identified a major fold structure that closes below surface in the Connector Zone. This explains why the silicified horizon doesn’t come to surface southwest of the existing mine where historical drilling failed to intersect the mineralized silicified zone.
240 - Connector Zone Target extends for 1,200m along strike
Section 10500 E
Hope Brook Gold Resource Model (Being Updated) 590,000 Indicated and 548,000 Inferred ounces of gold are located within this
model*
open
open
open240 Zone
open
Mine Zone
Newly Identified Major Near Surface Target Zone
*For full Mineral Resource Estimate, please refer to the table and technical disclosures found on slide 11
19
Developing Improved Vectors for Exploration
Key Questions:
How to efficiently trace mineralized zones and outline areas with strongest and most extensive silicification.
Are two stages of mineralization the result of different events or evolution of the same hydrothermic system?
How to better target areas of higher grade mineralization within the mineralized structure.
What is the potential size and scale of the Hope Brook gold mineralized system?
How to best integrate new information into an enhanced model to direct further exploration efficiently.
20
How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification
Former HB Mine
Major Target Zone
Extensive Resistivity Low Marks Footwall Conductor (Blue)
Titan 24 Survey at Hope Brook
Secti
on
21
How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification (Cont’d)
Resistivity
22
How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification (Cont’d)
3D Inversion Model: UBC DCIP3D
Conductivity
23
How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification (Cont’d)
Footwall Pyrite Conductor
Resistive Silicified Mineralized Zone
Geosoft 3D Voxel Model DC Conductivity
24
Fall 2012 Drill Program Confirmed Major Strike Extent
Completed 5,951 meters of reconnaissance diamond drilling in 21 holes
Drill program identified a major new near surface target zone in the “Connector Zone” just 900m southwest of the former mine
Mineralized silicified zones were intersected over a strike length of 3.4km demonstrating continuity of the system and effectiveness of targeting using geophysics
Thickness of the Connector Zone alteration is interpreted to be similar to that of the former mine and 240 Zone
Drill Results included:
– Hole HB12-100: 1.51 Au g/t over 14m, 2.03 Au g/t over 8m, and 1.07 g Au/t over 18.1m
– Hole HB12-101: 1.04 g Au/t over 8.5m, 1.44 g Au/t over 2.9m, and 1.35 g Au/t over 5.6m
25
Collaborative Research Project
Collaborative research project in progress with University of Western Ontario and Memorial University
Focus is to better understand nature, distribution and origin of higher grade mineralization to aid further exploration
Samples selected from a fence of holes covering range of lithologies and mineralization
Initial results are very encouraging
Are two stages of mineralization the result of different events or evolution of the same hydrothermal system?
How to better target areas of higher grade mineralization within the mineralized structure
26
Hope Brook: Mineralogy of High Grade Au
Scanning Electron Microscope
• Indicates elements present include Sn, Hg, As, Pb, Fe, Si, Cu, Au
Mineral Liberation Analysis:
Epithermal Mineral Assemblage
• Mawsonite, Cassiterite (Both Sn minerals)
Gold Grain Mapping
• Fine grained 2-3 microns within sulphide grains
• Typically on margins of chalcopyrite (cp), mawsonite (mw) and bornite (bn)
1 2
3
1
2
3
0 m 200 m
0 m 50000 m50 m
cp mw
cp
mw bnAu
Au
Au
27
Hope Brook: Mineralizing Fluids
Analysis of samples from major silicified zones across deposit; grades from 0.5 g Au/t to 204 g Au/t
Wallrock has wide range of O isotopic values typical of volcanic-sedimentary-intrusive rocks
ALL the samples with elevated gold are restricted to a very narrow d18O range
Gold mineralization at Hope Brook was likely deposited from a single fluid source
Hole HB11-023 included the highest grade returned at Hope Brook - 204g/t Au and 7.98% Cu over 1.5m Core Length
Primary Lithogeochemistry Hope Brook Deposit hosted
within calc-alkaline to transitional arc volcanic and intrusive suite; Change in tectonism/magmatic chemistry key to mineralization?
All rocks (Siliceous, Pyrite and Argillic Alteration Zones, Roti Intrusive Suite) lie along the same fractional crystallization trend and have a common magmatic source => unified stratigraphy
Immobile trace element geochemistry similar to world-class high sulphidation and porphyry Au-Cu deposits (e.g. Yanacocha, Peru and Lepanto, Phillippines)
Tectonic Discrimination Diagrams
1 10 100 10001
10
100
1000
Nb
Y
syn-collisional (S-type)volcanic arc (I-type)
within plate (A-type)
ocean ridge (OR-type)
Pearce et al. 1984
Volcanic Arc (I-type setting)
0 10 20 30 40 50 60 70 80 90 1000
50
100
150
200
250
300
350
400
Zr
Y
Tholeiitic
TransitionalCalc-Alkaline
Barrett and MacLean 1999
Yanacocha data from Longo et al. (2010)
Lepanto data from Hedenquist et al. (1997)
Calc-alkaline to Transitional
Hope BrookYanacocha
Lepanto Siliceous
Pyrite Zone Argillic
RotiLegend
Primary Lithogeochemistry
Expanded trace element geochemistry very similar to other world-class high-sulphidation and porphyry Au-Cu deposits (e.g. Yanacocha, Peru; Lepanto, Phillippines)
Flat HREE (right side of plot) indicative of melting at shallow crustal levels = HIGH HEAT FLOW
The right tectonic environment, same chemistry and formation conditions for causative intrusions = LARGE SYSTEM!!
.1
1
10
100
1000
ThNb
LaCe
PrNd
SmZr
HfEu
TiGd
TbDy
YEr
YbLu
AlV
Sc
Rock/Extended PM 2 Extended-PM-2-Sun and McD 89
.1
1
10
100
1000
ThNb
LaCe
PrNd
SmZr
HfEu
TiGd
TbDy
YEr
YbLu
AlV
Sc
Rock/Extended PM 2 Extended-PM-2-Sun and McD 89
Roti Intrusive Suite,
Hope Brook
Intrusive RocksYanacocha, Peru
Primitive Mantle Normalized Trace Element Plots
Data from Longo et al. (2010)
Primary Lithogeochemistry
Pyrite Zone,Hope Brook
Silicified Zone,Hope Brook
Primitive Mantle Normalized Trace Element Plots
.1
1
10
100
1000
ThNb
LaCe
PrNd
SmZr
HfEu
TiGd
TbDy
YEr
YbLu
AlV
Sc
Rock/Extended PM 2 Extended-PM-2-Sun and McD 89
.1
1
10
100
1000
ThNb
LaCe
PrNd
SmZr
HfEu
TiGd
TbDy
YEr
YbLu
AlV
Sc
Rock/Extended PM 2 Extended-PM-2-Sun and McD 89
Pyrite Zone and Siliceous Mineralized Zone show alteration but same REE plot as Roti Intrusive.
Shows that the Silicified and Pyrite Zones Developed from a similar parent magma to the Roti Intrusive Suite.
Provides a linkage between conductive Pyrite Zone and Mineralized Silicified Zone. i.e. conductors act as a good proxy for mineralized zones.
Lithogeochemistry and Alteration
Intense alteration zone outlined between the Main Zone and 240 Zone.
Alteration typified by Na-depletion and elevated major element alteration indices (e.g. CCPI – Chlorite-Carbonate-Pyrite Index).
Alteration zone tracks SW towards the 240 Zone and its up dip extension.
Large untested, near-surface Exploration Target.
<0.5% Na surface marking zone of Na-
depletionGold Resource
0.5 g Au/t cut-off
Near-surface
Target Zone
Near-surface
Target Zone
Gold Resource
0.5 g Au/t cut-off
CCPI>80 marking zone of Au proximal
AlterationModels in Target-
ARCGIS
32
Key Points
Lithogeochemistry and alteration support and enhance the geophysical interpretation
Lithogeochemistry confirms linkage between mineralized silicified zone and conductive pyrite zone Validates use as geophysical marker
REE patterns, clay mineralogy and isotopic data indicate a dynamic mesothermal to epithermal environment
Comparable REE and alteration patterns to world class high sulphidation systems in similar tectonic environments
Potential size and scale of the Hope Brook mineralized system is much greater than previously recognized
Hope Brook Deposit Model
33
After Dube et al., 1998
High-Sulphidation Mesothermal to Epithermal
34
Hope Brook Origin – Working Hypothesis
Fluids responsible for all gold mineralization had a similar geochemical composition and are likely the result of a single large system
Overall low d18O values suggests the possibility of hotter fluids than might be expected at the top of the system i.e. mesothermal – epithermal level
Mineralogy is epithermal in character but textures and isotopes indicate deeper level in system
35
Implications for Hope Brook Exploration
Mineralization likely formed by major magmatic-hydrothermal system
Mineralizing system likely initially mesothermal then became emergent to more epithermal but not shallow
Age of mineralization possibly correlative with Roti Intrusion – 563+/-4 Ma (Dunning et al., 1988)
Pyrite zone confirmed as effective geophysical marker
Lithogeochemistry appears to provide best vector to areas of potential higher grade mineralization
36
Conclusions Geological, geophysical, geochemical and isotopic data
have better characterized overall mineralizing system Collaborative research project enhanced knowledge of
mineralogy, alteration and likely fluid source Hope Brook is a far bigger system than previously
believed Exploration has just scratched the surface – vectors have
been developed for more efficient targeting 3-D technology for geophysics, geology and alteration
are valuable tools to aid interpretation and develop predictive models for exploration
Use of Science and 3D Technology has Greatly Enhanced Exploration Efficiency