Haldane Silver Project

Keno Hill District, Yukon

AVAILABLE FOR JV

Overview

The Haldane property is an under-explored high-grade silver property in a historic silver mining region. The 8,164 ha property hosts structurally-controlled silver veins and is located in the Keno Hill silver district in the central Yukon, within the traditional territory of the First Nation of Na-Cho Nyak Dun (“FNNND’). The Keno Hill silver deposits produced over 200 million ounces of silver in a long history of mining from 1913 to 1989, with production recommencing briefly from 2011-2013. The Haldane property is well situated approximately 25 km west of the main Keno Hill deposits. Mineralization is controlled by northerly trending structures and consists of galena, sphalerite and tetrahedrite-tennantite in quartz-siderite gangue.

The best mineralization found to date occurs where the mineralized structures cut the Keno Hill quartzite unit, below the Robert Service Thrust. This is almost identical to the setting for mineralization at the main Keno Hill deposits.

The Keno Hill District

The Keno Hill District is located in a mining friendly jurisdiction and ranks as one of the highest grade silver districts in the world. The Yukon government Minfile (2003) production statistics for the period of 1913-1989 indicate that 4.87 million tonnes were mined at an average grade of 1,389 grams/tonne (g/t) silver, 5.62% lead and 3.14% zinc. Over 65 deposits and prospects have been identified in the district. Most occur within the Keno Hill quartizite as structurally-controlled veins in proximity to the Robert Service Thrust.

Alexco Resources is the biggest player in the district, having recently (December, 2017) received the final permit for the Flame and Moth deposit with the development decline scheduled for Q2 2018. Alexco’s March 2017 PEA outlined indicated mineral resources of 26.8 million ounces at an average silver grade of 498 g/t and inferred mineral resources of 4.1 million ounces of contained silver at an average grade of 356 g/t. The deposit remains open for expansion (source: www.alexcoresource.com).

In addition to the Flame and Moth, Alexco has permitted the Bellekeno (production as recent as 2013) and Lucky Queen (81,000 tonnes at 1,206 g/t silver) deposits and is upgrading existing resources at the Bermingham deposit to include these deposits in the development pipeline in the Keno District. It is important to note that Flame and Moth was a recent blind discovery adjacent to existing infrastructure.

The Haldane Property

The Haldane property is named after Mt. Haldane, on which the property is located. Earliest documented work dates to 1918, focused on the Mt. Haldane Vein System (MHVS) that describes two adits on the Middlecoff Zone on the south side of Bighorn Creek. The mineralized veins were traced over 600 m on surface and the underground development produced 24.7 tonnes of hand-sorted ore that graded at 3,102 g/t Ag and 59% Pb. At the same time, work was taking place on the Johnson Vein on the north side of Bighorn Creek, including a short adit. Eventually, in 1926 and 1927 these workings produced a total of 2.1 tonnes at 4,602 g/t Ag and 57.9% Pb, also of hand-sorted ore. This mineralization is hosted in north-trending veins within the Keno Hill quartzite, in close proximity to the Robert Service Thrust. Glaciation during the last glacial period was confined to the valleys, meaning that much of the Mt Haldane area has not been glaciated at higher elevations and because of this, ground is heavily weathered and broken, with oxidation extending as deep a 150 metres.

Very little work was done in the area until the 1960s when two companies worked what are now the Haldane claims. One held the ground covering the MHVS on the western half of the property, rehabilitating the old workings and discovering additional mineralization through minor soil sampling and extensive bulldozer trench work. An optionor completed 701 m overburden drilling in 44 holes, one surface drill hole for 61.6 m, 487 m of  underground drifting, mostly around the Johnson Zone, and 518 m of underground drilling around the Middlecoff Zone.

The eastern half of the property was mapped, prospected and sampled during the same period by another owner, identifying silver-lead-zinc showings (Strebchuk and soil geochemical anomalies). Sporadic work continued on the property in the late 1970s and early 2000s looking for tin-tungsten and intrusion-related gold mineralization, respectively.

Mt. Haldane Property, Significant Historic Results

Location Type Width (m) Ag (g/t) Pb (%) Zn (%)
Middlecoff Zone
upper adit chip 0.61 3353 15.8
middle adit chip 1.62 466 8.1
middle adit core 1.2 2791 18.7
middle adit core 0.9 343 7.1
lower adit chip ave. 0.82 939 20.0 0.75
lower adit chip ave. 0.98 775 18.0 1.2
Johnson Zone
chip 1.52 473 5.5 1.5
grab n.a. 5375 39.7
Main Zone
chip 7.6 151 0.6 1.6
chip 1.1 782 5.3 1.4
Sundown Showing
Chip 1.4 402 0.12 0.14
Mt. Haldane, Peak Vein
chip 0.38 6206 3.5
chip 0.51 5279 13.1
chip 0.81 1885 10.8
North Star cirque, Strebchuk Showing
select n.a. 1602 70.2

The most recent work on the property was completed by the Equity Exploration Consultants Inc (the property vendor) in 2010 and 2011 on behalf of an optionor. Work included upgrading the road access to the property, mapping, prospecting, soil geochemical sampling and 1800 metres of diamond drilling in two phases. This drilling extended the mineralization associated with the historic Johnson and Middlecoff zones, intersecting wide, strong structures. However, the extremely broken and strongly oxidized nature of the mineralized zones resulted in poor recoveries and limited remnant sulphide minerals potentially affecting the reliability of the assay results. Management believes that with an appropriate drill budget, larger diameter coring and testing lower parts of the system where the oxidation does not run as deep will lead to better recoveries and silver-lead-zinc concentrations in assays.

Significant Intersections – Haldane Drilling

 

Showing

 

Hole

From (m)

 

To (m)

Drill

Width (m)

True

Width (m)

Au (ppm) Ag (g/t) Pb (%) Zn (%) % Core Recovery
Main Zone
Sec 8275N HLD11-09 207.75 213.97 6.22 4.6 0.482 139.4 0.294 0.452 78
Including 209.40 211.60 2.20 1.6 1.118 320.0 0.666 0.856 85
Sec 8000N HLD11-06 52.43 55.47 3.04 2.2 0.472 190.8 4.333 2.605 19
Sec 8000N HLD11-04 23.47 26.52 3.05 2.2 0.033 31.5 0.085 0.528 48
Johnson Adit
Sec 7500N HLD11-08 63.45 72.80 9.35 6.6 0.111 11.7 0.074 0.193 42
Including 63.45 66.14 2.69 1.9 0.274 19.9 0.073 0.448 35
Middlecoff
Sec 7200N HLD11-11 126.05 130.15 4.10 2.9 0.028 36.7 0.943 6.107 92
Including 129.15 130.15 1.10 0.8 0.087 123.0 3.070 20.30 ??

Next Steps

Alianza, through Equity Exploration Consultants Ltd, will be conducting a first-pass mapping, prospecting and geochemical sampling program in 2018 to identify new vein structures and strike extension of known veins. This may be augmented by magnetics and Very Low Frequency (VLF) electromagnetics geophysical surveys, soil geochemical surveys and trenching.

The eastern portion of the property hosts historic soil geochemical anomalies and numerous showings that have yet to be properly explored. In addition to the potential for new vein targets here (Strebchuk, Peak, Sundown showings), there is potential to find new veins at the MHVS as evidenced in the 2011 drilling where previously unrecognized veins were intersected in drilling. As well, the potential for down-dip and strike extension to known veins is also a strong exploration target.

Maps