3250 Hectares
100% Ownership
The Brassie Creek Property is located in the Kamloops Mining Division of British Columbia approximately 48 KM west of the City of Kamloops. The Brassie Creek Property consists of 8 Modified Grid and 4 Two Post mineral claims for a total of 130 units covering approximately 3,250 hectares.
The Company holds unencumbered title to the mineral claims comprising the Brassie Creek Property.
To date the Company has incurred exploration expenditures in excess of $300,000, including detailed mapping, prospecting, sampling and diamond drilling. The Company has determined that the potential of the Brassie Creek Property lies in the extent of the magnetite rich polymetallic intrusive skarn system and a variety of skarn targets. Economic bulk tonnage polymetallic skarns (ZN, AG, CU, AU) and higher grade polymetallic mantos are possible. The potential for such environments extends over a 2 to 3 sq. KM area.
Recent Exploration Programs
During May, 2003, Craigmont Mines ( "Craigmont") and the Company worked together to gather and analyse sample material rich in magnetite from two locations on the Company's Brassie Creek Property. The purpose of the sampling and analysis was to determine whether magnetite from the Brassie Claims met the threshold standard required by customers supplied by Craigmont. Analysis undertaken by Craigmont Mines laboratory indicates that the answer is yes. Samples average 64% magnetite (compared with 14% magnetite currently being extracted by Craigmont from tailings at the Craigmont Mine). Density and gauss (electromagnetivity) were satisfactory. The tests conducted confirm that magnetic material tested, having little impurity, would exceed the threshold standard for use as dense media material for coal cleaning and coal separation.
Brassie Creek Option Granted to Craigmont
By Mineral Property Option Agreement dated April 2, 2004, the Company granted to Craigmont an option on its Brassie Creek Property allowing Craigmont to explore for and acquire, upon exercise, magnetite, hematite and other industrial mineral resources. Craigmont is obliged to expend not less than $50,000 per year on exploration for the initial five year term. Exploration expenditures for the second five year term increase to $100,000 annually. Exercise of the option is achieved and Craigmont becomes owner of all magnetite, hematite and industrial mineral resources on the Brassie Creek Property upon the production of a Bankable Feasibility Report. The Company retains the full rights to all base and precious metal resources and is responsible for the cost of further processing the residual ore to extract these base and precious metals. The Company also retains a 1% net profit royalty on proceeds realized by Craigmont from the sale of magnetite, hematite and other industrial minerals.
The prospective development of the Brassie Creek magnetite resource by Craigmont will facilitate development of the precious and base metals hosted in magnetite, which the Company has retained. |
