Fyre Lake Claims

(Option to Purchase 100%)

The Fyre Lake mineral claims are located within the Finlayson Lake District of the Yukon-Tanana terrane, which underlies much of central Yukon and parts of Alaska and British Columbia. The Finlayson Lake District forms a crescent-shaped area ~300 km long and ~50 km wide that extends from Ross River in the north to Watson Lake in the south, and comprises Devonian-Mississippian volcanic, intrusive, and sedimentary rocks. It is bounded by the Tintina Fault to the southwest, and to the northeast by the Inconnu Thrust.

The Fyre Lake property, comprising 161 mineral claims that are the subject of an Option to Purchase agreement (refer BMC release of 23rd January 2017), encompasses the Kona (Fyre Lake) Cu-Co-Au volcanogenic massive sulphide deposit.

The Kona deposit occurs within the Fire Lake Formation (365 Ma) of the Grass Lakes Group. The Fire Lake Group predominantly comprises chloritic phyllite, interpreted as a metamorphosed volcanic sequence. The immediate host rocks to the Kona deposit are chlorite-quartz±actinolite schists (after mafic volcanics) overlain by predominantly finely laminated carbonaceous phyllite (after turbiditic sediments) that form the immediate stratigraphic hanging wall.

The property area was explored sporadically from the 1960s until discovery of the Kona deposit by Columbia Gold Mines Ltd. (now Pacific Ridge Exploration Ltd.). The deposit was drilled out during the 1996 and 1997 field seasons, with 115 diamond holes completed for ~23,663m of drilling. Significant exploration activity then ceased until 2015, at which time Merah Resources Limited undertook a VTEM survey across the project. Significant drill results from the 1996-97 drilling programme include:

Historical drilling indicates that mineralisation occurs within an area approximately 1,500 m long by 250 m wide, trending at ~130°, and plunging between 0° and -20° to the southeast. The Kona deposit comprises two parallel zones of volcanogenic massive sulphide mineralisation, East Kona and West Kona, interpreted to be separated by an inferred reverse fault.

The East Kona zone mineralisation is 100 to 150 m wide, and comprises two massive to banded sulphide-bearing horizons (i.e. Upper and Lower East Kona) separated by 40 to 70 m of chlorite schist. The Lower East Kona horizon is divided into north and south portions separated by an apparent gap in the mineralisation. The northern portion is 3 to 16 m thick and the southern portion is 2 to 11 m thick. The Upper East Kona horizon averages thicknesses of 8 to 12 m. Mineralisation comprises mainly pyrite with lesser pyrrhotite and chalcopyrite, local lenses of massive magnetite, and minor sphalerite.

The West Kona zone is interpreted to be 75 to 125 m wide. The thickness of the mineralised horizon varies across this width from about 44 m in the east to less than 1 m at the western margin; the thickness also varies along strike. It includes mineralisation that changes laterally from magnetite, pyrite and chalcopyrite in a siliceous matrix, through massive pyrite and lesser chalcopyrite, to massive pyrrhotite with minor pyrite and chalcopyrite.

In January 2017 BMC announced an Inferred Mineral Resource estimate (JORC 2012) for the Kona deposit of 3.6 Mt @ 1.6% Cu, 0.6g/t Au (Indicated) and 5.4Mt @ 1.5% Cu, 0.5g/t Au (Inferred) using a 1% copper cut-off grade.

The Kona deposit remains open down-plunge, and additional targets exist immediately lateral to the Kona mineralisation across interpreted offset faults. Additional targets have also been defined in previous surface geochemistry and VTEM surveys that warrant additional drill testing.

Diamond drill hole pierce point plan and cross section view of Kona deposit

Longitudinal section view of East Kona Zone

Longitudinal section view of West Kona Zone

 

Fyre Lake – Historic Drill Intercept Table