Overview and Highlights
The wholly owned Homestake Ridge Project covers approximately 7,500 hectares within the Iskut-Stewart-Kitsault belt in NW British Columbia. To date more than 275 holes, totalling more than 90,000 metres, have been completed on the property and multiple exploration targets remain to be tested.
Homestake Ridge Project Highlights
- High grade gold endowment located within the Golden Triangle
- Established significant mineral resource
- Situated closed to regional infrastructure: Northwest Transmission Corridor, deep water access and existing road within 6 km of the deposit
- Mining Friendly jurisdiction
Location & Infrastructure
The Homestake Ridge Project covers over 7,500 ha and is located 32 km southeast of Stewart, BC, and 32 km north of the historic mining towns of Kitsault and Alice Arm.
There is no permanent infrastructure on the Project and labour and supplies can be trucked in to Kitsault via Highway 113 from the town of Terrace, which is serviced by three air carriers with daily scheduled flights. Access to the Project from the town of Kitsault is by boat/barge to the community of Alice Arm followed by service roads to the edge of Homestake Project area (6 km from deposit).
The Property is located within the prolific Iskut-Stewart-Kitsault Belt which hosts several precious and base metal mineral deposits. Diverse mineralization styles include stratabound sulphide zones, stratabound silica-rich zones, sulphide veins, and disseminated or stockwork sulphides. Mineralization is related to Early Jurassic feldspar-hornblende-phyric sub-volcanic intrusions and felsic volcanism and commonly occurs with zones of pyrite-sericite alteration. Numerous genetic models can be proposed for the area and local deposits present a broad range of characteristics.
Drilling has outlined mineralization with three-dimensional continuity, and size and grades that can potentially be extracted economically. Project geologists have a good understanding of the regional, local, and deposit geology and controls on mineralization.
Reserves & Resources
The current Mineral Resource estimate on the Project as at September 1, 2017 is summarized below:
MINERAL RESOURCES BY CUT-OFF
Auryn Resources Inc. - Homestake Ridge Project
- CIM definitions were followed for Mineral Resources.
- Mineral Resources are estimated at a cut-off grade of 2.0 g/t AuEq.
- Assumptions to calculate AuEq values are described below in the text of this report.
- Mineral Resources are estimated using a long-term gold price of US$1,300 per ounce, and a US$/C$ exchange rate of 1.2.
- A minimum horizontal width of two metres was used.
- Bulk density ranges from 2.66 t/m3 to 2.85 t/m3 depending on the domain.
The 2017 summer drill program was designed to test 2 of 7 major target areas across the project with a focus on expanding the South Reef mineralized zone as well as the potential northwestern extension to the Homestake Main deposit. Drilling was discovery oriented which targeted new potential zones of mineralization or significant extensions. None of the drilling occurred within 500 meters of the Homestake Main and Homestake Silver deposits, leaving them open for expansion.
The drilling from South Reef demonstrated that the high-grade mineralization has a 15 - 20 degree shallow plunge to the northwest with the width of the structure and associated breccia’s increasing in the same direction. The shallow plunge observed at the South Reef main zone is similar to that observed at the Homestake Main and Silver deposits and represents an excellent opportunity to significantly expand mineralization on the project. Auryn also discovered a 600 meter long gold-in-soil anomaly that coincides with the northwest direction of plunging high-grade mineralization that remains undrilled demonstrating the highly prospective nature of this structural corridor.
Auryn’s 37 hole (14,850 meter) program at Homestake Ridge, which was completed under budget, represented its first field season on the project. Total drilling costs were approximately $400 per meter showing that this area of the Golden Triangle can be explored in an efficient manner.
Significant results from the South Reef diamond drilling are provided in the table below. No significant results were obtained from the Homestake Main extension drilling or other holes.
Significant Intercepts 2017 – South Reef
|Hole ID||From (m)||To (m)||Interval (m)||Au (g/t)||Ag (g/t)|
|* Composite interval includes no less than 4m < 0.2ppm Au True widths are estimated at between 50 – 75% of reported intervals|
Communities and the Environment
Auryn Resources understands the shared value that mining can bring but also understands its risks and the importance of responsible and sustainable development. Our Company strives to maintain the highest standards of environmental protection and community engagement throughout all of its projects.
Auryn is focused on bringing this shared value approach to the NW British Columbia.