Blackdome-Elizabeth Gold Project

Blackdome-Elizabeth Gold Project

Tempus has entered into a binding Heads of Agreement to acquire 100% of the shares in Sona Resources Corp (“Sona”), which holds the Blackdome-Elizabeth Gold Project.

The Blackdome-Elizabeth Gold Project consists of two separate mineralization styles:

  • Elizabeth Zone – Located approximately 200 km north of Vancouver and 35 km northeast of the past producing Bralorne Gold Mine, which produced 4.2 million ounces of gold at a grade of 17.7 g/t largely between 1928 and 1971. The auriferous quartz vein mineralization at the Elizabeth Zone in analogous to that found at the Bralorne Gold Mine. An historic Inferred Mineral Resource estimate, completed by SRK (2009), reported 206,000 oz of gold at 12.26 g/t. Drilling to date has focused on shallow mineralization from two quartz veins (to approximately 200 m below surface). The nearby Bralorne Gold mine reached 2,000 m below surface along multiple quartz veins.
  • Blackdome Zone – Located approximately 30 km north of the Elizabeth Zone, Blakdome previously produced 225,000 oz of gold at a grade of 20 g/t. An historic NI43-101 resource estimate completed by SRK (2010) reported 52,600 oz of gold at 11.29 g/t Indicated and 25,900 oz of gold at 8.79 g/t Inferred. The Blackdome Zone mineralization is consistent with low-sulphidation, structurally controlled, epithermal gold mineralization. Assets at Blackdome Gold Mine remain permitted. The Blackdome tailings facility and mill have been under care and maintenance but remain in good standing for future production.

 

Mineral Resources

The Project hosts Indicated and Inferred Mineral Resources declared under Canadian NI43-101, which is a “qualifying foreign resource estimate” as defined in the ASX Listing Rules. The estimates were completed by SRK Consulting and Micon International in 2009 and 2010. These resources have not been reported in accordance with the JORC Code, and a Competent Person has not yet done sufficient work to classify these foreign estimates in accordance with the JORC Code.

 

Table 1 – Elizabeth Zone Gold Mineral Resource Estimate

Table 1 – Elizabeth Zone Gold Mineral Resource Estimate

 

Table 2 – Blackdome Zone Gold-Silver Mineral Resource Estimate

Table 2 – Blackdome Zone Gold-Silver Mineral Resource Estimate

 

Table 3 – Blackdome Tailings Gold Mineral Resource Estimate

Table 3 – Blackdome Tailings Gold Mineral Resource Estimate

The foreign estimates outlined above are considered relevant and material to the acquisition by Tempus. It is noted that new drilling data collected in 2010 and 2011, after the publication of these estimates, will be included in an updated JORC compliant Resource Estimate as the Company progresses the Project. However, it is uncertain that following evaluation and/or exploration work that the foreign estimates will be able to be reported as Mineral Resources in accordance with the JORC Code.

The foreign estimates for the Project, having been completed by appropriately qualified Competent Persons under the Canadian NI43-101 standard, are considered by Tempus to be reliable. Tempus has reviewed the underlying work programs and data for the individual foreign resource estimates, and concluded that standard and appropriate procedures have been followed with respect to drilling and sampling techniques, database integrity, QA/QC, and resource estimation methodology.

The Mineral Resources were declared based on work programs completed by Sona Resources (and predecessor companies) between 2002 and 2010, with documentation provided by consultants to Sona, which has been reviewed by Tempus. Metallurgical recovery and mining dilution data from the previously operating Blackdome gold-silver mine was considered in the declaration of the Mineral Resources. The Blackdome and Elizabeth Mineral Resources are reported at a cut-off grade of 5 g/t gold, assume an underground mining scenario, a gold price of US$1,000/ounce, and 100% metallurgical recovery.

During the due diligence period, Tempus intends to engage suitably qualified consultants to review, and recommend any further work required to update the foreign Mineral Resource estimates and historical PEA, to enable reporting in compliance with the JORC Code. Tempus intends to then commence a full feasibility study, for completion before the end of 2020.

 

Figure 1 – Blackdome-Elizabeth Project Location

Figure 1 – Blackdome-Elizabeth Project Location

 

Site Infrastructure

The Blackdome Mine site includes a 300 tonnes per day permitted mill and tailings facility (Figure 2). A 25-man exploration camp is located at the Elizabeth Deposit, and existing development plans for the project include construction of 4 km of new haul road, and upgrade of 35 km of existing road, to link the Elizabeth Deposit to the Blackdome Mine. The project is located in close proximity to major highways and airfields.

 

Figure 2 – Blackdome Mill

Blackdome-Elizabeth Gold Project Feature Image

 

Drilling Results – Post declaration of NI43-101 Mineral Resource Estimates

Further drilling was undertaken on the Elizabeth Deposit after declaration of the NI43-101 resource. A total of 80 diamond drill-holes were completed with the aim of infilling and extending the existing resource. High grade intercepts include:

  • 5.06 m at 76.5 g/t
  • 2.50 m at 96.3 g/t
  • 0.91 m at 134.9 g/t
  • 1.46 m at 45.1 g/t

Visible gold was observed in several holes from these programs (Figure 3).

 

Figure 3 – Visible gold in 2010 drill core

Figure 3 – Visible gold in 2010 drill core copy

 

Exploration Potential

The Blackdome-Elizabeth Gold Project is underexplored and remains highly prospective for extending existing resource-bearing mineralization, and for discovering new mineralized areas. Tempus’ technical staff have conducted a preliminary review of the data and are very encouraged be the continuity of the high-grade gold veins that appear to remain open at depth and along strike, as well as the broader prospectivity of the large, 315 square km land package.

 

Terms of the Acquisition

The consideration for the 100% acquisition of the projects comprises:

  • C$500,000 cash, C$50,000 of which has been paid, with the balance of C$450,000 payable by November 15, 2019, with discounts of up to C$50,000 for earlier completion.
  • Skeena to be reimbursed for up to C$185,000 in assessment work in order to keep the Tenements in good standing beyond April 2020, subject to mutual agreement on program objectives and budgets.

The acquisition is subject to standard conditions, including completion of technical, environmental and legal due diligence to the satisfaction of the Company.