New Found Gold - Sail Pond Ag-Cu-Pb-Zn-Sb Property
In April 2018 Altius finalized an agreement with New Found Gold Corp. (“NFG”), a private Newfoundland-focused precious metals explorer to effcetively sell its Sail Pond Property in NL. As consideration Altius will receive 12 million common shares of NFG and will retain a 2% NSR royalty over the Project. Other key conditions of the agreement include NFG listing its common shares on a recognized Canadian stock exchange and raising a minimum of $7.5 million via a private placement, of which Altius will invest a minimum of $1 million. Furthermore, a minimum exploration commitment of $1 million must be completed by NFG within 12 months of closing of the transaction, including an unconditional non-refundable exploration commitment of $250,000 to be spent on or before October 31, 2018.
The recently discovered Sail Pond Ag-Cu-Pb-Zn-Sb property is easily accessible and features a unique style of sediment-hosted mineralization for Newfoundland, resembling both examples of mineralization in the Coeur d’Alene mining district of Idaho and in the Central African Copperbelt (e.g. Kipushi Project). Extensive, high-grade silver plus copper, lead, zinc and antimony mineralization is associated with orogenic-like, multi-generational quartz ± calcite veins in altered calcareous sedimentary rocks that have undergone prolonged regional deformation. Historic exploration is very limited and the core of the property has never been drill tested or surveyed by modern geophysics. Some highlights of recent rock and channel sample assays include;
- Rock grab sample 12591: 2,030 g/t Ag, 7.08% Cu, 9.40% Pb, 2.54% Sb, 0.46 g/t Au (South Zone)
- Rock grab sample 8329: 944 g/t Ag, 5.24% Cu, 7.6% Pb, 2.32% Zn, 0.30g/t Au (South Zone)
- Rock grab sample 12744: 803 g/t Ag, 3.58% Cu, 0.11% Pb, 1.04% Zn, 0.92% Sb, 0.17 g/t Au (North Zone)
- 1.0 m channel sample: 499g/t Ag, 2.66% Cu, 6.80% Pb, 0.27% Zn, 0.33 g/t Au (Trench SPTR-10; North Zone)
- 2.9 m channel sample: 180 g/t Ag, 0.97% Cu, 0.24% Pb, 0.18% Zn, 0.21% Sb (Trench SPTR-16; North Zone)
- 16.2 m channel sample: 50.4 g/t Ag, 0.25% Cu, 045% Pb, 0.16% Zn (Trench SPTR-02; South Zone)
The property comprises 739 mineral claims (18,475 Ha), located on Newfoundland’s Great Northern Peninsula, and is bounded by the Atlantic Ocean to the east (refer to Figure 1. The property is easily accessible by a network of forest resource roads and trails that transverse the interior of the property, connected directly to paved highway. Local service centers are proximal to the property, notably the towns of Roddickton and Main Brook. The St. Anthony Regional Airport is located 32 km from the property boundary.
At the core of the property are the parautochthonous units of the Goose Tickle Formation, Table Head Formation, and St. George Group, which collectively compose the “White Arm Window Anticline” (refer to Figure 1. These units represent the transition from active to passive margin environments comprising rift-related siliciclastics to platformal carbonates deposited during the Early Cambrian to Middle Ordovician. Rocks within the property have experienced multiple deformation events during the Appalachian orogenic cycle resulting in a series of parallel north-east trending faults and west verging folds.
Currently, two primary zones of mineralization (i.e. South Zone and North Zone) have been defined by Altius’ exploration work during 2017 (refer to Figure 1. Both zones are roughly northeast orientated and strata bound, dipping to the east-southeast, and appear to be restricted to the western portion of the White Arm Window Anticline where a major thrust fault occurs. The surface expression of the South Zone measures at least 2 km in strike, whereas the North Zone measures at least 7 km in strike. The surface widths of both zones are variable, but are upwards of 200 m.
The South and North zones are distinguished by thick, massive sequences of pervasively altered (i.e. silica ± calcite ± sericite) dolostone (or dolomitized limestone) of the St. George Group (possibly Catoche and/or Aguathuna formations) which seems to be the primary rheological and/or chemical trap rock for fluids in this region. Commonly, these dolostones are folded and bounded by shear zones or thrust faults, and often deform brittlely. Conjugate quartz veins are the predominant host for the Ag-Cu-Pb-Zn-Sb (± Au) mineralization and are found almost entirely within sequences or blocks of massive dolostone. Quartz veins can constitute upwards of 30-40 volume percent of the exposed rock (refer to Photo 1), with individual quartz veins generally less than 10 cm in thickness but can reach up to 2 m in some locations. Mineralization has been observed in both sets of quartz veins.
Sulphide mineralization within the two zones is comprised mostly of chalcocite, tetrahedrite, sphalerite, galena and locally trace to minor amounts of pyrite, boulangerite, bornite, covellite, mimetite, tennantite, sulfosalts, fluorite and apatite. Silver is almost exclusively associated with the tetrahedrite. Mineralization is generally within, or spatially associated with quartz veins; as open-space infilling (clots) and as vein-parallel massive bands/veinlets (refer to Photos 2 to 6). Mineralization also occurs within the matrix of dolostone breccias, possibly as solution breccia (refer to Photo 7).
During 2017, Altius personnel implemented an exploration program of mapping, prospecting, B-horizon soil sampling, trenching, channel sampling, vein structure analysis and mineral characterization study. To date, the sample collection, excluding samples for QA-QC purposes, includes 250 rock grab samples, 1031 channel samples and 4021 soil samples. Table 1 provides assay data from the rock grab samples analyzed from the core of the property to date (n = 250) representing the 90th percentile of the reported Ag values. A total of 17 trenches have been excavated within the main zones and the general locations are shown in Figure 1. Table 2 provides individual channel sample results with Ag assay values exceeding 100 g/t plus Cu, Pb, Zn, Sb, Au values and Table 3 provides channel sample results showing the average Ag value plus Cu, Pb, Zn, Sb, Au values over select continuous channel sample intervals. Note that grab and channel samples reported here may not be representative of the overall average grade of the mineralization on the property. All soil samples have been analyzed using Altius’ portable XRF and the results for Cu, Pb and Zn in soils are shown in Figure 2.
A preliminary model to help illustrate the primary components of mineralization observed within the Sail Pond Property is shown in Figure 3. This model incorporates the regional interpretation of parautochthonous and allochthonous displacement of the underlying rocks (GSC Memoir 400; Cumming, 1983) and the migration of metal-bearing fluids to their present-day location (i.e. South and North zones).
Altius wishes to acknowledge the support of the Newfoundland Government’s Junior Exploration Assistance Program and the Newfoundland Labrador Geological Survey for its input into the project.
Quality Assurance and Quality Control
All rock grab samples and channel samples collected by Altius personnel, with blanks and standards regularly inserted into the sample sequence by Altius personnel, were delivered to Eastern Analytical in Springdale, Newfoundland where sample preparation (drying, crushing and pulverizing) and analytical work was completed. For multi-element trace analysis, the sample pulps were dissolved in four acids and analyzed by ICP-OES. For samples exceeding the upper limits of the trace analysis, an ore grade analysis was completed. Standards used for all of the rock samples included silver values up to 201 ppm. Samples reporting more than 50 ppm silver were re-assayed with a modified ICP-OAS method with a four-acid digestion using a suite of five standards ranging from 25 to 965 ppm Ag. Gold values were determined by 30 g fire assay and AA finish.
All soil samples were collected and prepared by Altius personnel. Soil analysis, predominantly for Cu, Pb, Zn, was carried out by Altius personnel using Altius’ pXRF. Blanks, standards and duplicates were regularly inserted into the sample sequence. QA/QC protocols for soil analysis was developed and monitored by Dr. Stephen Piercey of Memorial University.
Calculation of Average Grades for Combined Channel Samples
The average grades for combined contiguous channel samples were calculated as a summation of grade times the channel sample length for each sample divided by the total channel sequence length of the combined samples.
Roderick Smith, M.Sc., P.Geo., Chief Geologist for Altius Resources, a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, is responsible for the scientific and technical data presented herein and has reviewed, prepared and approved this information. Field work and sampling was also supervised by Roderick Smith.