lake louise
658,000,000 lbs copper
24,800,000 lbs moly
924,000 oz gold
3,980,000 oz silver
Louise Lake Property
For the latest resource estimate, please see October 9th news release.
For results from the metallurgy study, please see Novemeber 16th news release.
Area: British Columbia
Location
Approximately 60 km by access roads in good condition extending west from Smithers, B.C.
Infrastructure: The property can be accessed in one hour from the town of Smithers. The area has a rich mining history, and has facilities and infrastructure to facilitate development of a new mining operation.
Key Points
A recently completed Resource Estimate by SRK consulting indicates an Indicated Resource of 6.0 Million tonnes and a further impressive Inferred Resource of 141 Million Tonnes.
Further routine drilling required to upgrade much of the Inferred Resource to Indicated Resource status.
The Resource is still open for expansion, including recently recognized potential to the south.
Access to the property is excellent.
The Metallurgy Department of Equity Silver reported copper and gold recoveries of 95% and 90% respectively (figures not compliant with modern standards under NI-43-101).
Commodities Copper, Gold, Molybdenum, Silver
Target: High-level porphyry-style copper-molybdenum-gold system
Claim Interest: 100%
Land Area: 32 mining claims (approximately 2662.7 Ha)
Resource Estimate:
Table 1 lists the updated resource estimates per category:
Table 1: 2007 updated SRK classified mineral resources, Main Zone, Louise Lake Project Mineral Resources*
Tonnes
Cu (%)
Mo (%)
Au (g/t)
Ag (g/t)
Indicated
26,000,000
0.231
0.008
0.22
1.01
Inferred
125,000,000
0.239
0.009
0.23
0.99
*All resources quoted at 0.15% copper cut-off
The 2007 estimate uses an actual copper cut-off value of 0.15%, rather than the "copper equivalent" (CuEq) cutoff value of 0.25% used in the 2006 estimate. Comparison of the two estimates using the 0.25% CuEq cutoff instead, with identical metal prices, indicates that the 2007 estimated tonnage has been increased by 8%, with very similar metal grades. Grades of the Indicated Resource category, which has been increased to 26,000,000 tonnes from 6,000,000 tonnes, are also substantially increased from 2006 values.
Table 2 lists the 2007 mineral inventory of the Main Zone at a CuEq cutoff of 0.25%.
Table 2: 2007 Mineral Inventory of the Main Zone, Louise Lake Project Mineral Resources*
Tonnes
CuEq** (%)
Cu (%)
Mo (%)
Au (g/t)
Ag (g/t)
Indicated
28,000,000
0.405
0.225
0.008
0.22
0.97
Inferred
132,000,000
0.427
0.234
0.009
0.23
1.00
* All resources quoted at a 0.25% CuEq cutoff
** CuEq values calculated using the following metal prices: Cu US$1.20/lb, Mo US$8/lb, Au US$450/oz, Ag US$7/oz
***The CuEq calculation does not take into account recoveries of individual metals
Table 3 lists the 2006 classified mineral resource; both were calculated by SRK Consulting (Canada) Inc.
Table 3: 2006 Classified Mineral Resources of the Main Zone, Louise Lake Project Mineral Resources*
Tonnes
CuEq** (%)
Cu (%)
Mo (%)
Au (g/t)
Ag (g/t)
Indicated
6,000,000
0.369
0.214
0.006
0.20
0.98
Inferred
141,000,000
0.426
0.234
0.009
0.23
0.94
* All resources quoted at a 0.25% CuEq cutoff
** CuEq values calculated using the following metal prices: Cu US$1.20/lb, Mo US$8/lb, Au US$450/oz, Ag US$7/oz
***The CuEq calculation does not take into account recoveries of individual metals
Upgrading of resource from the inferred to the indicated category is accomplished through increased density of drilling, as well as more exact surveying of drill collars, involvement of specific gravity samples, and improved quality assurance/ quality control (QA/QC) procedures, all implemented in the 2004 through 2007 programs. North American Gem is confident that further involvement of these parameters, as well as further infill drilling, will result in eventual upgrading of most of this deposit to the "Indicated and Measured" resource categories.
Table 4 lists contained metal values for the resource categories
Table 4: Contained Metal within Resource Categories, 2007 Estimate Mineral Resources*
Tonnes
Cu (M lbs)
Mo (M lbs)
Au (oz)
Ag (oz)
Indicated
26,000,000
132
4.64
184,000
840,000
Inferred
125,000,000
659
24.51
942,000
3,960,000
Historical Work
Approximately $1.4 million in exploration work has been completed since 2004 by both Firestone Ventures Inc. and North American Gem Inc.
First drilled in 1970 with a 17-hole diamond drill program by Canadian Superior.
Corona gold Corp. drilled an additional 5 diamond drill holes in 1989, and re-analyzed the 1970 core.
Equity Silver Mines drilled 13 diamond drill holes in 1992 and partially delineated the "Main Zone"
In 2004 Firestone Ventures Inc. drilled an additional 6 diamond drill holes, including "step out" holes designed to expand the zone.
In 2005 and 2006 North American Gem Inc. drilled 19 diamond drill holes in two programs designed to delineate and expand the "Main Zone"; the zone was expanded considerably.
Geology
The Main Zone, located along the north limb of the regional-scale east-northeast trending Coal Creek Lineament, hosts a highly unusual mineralogical setting. Copper mineralization occurs almost exclusively as tennantite, indicating formation towards the top of a porphyry system. This system displays many characteristics of epithermal as well as porphyry deposits, suggesting known mineralization may represent a comparatively small portion of a much larger porphyry system at depth. Induced polarization surveying conducted in 1969 revealed a high chargeability anomaly coincident with the Main Zone. A second anomaly having a similar signature occurs under Louise Lake along the south limb of the Coal Creek lineament, suggesting a potential fault-offset portion with a 1.0-km displacement of the Main Zone. This provides an additional exploration target for bulk tonnage porphyry and/or epithermal mineralization.
Future Development
The Louise Lake property requires further exploration outside of the current boundaries of the Indicated and Inferred Resources, as well as development-style infill drilling and geochemical testing to upgrade these estimates to the Measured and Indicated Resource categories. Metallurgical studies to test for metal recoveries and to identify potential smelter costs will be done shortly, followed by a Scoping study to improve determination of project viability.