ABOUT THE RUBY CREEK PROPERTY
RUby Creek overview
Stuhini Exploration Ltd. has entered into an option agreement with Global Drilling Solutions Inc., whereby Stuhini can acquire a 100-per-cent interest in the Ruby Creek Property, also known as the Adanac Property. The property is 26,990 hectares in size, road accessible and located 20 kilometres from the nearby town of Atlin, BC. The option agreement is subject to exchange approval and other conditions including shareholder approval and the preparation of a technical report on the gold merits of the property.
The Atlin gold camp was the second largest placer gold producer in British Columbia with reported gold production of over 600,000 ounces. Four of seven active placer creeks drain the Ruby Creek Property. These include Boulder Creek with recorded production of 1,920 kilograms of gold and Ruby Creek with recorded production of 1,721 kilograms of gold. There are 46 documented minfile placer and mineral occurrences on the property, of which 17 are gold and/or silver related. The Ruby Creek Property includes the mineral rights, but not the placer rights.
The Property consists of Paleozoic to Mesozoic meta-sediments and mafic and ultramafic volcanics of the Cache Creek Complex. These have been intruded by the Middle Jurassic Three Sisters Plutonic Suite to the north. The youngest rocks are the Late Cretaceous Surprise Lake Plutonic Suite which occurs in the eastern portion of the property.
Historically, the source of the placer gold in the Atlin area was believed to be from quartz-carbonate-mariposite altered (‘listwanite’) ultramafic and mafic bedrocks in the area. Locally the listwanite contains fine grained gold, however the coarse gold commonly found in the creeks has never been found in the listwanite. In 2016, coarse lode gold was discovered in graphitic and quartz-rich phyllite bedrock beneath placer deposits along Otter Creek to the south of the Ruby Creek Property. It is now suggested that gold mineralization is not restricted to the listwanite, but is hosted in structurally controlled quartz-carbonate gold bearing veins and stockwork and deformed lithological contacts surrounding the Surprise Lake pluton or Three Sisters pluton. The plutonic rocks are believed to be the hydrothermal engine for the gold bearing solutions. The property has all the necessary meaningful geological features.
The Property also includes the historical Ruby Creek molybdenum resource. At a 0.04% Mo cut-off grade the Measured Mineral Resource is 43.642 million tonnes at a grade of 0.078% Mo, the Indicated Mineral Resource is 231.712 million tonnes at 0.065% Mo, and the Inferred Mineral Resource is 39.076 million tonnes at 0.062% Mo. The lbs of Mo represent in situ metal and have had no recovery factor applied to them (Palmer, K., May 2009 Mineral Resource Update, Ruby Creek Molybdenum Project in Northern British Columbia, Canada, Golder Associates). The resource estimate was established using 338 drill holes with a combined length of approximately 69,200 metres and 21,651 assay samples. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource or mineral reserve. Stuhini is not treating the historical estimate as a current mineral resource or mineral reserve, has not verified the historical resource estimate, and is not relying on it. Stuhini currently does not plan to conduct any work to verify the historical resource estimate.
The company views the Atlin region as an established placer mining gold district with untapped potential to host lode gold deposits. Stuhini has a large land package in the area with favorable geology. By using a systems approach methodology and modern exploration techniques, Stuhini is well positioned to potentially find an economic source of the placer gold.