The British Columbia Geoscience Group (A provincially funded entity) commissioned a report to look at Barkerville Gold and their narrow vein, high-grade orogenic gold and determine if there is anywhere else in the province of BC that has the same characteristics. Margaux Resources’ (TSX-V: MRL, OTC: MARFF) Sheep Creek Project was identified as being analogous to Barkerville. This essentially means that the plumbing of the Sheep Creek Project is similar to that of Barkerville Gold’s high-grade Cariboo Gold Project.
Sheep Creek represents the third largest orogenic gold vein camp in British Columbia, with total historic production of 736,000 ounces of gold at an average grade of 0.43 oz/t gold (14.7 g/t gold). Margaux’s property, which includes 85% of the historic gold production from the camp, covers an area of approximately 7 km by 2 km. There has been minimal modern exploration on the company’s property since historic mining operations ended in 1951. Margaux is now focused on getting modern day information on Sheep Creek.
After a successful summer program of soil and rock sampling, Margaux is drilling 6 holes at Sheep Creek, with that drilling ongoing since October. CEO Tyler Rice added that there was one particular area where the company outlined a large gold soil anomaly, measuring 450 m long by 50-100 m wide. The average value from 48 soil samples that comprise the anomalous area is 2.95 g/t gold, with 13 samples returning greater than 5 g/t gold, to a maximum of 13.5 g/t gold.
Margaux’s VP of Exploration, Linda Caron offered the following comment on the Sheep Creek soil sample results:
“The size and strength of this new soil anomaly within the Sheep Creek camp is remarkable. It occurs within a geologically prospective area that lacks outcrop and is unexplored by any historic drilling or underground work. This is an exciting target that will be tested as part of our upcoming drill program.”
Margaux is drilling underneath that area, to determine if perhaps some of the samples were contaminated from historic mining or if the mineralization extends beneath surface. Another target being drilled is a new vein discovery, with grab sample results to 36.4 g/t Au, along with high lead, zinc and silver values. Margaux expects assays to begin coming back from the lab shortly after New Year’s.
Margaux has 5 distinct projects all under the umbrella of the ‘Kootenay Arc’, one of those, the Jersey-Emerald Mine, was at one point the 2nd most productive tungsten mine in North America. Between the 1940s and 1970s 1.4 million tons of tungsten tailings were deposited on the Canex site and Margaux hopes to recycle, recover and monetize this massive amount of tungsten.
Margaux shipped 3500 kilograms of these historic tungsten tailings to a processing test facility in Pittsburgh, Pennsylvania. Margaux is expecting results from this 3500 kilogram shipment before Christmas, which will determine the feasibility of moving onto a 10,000 pilot scale campaign (subject to permitting). The 10,000 tonne pilot scale campaign would further assess the technical and economic viability of recovering the minerals using the CRONIMET processes, if these assessments prove to be robust, Margaux will move towards full operation. This gives Margaux a relatively rapid path towards generating cash flow which can be used to help exploration in other areas of MRL’s property portfolio.
Margaux also recently announced encouraging drill results from its Jackpot zinc property which include multiple returns above 6% zinc. Margaux President and CEO, Tyler Rice, offered the following comment:
“The 2017 drill program at Jackpot gave us exciting and encouraging zinc results, and plenty to continue our interest in the property and provide significant leads for 2018. The combination of high-grade results plus large tonnage, lower grade, near-surface mineralization is a game-changer for us, especially in the current high-price zinc environment.”
Margaux shareholders clearly have a lot to be excited about heading into 2018 as MRL advances its Kootenay Arc projects. Meanwhile, 2017 has been a year of treading water for MRL shares as the company has been hard at work exploring and advancing its project portfolio, however, a breakout above C$.30 would target a move up to C$.40 from a head & shoulders bottom pattern:
MRL.V (Daily – 1 Year)
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