Activities at SnipGold have been quieter than we'd hoped for this year, and management hasn't issued many news releases. But don't be fooled into thinking that nothing at all has been happening. Let's review the MDA just issued on 2013-09-27, along with the current Presentation, to see what's new.
Ongoing Data Compilation
SnipGold has continued the painstaking process of compiling decades of exploration data which took place in over 280 square km's of land held by multiple prior owners, and gathering all these records into a master geocoded database. As reported on pg 11 of the Presentation, the results of over 5400 drill holes and over 32,000 soil samples have been compiled and geo-referenced.
Since early 2011, a focused and ambitious program to compile and interpret these extensive exploration data sets has been on-going. The expanded land package had been traditionally held by small operators, each with small land holdings. That series of land acquisitions is allowing for the first detailed review of this regional scale dataset.
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The soil sample geochemical dataset now contains over 33,100 soil sample points that have had their locations geo-referenced from numerous unrelated individual local grids into a standard UTM co-ordinate system. It is estimated an additional 10,000 soil sample sites have yet to have their assay data integrated into the master data set.
The compilation work is low cost to carry out and this work continues to provide a better understanding of the mineralization on the property.
A clear image of both bulk tonnage as well as high-grade precious metal targets has already been highlighted and the Company has sufficient understanding to undertake programs to advance many of these targets.
(MDA, 2013-09-27, pg 1 & 5)
New Target Area - McFadden Float Zone
The digitizing of the exploration results by prior owners has brought to light the remarkable chip samples which were recovered in the 1980's from this zone, including ten rock samples with gold grades better than 100 g/ton. During the 30 years since the last exploration work was done at this site, the Johnny Mountain glacier has receded considerably, which will allow more extensive exploration. See pg 20 of the Presentation, and pg 9 of the MDA (below):
Until this year’s reconnaissance level work, the McFadden Float Zone has not seen physical field work since the 1980’s. Data compilation has noted that this area has returned numerous samples of high-grade gold values in both soils and rock samples of boulders. Numerous boulders have assayed in excess of 100 g/t gold. Historical records document that the rock samples came from angular blocks of mineralized sulphide boulders released from Johnny Glacier.
It is noted, by reviewing the 2012 high resolution air photos, that the Johnny Glacier has retreated considerably since the last phase of sampling in the early 1980’s. The air photos indicate that there is a considerably greater area that is now free of glacial ice and is available for exploration for the first time.
Assay data and interpretive work are pending on the limited reconnaissance level work that was conducted on the McFadden Float Zone in 2013.
New Target Area - Khyber Pass Zone
SnipGold's gradual review of the historic data has also demonstrated the potential of the Khyber Pass target as another potential bulk tonnage deposit. A hole drilled in 1985 intersected 74m at a grade of 2.19 g/ton, and a hole in 1987 hit 61m at 1.83 g/ton. Correlating the drill data with the soil geochemical results found that the early drill holes were surrounded by a large area with 1100 soil samples showing significant gold assays. See pg 25 of the Presentation and pg 9 of the MDA (below):
The Khyber Pass is another area where historical exploration efforts were completed by junior exploration companies that held small claim groups and completed good quality exploration in the 1980’s and 1990’s. The last phase of historical work recorded for Khyber Pass was completed in the early 1990s.
The early work has highlighted a well-defined +1,100 sample soil geochemical anomaly that has a strike length of 1,200 metres and a width up to 400 metres. The average of all 1,100 soil samples compiled to date is in excess of 800 ppb Au.
The Khyber Pass area also underwent a reconnaissance level work program in 2013. Assay data and interpretative work are pending. Early interpretive work indicates that the northern contact of the alteration zone, Khyber Pass, extends southeast and is on strike with the northern alteration contact at Pyramid Hill.
Water Quality Sampling
The company has ongoing reclamation obligations which relate the the former Johnny Mountain Mine operated by Skyline in the 1980's. The visit to the site this summer addressed this matter:
SnipGold’s management team is focused on and dedicated to addressing environmental concerns at the former Johnny Mountain Mine site. The site is located on the Iskut Property and was operated as an underground gold mine from 1986 to 1988 and for a short period in 1993. The Johnny Mountain Mine Closure and Reclamation Plan (the “Closure and Reclamation Plan”) was approved by the BC Ministry of Energy Mines and Petroleum Resource (“BC MEM”) in 1999. The Company is currently reviewing the scope of work and timing of reclamation activities subject to discussions with the appropriate government agencies.
SnipGold has advanced various aspects of the Closure and Reclamation Plan as well as completed various monitoring and reporting requirements specified in the Johnny Mountain Mine reclamation permits from the BC MEM and the BC Ministry of Environment (“BC MOE”). SnipGold has undertaken active reclamation work at the site annually since 2008 with significant progress being made. SnipGold is committed to environmental stewardship.
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SnipGold has completed the 2013 field work required to collect the water quality samples from the Johnny Mountain Mine site as part of the Johnny Mountain Mine Closure and Reclamation Plan. The samples have been submitted for analyses and the report, due to be submitted to the provincial government in the spring of 2014, is pending.
(MDA, 2013-09-27, pg 12)
Connection with AltaGas's Road
The map on pg 4 of the MDA indicates that SnipGold's mineral tenures now come right up to the road which AltaGas has built to service its McClymont Creek hydro project. Having a road already built offers SnipGold a tremendous advantage over other explorers who are developing remote projects which are long distances from the nearest road or port.
Site Visits with Potential JV Partners
Despite the prolonged bear market for junior venture companies, discussions have continued with various interested parties, and evidently several of them have actually visited the property this past summer:
The Company has completed several site visits with potential Joint Venture partners. Discussions with these groups as well as other groups continue. The Company is focused on moving the project forward in a manner that will offer minimal dilution to the share position of shareholders.
(MDA, 2013-09-27, pg 1)
Expense Reduction
During these difficult times, SnipGold has gone to great lengths to reduce its administrative expendures, particularly for salaries. They are clearly running on a shoestring these days, with a lot of the work being carried out on a volunteer basis:
Salaries and benefits: During the quarter ended July 31, 2013, an expense of $17,208 compared to $80,923 in the quarter ended July 31, 2012; a decrease of $63,715. During the nine months ended July 31, 2013, an expense of $91,799 compared to $279,741 in the nine months ended July 31, 2012; a decrease of $187,942. The decrease was expected and due to the reduction in senior management staff.
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Legal, audit and accounting: During the quarter ended July 31, 2013, an expense of $12,815 compared to $108,938 in the quarter ended July 31, 2012; a decrease of $96,122. During the nine months ended July 31, 2013, an expense of $88,119 compared to $187,635 in the nine months ended July 31, 2012; a decrease of $99,515. The decrease was expected and due to reduced audit and legal consultations.
(MDA, 2013-09-27, pg 14)
Netolitzky Stepping Down
I was disappointed to read that Ron had stepped down as Chairman of SnipGold. His experience and stature could have been a great asset to this project. But honestly, he's been practically invisible the last few years. Clearly Ron is preoccupied with his other ventures, and this move is for the best, I think. JZ has been working hard to advance the shareholders' interests, but if an equally committed Chairman could be found, that could help to move things along as we head into 2014.