ABOUT THE RUBY CREEK PROPERTY
RUby Creek overview
Stuhini Exploration Ltd. has entered into an Option Agreement with Global Drilling Solutions Inc., whereby Stuhini can acquire the Ruby Creek Property, also known as the Adanac Property. The 26,735 hectare property is road accessible and located 20 kilometers from the nearby town of Atlin, BC.
Pursuant to the Agreement, Stuhini can earn a 100% interest in the Property by issuing up to 7,300,000 common shares and making cash payments of up to $1,060,000 over a four-year term to exercise the Option. Upon obtaining Exchange approval of the Agreement on Dec 31st, 2019, the Company issued 800,000 common shares to Global Drilling in satisfaction of the Company’s first committed payment under the Agreement. The balance of the share issuances and the cash payments are all at the Company’s election should it wish to maintain the Option after the first year of the option term.
The Ruby Creek property is in an area referred to as the Atlin gold camp, the second largest placer gold producer in British Columbia with reported gold production of over 600,000 ounces. Four of seven active placer creeks drain the Ruby Creek Property. These include Boulder Creek with recorded production of 1,920 kilograms of gold and Ruby Creek with recorded production of 1,721 kilograms of gold. There are 46 documented minfile placer and mineral occurrences on the property, of which 17 are gold and/or silver related. The Ruby Creek Property includes the mineral rights, but not the placer rights.
The Property consists of Paleozoic to Mesozoic meta-sediments and mafic and ultramafic volcanics of the Cache Creek Complex. These have been intruded by the Middle Jurassic Three Sisters Plutonic Suite to the north. The youngest rocks are the Late Cretaceous Surprise Lake Plutonic Suite which occurs in the eastern portion of the property.
Historically, the source of the placer gold in the Atlin area was believed to be from quartz-carbonate-mariposite altered (‘listwanite’) ultramafic and mafic bedrocks in the area. Locally the listwanite contains fine grained gold, however the coarse gold commonly found in the creeks has never been found in the listwanite. In 2016, coarse lode gold was discovered in graphitic and quartz-rich phyllite bedrock beneath placer deposits along Otter Creek to the south of the Ruby Creek Property. It is now suggested that gold mineralization is not restricted to the listwanite but is hosted in structurally controlled quartz-carbonate gold bearing veins and stockwork and deformed lithological contacts surrounding the Surprise Lake pluton or Three Sisters pluton. The plutonic rocks are believed to be the hydrothermal engine for the gold bearing solutions. The property has all the necessary meaningful geological features.
In addition to the known gold occurrences on the property, there are also multiple silver related occurrences on the property including the past producing Atlin Ruffner mine, which has been an intermittent silver producer from 1916 to 1981. https://minfile.gov.bc.ca/Summary.aspx?minfilno=104N%20%20011
The Property also includes the historical Ruby Creek molybdenum resource, which is within mining lease 555153. A summary of the historic resource is as follows:
The Ruby Creek historical Molybdenum resource estimate was prepared by K. Palmer of Golder Associates in a report dated May 28, 2009 titled Ruby Creek Molybdenum Project in Northern British Columbia, Canada. The resource estimate was established using 338 drill holes with a combined length of approximately 69,200m and 21,651 assay samples. A Qualified Person has not done sufficient work to classify the historical estimate as a current mineral resource or mineral reserve. Stuhini is not treating the historical estimate as a current mineral resource or mineral reserve, has not verified the historical resource estimate and is not relying on it. Stuhini currently does not plan to conduct any work to verify the historical resource estimate.
The company views the Atlin region as an established placer mining gold district with untapped potential to host lode gold and silver deposits. Stuhini has a large land package in the area with favorable geology. By using a systems approach methodology and modern exploration techniques, Stuhini is well positioned to potentially find an economic source of the placer gold.