Coast Copper announced on September 24, 2020 that it signed a Definitive Agreement on the Empire Mine Property located on northern Vancouver Island, B.C.
- The Empire Mine Property is an exploration stage property comprised of 29 mineral claims and 57 fee simple crown grants covering approximately 15,764 hectares ("ha") that is easily accessed through a large network of forest service roads with elevations ranging from 100 metres ("m") to 1370 m thus providing for near year round exploration.
- The Empire Mine Property covers 22 mineral occurrences, including 3 past producing open pit and two underground past producing mines for magnetite, copper, gold, and silver.
- Significant previous drill intercepts including 2006 drillhole MW06-17 which returned 6.51 g/t gold and 1.41% copper over 50.32 m 1.
- Historical measured and indicated resource of 960,000 tonnes at 2.03 g/t gold, 5.64 g/t silver, 0.34% copper, 0.013% cobalt and 16.1% iron using a 0.50 g/t gold cut-off completed November 30, 2008 by Gary Giroux. The resource was noted as open to depth and no further work on the resource has been completed since 2008 1, 2.
- 6 km prospective strike length outlined by historical 2005-2008 geophysical work and drilling.
- The Property has excellent infrastructure and access due to logging, limestone quarrying and power generation operations in the area as well as easy access to ports at both Port McNeil and Port Alice.
Work by Coast Copper
Coast Copper completed two small surface programs on the Property in late 2020.
Phase 1: Work was focused in a 500 m x 2000 m area (100 ha) within the >15,000 ha Empire Mine property with an emphasis to test exploration potential outside of the previous resource. As such sampling was not conducted within the historical resource completed by Grande Portage in 2008 or where significant previous drill intercepts were located.
Rock channel sample results are summarized in Table 1 below including results from the Copper Knob showing, which returned 9.77 g/t gold, 28.41 g/t silver and 2.35% copper over 10.5 m. To the north, channel samples taken at the Gossan Zone, Adit and North Notch showings indicate significant exploration potential in an area up to 250 m north of the Merry Widow Pit. Other channel samples returned highly anomalous results as much as 400 m south of the Merry Widow Pit.
Highlights from rock grab samples include the Bluebird 1 area (600 m south of Merry Widow Pit) which returned 11.2 g/t gold and 36.8 g/t silver and 2.13% copper, the DB showing (1 km SE of Merry Widow Pit) which returned 3.59 g/t gold, 71.9 g/t silver, 12.05% copper, and the BX 1 showing (4.6 km south of the Merry Widow Pit) which returned 1.88% copper.
Rock chip samples have highlighted broad areas of low-grade gold and copper values such as 17.0 m of 0.16 g/t gold and 0.11% copper from pyritized volcanic units which overlie the limestone horizons at the Summit Showing (600 m north of Merry Widow Pit).
Soil Samples taken north of the Merry Widow Pit indicate a 400 m long NNE trending > 100 ppb gold in soil anomaly with a high to 3260 ppb gold. Highlights from soil samples taken to the south in the Battle Mountain area (1700 m south of the Merry Widow Pit) included an open ended 400 m long > 100 ppb gold in soil anomaly with samples returning 233-1175 ppb gold down the central axis of the anomaly. No records of any historical trenching or drilling are noted in the Battle Mountain Area.
Phase 2: Exploration focused on the Snowline and Southwest Areas where Coast Copper noted a favourable geological setting identified by its compilation work. Soil and stream samples from the Snowline area have returned anomalous levels of copper (> 100 ppm copper) and gold stream sediment samples to 229 ppb gold from the area of our new discovery of copper-gold-magnetite skarn style mineralization. In the Southwest Area, soils and stream samples have returned values up to 712 ppb gold.
Following the extensive historical data review the Company has undertaken, an additional claim was staked contiguous to the Property in an area where historical assay results showed statistically anomalous copper values (> 100 ppm copper) over a 500 m strike length at the favourable contact between limestone and volcanic rocks.
Coast Copper announced 10 Drill Targets along the Empire Mine Multi-Kilometer Trends on its February 3, 2021 news release. You can view the view the release here.
Historical Data Compilation
As announced in the December 8, 2020 news release, Coast Copper is completing an extensive compilation of historical data concerning the Property. So far, in total, the Company has compiled a total of 486 rock, 386 silt and 2,285 soil samples from the Property along with a total of 17,498 m of drilling in 214 drill holes. Previous geophysical surveys include a 36.9-km IP survey, 3,277-line km airborne magnetic and electromagnetic surveys and 40.7 km of ground magnetic surveys.
Good progress has been made on our historical data review and the Company expects to report on this work in the coming weeks. Initial highlights include:
- The identification of a 1 km potential strike length extension along the Merry Widow trend that may allow for the expansion of the historical measured and indicated Grande Portage 2008 Resource of 960,000 tonnes at 2.03 g/t gold, 5.64 g/t silver, 0.34% copper, 0.013% cobalt and 16.1% iron using a 0.50 g/t gold cut-off completed November 30, 2008 by Gary Giroux 1,2 that occurs within only 100 m of that trend;
- Cominco’s 1972 Benson Lake remaining resources when the mine was shutdown indicating resource areas as much as 300 m south of the existing mine workings noting a total of 454,500 tonnes at 0.59 g/t gold and 1.3 % copper 1,3 (Although these resources do not meet current NI 43-101 standards the Company believes that the historic numbers are an important indication of the exploration potential along the Old Sport Horizon and are useful for helping guide future exploration targets);
- Areas to the south of Merry Widow that are showing potential to extend the main trends a further 1 km;
- Areas to the south of the Benson Lake Mine that are showing potential to extend the main trend a further 4 km’s.
Merry Widow Significant Diamond Drill Intercepts (as announced February 3, 2021)
Benson Lake Mine- Old Sport Horizon Historical Underground Drilling Significant Intercepts (as announced February 3, 2021)
Under the terms of the Empire Option Agreement, Coast Copper can acquire a 100% interest in the Empire Mine Property from Mirva Properties Ltd. ("Mirva") by making aggregate cash payments of $1,250,000, issuing 3,000,000 common shares of the Company and undertaking work commitments totaling $2,000,000 over a five (5) year period, including making an initial cash payment of $50,000 and issuing 200,000 common shares of the Company upon receiving final TSX Venture Exchange ("TSX-V") approval. Mirva will retain a 2% NSR on the Property of which 1% may be purchased for $1,000,000 at any time up to 120 days after commencement of commercial production. The agreement was structured such that this NSR plus all other NSRs which may currently exist and be payable on the Empire Mine Property do not exceed in aggregate 2.5% before buydowns.