Coast Copper signed a Definitive Agreement November 8, 2019 to acquire 100% of the Red Chris Area Properties located in the Golden Triangle of northwestern B.C. The properties are located in the heart of the Red Chris Camp within B.C. Golden Triangle and are adjacent to ground held by Imperial Metals which includes the producing Red Chris Mine. In August 2019, Imperial Metals sold a 70% interest in Red Chris to Newcrest Mining Ltd for approximately US$775 million.
Red Chris Area Properties
Eldorado & Bonanza Properties
Eldorado and Bonanza border the eastern side of the Red Chris Mine property and occur along geological trend to the east hosting mineralized intrusions and volcanics.
The Eldorado property is comprised of 10 contiguous mineral claims totaling approximately 4,867.6 ha that are located within the Liard Mining Division in northwestern B.C. approximately 23km southeast of the village of Iskut and immediately east of the Red Chris property. There has been sporadic exploration work conducted on the Eldorado property since 1976. Most recently, QuestEx Gold & Copper Exploration (formerly Colorado Resources Ltd.) completed various exploration work from 2012 to 2014. In 2012, a geochemical program and IP survey determined that a previously identified anomaly is underlain at depth by a stronger and more continuous chargeability anomaly measuring 500 metres (“m”) by 2,000m. In 2013, a geophysical program and 5-hole diamond drill program were completed. Three of the drill holes successfully reached bedrock and encountered significant intervals of low grade gold and copper mineralization, including 91.6m of 0.12% copper and 0.28 gram per tonne (“g/t”) gold from top of bedrock (52.4m depth) to 144m depth in hole EL13-004. In 2014, an infill magnetometer geophysical program consisting of 4.5-line km over the area of intended drilling and a 4-hole (891.6m) diamond drill program were completed. Results of this program included drillhole EL14-008, which intersected 196.5m of 0.19 g/t gold, 0.06% copper and 0.005% molybdenum over the entire length of the drill-hole from bedrock onward. The quoted mineralized intervals for EL13-004 and EL14- 008 are drill indicated lengths as true thickness are unknown.
On April 13, 2020, the Company filed the Eldorado Technical Report. Jim Oliver, Ph.D., P.Geo. authored the Eldorado Technical Report and is a Qualified Person as defined in NI 43-101, and is independent of the Company. Certain interpretations and conclusions from the Eldorado Technical Report are highlighted below:
- The historic drill programs on the Eldorado property suggest portions of the claims are underlain by several intrusive phases including crowded plagioclase phyric monzonites, by black matrix monzodiorite containing well developed intrusive breccias, biotite phyric monzonites and fine grained aplitic or felsic dykes;
- These intrusions are typically several 10’s of metres in apparent thickness and are cutting up to a 400m thick sequences of dark green propylitically altered, pyroxene bearing mafic flows. Most intrusive phases contain alteration assemblages which would be characteristic of porphyry copper-gold mineralized systems;
- The broad widths of gold-copper mineralization, although low grade, are considered to be important signatures of a potential blind porphyry system;
- Although encouraging, the historic drill results obtained at Eldorado are, at current metal prices, subeconomic. The historic data does however strongly suggest that the Eldorado claims have the potential to support a significant gold-copper mineralizing system; and
- The review of all historical work on the Eldorado claims indicates that additional exploration on these claims for porphyry related gold-copper mineralization is warranted. Coast Copper is encouraged by the findings in the Eldorado Technical Report and will further assess the interpretations, conclusions and recommendations therein contained in order to plan for the potential for future exploration work.
Certain claims on the Eldorado property are subject to a 2% net smelter royalty (“NSR”) return. Cazador Resources Ltd (company owned and controled by Coast Copper's CEO- Adam Travis) owns 50% of the NSR.
The Bonanza property is comprised of two non-contiguous mineral claims totaling approximately 69 ha which are located within the Red Chris camp approximately 5km and 10km north of the operating Red Chris mine.
The Gin Property is comprised of four mineral claims totaling approximately 3,060 ha that border the western side of the Red Chris property and is adjacent to both QuestEx's North Rok property (southern side) and GT Gold Corp.’s Tatogga property (southern side).
Modest exploration programs have occurred on the Gin property from 2006 to 2019 including soil, rock and silt sampling, prospecting and IP and Magnetic geophysical surveys. The historical work has identified weak but anomalous copper-gold-molybdenum values in soil coincident with a weak chargeability anomaly that shows evidence of increasing in strength at depth. The results suggest potential for copper-gold mineralization at depths greater than 250m.