Pelly Claims

(BMC 100%)

The Pelly 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 Pelly claims cover the down-dip and lateral strike extension of the stratigraphic package that hosts the high grade Wolverine Zn-Pb-Cu-Au-Ag deposit (owned by Yukon Zinc Corporation). The Wolverine deposit is hosted within the Wolverine Lake Group, interpreted to unconformably overlie the Kudz Ze Kayah Formation that is host to both the ABM and GP4F massive sulphide deposits. The Wolverine Lake Group predominantly comprises metamorphosed felsic volcanic and volcaniclastic and carbonaceous sedimentary rocks that are capped by metamorphosed mafic volcanic rocks.

The Pelly property, comprising 422 mineral claims and covering 72km2, is held 100% by BMC. The area was initially explored during the 1970’s and early 1980’s by a number of companies, before Westmin Resources Limited drilled massive sulphide mineralisation in 1995. The first follow-up drill hole intersected 8.4 m @ 0.6% Cu, 3.5% Pb and 14.2% Zn, 7.6g/t gold, 1358g/t Ag, and in January of 1998 a mineral resource estimate of 6.24Mt @ 12.7% zinc, 1.3% Cu, 1.6% Pb, 371 g/t Ag and 1.8 g/t Au was reported by Expatriate Resources Limited (Annual Report, 1999). The Wolverine mine operations commenced in 2011 before being placed on care and maintenance by Yukon Zinc in 2015.

Plan view of Pelly property and significant prospect locations.

 

The Wolverine deposit comprises two steeply dipping, semi-massive to massive sulphide lenses; the Lynx and Wolverine zones. The deposit has a strike extent of ~750 m, dips steeply to the north, and remains open down-dip both to the northeast and to the east. Massive sulphide within the deposit is up to 16 m thick, with stringer-style mineralisation occurring in the stratigraphic footwall to the massive sulphides.

During 2000 Expatriate Resources Ltd drilled three holes, with significant massive sulphide intersected in two holes, thereby demonstrating that the Wolverine deposit remains open down-plunge on to mineral claims now held by BMC. The two holes returned intersections of:

Within the hangingwall of the immediate Wolverine host sequence are two intervals of magnetite iron formation that return a response in aeromagnetic surveys. Magnetite exhalite horizons are seen to extend along strike from Wolverine, and they aid in delineating highly prospective host stratigraphy on a regional basis, both within and adjacent to BMC’s mineral claims.

Drilling by the Wolverine JV (Atna Resources and Westmin), in 1997 (http://yma.gov.yk.ca/093779.pdf), resulted in the discovery of mineralisation at the Sable prospect, located ~1.6 km southeast of Wolverine. Drilling intersected chlorite-altered host rocks containing stockwork-style chalcopyrite and pyrrhotite mineralisation, and included two narrow massive sulphide zones returning:

Drilling by Westmin at the Puck prospect, located 3 km southeast of Wolverine, encountered vein-style mineralisation and exhaltive barite-pyrite mineralisation. Although no significant massive sulphide mineralisation was encountered, 1.2% Pb and 2.7% Zn over 2.8 m was returned from hole PK96-02 (http://yma.gov.yk.ca/093652.pdf)

Drilling completed by Westmin Resources at the Fisher prospect in 1995 returned 2.2 m of massive sulphide averaging 2.8% Zn, 1.4% Pb, 0.12% Cu, 62 g/t Ag, and 0.14 g/t Au in WV95-06 (SEDAR: Yukon Zinc news release, 7th January 2005).

The Pelly claims cover both the down-dip and strike extension of the Wolverine host stratigraphy. Little modern exploration has been undertaken on the Pelly Claims, however the presence of base and precious metal-rich sulphide mineralisation throughout the belt supports the premise that this is a prospective package that requires further exploration activity.