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. 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 the
Dillard claims, co-owned by local prospectors, and the
Dill claim, 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 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
n the 400-hectare Dill 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 Dill 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 and Dill 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. Previous
exploration on the Property includes work by Noranda (1972-1973),
Cominco (1981- 1983), Almaden (1987-1991) and Placer Dome
(1989-1991). Since then, there has been no significant
exploration in the immediate area.
Diamond drilling was completed on both properties.
On the Dill property Primer Group Minerals (1966-1969)
completed 18 core holes totaling 2330 metres and 3 percussion
holes totaling 201 m and Placer Dome Inc. (1989-1991)
completed 11 core holes totaling 2020 m. Structurally-controlled,
near-surface, copper-gold mineralization was encountered
in alkalic monzonites to monzodiorities that intrude Nicola
Group volcanic rocks. Drilling tested an area measuring
approximately 1300 m in length and 400 m in width, part
of coincident copper-gold soil and induced polarization
A selection of mineralized drill intercepts
from previous drilling is presented in the following table
SELECTED HISTORICAL MINERALIZED
Most drill holes bottomed in mineralization,
at depths of up to 220 m. In addition to the 1991 drilling
program, the source of numerous gold soil geochemical
anomalies (> 50 ppb) remains unclear. One isolated
intercept in the drilling returned a 3.1 m interval assaying
710 ppb gold.
In the eastern portion of the property on
the Dillard claims, copper and gold soil anomalies with
coincident induced polarization (IP) anomalies, have never
been drill tested. Grab samples collected by Company geologists
during site visits in late July-early August, 2011 yielded
assays up to 1.64% Cu, 7.4 ppm Ag, 0.025 ppm Au and 56.9
ppm Mo from new exposures in altered volcanic rocks on
the western portion of the Property and up to 28.9 g/t
Au and 11.4 ppm Ag from a quartz vein in granodiorite
on the eastern portion.
Trenching in 1991 by Placer Dome in a small
area (“Gold Core”) with a similar geological
setting to the Elk mine to the northeast yielded samples
of mineralized quartz-carbonate veins of up to 245.4 g/t
Au over 1.5 m and 85.37 g/t Au and 0.16% Cu over 4.5 m.
Four short core holes were drilled by Harold Adams (1989-1990)
totaling 336 m tested these gold anomalies.
Exploration in 2012 consisted of reconditioning
of historic core and IP/magnetics surveys over the eastern
portion of the property. A large chargeability anomaly
was delineated by the survey.
Exploration in 2013 consisted of airborne
magnetics and radiometrics, additional IP/Magnetics surveys
and diamond drill testing.
Note: John Peters, PGeo is the QP who has
reviewed the data presented.