Sheep Creek Gold District

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The Sheep Creek Gold District is an orogenic gold district with historical gold production of almost 800,000 ounces at an average gold grade of 14.4 g/t. Margaux Resources has consolidated the claims in this district for the first time ever, to allow systematic, modern exploration of the 10 km long prospective belt.

A recent Geoscience BC Report has shown that veining at Sheep Creek is analogous to that in the Barkerville area. In contrast to Barkerville, the Sheep Creek Gold District has had minimal modern exploration since mining ceased in the early 1950’s.

The area is underlain by sequence of Cambrian metasediments, including argillite, quartzite and limestone, which are intruded by two separate intrusive events, one in the mid-Jurassic and the other in the Cretaceous. As a result of Jurassic accretion, the sediments have been folded into major anticline/syncline pairs with north-trending axial planes. Veins formed in the final stages of the accretion event, and are preferentially hosted within more brittle units within the metasedimentary sequence, or within pre-vein Jurassic intrusives.

Ownership

Margaux entered into an option agreement to earn 100% interest in the Sheep Creek Gold Deposit district in early 2017.

Historic Production (1900 – 1951)

  • 785,000oz Au
  • Average grade 14.4g/t Au

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 Sheep Creek project in southern BC is road accessible and within 6 km of Highway 3, the southern trans-provincial highway, as well as grid power and the southern-crossing natural gas pipeline.   Teck’s Trail smelter is within a 45 minute drive of the project and the local area has a long history of mining and mineral processing.

Margaux has identified and prioritized drill targets on the Sheep Creek property, for bulk-tonnage gold, as well as for high-grade veins.  Permits are in place for drilling of high-priority targets in 2019.

We have further de-risked the property by:

  • Active permits for exploration drilling
  • Drilled 34 holes
  • Compiled old and new data to create a 3D model of the geology, where the Gold is appearing and how to find it
  • LIDAR Survey – to give surface control
  • Geological mapping to add new understanding to the property
  • Identified the Bayonne vein as a high priority target where we have:
  • discovered low-grade, bulk-tonnage Gold
  • started drill definition of a high-grade ore shoot
  • Identified other targets to test as part of our growth plan
  • Built our knowledge base, so we can identify and prioritize other projects, such as our recent acquisition, Cassiar Gold
  • CAD$2M spent
  • Strong social license to operate

Low Grade

Prior to Margaux’s work, the 3,900 hectare Sheep Creek property had not been explored for bulk-tonnage mineralization. Previous mining and exploration at Sheep Creek was entirely focussed on high-grade veins.

In 2018, we discovered near surface, low-grade, bulk-tonnage Gold at the Bayonne target.  We will continue to explore this road-accessible target by drilling in 2019, to understand the size and grade of the zone.

HoleInterval (m)Au (g/t)Ag (g/t)
BA18-03  12.222.8920.5
Including:0.1516.5532.7
Including:0.8925.10170.0
BA18-0412.920.551.1
Including:0.1310.5710.6
BA18-059.171.013.4
Including:0.3414.9711.6

We will also assess other targets on the property for this style of mineralization in 2019, with drilling of priority targets.

High Grade

Over 70 gold-bearing veins are known from historic work on the Sheep Creek property.  We have prioritized these veins for drilling, to explore them on-strike and at depth from their known extent. We are also identifying areas to explore for new veins.

Our drilling has intersected a high-grade ore shoot on the Bayonne vein. Drilling in 2019 drilling will continue to expand this zone, and test other high-grade vein targets on the property.

HoleInterval (m)Au (g/t)Ag (g/t)
BA18-101.4039.43131.2
Including1.0045.5749.5
Including0.1945.24143.0
BA18-111.2214.0450.2
Including0.5829.01100.00
BA17-121.0012.7022.6
BA18-091.1410.8523.7
Including0.4423.4333.5
BA18-120.985.6368.7

Detailed geological analysis and modelling has allowed us to understand more about the District. Using modern techniques that the ‘old timers’ did not have, helps us to further de-risk the exploration phase.

In 2017, Margaux completed 19 hole (4039 m) diamond drill program on the Sheep Creek Gold District. Drilling was designed to test a variety of wide spaced, big-picture targets, as opposed to close-spaced definition-type drilling on a single vein. Targets tested in 2017 include: new veins with no previous drilling and no historic production (Maggie Aikens, Kat), the at-depth continuation of veins below the depth of historic mining (Bayonne, Bluestone), and conceptual blind-vein targets in brittle units, at depth in the core of anticlines. The program was highly successful. At least one promising new vein was discovered which requires further drilling. Gold grades were confirmed from 2 previously undrilled targets. Two veins were also shown to continue to depth, with good gold grade, below the limit of historic mining (Bayonne Main, A vein).

2018 : Drilling to follow-up high-grade intercepts from 2017 and test east end of vein system

  • All 2018 holes intersected veining
  • High-grade shoot identified on A vein, remains open for expansion
  • Low-grade, bulk-tonnage style gold mineralization intersected
  • 1km known strike extent to vein system
  • Vein remains open on strike to the West
  • Quality targets for follow-up testing