Canadian copper explorer Wedgemount Resources (CSE:WDGY) has signed an option agreement to add a third copper stake to its portfolio in British Columbia. The new stake is the Friendly Lake-Deer Lake copper-gold property which sits in south-central British Columbia.
Under the terms of the deal, Wedgemount has scope to acquire up to 100% of Friendly, subject to a 3% net smelter return, half of which can be re-purchased by Wedgemount.
Another solid acquisition for Wedgemount in BC
This is another solid acquisition for the Canadian explorer in prime copper country. Friendly Lake-Deer Lake is a road-accessible, 13,000 hectare property 100 kilometres north of Kamloops, a community with a rich mining and development history. Newgold Inc’s New Afton copper-gold mine is 100 kilomteres to the south while the Imperial Metals Mount Polly copper-gold mine is 13o kilometres to the north-west.
Previous exploration of the project dates back to the 1960s and has included geological mapping, extensive soil and rock chip sampling, trenching, geochemical surveys, ground-based geophysics, but only limited shallow drilling.
“Our project portfolio now gives Wedgemount total exposure to over 35,000 hectares of under-explored copper focused assets within one of B.C.’s most prolific copper belts,” explained Mark Vanry, CEO of Wedgemount Resources. “Similar to our Eagle and Red properties, the terms outlined in the Friendly Agreement include favourable cash, share and exploration commitments during initial phases of the option “
Vanry pointed out that Friendly’s location in southern BC means it offers the prospect of a longer and lower cost exploration season. Access and logistics are excellent with many logging roads, ATV trails and lodges in the area.
Under the terms of the agreement, Wedgemount will make cash payments of $775,000 over five years and will issue 5m common shares. Exploration expenditures of C$6.75m are anticipated over five years. There is also a 3% NSR which Wedgemount can reduce by 50% for C$2m prior to a production decision.
Geology at Friendly Lake and Deer Lake
The project is underlain by arc-related volcanic and volcaniclastic rocks of the Quesnel Terrane (Nicola Group) cut by Triassic-Jurassic intrusions varying from syenite to diorite with associated porphyry and skarn-related copper and gold mineralisation. The project comprises two key target areas; Friendly Lake and Deer Lake, respectively.
The BOGG occurrence, central to the Friendly Lake target, comprises local zones of chalcopyrite-bornite cemented magmatic breccias associated with the margins of a northwest-elongated monzodiorite to syenite intrusive complex (Friendly Lake complex). A grab sample from the BOGG occurrence by the B.C. Geological Survey yielded 3.4 % Cu. The BOGG occurrence forms the northwest extent of an approximately 7-kilometer northwest-trending corridor of widespread copper and multi-element soil geochemical anomalies locally coincident with complex IP (induced polarization) chargeability anomalies defined by previous surveys.
Based on a preliminary compilation of historic drill data, only six drill holes with depths greater than 200 meters have tested for porphyry-related copper and gold mineralisation along this prospective seven-kilometre corridor.
The Deer Lake target comprises numerous magnetite-chalcopyrite skarn occurrences (e.g., Lakeview) associated with the Deer Lake diorite. Historic work has defined multiple poorly tested, multi-element soil and rock geochemical and coincident geophysical anomalies considered high priorityareas for detailed investigation.
Wedgemount is currently compiling and interpreting geochemical data from over 20,000 historic soil samples and over 700 rock-chip samples together with historic IP and magnetic geophysical data and historic drill data (shallow reverse circulation and diamond) with the goal of defining new exploration targets and prioritising areas of focus for this upcoming field season. Exploration plans will be released once budgets are set and targets are ranked, the company said today.