Silver Coin Project Summary
Silver Coin is an advanced-stage, gold-silver property located 25 kilometers north of Stewart, British Columbia in the Skeena Mining Division. The project covers a net area of approximately 1,470 hectares and features a zone of faulting and brecciation with accompanying mineralization up to 300 meters wide that has been traced for 2.5 kilometers. Silver Coin shares many characteristics with the nearby Silbak-Premier Mine, located just 3.5 km to the south. Over its mine life, the Silbak-Premier Mine produced 4.7 million tonnes yielding approximately 2 million ounces gold, 43 million ounces silver, 4 million pounds copper, 55 million pounds lead and 20 million pounds zinc.
To date, 869 holes totaling approximately 107,846 meters have been completed at Silver Coin. This drilling has partially outlined a gold-silver mineralized body that remains open to the north and northwest.
In 2009, Cambria Gordon Ltd., an environmental consulting firm based in Terrace, B.C., was engaged to initiate environmental baseline studies of the Silver Coin project with the goal of assessing existing water quality, fauna and flora concerns and potential sites for tailings disposal. Specifically, their work included:
- Preliminary limnology of No-Name Lake, a proposed site for tailings disposal;
- Stream flow measurements to start to build a hydrological database and provide information for year-round water supply for the project;
- Preliminary baseline geochemical water quality monitoring; and
- Assessment of the presence, or absence, of rare and/or endangered species.
In 2010 and 2011, the Company engaged AMEC Environment and Infrastructure to continue and expand the environmental baseline studies. The Company, working with AMEC, also initiated geochemical characterization of waste rock and low-grade mineralization to determine the acid-generating potential of Silver Coin and appropriate mitigation measures.
Metallurgical testing at Silver Coin has been ongoing since November 2008 by F. Wright Consulting Inc. Results to date have shown that Silver Coin exhibits very favourable metallurgical characteristics. The laboratory test program to date has investigated flotation and cyanide leaching procedures.
Based on a new metallurgical composite designed to more closely resemble the current estimate of the average grade, metallurgical testing continued in 2011 in an effort to optimize recoveries.
Depending on the sample and procedures that were used, the overall gold recoveries varied from 80% to 92%. Initial open-cycle flotation tests provided an excellent bulk yield of over 95% gold into a rougher concentrate. The results from a locked-cycle test provided gold and silver recoveries of approximately 90%. Future metallurgical work will focus on optimizing flotation procedures for rejecting pyrite to produce a cleaned bulk gold-silver concentrate. The nearby deep water port and loading facility at Stewart is ideally located for transport of Silver Coin concentrate.
During September 2009, bulk samples were collected from trenches in the mineralized zone at Silver Coin to provide samples for work index studies.
Silver Coin is a significant gold resource which has yet to be fully delineated by drilling. Potential to significantly expand the resource exists along strike, particularly to the north. It is located in the Stewart Camp, which contains widespread and abundant alteration and mineralized prospects, including one of B.C.’s important past-producers, the Silbak-Premier Mine. Work in 2011 included infill and step-out drilling to upgrade resource categories and grow the resource, further metallurgical test work, further baseline environmental studies & EIA, and detailed process design & mine planning.
With the advantages of a hew hydro-power plant being built within three kilometers, the well-maintained Granduc Road crossing the property leading to the Pacific’s Portland Canal, and a concentrate shipping facility in Stewart, Silver Coin is a very attractive mining project.
Lawrence Dick, Ph.D., P.Geo., a Qualified Person as defined by National Instrument 43-101, and the Chief Consulting Geologist for Jayden Resources Inc., has reviewed and approved the technical content on this page.