Fjordland Exploration Inc. is pleased to announce that on March 25, 2014 it signed a Letter Agreement with a private owner for the 1,940-hectare (ha) Heffley Property in southern B.C. The option agreement to purchase a 100% interest in the Property covers recently interpreted prospective ground for the discovery of a copper-gold porphyry-type deposit and/or an Iron Oxide Copper Gold (IOCG) deposit.
The road-accessible Heffley Property is located approximately 30 km northeast of Kamloops, just outside of where New Gold Inc. put the New Afton copper-gold-silver mine back into production in mid-2012 as an underground block caving operation with a current average throughput of over 12,000 tonnes per day. New Afton's proven and probable reserves at December 31, 2013 were stated at 48.82 million tonnes grading 0.84% Cu, 0.56 g/t Au and 2.2 g/t Ag. Measured and indicated mineral resources (inclusive of reserves) total 104.9 million tonnes grading 0.86% Cu, 0.68 g/t Au and 2.3 g/t Ag (1).
The Heffley Property occurs within the prolific Quesnel terrane and lies at the contact between Upper Triassic Nicola Group and Devonian to Permian Harper Ranch Group volcanic and sedimentary packages. These rocks have been intruded by the syntectonic Heffley Creek pluton, estimated to measure 5 km by 2.6 km, which has alkali affinities, including the presence of ultramafic rocks, gabbros and diorites. Its age (208 Ma) and associated copper and gold porphyry-style mineralization bears a close resemblance to the Iron Mask batholith that hosts the New Afton and Ajax deposits. In general, bedrock exposures at Heffley are sparse and patchy and limited to steeper hillsides and road cuts.
The Heffley Property has seen very limited exploration (no induced polarization surveys or drilling), which is surprising, given its proximity to Kamloops and the abundance of mines/mineral deposits in the region. Access into the region was improved into the Shaw Hill area of the Property in the late 1990s-early 2000s, when logging took place. Between 1993 and 2004, there was virtually no systematic exploration of the area. In 1999, during a regional mapping program carried out by the Geological Survey Branch (GSB) of the provincial government, a grab sample from an outcrop on a new logging road up the flank of Shaw Hill yielded an assay of 0.82% Cu and 14.4 g/t Ag. Another sample assayed 6.18 g/t Au and 0.46% Cu. At the same time, the GSB documented an unusual magnetite skarn, located approximately 2 km to the northwest of the Heffley Property. Government geologists noted similarities in the setting and characteristics of the skarn to the Ernest Henry (Australia) and Candelaria (Chile) IOCG mines (2).
In 2005, the owner hand panned rough edge placer gold with quartz along a road cut leading uphill to Shaw Hill. In 2006, the owner discovered additional copper showings on the west flank of Shaw Hill.
In October 2010, Gold Fields Canada Exploration Holdings ("Gold Fields"), recognizing the porphyry potential, optioned the Property. During 2010-2012, Gold Fields completed geological mapping, prospecting, and soil and rock geochemical sampling over the central portion of the Property, principally in the Shaw Hill area. In October, 2013, Gold Fields allowed its option to lapse, as a result of corporate restructuring. Soil sampling programs completed by Gold Fields, using a handheld XRF analyzer, yielded a 2 km by 2 km copper-gold anomaly across the northwest slope of Shaw Hill, as well as an anomaly further to the west. Rock sampling and prospecting programs completed by Gold Fields yielded two copper and gold anomalous zones. One on the west side of Shaw Hill measures approximately 700 m by 400 m; the second is located to the west of Shaw Hill. Copper assays as high as 8780 ppm were obtained; gold values ranged up to 55 to 70 ppb.
Limited rock sampling by Fjordland yielded grab sample assays of mineralized diorites/gabbros including 1.337% Cu, 115 ppb Au; 0.607% Cu and 58 ppb Au, and 0.114% Cu and 1300 ppb Au. Copper mineralization (chalcopyrite, malachite and tenorite) typically occurs as disseminations, in fractures and in quartz vein stockworks.
During 2014, Fjordland intends to complete a minimum of 20 line-kilometres of induced polarization surveying over the Shaw Hill area, followed by diamond drilling.
Under the terms of the Agreement, Fjordland must pay to the owner $10,000 cash on signing, an additional $10,000 cash on July 1, 2014 (optional) and a final cash payment of $180,000 on January 8, 2015 (optional). The Company will also reserve a 2% net smelter returns (NSR) for the owner that may be bought by the Company for $2,000,000. Commencing on the 6th anniversary of the execution date of the exercise of the option, the Company will make an annual pre-production royalty payment of $20,000 payable to the owner. This royalty pre-payment would be deductible from the royalty buyout. The Agreement includes a mutual 4-kilometre (km) Area of Influence clause.
On April 1, 2014, Fjordland acquired an additional 2,144 ha, surrounding the Heffley Property, which now totals 4084 hectares.
Tom Schroeter, President & CEO of Fjordland states: "We are pleased to option this property which yields an opportunity to explore for and discover a copper-gold porphyry deposit that has previously received very limited exploration. The Property's excellent location and infrastructure will allow for the delivery of very cost-effective and systematic exploration programs; in line with the Company's focus on exploration in southern British Columbia and evidenced by its successes at the Woodjam and Dillard projects."
Further information about the Heffley porphyry copper-gold project is available on Fjordland's website at http://www.fjordlandex.com/dillard_property.html.
T.G. Schroeter, P.Eng.,/P.Geo., who is a qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release.