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Properties |
Newfoundland |
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Address:
26 Kyle Avenue Mount Pearl, NL Canada A1N 4R5 Telephone: (709) 745-8377 Fax: (709) 747-1183 Toll Free: (877) 277-8377 |
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Little DeerPrimary Target Copper Partner Thundermin Resources Inc. Underlying Agreement and Interests The Little Deer property is subject to a 50-50 joint venture agreement signed in 2007 between Cornerstone and Thundermin Resources Inc. -- the project operator. Thundermin has the right to increase its interest to 75% by completing a feasibility study and by arranging 100% of the necessary bank financing required to place the property into commercial production. Location The Little Deer Copper Deposit ("Little Deer") lies approximately 10 km north northeast of the town of Springdale. The property also covers the past-producing Whalesback Mine ("Whalesback") plus numerous other base metal and gold occurrences. Property Information The Little Deer property currently consists of four mineral licences covering 65.26 km2 and comprising a total of 276 mineral claims. The Little Deer volcanogenic massive sulphide ("VMS") copper deposit occurs within the Cambro-Ordovician Lushs Bight Group sequence of ophiolitic intermediate to mafic volcanic rocks. The main sulphide mineralization, which is comprised of disseminated, stringer, and semi-massive to massive pyrrhotite, pyrite and chalcopyrite with locally minor sphalerite, is hosted by chloritized and sericitized basalts. Eight similar "Cyprus-type" VMS copper deposits, also hosted by the Lushs Bight Group, occur in the region. The largest past-producing mines, Whalesback and Gullbridge, had historical resources (not National Instrument 43-101 ("NI 43-101") compliant) of approximately 4.5 million tonnes each. Little Deer was discovered in 1952 by Falconbridge Nickel Mines Limited who conducted limited drilling and subsequently dropped the property. British Newfoundland Exploration Company ("BRINEX") started work on the property in 1955 and subsequently conducted extensive drilling and underground development. Copper ore was mined from Little Deer during two campaigns. The first mining was conducted by BRINEX from 1970 to 1972. Access to the deposit was achieved via a 1,044 m long drift on the 244 m (800) level from the adjacent Whalesback Mine, which lies 800 m north of Little Deer. BRINEX ceased mining operations at Little Deer in 1972 with the closure of the Whalesback Mine. In 1973, Green Bay Mining Company ("Green Bay") leased the property and mined Little Deer via a 329 m long decline. Green Bay ceased mining operations in 1974 due to low copper prices. The property lay dormant until exploration programs were carried out from 1997 to 2000 by Mutapa Gold Corp. ("Mutapa"). The programs consisted of geological mapping, surface and borehole geophysical surveys and 6,815 m of diamond drilling in twelve holes. This work indicated the potential to outline a significant resource of economic grade copper mineralization below and along strike from the areas of Little Deer that were mined previously. In 2007, Cornerstone and Thundermin, after optioning several mineral licences from Weyburn Investments Ltd., including those covering Little Deer, formed the Little Deer Joint Venture ("LDJV") and with Thundermin as operator, initiated exploration on Little Deer. Since June of 2007 Cornerstone and Thundermin have spent approximately C$8 million on exploration programs on the property, the bulk of which has been diamond drilling on Little Deer. Other work has included borehole Pulse-EM geophysical surveys, an airborne versatile time domain electromagnetic (VTEM) and magnetic geophysical survey, an Induced Polarization (IP) geophysical survey, GPS surveying, Gyro surveying, research and compilation of historical work, line-cutting, prospecting, metallurgical test work and several resource estimates. Details of the various drill programs, drill results and other exploration work can be found in numerous news releases and technical reports available on both companies' websites. The most recent NI 43-101 compliant mineral resource estimate for Little Deer, completed by P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario, is based on assay results from 48,432 m of drilling in 82 holes completed by Cornerstone and Thundermin since June 2007 and assay data from a total of 102 surface and 122 underground historical holes that were drilled by BRINEX between 1961 and 1970 and Mutapa between 1998 and 2000. The following table summarizes the current mineral resources outlined to date at Little Deer. Summary of Little Deer Mineral Resources (P&E, August 5, 2011)
Notes: 1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. 2) The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. 3) The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. 4) Ordinary Kriging was used for Cu grade interpolation. 5) Grade capping of 15% Cu utilized on composites. 6) A variable bulk density based on numerous field measurements was used for tonnage calculations. 7) A copper price of US$3.42/lb (May 31 2011 24 month trailing average) and an exchange rate of US$0.95=C$1.00 was utilized to derive the 1% Cu cut-off grade. Mining costs were C$40/t, process costs were C$15/t and G&A was C$5/t. Concentrate freight and smelter treatment charges were C$10/t mined. Concentrate mass pull was 7%, process recovery was 97%, smelter payable was 96% and Cu refining was US$0.07/lb. The current resource estimate represents a 66% increase in the Indicated Mineral Resources to 99.8 million lbs of copper (1,911,000 t grading 2.37% Cu) and a 61% increase in the Inferred Mineral Resources to 175.9 million lbs of copper (3,748,000 t grading 2.13% Cu) over the previous resource estimate completed in 2010. It also indicates the potential to further increase mineral resources with additional drilling below and to the west of the current resources. On October 19, 2010, excellent metallurgical results from scoping level test work on composite core samples from Little Deer were announced. This work, which was undertaken at SGS Lakefield Research Limited of Lakefield, Ontario, indicates that a saleable, high grade copper concentrate grading over 28% copper with over 97% recovery and free of any deleterious elements can be produced from Little Deer. The use of a simple rougher-cleaner flowsheet, a common xanthate collector, pH control with lime and a relatively course primary grind for copper liberation from mineralization of medium hardness suggest that the operating costs should fall into the low range for any metallurgical plant constructed to treat the Little Deer mineralization. Little Deer is located on a brownfield site and is well situated to take advantage of Newfoundland's developed infrastructure. It lies approximately 16 km from the Trans Canada Highway and is easily accessed by a 10 km network of paved and gravel roads north of Springdale. The site is approximately 8 km from a high-voltage power substation and there is a plentiful supply of fresh water in the area. The former tailings impoundment facility for the Whalesback Mine, which may be able to be upgraded and used to store additional tailings, is located only 1.2 km north of Little Deer. There is also good access to several deep water ports for any future shipment of copper concentrates. The Duck Pond base metal concentrator, which is owned by Teck Resources Limited, is located approximately 165 km by paved and gravel roads from the Little Deer site, 70 km of which is along the Trans Canada Highway and 65 km of which is on a secondary paved road. Little Deer also has some existing underground infrastructure dating from 1966 to 1972 and 1973 to 1974 when relatively shallow portions of Little Deer were developed and mined by BRINEX and Green Bay, respectively. BRINEX accessed Little Deer from the adjoining Whalesback Mine, which is also controlled by Cornerstone and Thundermin, and Green Bay accessed Little Deer via a ramp. This existing infrastructure may potentially afford substantial cost savings for underground access for future definition drilling and mine development. Cornerstone and Thundermin recently announced the results of a positive Preliminary Economic Assessment ("PEA") for the Little Deer Copper Deposit (P&E, December 15, 2011) that was highlighted by:
Notes: Copper Price = US$3.75; Exchange Rate of US$0.95 = C$1.00; All dollar amounts expressed in C$ unless otherwise stated, Preliminary Economic Assessment carried out by P&E. Cornerstone and Thundermin recently completed compilation work which has highlighted encouraging new tonnage potential at nearby Whalesback. Diamond drill logs and assay data for 60 surface and 242 underground holes from Whalesback were recovered from the archives of the Newfoundland and Labrador Department of Natural Resources in St. John's. Of the 302 compiled drill holes, 107 holes were drilled in the mineralized zone below and to the west of the areas mined by BRINEX. Twenty four of the historical holes had copper intersections grading > 2.0% Cu, 49 had copper intersections grading between 1.0% and 2.0% Cu and 33 had copper intersections grading < 1.0% Cu. Only one of the historical holes did not intersect significant copper mineralization. Significant results from the historical drill holes include 4.5% Cu over 6.1 m, 4.0% Cu over 3.4 m, 3.2% Cu over 5.5 m, 3.0% Cu over 4.3 m, 2.9% Cu over 8.4 m, 2.9% Cu over 6.1 m, 2.6% Cu over 4.6 m, 2.5% Cu over 5.3 m and 2.4% Cu over 9.1 m. Underground hole 11-11 was the deepest historical hole drilled on Whalesback. This hole, which intersected 1.7% Cu over 8.4 m at a vertical depth of approximately 565 m, was not followed up with additional drilling. The sulphide mineralization within Whalesback consists predominantly of disseminated, stringer, semi-massive and massive pyrite-chalcopyrite-pyrrhotite within altered mafic volcanic rocks similar to that encountered at Little Deer. The historical drill hole data demonstrates that there is copper mineralization already defined below and to the west of the areas mined previously by BRINEX between 1965 and 1972. In addition, the data suggests that there is excellent potential to further expand this mineralization with further diamond drilling at relatively shallow depths. The adjacent Little Deer mineralization is known to occur over a strike length of 1,050 m and to persist to a vertical depth of at least 1,000 m whereas the deepest intersection at Whalesback is at a vertical depth of approximately 565 m. It is believed that the copper mineralization at Whalesback could also continue further along strike to the west and to depth and cover an area at least comparable in size to Little Deer. Identification of new copper resources at Whalesback is expected to have a significant positive impact on project economics and an eventual production decision. Between December 2011 and April 2012 an exploration program comprising 6,177 m of NQ diamond drilling in 14 holes was completed on Whalesback. The program was successful in confirming the historical drill indicated mineralization and extending the mineralization to a vertical depth of 625 m below surface and from 50-100 m to the east and west of the historical deposit strike length at depths of 400-525 m below surface. Subsequent to the drill program, P&E were contracted to complete a NI 43-101 compliant mineral resource estimate for Whalesback. The estimate is based on assay results from 6,177 m of drilling in the 14 holes completed by Cornerstone and Thundermin and assay data from a total of 302 surface and underground historical holes that were drilled by BRINEX between 1961 and 1971. The following table summarizes the current mineral resources outlined to date at Whalesback. Summary of Whalesback Mineral Resources (P&E, July 26, 2012)
Notes: 1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. 2) The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. 3) The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. 4) Ordinary Kriging was used for Cu grade interpolation. 5) Grade capping of 5% Cu utilized on composites. 6) A variable bulk density based on numerous field measurements was used for tonnage calculations. 7) Domain models were generated from successive polylines spaced every five metres and oriented perpendicular to the trend of the mineralization. The outlines of the polylines were determined by selecting copper grades equal to or greater than 1.0% Cu with demonstrated continuity along strike and down dip. 8) A copper price of US$3.82/lb (June 30, 2011 two year trailing average) and an exchange rate of US$0.99US=C$1.00 was utilized to derive the 1% Cu cut-off grade. Mining costs were C$45/t, process costs were C$16/t and G&A was C$6/t. Concentrate freight and smelter treatment charges were C$10/t mined. Concentrate mass pull was 7%, process recovery was 97%, smelter payable was 96% and Cu refining was US$0.07/lb. 9) 2011 and 2012 assays were analyzed at Eastern Analytical Limited of Springdale Nfld. A QAQC program of field and lab duplicates, certified standards and blanks was put in place. Also during 2012 a program of borehole Pulse-EM geophysical surveying was carried out on 6 of the recently completed Whalesback drill holes in order to better direct future drilling on the deposit. A program of surface Pulse-EM geophysical surveying was also carried out over several previously defined airborne VTEM conductors located approximately 3 km east of Little Deer. This survey was conducted in order to confirm and better define the VTEM conductors for the purpose of possible drill testing. The results of the borehole Pulse-EM surveys indicate several off-hole conductive anomalies worthy of follow-up drill testing. The surface Pulse-EM survey failed to substantiate the VTEM conductors and they are no longer exploration targets. Planned work for 2013 includes diamond drilling designed to: 1) upgrade existing resources at Little Deer from the Inferred to the Indicated Resource category prior to commencing a pre-feasibility study; and 2) test for additional copper resources adjacent to Whalesback. Related News12-16 - Cornerstone and Thundermin announce significant copper resources at the Whalesback Copper Deposit in Newfoundland 12-10 - Cornerstone and Thundermin Extend Copper Mineralization at the Whalesback Copper Deposit and Plan the Next Phase of Exploration at Whalesback and Little Deer 12-05 - Cornerstone and Thundermin Intersect High Grade Copper Mineralization at the Past-Producing Whalesback Copper Mine 11-38 - Cornerstone and Thundermin File NI 43-101 Technical Report and Preliminary Economic Assessment for the Little Deer Copper Deposit DocumentsDecember 2011 - Little Deer Technical and Preliminary Economic Assessment December 2011 - Little Deer Consent Forms August 2011 - Little Deer Technical and Resource Estimate Update August 2011 - Little Deer Consent Forms Little Deer Long Section Whalesback Long Section Photos
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