The Dillard Property is located approximately
35 kilometres north of Princeton, where
Copper Mountain Mining Corp. recently put the Copper Mountain
(Similco) copper-gold-silver mine back into production,
with measured and indicated resources estimated at 326
million tonnes grading 0.373% Cu, and inferred resources
of 169 million tonnes grading 0.29% Cu, plus gold and
silver credits (2012). Gold Mountain Mining Corp.’s
recently acquired past-producing Elk gold-silver mine
lies approximately 15 kilometres to the northeast of Dillard.
The Dillard Property is composed of Dillard
East, co-owned by local prospectors, and Dillard West,
100% owned by Fjordland.
On August 31, 2011 Fjordland signed an option
agreement with private vendors to purchase a 100% interest
in the 2,200-hectare Dillard East claims. Fjordland may
make staged cash payments to the vendors totaling $180,000,
may issue a total of 1,500,000 common shares of the Company
in stages and may expend $2,500,000 in exploration in
stages on the Property over a five-year period. The Company
will also reserve a 3% net smelter return royalty (NSR)
for the vendors that may be bought down by the Company
to a 1.5% NSR for $2,000,000.
On February 7, 2012 Fjordland signed an
option agreement with Almaden to purchase a 100% interest
in the 400-hectare Dillard West claim, subject to a 2%
NSR, which Fjordland has the option to purchase 50%. Fjordland
has currently earned in a 100% interest in the property
and if Fjordland completes a NI 43-101 Resource Estimate
on the Property, it will issue an additional and final
1,500,000 common shares of Fjordland to Almaden.
On April 3, 2013 Fjordland signed agreements
with Sumac Mines, a subsidiary of Sumitomo Metal Mining
Co of Japan, on combined Dillard East and West properties,
collectively called "Dillard". Sumac may earn
a 51% interest in Dillard by making total expenditures
of $3.5 million over 3 years (see
April 4, 2013 news release for details).
Numerous historic exploration programs were
completed on the Property and surrounding area including
property wide soil geochemistry, geological mapping, trenching
and drilling. Previous exploration on the Property includes
work by Noranda (1972-1973), Cominco (1981- 1983), Almaden
(1987-1991) and Placer Dome (1989-1991). Since then and
until recently, there has been no significant exploration
in the immediate area.
In 2011, a prospecting program was completed
identifying numerous new exposures from recent and current
logging operations. Grab samples taken by Company
geologists during initial site investigations yielded
assays up to 1.64% copper, 7.4 ppm silver, 0.025 ppm gold
and 56.9 ppm molybdenum from new exposures in altered
Nicola Group volcanic rocks and up to 28.9 g/t gold and
11.4 ppm silver from a quartz vein in granodiorite on
the eastern portion of the property.
In 2012, 23.3 line-kilometres and 11 line-kilometres
of ground magnetic and induced polarization surveys were
completed over selected areas of the property. These surveys
led to the identification of coincident copper-gold soil
and IP anomalies in two areas in Dillard East measuring
approximately 2,000 metres by 800 metres and 1,500 metres
by 1,000 metres.
In 2013, exploration consisted of 17 lines
totaling 43.3 line kilometres of ground magnetics and
induced polarization surveys. In addition, a high - resolution
helicopter - borne magnetic and radiometric survey totaling
293 line-kilometres was flown over the entire property.
A 6-hole, 2600 m reconnaissance drill program
was completed on both the Dillard East and West portions
of the property. Four holes totaling 1,588 metres and
two holes totaling 1,012 metres were completed on the
Dillard West and Dillard East targets, respectively. The
Dillard West target, measuring approximately 1,400 metres
by 1,200 metres, includes coincident induced polarization
chargeability and copper and gold soil anomalies. Hole
DI 13 - 04 returned 158.5 metres grading 0.2% Cu and 0.10
g/ t Au. Additional copper and gold intersections were
reported from holes DI 13 - 03, 05 and 06
In 2014, exploration program consisted of
soil sampling (243), trenching (2,000 metres), and diamond
drilling (14 holes totalling 5,574 metres). Trench T14-06
hosted the largest copper interval including a 27 metre
zone averaging 0.13% Cu. Sub-economic intervals of copper
mineralization were intersected in all of the drillholes.
Soil sampling identified gold anomalies
independent of copper mineralization. Drilling and trenching
in the Dillard East portion of the Property intersected
near surface gold mineralization including:
T14-06: 0.52 g/t Au/12.0m
DI14-16: 0.4 g/t Au/20.0m
(incl 1.15 g/t Au/3.0m)
DI14-16b: 1.2 g/t Au/12.0m
(incl 2.9 g/t Au/6.0m)
Gold mineralization is similar in geological
setting and occurrence as that found at nearby Gold Mountain
Mining Corp's Elk deposit, which resently posted reserves
containing 300,000 ounces of gold.
Fjordland was the operator of the project
on each phase of exploration.
Note: John Peters, PGeo is the QP who has
reviewed the data presented.