The BAM Property consists of ten mineral tenures that cover an area of over 8,100 hectares, located approximately 150 kilometers northwest of Stewart, BC. Highway 37 and the Northwest Transmission Line are approximately 35 kilometers to the east of the property, and the Galore Creek Project access road is 1.7 kilometers to the southeast.
The BAM Property was discovered in the 1960s when regional exploration that was focused on copper mineralization resulted in the discovery of the Galore Creek deposit, approximately 35 kilometers to the west, and the Schaft Creek deposit, approximately 20 kilometers to the northwest; both deposits are large copper-gold porphyry mineralizing systems. On the BAM Property, drilling in 1967 identified a sizeable area of copper mineralization with minor silver in a replacement zone hosted by brecciated Lower Permian limestone and dolomite.
More recently, exploration efforts on the BAM Property have focused on gold. This work started in the mid-1980s when Radcliffe Resources discovered quartz veins that assayed up to 212 grams per tonne gold in grab samples, and when Chevron Canada Resources Limited collected channel samples from trenches that returned up to 7.4 grams per tonne gold over 19.3 meters. Sporadic work since that time has identified numerous other showings, several of which were drill tested and found to host discontinuous mineralized quartz veins. Previous work also included a number of small soil and stream sediment sampling programs, which combined have defined a 3-kilometre-long by 500-metre-wide corridor of highly anomalous gold–silver soil geochemistry within a zone of hornfelsed Lower Jurassic Hazelton Group rocks in contact with a large granitic pluton. The gold values in soils include a considerable number which returned greater than 0.5 grams per tonne gold, with a high of 2.76 grams per tonne gold. The Company believes these historical results provide an indication of the potential of the BAM Property and are relevant to planned exploration.
The BAM property has not been systematically explored for large porphyry related copper-gold or a bulk tonnage gold-silver system. The Company plans to initiate a systematic exploration program by completing airborne and ground geophysical work, in combination with further geochemical sampling, geologic mapping and prospecting.
Jeffrey D. Rowe, P.Geo is the qualified person responsible for the BAM Property and has reviewed, verified and approved the scientific and technical information in this news release relating thereto.
The acquisition is structured as a two-phase option to acquire a 100% interest in the BAM Property. The initial option is for a 70% interest in the property. On exercise of the initial option, the Company will have the right to acquire the remaining 30% interest, for a 100% total interest, or remain at 70% and enter into a joint venture with the vendor.
The terms of the initial option, for a 70% interest in the property, are as follows:
Following exercise of the option, the Company has the right for a period of 120 days to acquire the remaining 30% interest in the BAM Property, for a 100% total interest, on payment of $7.5 million of which up to $4 million may be paid in shares of the Company at its election. If the Company elects to not purchase the remaining 30% interest, the Company and the vendor shall form a joint venture, with the Company appointed the operator. During the first three years of the joint venture, the Company will fund the vendor’s participating interest in the joint venture. If the vendor fails to sell its interest in the joint venture during such three year period, the vendor’s interest will convert to a 2% net smelter returns royalty (the “nsr”), provided that the Company will have the opportunity to purchase the vendor’s interest prior to such conversion for $7.5 million. Following the conversion of the vendor’s interest to a 2% nsr, the Company may purchase 1% of the nsr for $2,000,000 (inflation adjusted from 2020). The vendor has also agreed to assign to the Company two claims that form part of the BAM Property for $40,000 and a 2% nsr, 100% of which can be purchased by the Company for $1,125,000 prior to commercial production on such claims and 1% of which can be purchased for $300,000 (inflation adjusted from 2020) after commercial production is achieved on such claims.
BAM Property and Location
BAM Location Map
BAM in Gold Soil Samples