@kitsault.com
BRITISH COLUMBIA – Coast Copper Corp. announced that it has signed a Memorandum of Understanding with BWCG Holdings Ltd., Blackwolf Copper & Gold Ltd., Dolly Varden Silver Corp., New Moly LLC. and Goliath Resources Ltd., to jointly study the viability of using New Moly LLC’s Kitsault project as the potential site for a centralized polymetallic processing facility that could accept mineralized material from the Companies’ respective deposits, working as a hub and spoke mill.
The proposed site at Kitsault previously hosted a molybdenum mine. Within the past decade, Kitsault received Canadian Federal and Provincial Permits and given the buoyant molybdenum market, New Moly LLC is now considering funding requirements to restart a larger scale project. The Project is in northern British Columbia, approximately 140 kilometers north of Prince Rupert. The Project is located on the BC Hydro grid, has road access to the Nass Valley as well as tidewater access. The Kitsault Polymetallic Mill concept may assist to enhance and de-risk the potential restart of Kitsault.
The Companies have engaged Fuse Advisors Inc. to complete an initial assessment of the technical viability of the Kitsault Polymetallic Mill concept. By reviewing the respective metallurgical test work completed at the various deposits, Fuse Advisors will assess the potential for blending or batching mineralized material, potential process flowsheets, potential throughputs from the various deposits and associated mill sizing and timelines.
Adam Travis, Coast Copper’s CEO comments: “We are very pleased to have been included in the study of the Kitsault Polymetallic Mill. This could greatly increase synergies between the Companies, reduce respective capital costs as well as reduce permitting timelines and risks by using a permitted site location. Coast Copper is looking at this assessment as a viable option if and when our optioned Empire Mine property ever gets to the point of production.”
“Nisga’a Lisims Government has had initial discussions with Blackwolf on the concept of a hub and spoke mill at the site of the Kitsault Project. We look forward to further consultation on this and other natural resource opportunities within the Nass Area which is subject to the Nisga’a Final Agreement where we have constitutionally protected title and rights” said Charles Morven, Secretary-Treasurer for Nisga’a Lisims Government.
The Companies will jointly share the costs of this assessment. Fuse Advisors is a Vancouver based consultancy group that provides project management and technical advisory services to development stage companies in the resource sector.
Empire Mine Property
The Empire Mine Property, located on northern Vancouver Island, was optioned by Coast Copper in September 2020. Coast Copper can purchase a 100 per cent interest in the Property by making staged cash and share payments. The Property covers 23 mineral occurrences, including 3 past producing open pit and two underground past producing mines for magnetite, copper, gold and silver.
The Merry Widow deposit has a National Instrument 43-101 Historical measured and indicated resource of 960,000 tonnes at 2.03 g/t gold, 5.64 g/t silver, 0.34% copper, 0.023% cobalt and 16.1% iron (0.50 g/t gold cut off) 2 which was completed November 2008 by Gary Giroux. Historical records and maps from Cominco Ltd. In 1972, indicate the Benson Lake Mine hosts 454,500 tonnes at 0.59 g/t Au and 1.3% Cu classified as “measured and indicated” and a further 2,700,000 tonnes at 1.7% Cu (no Au grade estimated) to the 2100 level as of December 31, 1972 classified as “inferred” 3.
On January 18, 2023 Coast Copper announced it had updated its geological model based on historical work, Coast Copper’s drilling and surface work as well as work completed by Dr. Jim Oliver. The new model highlights the potential for significant copper-gold-iron mineralization to continue adjacent to and up to 500 m in elevation below the Merry Widow Pit mineralization, as well as continuing along the trend of these regional features and down dip towards the Benson Lake Mine. The stacked thrust model is consistent with both local and regional observations and correlates well with copper-gold-iron mineralization recorded in drill core and historical observations from underground. Surface geological observations and mapping, ore mineral occurrences, underground workings and drillhole data also indicate that these thrust horizons and associated mineralization occur along strike over a 5 km northerly trend.
The model indicates potential for multiple, near-surface targets between the Merry Widow open pit and the Benson Lake underground. Our understanding of these controls and their relationship with intersecting structures will prove invaluable in guiding future drill programs.
Coast Copper’s exploration focus is the optioned Empire Mine property, located on northern Vancouver Island, British Columbia, which covers three historical open pit mines and two past-producing underground mines that yielded iron, copper, gold and silver. Coast Copper’s other properties include its 100 per cent owned Knob Hill NW Property located on northern Vancouver Island, its Home Brew and Shovelnose South Properties in central BC, and its Scottie West Property located in the “Golden Triangle” of northern BC Coast Copper’s management team continues to review precious and base metals opportunities in western North America.
Business Examiner Staff
