ABOUT THE RUBY CREEK PROPERTY
RUby Creek overview
Stuhini entered into an Option Agreement in 2019 with Global Drilling Solutions Inc., whereby Stuhini can acquire the Ruby Creek Property, also known as the Adanac Property. The 28,631-hectare property is road accessible and located 14 kilometers from the nearby town of Atlin, BC. Since entering the option in December of 2019, the Company has increased the size of the overall land package by approximately 1,896 hectares by staking and by purchasing the “Island Claims” from Brixton Metals.
Based on the Ruby Creek Option Agreement, to fully exercise its Ruby Creek Option, the Company is required to issue a total of 7,300,000 Common Shares and make cash payments for a total of $1,060,000 over a four-year term, as detailed in the table below. Upon exercise of the Ruby Creek Option, Global Drilling would be entitled to a 1% NSR on the Ruby Creek Property.
The Property is located in the heart of the Atlin Gold Camp with 7 significant placer creeks within the tenures which are also prospective for both base and precious metals. The Property is also host to the advanced Ruby Creek Molybdenum Deposit, also known as the Adanac Molybdenum Deposit where the former operator, Adanac Molybdenum Corporation, advanced the historical molybdenum asset through feasibility, permitting, and funding and then into mine construction. Their construction efforts were derailed as a result of the 2008 financial crisis and the ensuing collapse in the price of Mo. As a result of the notable price increase of Mo. From $8US/lb to over $19US/lb, Stuhini hired MDA (Mine Development Associates) of Nevada to calculate a Mineral Resource Estimate (MRE). [1]
The MRE, using a 0.02% Mo cut-off, reported a pit constrained Mo resource of 432,991,000 lbs measured and indicated plus an inferred resource of 43,650,000 lbs. The following diagram summarized the Resource Estimate and shows the various drillhole locations used to create the resource estimate.
[1] Technical information source for Ruby Creek Molybdenum project assays, drill data, and resource estimate:“Technical Report, Ruby Creek Project, Northern British Columbia, Canada” effective March 10, 2022.
A summary of the resource estimate with various cut-off grade scenarios is listed in the following tables:
Table 1: Ruby Creek Measured plus Indicated and Inferred open-pit resources reported at various Mo cut-off grades.
Table 2: Ruby Creek Measured and Indicated open pit resources reported at various Mo cut-off grades.
In addition to the molybdenum resource and the well documented gold endowment, Stuhini has identified 4 high-priority silver targets within the tenures: Ruffner, Adera Corridor, Silver Surprise and Daybreak. The most notable of the targets is Silver Surprise where during the 2020 exploration season the Company discovered and reported surface grab samples that graded as high as 14,179 g/t Ag and an initial strike length of 170 meters. Follow-up work during the 2021 field season yielded more impressive results as 3 more surface grab-samples in the Silver Surprise area assayed at over 10,000 g/t Ag, the strike length was extended by another 100 meters and 3 parallel mineralized zones were identified. The Company also reported a notable high-grade sample of 13,250 g/t Ag at nearby Daybreak, located approximately 2km from Silver Surprise.
Following is a map highlighting the noteworthy silver showings uncovered by Stuhini exploration crews over the past 2 field seasons:
Prior to Stuhini obtaining the Option on the Project, there were 16 separate BC government Minfiles reported with respect to various gold occurrences within the tenures. There are multiple types of gold occurrences documented thus far with orogenic lode gold and intrusion gold targets being the most noteworthy. The 7 significant placer creeks within the tenures exhibit potential for lode gold as the creek valley bottoms themselves have been identified as the gold bearing faults. Bedrock gold occurrences have been observed multiple times by local placer operators and documented by the BCGS.
Intrusion related gold was first identified from 2 historic condemnation drill holes conducted by the former operator Adanac Molybdenum when they were advancing the molybdenum deposit in 2007. Follow-up analysis by Stuhini in conjunction with MDRU confirmed the presence of native gold within the quartz veinlets found within the intrusion gold portion of the historical core. Much more work is planned with respect to unlocking the potential gold targets within the prolific camp. [2]
[2] *Technical information: 2021 and 2022 Company news releases.