Exciting times for shareholders of Core Assets Corp. as the stock has been performing strongly over the past few weeks, rising from an intraday-low of $0.065 in mid-August to an intraday-high of $0.33 last week. The company recently announced to have completed its phase-2 exploration program at its Blue Property at the northern edge of the Golden Triangle in British Columbia, Canada. Today, Core Assets announced a major property expansion.
Not only investors but also Core Assets‘ management team and insiders appear to be positioning themselves for the possibility of a major discovery. Back in June, Nick Rodway (President and CEO) held 1.4 million shares of the company – less than 3 months later his insider filings show him having bought in the market and via the last private placement financing, now holding 5.1 million shares. The directors of the company (Scott Rose, Dave Hodge, Sean Charland, Jody Bellefleur, Alicia Milne) together own about 7.2 million shares, whereas Zimtu Capital Corp. owns 8.25 million shares. This all adds up to 20.5 million shares held by insiders, representing about 37% of the 55.7 million shares currently issued and outstanding. With about $1.5 million in the bank, Core Assets is in a strong position to deliver a regular newsflow over the next weeks and months, preparing for a maiden drill program next season. Watch this unfold. This could be big, really big.
Excerpts from Core Assets Corp.‘s news-release today:
Core Assets Expands Blue Property to District Scale Land Package
VANCOUVER, BC / September 20, 2021 / Core Assets Corp., (“Core Assets“ or the “Company“) (CSE:CC)(Frankfurt:5RJ)(WKN:A2QCCU)(OTCQB:CCOOF) is pleased to announce that it has increased its mineral claim holdings by staking at the Blue Property (the “Property“) located in the Atlin Mining District of British Columbia.
• As a result of encouraging visual observations (see Figure 2 below of classic carbonate replacement mineralization seen at the Property) during phase one and two exploration programs, Core Assets decided to increase its land package substantially from 26,080 ha (~260.8 km²) to 108,337 ha (~1,083 km²) (see Figure 1 below for map) making it one of the largest mineral claim holders in the Atlin Mining Camp.
• Core Assets technical team has determined that much of the newly receded glaciated terrain of southwest Atlin Lake is virtually unexplored and government mapped limestone bodies (the favourable host for carbonate replacement mineralization) are far more extensive in the area than mapped in the 1950‘s.
• Field observations have determined that the permeability and porosity of the limestone bodies in the area are favourable for allowing transportation of mineralized carbonate replacement fluids.
• The CRD-Porphyry exploration model that is guiding Core Assets exploration plan has seen incremental advancements in understanding globally since the last exploration campaigns of the 1980‘s. Core‘s technical team has leveraged its knowledge of this in an area of newly deglaciated terrain where there is no documented historical exploration.
• Results from the phase one sampling program are expected by late September 2021. Samples from the phase one program of presumed altered granitic rocks surrounding the carbonate replacement mineralization have been submitted to a lab for petrographic analysis and are expected to be returned later this year.
Core Assets‘ President and CEO Nick Rodway comments, “It‘s very common for multiple carbonate replacement style deposits to form along vast amounts of land straddling the Pacific Western margins of North, Central and South America. Based upon preliminary visual observations of mineralization at the property, we decided to consolidate the areas of newly exposed bedrock and turn Core Assets into a district scale explorer of the prolific Atlin Mining District.“
Full size / Figure 1: Map showing increased land package at the Blue Property
Full size / Figure 2: Photo of classic carbonate replacement mineralization seen at the Blue Property near glacier edge. Core Assets has now delineated more than 100 massive sulfide occurrences on the property. The CRD-Porphyry model suggests that all mineralization could potentially be linked in the subsurface and continuous all the way back to the source (Sample 152331).
About the Expansion of the Blue Property
As a result of encouraging visual field observations (see photo of classic example of CRD mineralization at the Property above) during phase one and two exploration programs, Core Assets decided to increase its land package substantially from 26,080 ha (~260.8 km²) to 108,337 ha (~1,083 km²) making it one of the largest mineral claim holders in the Atlin Mining Camp (see Figure 1 area map above). Core Assets technical team has determined that much of the newly receded glaciers of southwest Atlin Lake are virtually unexplored and the Geological Society of Canada mapped limestone bodies (the favourable host for carbonate replacement mineralization) are determined to be far more extensive in the area then mapped in the 1950‘s. Observations made by Core Assets‘ technical team have determined that the permeability and porosity of the limestone bodies in the area are favourable for allowing transportation of mineralized carbonate replacement fluids to surface.
The CRD-Porphyry exploration model that is guiding Core Assets exploration plan wasn‘t developed until after the last exploration campaigns on the east side of the Property and this model has seen incremental advancements and success since the last exploration campaigns of the 1980‘s. Core‘s technical team has leveraged its “boots on the ground“ interpretations in areas of newly exposed bedrock where there is no documented historical exploration to increase its potential for multiple discoveries.
Core Assets expects to have results from its phase one sampling program in late September 2021. During the phase one program, the Core Assets team also collected 18 samples of altered granitic rock units to prepare for petrography. The samples will be cut into thin sections and analysed at a lab under a petrographic microscope to determine alteration assemblages. This will help Core Assets vector towards a potential porphyry source, which may be responsible for the significant surficial mineralization seen at surface. The analysis results are expected to be returned later this year.
Nicholas Rodway, P.Geo, (Licence # 46541) is President, CEO and Director of the Company, and qualified person as defined by National Instrument 43-101. Mr. Rodway supervised the preparation of the technical information in this news release. Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release. FORWARD LOOKING STATEMENTS: Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Forward looking statements in this news release include the goals and scope; that the limestone bodies in the area are favourable for allowing transportation of mineralized carbonate replacement fluids; that Core expects to have results from its phase one sampling program in late September 2021; that we can become a district scale explorer; that Core Assets will drill in 2022; that the Blue Property has substantial opportunities for a discovery and development; that work on the Blue Property could potentially lead to a new porphyry/CRD style discovery; and that there may be a commercially viable gold or other mineral deposit on our claims. It is important to note that the Company‘s actual business outcomes and exploration results could differ materially from those in such forward-looking statements. Risks and uncertainties include that further permits may not be granted timely or at all; the mineral claims may prove to be unworthy of further expenditure; there may not be an economic mineral resource; methods we thought would be effective may not prove to be in practice or on our claims; economic, competitive, governmental, environmental and technological factors may affect the Company‘s operations, markets, products and prices; our specific plans and timing drilling, field work and other plans may change; we may not have access to or be able to develop any minerals because of cost factors, type of terrain, or availability of equipment and technology; and we may also not raise sufficient funds to carry out our plans. Additional risk factors are discussed in the section entitled „Risk Factors“ in the Company‘s Management Discussion and Analysis for its recently completed fiscal period, which is available under Company‘s SEDAR profile at www.sedar.com. Except as required by law, we will not update these forward looking statement risk factors.
Last week on Monday (September 13, 2021), Core Assets Corp. announced to have completed its phase-2 exploration program (channel sampling) at its 100% owned Blue Property. Excerpts:
Core Assets Completes Phase Two Exploration at the Blue Property, Atlin, British Columbia
Core Assets’ President and CEO, Nick Rodway, commented in last week‘s news-release: ”The mineralization we are seeing at surface is significant and extremely exciting. It has been over 30 years since the last exploration campaigns in the area, and since then the glaciers have retreated drastically, allowing our team the opportunity to explore previously unseen rocks. We will continue to expand upon our geological knowledge of the property to further delineate and build upon our exploration model for drill testing.”
• The phase two channel sampling program was designed to determine the grade and extent of massive sulphide carbonate replacement pods at surface. Both the phase one and phase two programs have identified early indications of a potentially large mineralized system. The phase two sampling will allow Core Assets to design subsequent programs to vector in on carbonate replacement mineralization and its porphyry source.
• During the phase two program 15 channels were cut into heavily mineralized bedrock totalling 49.7 metres for a total of 105 samples. Additionally, 8 grab samples were collected from newly discovered massive sulfide carbonate replacement pods.
• Channel sampling intersected a wide range of massive and semi massive sulfides including Zn, Ag, Pb, and Cu mineralization consisting of sphalerite, galena, pyrite, chalcopyrite and pyrrhotite.
• Core Assets has now outlined a mineralized area of approximately 6.6km by 1.8km with alteration assemblages indicating this is formed from a porphyry source (based upon visual observations, see map below).
• Results from July’s phase one geochemical sampling program are expected to be released by late September 2021.
• Core Assets plans to mobilize a field mapping team in mid September to map geochemical zoning patterns and alteration seen at surface. The extent of this mapping program will be snowfall dependent.
Full size / Area of Alteration and Mineralization seen at Surface at the Silver Lime Prospect.
Full size / Figure 2. Channel CH21-02 prior to sampling
Full size / Figure 3. Sample 151608 collected during phase two program with visual estimates of 20-25% sphalerite, 15-20% pyrrhotite, 10-15% pyrite and 10% galena
About the 2021 Phase Two Field Program
The phase two helicopter supported ground program was conducted during the first week of September 2021. A crew of professional geologists were based in Atlin, British Columbia and utilized Discovery Helicopters for daily access to the Property. The program focused on channel sampling of recently discovered mineralization seen at the Silver Lime Prospect as well as newly discovered significant surficial mineralization seen on the Company’s newly staked ground to the west of the original prospect (see Company news release dated June 11, 2021).
15 channels totalling 49.7 metres were cut into mineralized outcrop with a diamond blade saw at varying lengths for a total of 105 samples (See figure 1 for photo of channel CH21-01). Samples were taken in 50cm composites. Additionally, 8 grab samples were taken from newly discovered massive sulfide carbonate replacement pods. Based on the carbonate replacement-porphyry model, mineralization is expected to be continuous and geochemically zoned from a central porphyry source, with visual expressions estimated to be smaller in volume and lower grade at surface. Core Assets has now outlined a mineralized and alteration area of approximately 6.6km by 1.8km. Following this channel sampling program, a drill program can be designed to target the carbonate replacement-porphyry source.
Nicholas Rodway, P.Geo, is President, CEO and Director of the Company, and qualified person as defined by National Instrument 43-101. Mr. Rodway supervised the preparation of the technical information in this news release. *Historical technical numbers are not compliant with NI 43-101 and are provided as an indication that mineralization is present. Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Forward looking statements in this news release include the goals and scope; that Core Assets will drill in 2022; that the Blue Property has substantial opportunities for a discovery and development; that work on the Blue Property could potentially lead to a new porphyry/CRD style discovery; and that there may be a commercially viable gold or other mineral deposit on our claims. It is important to note that the Company‘s actual business outcomes and exploration results could differ materially from those in such forward-looking statements. Risks and uncertainties include that further permits may not be granted timely or at all; the mineral claims may prove to be unworthy of further expenditure; there may not be an economic mineral resource; methods we thought would be effective may not prove to be in practice or on our claims; economic, competitive, governmental, environmental and technological factors may affect the Company‘s operations, markets, products and prices; our specific plans and timing drilling, field work and other plans may change; we may not have access to or be able to develop any minerals because of cost factors, type of terrain, or availability of equipment and technology; and we may also not raise sufficient funds to carry out our plans. Additional risk factors are discussed in the section entitled “Risk Factors“ in the Company‘s Management Discussion and Analysis for its recently completed fiscal period, which is available under Company‘s SEDAR profile at www.sedar.com. Except as required by law, we will not update these forward looking statement risk factors.
Excerpts from the article “BC’s Famous Atlin District is Once Again the Scene of a Significant Gold Rush“ (Insights by Colin Sandell-Hay, The Assay, July 23, 2021):
The Atlin district became a hot item in 1898 when the roughly 100,000 gold hunters that had trekked to the Yukon fields were seeking new regions to make their golden fortunes. Many of those fortune hunters returned to the south and along the way discovered the richest gold mining region of British Columbia, the Atlin District.
However, while Atlin is considered one of the most important gold mining centres in Canadian history, the real source of its rich coarse placer gold had remained elusive – until recently.
A golden revelation
The announcement of a new lode gold discovery on Otter Creek in the Atlin District was a real game changer. Revealed by British Columbia Geological Survey (BCGS) geologists in a 2017-published paper titled “A new lode gold discovery at Otter Creek: another source for the Atlin placers”, the revelation was seized upon by gold hunters leading to a small, but noteworthy new gold rush.
According to geologists, the Otter Creek lode gold discovery provided strong evidence that Atlin’s rich coarse crystalline gold placers are sourced from proximal high-grade gold veins rather than previously assumed eroded distal listwanite deposit.
Otter Creek explorer
Garibaldi Resources (TSXV: GGI) is one of the early movers into Otter Creek area and the company recently significantly expanded its Atlin Goldfields position, now holding 8,704ha. The Otter Creek claims are located 12km east of Atlin.
Garibaldi had previously acquired 100% ownership of the hard rock mineral rights on the discovery section of Otter Creek. Placer operations enabled geologists to sample and map the bedrock in excavated pits before backfilling, allowing access to the BCGS geologists who published the lode gold discovery.
CEO, Steve Regoci, said Garibaldi’s new acquisition in the Atlin Goldfields consolidates a core land package that occupies nearly the entire 10km length of Otter Creek.
“Significantly, Garibaldi’s geology team considers the expanded claims package covering the Otter Creek placers as an important exploration priority. With excellent road access and infrastructure, the discovery of bonafide in-situ bedrock-hosted gold, is a remarkable find with enormous potential.”
Mr Regoci said Garibaldi’s Otter Creek database includes 2282 MMI samples, a compilation of 1,884 historic soil samples, 15 IP lines, 143km of walking mag, and 263 line kilometres of airborne magnetic and electromagnetic (DIGHEM) surveys.
The company’s drill target development will utilize the historical database, bedrock exposure of gold-bearing quartz veins, geophysical data, and analysis of a 728 sample SGH survey, used successfully in Red Lake, Ontario.
“Similar to the Eskay Camp, Atlin has a long history of gold mining back to the 1860s Cariboo and Klondike gold rushes. Our strategy to acquire claim groups centred in the heart of mineral rich districts in British Columbia during the last downturn has been very successful,” Mr Regoci said.
“The Eskay claim group is exceeding our highest expectations, while our other projects as well as the new expanded Otter Creek have exceptional potential.”
The real source of its rich coarse placer gold had remained elusive – until recently
Garibaldi VP of exploration, Jeremy Hanson, says Otter Creek has emerged as another high priority gold project in Atlin, joining the Grizzly in northwest British Columbia, Red Lion in the Quesnel Trough, and ToraTora within the Spences Bridge Gold Belt.
“Each of these projects are in well-endowed mineral districts with strong potential for discoveries. The company’s focus remains E&L and the Eskay claim group, however the expansion of the Atlin discovery is exciting news.”
Blue Extension Property
Another company that is really focussing its future on the Atlin Mining District is Core Assets Corp. (CSE: CC) which recently entered into an agreement to acquire 100% interest in the Blue Extension Property.
The acquisition increased Core Assets’ land position in the Atlin area by 100km2, for a total contiguous district scale land package of 261km2.
The deal has also increased the area the company is looking to cover by VTEM survey, with Core recently remobilizing Geotech Ltd. to complete a geophysical survey at the Blue Property.
The Geotech VTEM survey has been increased to cover ~2,000 line kilometres, representing a ~1,000 line-kilometre increase. The survey resolution is also being increased by decreasing line spacing from 200m to 150m line spacing to better define massive sulphide carbonate replacement chimneys visible at surface.
The survey will target the magnetic and electromagnetic susceptibility of a porphyry/carbonate replacement type (CRD) system and the structures associated with the Llewelyn Fault Zone (LFZ). The LFZ is approximately 140km in length, and it runs from Yukon border down through the property to the Alaskan Panhandle Juneau Ice Sheet in the U.S.
President and CEO, Nick Rodway, said Core Assets believes that the south Atlin Lake area and the LFZ has been neglected since the last major exploration campaigns in the 1970s. “The LFZ plays an important role in mineralisation of near surface metal occurrences across the property.” Mr Rodway said the company has leveraged this information at the Blue Property to develop an exploration model and believes this could facilitate a major discovery. “Core Assets is excited to become one of the Atlin Mining District’s premier explorers where its team believes there are substantial opportunities for new discoveries and development.”
New Polaris Gold Project
Another keen Atlin explorer, Canagold Resources Ltd. (TSX: CCM) recently mobilized two diamond drills to its 100% owned New Polaris Gold project to undertake a drill programme. The 47-hole, 24,000m combined infill and step-out drill programme was designed to upgrade a large part of the Inferred Resource to the Indicated Resource category for inclusion in a future feasibility study, in addition to targeting the gold mineralization down plunge. A 2019 Preliminary Economic Assessment delineated Indicated Resources of 1.7M tonnes containing 586,000 ozs gold at 10.8g/t and Inferred Resources of 1.5M tonnes containing 485,000 ozs gold at 10.2g/t. Canagold’s flagship New Polaris Gold Mine project is located in north-western British Columbia, approximately 100km south of Atlin, and consists of 61 contiguous Crown-granted mineral claims and one modified grid claim covering 850ha. (Source: The Assay, 2021)
With assays pending from both phase-1 and phase-2 sampling programs, Core Assets is expected to deliver a strong newsflow over the next weeks. Although a discovery is officially made with the drill bit, the pending assays will clearly demonstrate the grade and size of the larger mineralized outcrops, greatly assisting the company to delineate drill targets in combination with the recently completed VTEM geophysical survey (results and interpretations expected by mid-fall 2021).
Core Assets‘ Blue Property is a rare opportunity for both a high-grade, district-scale CRD (silver-lead-zinc-gold) and copper porphyry discovery. Most interestingly, the Blue Property checks all the boxes of hosting a carbonate replacement deposit (CRD) distal to a porphyry. Core Assets‘ exploration plan is to trace CRD mineralization seen at surface back to the source of a porphyry intrusive stock.
CRDs (Carbonate Replacement Deposits) differ from other polymetallic deposit-types such as VMS (Volcanogenic Massive Sulfides) and MVT (Mississippi-Valley-Type): CRDs offer much larger tonnage potential than VMS and MVT deposits while at the same time typically hosting higher grades of silver, zinc, lead, and copper, sometimes with appreciable credits of gold and other metals.
10-150 million t
VMS: (811 deposits, 1999)
0.3-33 million t with 13 deposits >100 million t
MVT: (30 largest deposits, 2009)
10-128 million t (average: 38 million t)
Silver: 150-1,500 g/t
Au, Cd, Ge, In, W, Mo, PGE credits
VMS: (811 deposits, 1999)
Silver: 5-238 g/t
Gold: 0.8-3 g/t
MVT: (30 largest deposits, 2009)
Silver: 0-161 g/t
While VMS deposits oftentimes host metallurgically complex ores, CRDs and MVTs are rather uncomplicated metallurgically. The total average operating costs (for mining, milling and processing) are generally lower for CRDs and MVTs than for VMS and Sedex-type deposits or even vein-type deposits. (Source)
Moreover, CRDs typically form as a result of a near-by porphyry intrusion, thus offering potential to add large tonnage from mining such deposit aside from CRDs. These days, most of such projects worldwide are facing the challenge of many companies controlling small portions of a CRD-porphyry system, oftentimes under option agreements and/or with underlying royalty liabilities (NSRs; Net Smelter Royalties; somewhat unattractive for majors). This makes it difficult for majors to acquire the full extent of such large CRD-porphyry systems to better understand the regional geology and structure of the complex with district-scale exploration programs.
With Blue, Core Assets owns 100% of a very large, district-scale property (1083 km2), royalty-free. Once the geology and structure of the CRD showings at surface are better delineated with drilling, this potential CRD mineralization (chimneys, mantos, and/or skarns) is targeted to lead to the source – possibly a large and well-mineralized copper porphyry enriched with gold or molybdenum.
CRDs are polymetallic replacement deposits (also known as high-temperature carbonate-hosted silver-lead-zinc deposits) formed by the replacement of sedimentary (usually carbonate rock) by metal-bearing solutions in the vicinity of igneous intrusions (e.g. copper or molybdenum porphyries). When the CRD orebody of metallic minerals forms a blanket-like body along the bedding plane of the rock, it is commonly called a manto ore deposit. Other ore geometries are chimneys and veins. The mineralogy changes with distance from the intrusion: Closest to the intrusion is the copper-gold zone; next is the lead-silver zone, then the zinc-manganese zone. In many instances, CRDs can be considered as the distal part of a continuum with skarn deposits, and in some cases terminology may be misused.
Although similar in orebody geometry, host-rock lithology, and the presence of lead and zinc, MVTs (Mississippi Valley Type; also known as carbonate-hosted lead-zinc deposits are considered a different type of ore deposits. MVTs oftentimes lack silver and gold mineralization, are lower temperature, and are not associated with nearby igneous intrusions.
CRDs are responsible for roughly 40% of Mexico’s 10 billion ounce historic silver production and are characterized by massive to semi-massive silver-lead-zinc-sulphide replacements of limestone. CRDs occur along major regional structures that hosts several of the largest CRDs in Mexico: “The Carbonate Replacement Deposit (CRD) model evolved from Dr. Peter Megaw’s PhD studies at Santa Eulalia: repeatedly validated worldwide...The Santa Eulalia District ranks as one of Mexico’s chief silver and base metal producers, and its largest CRD. Historic district production (1703-2020) amounts to 51 Mt of ore at average grades of 310 g/t Ag, 8.2% Pb, 7.1% Zn, yielding a total of 500 Moz Ag, 4 Mt Pb and 3.6 Mt Zn.“ (Source)
Full size / “CRDs are the second largest contributor to the historic silver production of Mexico. CRDs are the backbone of Mexico’s world-class underground lead-zinc mining industry. The country contains many Ag-Pb-Zn (Cu, Au) CRDs, which occur along the intersection of the Mexican Thrust Belt and Sierra Madre Occidental Magmatic Belt. The biggest CRD deposits appear to lie along inferred deep crustal structures.“ (Source)
Full size / “High-Temperature carbonate replacement ores in the Mexican Altiplano are characterized by metals-rich Tertiary intrusive bodies intruding structurally prepared carbonate host rocks, either limestone or dolomite... Mantos, chimneys and pods of massive sulphides are the three principal morphological types and are generally remote from intrusive centers. CRD´s are large systems ranging from 25-100M tonnes of high-grade ores and are significant contributors of silver lead and zinc. To date, ten CRD in the Altiplano have published resources (all inclusive) for over 1.7M Oz Au, 300M Oz Ag, 3.1B Lb Cu, 147M Lb Mo, 2.4B Lb Pb and 9.6B Lb Zn. First Majestic’s La Encantada has the largest silver resource with over 92.5M oz Ag at a grade of 213 g/t Ag, while La Platosa from Excellon Resources boasts the higher grade, with 12.3 M oz Ag at a grade of 786 g/t Ag. Other significant properties are Tayahua owned by Frisco with resources of over 970K Oz Au, 57M Oz Ag, 2.7B Lb Cu, and 1.4B Lb Zn at grades of 0.26g/t Au, 15.1 g/t Ag, 1% Cu, and 0.5% Zn, and MAG Silver´s Cinco de Mayo with resources of over 96K oz Au, 52.7M Oz Ag, 785M Lb Pb and 1.7B Lb Zn, at grades of 0.24 g/t Au, 132 g/t Ag, 2.86% Pb and 6.47% Zn. Pozo Seco (part of Cinco de Mayo property), also owned by MAG Silver, is the only property containing moly resources for over 147.2 M Lb at a grade of 0.13% Mo. The table [above] shows tonnages, grades, as well as gold, silver, copper, moly, lead, and zinc resources (all inclusive) for each of these deposits.“ (Source)
Newmont-Goldcorp (NYSE: NEM; market capitalization: $44 billion USD) owns 100% of the Peñasquito Gold-Silver-Zinc-Lead Deposit, Mexico‘s largest gold mine and second largest silver mine as well as one of the country‘s largest producers of zinc and lead: “Two diatreme pipes, Peñasco and Brecha Azul, are the principal hosts for gold-silver-zinc-lead mineralization at Peñasquito. The pipes flare upward and are filled with breccia clasts in a milled matrix of similar lithological composition. The diatremes are surrounded by coalesced halos of lower grade, disseminated sphalerite, galena, and sulphosalts containing gold and silver. Garnet skarn hosted polymetallic mineralization has been identified at depth between the Peñasco and Brecha Azul diatremes. The skarn has horizontal dimensions of approximately 1,000 metres by 1,200 metres and is open at depth.“ (Source)
Full size / Newmont-Goldcorp‘s Peñasquito Gold-Silver-Zinc-Lead Mine produced 272,000 ounces of gold in 2018, accounting for about 17% of the combined companies‘ net asset value, according to Scotiabank. Peñasquito is the world‘s 5th largest silver mine (2nd largest in Mexico) and is Mexico‘s largest open-pit operation, comprising of 2 pits (Peñasco and Chile Colorado), expected to produce 1.6 million GEOs (Gold-Equivalent-Ounces) annually between 2020-2024 (2020E-GEO-breakdown: 37% gold, 28% zinc, 25% silver, 10% lead). (Source)
Proven & Probable Reserves (2020): 440 Mt ore containing: 16 Moz Au, 912 Moz Ag, 6.3 Mt Zn, 2.63 Mt Pb
Average Ore-Grade Milled (2020E): 0.7 g/t Au, 31 g/t Ag, 0.75% Zn, 0.35% Pb
Production Costs (AISC, 2020E): $725 USD/oz Au
Mine Life: 12 years (as of 2020)
“A major expansion was undertaken at the mine with pre-stripping starting in August 2007. The expansion was completed and officially inaugurated in March 2010. Full production was achieved by the end of 2011. The expansion included the construction of two separate processing facilities, an oxide ore facility and a sulphide ore facility. The oxide plant commenced production in February 2008 and first gold was poured in May 2008... The project consists of a leach facility, and is capable of processing 25,000t/day of oxide ore and 65,000t/day of sulphide ore.“ (Source)
Excellon Resources Inc. (TSX: EXN; market capitalization: $62 million CAD) aquired the Platosa Silver-Zinc-Lead Deposit (Durango, Mexico) in 1996; the property now encompasses 110 km2 of prospective land. Platosa is Mexico’s highest-grade silver producer with resources of 1,000 g/t AgEq; Over 800,000 t mined since underground production commenced in 2005; Most of the mining occurred from flat-lying massive sulphide bodies (mantos); Ore produced from the mine is crushed on site and transported 200 km south for processing at the Miguel Auza Mill; Post-pandemic suspension; Indicated resources: 317,000 t averaging 485 g/t Ag, 5.3% Pb and 5.5% Zn (contained: 5 Moz Ag, 37 MLbs Pb, 39 MLbs Zn).
Full size / “The bulk of mineralization currently defined on the Platosa Mine occurs as shallow to steeply dipping bodies of massive carbonate-replacement deposits. These bodies have been identified and categorized as discrete pods or mantos based on structural setting and concentration of sulphides. The footprint of the Platosa manto system currently measures approximately 400 by 700 metres. The mantos dip in accordance with the stratigraphy towards the east where a series of late extensional features extend the mineralization to depths ranging from 60 metres on the west side of the mine, and approximately 320 metres on the east... Drilling has also occasionally intersected anomalous gold and copper mineralization, which is believed to indicate a hotter source or hotter mineralizing fluid pathways within the system.“ (Source)
“The Platosa Mine exploits a series of typical, though very high‐grade, massive sulphide, distal CRD silver, lead, zinc manto deposits located strategically in the middle of the prolific Mexican CRD Belt. Diamond drilling results in 2013 and 2014 continued to confirm that the Platosa property holds considerable potential for the discovery of additional high‐grade manto mineralization and for the discovery of large‐tonnage, though lower grade, proximal skarn mineralization. CRDs are epigenetic, intrusion‐related, high‐temperature, sulphide‐dominant, lead‐zinc‐silver‐copper‐gold‐rich deposits that commonly occur in clusters associated with major regional geologic features. The Mexican CRD Belt is perhaps the world‘s best developed CRD cluster with typical deposit sizes within the belt ranging from 10-15 million tonnes.“ (Source)
For more than a quarter century, the world‘s largest mining companies Rio Tinto Ltd. (ASX: RIO; market capitalization: $155 billion AUD) and its 45%-minority joint-venture partner BHP Group Ltd. (ASX: BHP; market capitalization: $155 billion AUD) have been holding hands in an effort to get permitted the Resolution Copper Project near Superior (Arizona, USA) to become one of the world‘s largest underground mines supplying about 25% of US copper demand with >60 years of mine-life. The project targets a deep-seated porphyry copper-molybdenum deposit (1600 million t @ 1.47% copper and 0.037% molybdenum) at depths exceeding 1,300 m.
Having spent $2 billion since 2004, without yet having produced any copper, both Rio Tinto and BHP are eager to spend another $6 billion to bring Resolution Copper into production. However, the permitting struggle continues, at least for the next little while, putting the Resolution Copper Project on hold once again: “It appears that the Biden administration is not going to pay attention to domestic mineral production for communities like Superior,“ said Mila Besich (Mayor of Superior) in May 2021. “The Resolution Copper deposit ranges from 5,000 to 7,000 ft (1,500 to 2,130 m) below the surface. Ore production from the operations will be approximately 132,000 tons (120,000 tonnes) per day after extensive construction and ramp-up periods. The mine is estimated to produce as much as 40 billion pounds of copper over 40 years.“ (Source)
The Bingham Canyon Mine is an open-pit mining operation extracting a large porphyry copper deposit in Utah, USA. The mine is the largest man-made excavation, and deepest open-pit mine in the world, which is considered to have produced more copper than any other mine in history – more than 19 million tons. The mine is owned by Rio Tinto Group. Bingham Canyon has been in production since 1906 and has resulted in the creation of a pit over 1,210 m deep, 4 km wide; 7.7 km2. (Source)
“The silver-rich Deer Trail Carbonate Replacement Deposit (CRD) Project in Piute County, Utah [USA] encompasses the historic Deer Trail Mine and the adjoining Alunite Ridge area (approximately 5,700 Ha [57 km2]). [MAG Silver Corp. (TSX: MAG; market capitalization: $2 billion CAD)] has consolidated these properties for the first time since the early 1980s, allowing us to apply an integrated district-scale exploration approach based on the continuum of mineralization styles from CRD through Skarn to Porphyry Copper-Molybdenum shown by many related systems worldwide. This model suggests that the high-grade silver, gold, lead, zinc and copper CRD sulphides of the Deer Trail Mine are linked by continuous mineralization to a Porphyry Copper-Molybdenum centre at some distance from the mine. Initial work has focused on tracing the known high-grade CRD mineralization of the historic mine to depth into more favorable host rocks while surface work is tightening localization of the probable porphyry intrusive source for the system.“ (Source)
South32 Ltd. (ASX: S32; market capitalization: $16 billion AUD) took over the Hermosa/Taylor Zinc-Lead-Silver Deposit (Arizona, USA) by acquiring Arizona Mining Inc. (publicly listed) in August 2018 at a total equity valuation of $2.1 billion CAD (all-cash offer at $6.20/share; a 50% premium on Arizona Mining‘s closing price as of June 15; then delisted from the TSX in August). At the time of the acquisition, the CRDs at Hermosa (Taylor and Central) contained Measured & Indicated resources of 101 Mt averaging 10.4% zinc equivalent (mine life: 29 years @ 9000 tpd) In July 2021, South32 reported an updated resource estimate (JORC) at 138 Mt averaging 3.82% zinc, 4.25% lead and 81 g/t silver (contained: 5.3 Mt zinc, 5.9 Mt lead and 360 Moz silver): “The mineralization envelope has the potential to extend beyond current drilling into the surrounding unpatented claims which are untested, presenting significant upside potential.“ The property (85 km2) is located 13 km north of the Mexican border.
Coeur Mining Inc. (NYSE: CDE; market capitalization: $1.6 billion USD) took over the Silvertip Silver-Lead-Zinc Deposit (northern BC, Canada) by acquiring JDS Silver Holdings Ltd. (privately owned) in September 2017 for $200 million USD ($146 million in cash and 4.3 million new Coeur shares valued at $38.5 million): “The Silvertip [underground] mine is one of the industry’s newest and highest-grade silver-zinc-lead mines with a silver-equivalent indicated resource grade of 1,166 grams per tonne (g/t), comprised of [2.4 Mt averaging] 352 g/t silver, 9.4% zinc, and 6.7% lead, and a silver-equivalent inferred resource grade of 1,155 g/t, comprised of [0.5 Mt averaging] 343 g/t silver, 9.8% zinc, and 6.2% lead. Located just below the Yukon border, the operation sits within a highly prospective 93,000-acre (37,650 hectares) [377 km2] land package. Silvertip commenced production during the fourth quarter of 2016.“ [Temporarily suspended since 2020] Silvertip is one of the highest-grade silver-zinc-lead operations in the world and sits within a highly prospective land package. (Source)
Production Costs (AISC, 2017): $11.50 USD/oz AgEq
Production Target: 2.7 Mt ore
Mine Life: 7.5 years @ 1,000 tpd
Proven & Probable Reserves (2020):
15 Moz Ag + 296 Mlbs Zn + 193 Mlbs Pb
Measured & Indicated Resources (2020):
17 Moz Ag + 442 Mlbs Zn + 217 Mlbs Pb
Inferred Resources (2020):
12 Moz Ag + 309 Mlbs Zn + 144 Mlbs Pb
NorthWest Copper Corp. (TSX: NWST; market capitalization: $73 million CAD) owns 100% of the Stardust Copper-Gold-Silver-Zinc Deposit (northern BC, Canada) with no royalties or other underlying encumbrances: “BC’s newest, high-grade copper gold deposit and one of the highest-grade copper-gold deposits in BC... Stardust is a high-grade copper-gold deposit, hosted within a large, mineralized system with significant opportunity for growth. The property features a 2.2-kilometre corridor of mineralization including four mineralization styles typical of a Carbonite Replacement Deposit (CRD) system: porphyry, skarn, manto and epithermal vein. Stardust is one of the few CRD systems in the world with all CRD components fully intact. Having the ability to view the overall structure of the system, provides us the opportunity to better predict how to most efficiently and successfully explore it.“
Indicated Resource (2021): 2 Mt @ 1.31% Cu, 1.44 g/t Au, 27 g/t Ag (2.59% CuEq)
Inferred Resource (2021): 5.8 Mt @ 0.86% Cu, 1.17 g/t Au, 20 g/t Ag (1.88% CuEq)
Full size / “Carbonate Replacement Deposits (CRD) are bodies of metallic minerals formed by the reaction of hot magmatic fluids with carbonate rocks, such as limestone or dolomite. The hot, metal-bearing fluids are driven upward from the heat source, an igneous intrusion (Glover Mo-Cu Porphyry) and dissolves the reactive carbonate rocks when they encounter them. That reaction changes the chemistry of the fluid, causing it to precipitate metallic sulphide minerals that often contain copper, zinc, lead and significant precious metals such as gold and silver. The metallic sulphide minerals effectively “replace” the carbonate host creating massive sulfide mineralization. Nearer to the source of the fluids, mineralization is often in the form of copper - gold skarn (The 421 and overlying Canyon Creek Zones), transitioning to zinc - lead - silver mantos (4b Manto Zone; No.3 Manto Zone; No.2 Manto Zone) and chimneys. In the periphery of the system, the cooler fluids drop out precious metals silver and gold veins (No.1 Vein Zone Ag-Au ±Zn±Cu) form in the edges of the system.“ (Source)
In March 2021, Serengeti Resources Inc. announced the completion of a merger with Sun Metals Corp. (operator of Stardust) and changed its name to NorthWest Copper Corp. Two years earlier, Sun Metals‘ CEO Steve Robertson said in an interview with The Northern Miner: “We hit a home run with our first at-bat. Hole 421 was clearly head and shoulders above any intercept that has ever been seen on the property before, and quite frankly, we’re viewing this as a disruptive discovery.” The company reported assays for hole 421 in November 2018. The hole cut 100 metres grading 2.51% copper, 3.03 grams gold and 52.5 grams silver from 517 metres downhole. The company says that hole indicates a possible extension of its Canyon Creek Skarn zone. “I don’t think anyone was expecting to find the highest-grade gold mine in the world at Eskay Creek when they found it in northern British Columbia. Nobody was expecting that Chuck Fipke was going to find a diamond mine when he was scoring for diamonds in the Northwest Territories, and here we are with 100 metres of 5% copper equivalent in a carbonate-replacement system in northern B.C., where nobody would have expected that you’d actually find one,” Robertson says. “It changes our thoughts about what the potential is. We’re thinking of a much bigger scale system now, and I really believe that this is going to change the way that people think about carbonate-replacement systems in British Columbia, as well.” The company says the intercept may indicate a “major mineralized pathway” that leads to the heart of a high-grade system.“
See full VisualCapitalist´s "Visualizing the Economic Impact of British Columbia’s Golden Triangle" (September 17, 2021)
Full size / Active mining and exploration projects Skeen Region, 2014 (Blue Property added by Rockstone) Source: Kyba, J., 2015. Exploration and mining in the Skeena Region, British Columbia. In: Exploration and Mining in British Columbia, 2014. British Columbia Ministry of Energy and Mines, British Columbia Geological Survey, Information Circular 2015-2, pp. 97-114
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Core Assets Corp.
Suite 1450 – 789 West Pender Street
Vancouver, BC, V6C 1H2 Canada
Phone: +1 604 681 1568
Incorporation Date: April 20, 2016
Listing Date: July 27, 2020
CUSIP: 21871U05 / ISIN: CA21871U1057
Shares Issued & Outstanding: 55,709,701
Options: 3,635,000 / Warrants: 17,842,737
Fully Diluted: 77,187,438
Canadian Symbol (CSE): CC
Current Price: $0.28 CAD (09/17/2021)
Market Capitalization: $16 Million CAD
German Symbol / WKN: 5RJ / A2QCCU
Current Price: €0.187 (09/17/2021)
Market Capitalization: €10 Million EUR
Stephan Bogner (Dipl. Kfm.)
8260 Stein am Rhein, Switzerland
Disclaimer: This report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Rockstone Research, Core Assets Corp. and Zimtu Capital Corp. caution investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to Core Assets Corp.´s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through its profile on SEDAR at www.sedar.com. Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds an equity position in Core Assets Corp.,as well as in Zimtu Capital Corp., and is being paid by Zimtu Capital Corp. for the preparation, publication and distribution of this report, whereas Zimtu Capital Corp. also holds a long position in Core Assets Corp. Note that Core Assets Corp. pays Zimtu Capital Corp. to provide this report and other investor awareness services. Zimtu Capital Corp. is an insider and control block of Core Assets Corp. by virtue of owning more than 20% of Core’s outstanding stock. Core Assets Corp. has one or more common directors with Zimtu Capital Corp.