ESKAY CREEK MINE. Rob Boyce, P. Geo. G\GROUP\GEOLOGY\EXPLORE\EXPL2001\BUDSAN1

Transcription

1 ESKAY CREEK MINE Rob Boyce, P. Geo. G\GROUP\GEOLOGY\EXPLORE\EXPL2001\BUDSAN1

2 Outline Location Geology Production Recent Exploration Future of Eskay Creek

3 Location and Transportation From Kitwanga Ore and Ore and Concentrate are Concentrate are Rail Shipped trucked to Stewart and to the Horne Smelter in From Noranda, Kitwanga Stewart Quebec the Ore and Concentrate are Ocean Shipped to the Dowa Smelter in Japan.

4 132 STIKINE ARCH Eskay Creek Stewart Eskay Creek Mine Site Smithers 54 Stewart Smithers SKEENA ARCH 50 km Sustut Basin (K) Bowser Basin (J-K) Hazelton Group (J) Vancouver Stuhini Gp & Stikine Assem. (D-Tr) Cache Creek Terrane (P-Tr) 600 km Takla Volcanics - Quesnellia (Tr-J)

5 Snip Johnny Mountain PS Mount Shirley Fault Eskay Anticline River Unuk Syncline Eskay Creek Anticlinorium Sulphurets Thrust 430,000 E 6,280,000 N Treaty Glacier South Unuk / Harrymel Fault McTagg Mitchell Sulphurets Snowfield 6,260,000 N 380,0 00 E km Kerr Brucejack Lake Bowser Lake Group Hazelton Group Upper volcanic/sedimentary sequence Lower volcanic sequence Basal sedimentary sequence Stuhini Group Undifferentiated volcanic and sedimentary rocks PS Stikine Assemblage Coast Plutonic Complex Jurassic Plutonic Suite Triassic Plutonic Suite Mineral deposit / showing Fault Trace of syncline Trace of anticline

6 Eskay Creek #21 Zone Variations in mineralogy, texture, ore grades, spatial distribution Stratiform lenses in contact argillite Discordant in footwall rhyolite Fault bounded basin HW NEX Argillite Creek Fault 21C 21C Andesite Creek Fault 21B 109 Zone East Block 21E Pumphouse Portal Fault 21A Pumphouse Fault Zone 500m

7 Genetic History of the Eskay Creek Deposit Black smoker

8 Rhyolite flow domes Pelagic mudstones and tuffaceous interbeds Stage I Genetic history of the Eskay Creek deposit Developing 21B trough White smokers Barite-rich 21C zone Black smokers Stage II 21B zone Sulfidesulfosalt debris flows Stage III Basaltic pillow flows HW zone - declining hydrothermal activity

9 CONTACT HW FEEDER /RHYOLITE ESKAY HORIZONS G:\group\geology\98reserv\pictures\strat.ppt

10 Minesite photo showing the general layout and location of the orebodies on the hillside. ESKAY OREBODIES N

11 Plan View of Projected Eskay Ore Zones 500m Eskay Creek Ore Types N CS 10650N Andesite Creek Fault Pumphouse Creek Fault NEX Zone 109 HW Zone 21B Zone 21C Zone 109 Zone #3 Bluff Fault LS 9950E 21B Zone

12 Longitudinal Section Looking West Across The Deposit 1000m # 3 Bluff Contact Mudstone Basalt sequence 21B Zone HW Zones N 800m 600m 400m 200m Rhyolite Footwall sequence: 109 Zone Dacite Andesite tuff NEX Zone Conglomerate - sandstone Bowser Sediments Upper Mudstone msl 0m 500m

13 Cross Section 10650N 900 m 800 m 700 m 600 m 500 m West Limb West Bowser Basin Andesite Creek fault Argillite Creek fault HW Andesite 21B Zone 21C Mud Contact Mudstone 21C Rhy Rhyolite FW Package Pumphouse Creek fault Hinge of Eskay Anticline Portal fault East Break fault East Limb East Bowser Basin Scale (metres) Looking Looking Grid North Northeast

14 Mining Areas 1000m 900m Pumphouse E 21E B N m 800m 700m 21C -south pod HW 800m 600m 21C -north 600m 500m NEX 400m Resource models NEX&HW Deep 400m 300m

15 Important Geology Features Strataform Massive Sulphide Deposit Sea bed deposition Feeder Structures Extremely high precious metal grades Extremely high Hg, Sb make it unique

16 Metal grades in Zn-Pb-Au-Ag-type VMS deposits worldwide data from: Hannington et al. (1999) and Huston (2000) 51.3 g/t tonnes Au (~3 million oz) , 286 g/t Au (g/t) tonnes Au 1000 tonnes Ag tonnes Ag tonnes Ag (~300 million oz) Ag (g/t) 100 tonnes Ag Total base metal content (Zn + Pb + Cu) (%) mt. Size of deposit (million tonnes) Ag/Au 1 tonne Au Size of deposit (million tonnes) Production: Jan Dec. 2001: 1.04 million tonnes containing 2.1 million oz. Au 91 million oz. Ag Proven and Probable Jan. 1, 2002: 1.3 million tonnes containing 1.8 million oz. Au 84 million oz. Ag

17 Mining Drift-and-fill mining method 60% Underhand (7% Cement) 40% Overhand (4% Cement) 2.7m lifts 2.4m min. mining width Rock for fill mined from a river bed and hauled 30 km to site. Contract Mining Crews Barrick Supervision and Equipment.

18 Eskay Creek Mine Recent Production 2003 Year 352,000 ounces Au 17.0 million ounces Ag Total Cash Cost $52 per ounce Au Barrick s Lowest Cash Cost Producer in 2003! 2004 Year 290,000 ounces Au 15.8 million ounces Ag

19 ESKAY CREEK MINE ORE RESERVE HISTORY 4,500 4,000 Au Ounces (000's) 3,500 3,000 2,500 2,000 1,500 1, ,024 1, ,720 2, , , , ,274 2,418 2,531 2,612 2,409 2,109 2, ,709 1, Year End Totals

20 Annual Ounces Produced 400,000 18,000, ,000 16,000, ,000 14,000,000 Au Ounces 250, , ,000 Au Ounces Ag Ounces 12,000,000 10,000,000 8,000,000 6,000,000 Ag Ounces 100,000 4,000,000 50,000 2,000, LOM

21 Annual Tonnes Produced LOM DSO Mill Ore Tonnes (000's) LOM

22 e C r 2004 Exploration Summary 52.5 > Deep Adrian 3,600m 18,000m drilled during winter and summer programs > 53 > 54 > a c k kilometers West Limb 2,300m E a > 56 s k Lower Stratigraphy 3,000m y Footwall 1,500m > 57 a y C 22 Zone 4,700m r > 58 e Ridge Block 1,400m e C South Block 1,800m C k r e k e Low-grade resource discovered at the 22 Zone (1gpt cut-off). Thickened contact mudstone basin identified below the Deep Adrian but no significant mineralization. 2000m of DDH surveyed on Deep Adrian and below minesite, using Borehole TEM geophysical method. Lower stratigraphic massive sulphide mineralization determined to be poddy and discontinuous. I Geological mapping identified relationships between rhyolite facies and mineralization.

23 22 Zone Location Map > 53 > > 54 > Zone Deposits > 56 > Zone metres 1,000

24 Compilation Project 1. Detailed model with information gained from mining. 2. Review all drilling data 3. Develop comprehensive listing of targets. 4. LOM drilling plan targets have been identified. 6. Testing them with UG Drilling in 2005 Results expected modest gains only

25 Future of Eskay Creek 1. Mine Life to Mid Closure 3. Rehabilitation Barrick Exploration looking for similar properties elsewhere in northern BC.

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