Cassiar Gold Project

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Margaux has entered into an option agreement on an advanced stage exploration project – the Cassiar Gold Project.

The project covers 60,000 Ha of mineral claims, in good standing.  Previous work has been focused on 2 main areas, the Taurus bulk-tonnage target and high-grade veins in the Table Mountain area.  The project also includes gold-bearing tailings, the by-product of historic processing of high-grade veins, which may be viable for reprocessing and gold recovery.

Ownership

In March 2019, Margaux entered into an agreement with Wildsky Resources Ltd. (formerly China Minerals) to acquire a 100% interest in the Cassiar Gold Project by making staged share payments to Wildsky, over an 18 month period.  The agreement is subject to TSX-V, and to Wildsky shareholder, approval.

Background

  • Large low grade (bulk tonnage) opportunities
  • High grade upside
  • Permitted 270 tonne p/d mill (gravity/flotation) & tailings facility for processing high-grade ore. Needs to be reinstated
  • Large land package: 60,000 Ha
  • Good infrastructure (Highway 37, grid power, water, accommodation)

Taurus : Bulk Low-Grade

  • Favourable topography, good access
  • Many known zones remain open. Room for additional discoveries
  • 2009 Resource estimate requires updating

Table Mountain : High-Grade Veins

  • On-site permitted mill
  • Many veins known with only minimal drilling
  • 15km prospective strike length
  • Significant exploration upside

Table Mountain Historic Tailings

  • By-product of historical Table Mountain vein mining
  • Approximately 600,000 tonnes tailings at approximately 1 g/t Gold [1]
  • Testing by previous operators suggests potential for gold recovery by reprocessing tailings
  1. There is no current or historical resource for the Cassiar tailings deposit.  The reader is cautioned that the tonnage and grade listed above are provided as an indication of exploration potential only, and are derived from 2018 drilling of the tailings by Wildsky Resources Inc. (see WSK news release Oct. 25, 2018).     They should not be interpreted as either current or historical resource estimates for the tailings. 

British Columbia, Canada is an established jurisdiction for mining of precious, base and industrial minerals, as well as for coal, but remains vastly underexplored.  The mineral sector contributes almost $9 billion annually to the provincial economy.  With 22 mines in operation or under construction within British Columbia, mining is an important economic mainstay for both the province and the country.  Margaux continues to enjoy collaborative, transparent and positive relationships with federal, provincial, First Nations and local governments.

The Cassiar project is a road-accessible project in northern BC.  Grid power is available along Highway 37, which bisects the property.  The community of Dease Lake is located 117 road km to the southwest of the project, and the town of Watson Lake, Yukon 141 road km to the northeast.   Nearby mines include Imperial Metal’s Red Chris deposit 170 km to the south, and the Silvertip mine of Coeur Mining is 80 km to the northwest.

Low Grade

The Taurus zone is a 1.04Moz Au Inferred Resource (historical) on the Cassiar project, which is near-surface and has road access and favourable topography.

The Taurus historical Inferred Resource 1 is:

  • 32.4Mt
  • Average grade = 1g/t Au
  • cut-off grade = 0.5g/t Au

The bulk tonnage resource will be our primary focus in 2019.  We will complete confirmation drilling at Taurus to validate the historic resource by 2019 year end.

We will also explore other quality bulk tonnage targets on the 60,000 hectare property.

High Grade

The Cassiar property includes several underground mines which operated from 1979 – 1997 and collectively produced 350,000oz Au from a series of high grade veins. The project includes a 270 tonne per day gravity/flotation mill which was used during past operation, which is permitted for continued operation. Source:

Veining occurs along a 15km long trend.  Within this 15km trend, many gold-bearing veins are known which have limited or no drilling, and no previous mining.  A 2010 Historical Resource exists for the veins 2. Mining permits are in place.

TonnesGold g/t uncutGold oz uncut
Indicated21,47118.02 13,650
Inferred65,75724.30 56,360

The cut-off grade for the Resource is 3g/t Au.

In 2019 we will begin drilling to confirm the historic resource.  We will also begin exploration drilling on other veins on the property.

[1] Wardrop, 2009.  Technical Report on the Taurus Project – Liard Mining District, B.C., for Cusac Gold Mines Ltd. This resource estimate was prepared by a previous operatior, is not current, and is classified as a Historical Resource.

[2] Pearson and Bakker, 2010.  Technical Report on the Table Mountain Property – Liard Mining District, B.C., for Hawthorne Gold Corp. This resource estimate was prepared for a previous operator and is considered a Historic Resource.

Historical Inferred Resource

  • 32.4Mt @ 1g/t Au
  • 1.04Moz Au
  • Cut-off grade 0.5g/t Au
Historical Inferred Resource – Cassiar (2)
Sable1,350,0001.32
88 Hill8,505,0001.15
88 West13,102,0000.87
Highway2,456,0000.98
Taurus West3,709,0001.02
Taurus2,348,0000.99
Plaza917,0000.95
Total32,386,0001.00

2009 Wardrop Historic Resource* – Requires updating. Technical Report on the Taurus Project – Liard Mining District, B.C., for Cusac Gold Mines Ltd. Please note that this Resource estimate was prepared for a previous operator.  While it was completed in compliance to NI 43-101 standards, Margaux has yet to verify this Resource and considers it a Historical Resource. Significant drilling done in 2012 at Sable and 88 Hill zones which is not incorporated in this Resource.

Past Production

VeinYear MinedTonnes

 

Ave Grade

Au g/t

Ounces

Gold

Jennie-Maura-Alison-Bear1979-1988300,00017.12150,000
Eileen-Michelle-Lily1986-1997150,00020.5590,000
West Bain1993-199560,00013.7024,000
Vollaug1980-1997170,00010.2750,000
Bear19981,000
Rory2006-20076,5003.42651
Taurus1981-1988320,0004.1135,000
Total:350,651

2010 Historical Resource Estimate

TonnesAu g/t uncutGold oz uncut
Indicated21,47118.02 13,650
Inferred65,75724.30 56,360

Cut-off grade = 3g/t Au

2010 Historical Resource Estimate

* Pearson and Bakker, 2010
Technical Report on the Table Mountain Property – Liard Mining
District, B.C., for Hawthorne Gold Corp.

Please note that this resource estimate was prepared for a previous operator.  While it was completed in compliance to NI 43-101 standards, Margaux has yet to verify this resource and considers it a Historical Resource.

Exploration, Proving Up Resource, Tailings Processing

Four-part strategy to be undertaken over next 2 years.

  1. De-risk exploration by completing detailed data compilation and validation
  2. Add our expertise to generate new targets. We already have an active permit for exploration drilling.
  3. Build strong relationships with First Nations and local community; involve them in the project from early stage to ensure long term development success.
  4. Process tailings deposit to provide early cashflow.

24 Month Plans include:

  • Update/validate the 2009 Taurus Resource Report (1Moz) by YE/19
  • Diamond drill c.6 holes in May-June
      • Depth of 200m
      • c.C$300,000
      • QA/QC
  • Interpret data, generate new exploration targets for follow-up
  • Continued drilling to provide second Resource Report (targeting YE/20)
  • Exploration stage drilling on high priority targets
  • Validate initial assay grade report for tailing of 1g/t
  • Process tailings of 600,000 tonnes for early funds

1 There is no current or historical resource for the Cassiar tailings deposit.  The reader is cautioned that the tonnage and grade listed above are provided as an indication of exploration potential only, and are derived from 2018 drilling of the tailings by Wildsky Resources Inc. (see WSK news release Oct. 25, 2018).     They should not be interpreted as either current or historical resource estimates for the tailings.