Transcript
Automated transcript · Written by software from the replay's audio. It can mishear names and figures; the replay is the record.
0:08 Hello everyone and thank you for joining us for this live New Break Resources event. Today we're joined by CEO Bill Love, who will share his commentary on the latest draw results from the Moray Gold Project. We'll open things up for questions at the end, so please feel free to submit yours at any time using the chat feature at the bottom of your screen. Also note that today's event is being recorded and will be available for replay shortly after we conclude.
0:31 Bill, to get started, we'd love to hear your commentary on the news. Feel free to share your screen with all the models. I see you've got a lot of them prepped up already, so we can better understand what this news is about and why it matters. Once you've walked that through, we'll open up to questions. The floor is yours. Good morning, everyone. I'm going to start with an overview of the entire Moray property, which is now 29,859 hectares. It's quite a large property. Timmins is here, Kirkland Lake is here, Matachewan is here, and the Alamosas Young Davidson mine is about here.
1:17 I just want to touch very quickly on we've been doing some prospecting work in between drilling this year and I just plotted the sample results where we will have some disclosure shortly.
1:44 We've had some success with our prospecting and this location, Quartz Lake, we've had some very good Copper values in, these are the samples, so there's some, there'll be press release coming about that. And, we've also had, in this area, we've had some quite good nickel values. So the nickel is obviously associated with the ultramafic, and the copper values are likely originally VMS trained, but there's been some structural rework.
2:29 So we will have some disclosure on that. And then I also wanted to touch on another spot where we did some work last year. This is the this is the Mineral Inventory Map, which is Ontario Government's map. All of these dots are mineral occurrences. And, I had a very interesting conversation with a fellow who's a Timmins-based prospector. This is the Cameron Porcupine mineral currents. You can go and view the historical work. We did some sampling at this location last year. We had some anomalous Gold values.
3:19 This local prospector, whose name I won't reveal, called me and said that there's extremely high Tellurium values at this location. Why that's interesting is that Tellurium and Bismuth, and I'll get to this in a
3:44 second with respect to the Zabitz Gold Zone, are indicator elements of a certain type of gold mineralization. And the values that this individual told me he had found were incredibly high. And that suggests that there may be an intrusion host or intrusion related system. So we need to go back and do some work here, which we will in between drilling. So just coming to the moray zone, the zavit zone. So, the zavit zone is in here. These are all prospective drill hole locations and sampling that we did again this year to cover some areas that we will cover with drilling.
4:45 So just to jump over on to, this is LeapFrog. It will show up. Okay. So this is the original Trench 12 that we stripped and was discovered by SGX Resources in 2012 prospector. And as some would know, we did, we opened this up, we did more sampling, and there's a kind of 1 meter wide breccia vein that's down through here and comes down to here. And that breccia vein had very high Gold values, not 70 grams per ton, but what was interesting at the time, and is particularly interesting now that we found the zone, is that there is a, there's an historic volcanic mass of Sulfide Zone, that's known as the Voyageur Zone, which is, this road has all kinds of outcrop that we stripped, and you see a lot of massive pyrite and pyrite and it kind of projects down into here and that massive sulphide, as I've said before, lots of sulphide but there's no Gold.
6:18 And what's happened, and we realised this early on when we opened up this Breccia vein, is that clearly something's happened to remobilise the pyrite and pyrite from the massive sulphide into very fine pyrite crystals, euhedral, full crystals. That's where the Gold is. It's important to realize this is geophysics, that this is gradient IP chargeability and you can see, you know, this is, these are our drill holes. But the geophysical signature is not an absolute determinant of the presence of gold, because you can have high chargeability, meaning conductive sulfides, but they don't necessarily carry Gold.
7:21 It's important to realize that the geophysical signature is not an absolute indicator of Gold mineralization. You have to see this fine recrystallized pyrite, which we now are becoming quite used to seeing in the drill core. What's become clear is that this is the cyanide contact as we've encountered it with drilling. This contact is projected. We've only drilled down, this was in the first quarter drilling, 26-12 and 26-09, 10 and 11, which were collared in the cyanide.
8:19 And we had gold intersections in the cyanide in 9, 10, 11, largely in the cyanide, and then 12, basically exclusively in the cyanide. And up here, the gold intersections have been in mafic volcanics. This is an ultra mafic ore. It's a rock type that, you know, commonly hosts nickel in the Timmins Camp. In our case, it acts as a sort of the western, sort of, end of the Gold Zone in the Mafic Volcanic. So, we had we just released some results.
9:12 I just want to cover them quickly. So, where we drilled,
9:19 where we just announced results, we did 23, 24, 25, and 26 as we refer to as top up holes, which were intended to drill as high as we could drill in the zone, short of having surface exposure. We found narrower you know, having surface exposure. And we did, we found narrower, narrower goal values in 23, 24, 25, 26. But, you know, in, in certain cases, pretty decent widths, 1.75 or 6.7.
10:11 But what was apparent in the program that we're on, we just paused now, is that these are section lines and all that means is that this is a common manner in which you know geologists express their sections of the section runs a a1 and b b1 and the sections are meant to encompass the top up holes 23, 24, 25, 26 and these collars where we've now finished 27, 28, which we've disclosed. We're waiting on assays for 29, 30, 31, 32.
11:00 So, in the section, so the B, B1 section is here, and this section, when we drilled in the first quarter, The 6, 7, 8 sections, we had reasonable Gold values. But what's happening is the Gold zones, in the case of 27, the Gold zone is confined to the Mafia Volcanic, which is the green. And you can see the histograms of the Gold values. And 5.28 grams per ton over 11.2 meters, and a shorter zone at the top.
11:51 We noticed mineralization in the cyanide, but it didn't carry appreciably in terms of gold values. And then in 28, 3.95 over 14 meters, we're starting to see the migration of the, of the, what we hypothesize is the migration of the zone, into the cyanide as we go further to the Southeast. And I'll remind everyone that these, these holes which are Southeast of the section BB1, which is essentially here, we did have Gold Dyes which were essentially only in the Cyanide. So, We need to keep tracing the zone to the South East and see to what degree the zone propagates into the cyanide.
12:50 And the reason we, you know, we can say this now with some confidence is, you know, is not explicitly just the result, the first quarter results from 9, 10, 11 and 12. And what we're what we have now released and observed in 28 is that the elemental chemistry is this bismuth tellurium relationship, which I mentioned earlier, and which Evan Hastie of the Ontario Geological Survey has done a lot of, published a lot of work on in the Abitibi. This we're seeing the elevated bismuth and tellurium values in both the Mavic Volcanics and in the cyanide, both in drill core and also on surface, where we've noticed this increase in bismuth and tellurium.
13:54 We did multi-element work last year on 2505 and The relationship between elevated business, tellurium and gold was quite apparent. We've extended that multi-element work into 2504, 2009 and 2010. I'm waiting for Peter Hobachuk, my colleague, who's the guru of multi-element analysis, to complete his analysis on that second round of multi-element work. I looked at the results and you see the elevation of Bismuth and Tellurium and Gold.
14:41 That relationship is indicative of Cyanide-hosted and Cyanide-related Gold deposits.
14:57 Probably the most well-known of these types of deposits is the Makassar mine in Crooker Lake, which is now Idenico Eagle, but goes back to Lack Minerals.
15:14 We've had some anecdotal stories from Phil Walford, who's a technical advisor for Newbrake, who goes back to when I first met Phil when he was at WAC in the 90s, where they have extremely high Tolerance. That elemental relationship has been apparent. We see it in drill core and we see it on surface. Where are we going to go? We're going to keep tracing to the Southeast. We're waiting on the results for 30, 31 and 32. We're expecting, you know, again that section A1 is further to the northwest, it's this line.
16:05 We're expecting the mineralization to be largely within the maybe volcanic, so though there is there's some well mineralized Cyanide, particularly in, I believe, 30. So, we're waiting on those results. And, we need to keep testing the system further to the northwest because there was a hole up here that SGX Resources did in 2012-01 and 2012-03. That Core is out at the NPLH core farm on the western side of Timmins.
16:51 Peter Havacek and I have looked at that core and there was quite a broad anomalous Gold in the scion and in 1203. What we've noticed already in 26, 27 and 28 is as you go deeper, the system gets wider. We need to test deeper to the Northwest and we need to test along and deeper on the contact to the Southeast. We paused our drilling and are working on some different financing arrangements. We want to get as much done. We have a lot of other targets.
17:40 This is a surfer map that Peter Hubbacheck has done. And Peter's outlined it. Again, this is the gradient IP that we did. The zone is down here. This chargeability, you know, that the elevated chargeability, you know, needs to be tested. And Peter Habacek has interpreted a structure along here. The cyanide is basically here. The structure is here. And this target in particular, we know has a lot of sulfide, because there was an airborne EM conductor that Gulf Minerals tested in the 70s, and they encountered, you know, wide sections of pyrite and pyrite in a VMS environment. This is very similar to what we have discovered at the Zavitz Gold Zone.
18:41 We need to get these other targets before the winter because, Judging on last winter, we could only access, we drilled down here and we drilled in the Zabit Zone. Beyond that, the snow was so deep that just opening up the road that goes along here would have been a major undertaking. So, you know, we need to get back and start getting to some of these other targets because again, the similarities to what we've already discovered, are quite apparent. And
19:23 we need, you know, we need to test. Now the other thing that we've done, which, you know, may turn out to be quite interesting, I mean, there is an individual in Timmons. I won't repeat his name or reveal his name, but he's very well known. And he's been a longtime advocate of a certain form of humus or root sampling. We have just engaged him to do some sampling of humus roots around where we know we have gold in the Zabits Gold Zone, which has now just been completed. I've had some recommendations from 1 other geologist in Timmins, who I know very well, who had a lot of success with this method.
20:21 And I'm very keen to see, you know, whether again, where we know we have goal, whether that shows up in the
20:33 humus sampling results. If it does, we need to do quite a round of humus sampling before winter, because it'll help us to localise some of these other targets. The geophysical, the IP signature is not an absolute determinant of the presence of Gold. It's this recrystallization effect. You have a need for proximal sulfides, close sulfides. The presence of the sulfides alone doesn't necessarily mean you're going to have gold. I'm quite keen to see what comes out of this sampling effort.
21:22 We're sampling where we know we have Gold, so if it's going to work, it'll show Gold. That's the very quick review of where we're at. Kyle, I believe you had some questions. Thank you for the thorough overview. Now, Bill, your job as the CEO is to explain your theories and logics, but what I want to ask you is, what's the strongest argument against your own read on this, and why do you still land where you do?
21:53 Well, the you know, the argument is that, And there, you know, there's a certain basis to this. You know, we discovered the zone in the Mapley Volcanics at, or very near to the contact with the Cyanide. And, you know, there is an argument that the, you know, the bulk of the Gold Zone is in the Maverick Volcanics. My argument against that is the multi-element geochemistry which is showing the same signature in the Cyanide and the Maverick Volcanics. And what we've already discovered in holes 9, 10, 11 and 12. So, you know, we're on the early stages of examining to what degree this Gold Zone propagates into the Cyanide.
22:48 We don't know the full extent yet, but both the multi-element geochemistry and what we've already found in 9, 10, 11 and 12 suggest that the zone does propagate into the intrusion. But, time will tell. It needs more drilling. Let's just reiterate this for people that are tuning in for the Q&A. With this news behind you, are you done drilling for now or what can people expect from you over the coming months? No, we have to get back at it quickly
23:28 because to test, as I've already indicated, to test some of these other targets. We need to do that before, you know, we have, you know, winter like last winter because, just the access. So we, we, we have a time imperative. And you know, we're sort of thinking end of October. I realise that's not just the start of snowfall, but last winter was really brutal. We need to get back drilling very quickly. The zone itself, we can access in the winter quite easily, or relatively easily.
24:17 Any other targets, north, northeast of the So, but any other targets, you know, north, northeast of the zone, we need to get to before the winter. So, we've got to get back to it. Yep. Right. When you step back from the day-to-day, what is the big picture you want people in this room to walk away understanding? At this point, a smallish, you know, we have obviously haven't calculated resources, but you know, there's a number of geologists, including myself, that, you know, we constantly think about how, how much we've found thus far and how much bigger this can be.
25:06 You know, we're in Timmins. The producers are very active, you know, looking at all the juniors. There was just a deal yesterday between GFG and Barrick. Barrick hasn't been in the tenants camp for a long time. So you know we need to see how much bigger we can, you know, how much bigger this zone is going to be, and do we have other zones like this, associated with this intrusive event? So we have a very large intrusive. We have this common multi-element signature between the Gold and the Mavic volcanics, and the Gold and the Cyanide, both in core and on surface.
25:57 We have a very large target that potentially could host quite a significant ore deposit. We're close to producers, they know what we're doing. I expect to have some visitors early in September to look at core and go to site. So we're looking for a large target. Timmins is the right place to find 1 because the infrastructure, producers, people need feed.
26:48 Young Davidson needs feed, it's permitted up to 1,200, 1,200 tons per day, sorry, and they're getting pretty deep on their cyanide. So, so that's what we're after. So, large target, that you have to chip away at, little by little. So, If there's 1 milestone you tell everyone here to keep an eye on next, what is it? It's the migration of the zone at depth, potentiating the Cyanide, and It's the expansion of the zone at depth as we drill deeper.
27:34 That's what we've already observed in 2017 and 2018. There's no reason why we decided to do these deeper holes with the hypothesis that the zone gets wider at depth and thus far, based on what we've received in terms of assays and what we've released, We're correct. It's typical of our key and gold systems. They commonly get much bigger as you go deeper. That's what we have found so far. Exciting stuff, Bill. Thank you for taking the time out of your day sharing some stuff with us here and congratulations on the news
