Cloudbreak Discovery (LSE: CDL), the London-listed natural resource project generator, says it has identified an exploration partner, 1315843 BC Ltd, for its recently staked Atlin West Project. This is one of a number of projects currently contained in the Cloudbreak project portfolio, and is targeting gold and silver mineralisation in polymetallic vein systems.
Planned exploration work will focus on evaluating the potential for structurally controlled, intrusion related and polymetallic vein systems, which are known to host economic mineralisation in the area. Previous work has provided initial information on the geological potential of the project. Regional analogues include the Engineer Mine, Yellowjacket Mine and the Imperial Vein showing.
The partnership will see 1315843 BC Ltd spending up to CAD $700,000 in exploration expenditure on the property, with at least $150,000 to be spent during the first year. In addition, 1315843 BC Ltd will issue 8,000,000 common shares and make aggregate payments of $325,000 over a three year period to Cloudbreak.
Upon completion of these option agreement obligations, Cloudbreak will transfer 100% interest in the property to 1315843 BC Ltd. Cloudbreak will retain a 2% net smelter royalty.
“Using Cloudbreak’s expertise, coupled with that of 1315843 BC Ltd.’s, we believe that modern exploration applied to this claim group could further expand on the geologic picture and understanding of the potential currently only highlighted by limited prospecting to date,” explained Kyler Hardy, CEO of Cloudbreak Discovery,
About the Atlin West project
The Atlin West Project is underlain by undivided sedimentary and volcanic rocks of the Cache Creek Complex, which have been subsequently intruded by late Cretaceous felsic volcanic and intrusive rocks. The area is bounded by the Nahlin fault and cross-cut by east-west and northwest trending faults.
These structures are known to be associated with base and precious metals in the region, specifically the aforementioned projects.
Mineralisation on the property includes the Dundee/Table Mountain showing, which is comprised of northeast trending veins with galena and chalcopyrite, assaying 2.58 ounces per tonnes of silver, 26% lead and 13.9% copper in 1967. Limited work has been reported on the property and additional exposures are as yet untested as glacial recession has progressed in the past several decades since this work was last conducted.
The Engineer Mine was in production in the 1920’s and 1930’s, and produced in excess of 18,000 ounces of gold and 9,000 ounces of silver. Production was at realised grades exceeding 39 grammes per tonne of gold and 20 grammes per tonne of silver. A mineral resource estimate published in 2018 stated the Engineer Mine contains an inferred resource of 41,000 tonnes grading 19.0 grammes per tonne of gold, using a five gramme per tonne cut-off grade, which equated to 25,000 ounces of gold.
Listen: Podcast with Kyler Hardy, CEO of Cloudbreak Discovery
At the Yellowjacket Mine, an historic estimate stated 133,000 tonnes at 5.8 grammes per tonne of gold, totalling 24,000 ounces of gold at a 1.5 gramme per tonne of gold cut-off.
The 2009 Yellowjacket Inferred resource estimate was carried out for a previous operator according to NI 43-101 standards at that time. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and neither the current owner, nor the Cloudbreak Discovery is treating the historical estimate as a current mineral resource.
The Imperial Vein showing is a quartz vein that saw limited production in the early 1900’s and is documented to contain materials that assayed 27.1 grammes per tonne of gold and 26.47 grammes per tonne of silver.