Sweeney

The Sweeney property was acquired in early September (details of purchase agreements noted below). The property is located approximatley 135 km by road, southwest of the town of Houston in the Central Interior of BC. The property is centrally located in the Huckleberry Mine camp and is 7 km north northwest of the past producing Huckleberry Mine, 3 km west of Hucklebrry Mines Ltd's Whiting Creek deposit and 8 km southeast of the Berg deposit owned by Surge Copper Corp. 

Highlights of the Property

- Road accessible and close to existing infrastructure in the heart of the Huckleberry Camp.

- Multiple vein and structural trends at 345-degree azimuth identified over a 1 km trend of high-grade silver (“Ag”), lead (“Pb”), zinc (“Zn”) +/- gold (“Au”) up to 3 meter (“m”) wide quartz sulphide veins. 

- Historical underground development on the Emerald Vein took place on four levels (6400, 6275, 6000 and 5400 levels) and the mine operated intermittently from 1951 to 1968, producing 83,493 ounces (“oz”) Ag, 49 oz Au, 1,966,396 pounds (“lbs”) of Zn, 1,689,449 lbs of Pb, 19,872 lbs of copper (“Cu”) and 3,713 lbs of cadmium from the milling of 8,293 tonnes of ore ² ³.

- Unclassified reserves on the Emerald Vein are 40,800 tonnes grading 355 grams per tonne (“g/t”) Ag, 8.23% Pb, 9.49% Zn and 1.13 g/t Au ² ³ with ore zones noted open to depth and not tested by the 2012 drilling noted below.

- No drilling or underground exploration work was completed on the Property between 1971-2012, until a 2012 diamond drill program focused on the Miya Vein (cross cuts the Emerald Vein trend at 300 degrees) and consisted of 30 drillholes with an average depth of 52 m, covering over 350 m of strike length and returning gold values up to 7 g/t Au with high-grade silver, lead and zinc over 1-5 m intervals.

- Outside of historical (and now reverted) crown grants, exploration has been very limited due to glacier and ice cover in the areas to the north and northwest of the historical work, which are now exposed and show significant alteration and some new discoveries around previously ice-covered edges (pre-2013).

Purchase Agreement Terms

Cazador Purchase Agreement Terms

Coast Copper acquired 8 mineral claims totaling 1,492 ha from Cazador. Under the terms of the Cazador purchase agreement (“Cazador Purchase Agreement”), in consideration for a 100% interest in the Property, Coast Copper will make a cash payment of $60,000 to Cazador, which will retain a 1% net smelter return (“NSR”) royalty on the Cazador claims, 0.5% of which may be purchased by Coast Copper for $2 million.

The Company’s independent directors completed a review of the Cazador claims prior to entering into the Cazador Purchase Agreement and agreed to cover Cazador’s acquisition costs and initial reconnaissance program, and for Cazador to retain an NSR.  

This transaction is considered a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions as the Cazador Claims are being sold to the Company by a director and officer. The transaction is exempt from the formal valuation and minority approval requirements in MI 61-101 as the fair market value of the consideration payable does not exceed 25% of the Company's market capitalization.

Third Party Purchase Agreement Terms

Coast Copper acquired 3 mineral claims totaling 77 ha from the Third Party. Under the terms of the Third-Party purchase agreement, in consideration for a 100% interest in the Third-Party claims, Coast Copper will make a cash payment of $134 to the Third Party, which will retain a 1% NSR royalty on the Third-Party claims, 0.5% of which may be purchased by Coast Copper for $1 million.

One of the 3 Third-Party claims purchased, covering 19 ha, is not adjacent to the Sweeney property and will be treated as a separate mineral property.