The Black Creek chromite asset, discovered in 2009, lies along the ultramafic horizon containing the main chromite deposits which represents a key segment to future chromite mining operations, lying between the Black Thor (Cliffs) and Big Daddy (Cliffs-Spider-KWG) deposits.
Strategically located between the Black Thor (Cliffs) and Big Daddy (Spider-KWG-Cliffs) deposits, the Black Creek deposit is interpreted to represent the southwest extension of the Black Thor horizon. Its strategic importance lies not only in the thick, high-grade mineralization, but also in its location and morphology. The Black Creek deposit lies in the middle of the Black Thor and Big Daddy deposits, separating these two zones. It is also close to bedrock, witnessed by outcrop on the property in close proximity to the deposit. This is important for two reasons, as it provides low stripping ratios for mining and, perhaps more importantly, a stable base for infrastructure and operations. The McFauld's area is characterized by muskeg and it is rare to find stable footings. The morphology of the deposit is also important as it appears, from drilling, to represent a consistent lens of mineralization uninterrupted by faulting or deformation.
NI 43-101 RESOURCE ESTIMATE
The Company has received the updated mineral resource estimate for the Black Creek chromite deposit from Micon International Limited. The updated resource estimate, which meets the guidelines for reporting mineral exploration programs as set out in National Instrument 43-101, was based on an initial 15 diamond drill holes that tested the chromite horizon along approximately 200 metres (m) of strike length and to a vertical depth of approximately 175 m as well as an additional 10 holes drilled during the Phase III program.
The Phase III drilling was successful in upgrading a portion of the Inferred Resources in the initial resource estimate to Measured and Indicated categories as well as extending the zone along strike and at depth. The program delineated an additional 115 m of strike length and identified chromite mineralization to 320 m depth. The Phase III drilling confirmed that the chromite zone is found at surface and, in places, is under less than 4 m of overburden, indicating it would be a likely candidate for open-pit extraction. Mineralization at Black Creek is dominated by three massive chromite layers, with subordinate amounts of banded, semi-massive and disseminated chromite found between and below the massive layers. The cumulative thickness of the mineralized zone averages approximately 65 m.
The following table summarizes the Black Creek chromite mineral resource estimate at a cut-off grade of 20% Cr2O3 including internal waste.
Summary of Black Creek Chromite Resources
Note: All tonnages have been rounded to the nearest thousand.
The mineralized material was classified into the Measured, Indicated or Inferred mineral resource category on the basis of a combination of the following factors: (a) confidence in the geological and mineralization continuity, (b) position of blocks in relation to the range of influence as defined by the variographic analysis and (c) and the search ellipse ranges
The Black Creek deposit Measured and Indicated resources have been categorized taking into account the search parameters in relation to variographic results, and the observed geological and mineralization continuity based on sectional interpretation. The inferred resource down to a vertical depth of about 360 m is based on drilling intercepts recorded at this depth at the adjacent Big Daddy deposit. The known mineralization in the entire McFaulds Lake sill has been considered in the process of resource categorization.
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