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Woodjam North


Introduction

The Woodjam gold-copper project is located in south-central British Columbia 70 kilometres east of Williams Lake and 30 kilometres south of the Mount Polley property, owned by Imperial Metals Corporation. Woodjam is located east of Williams Lake near the town of Horsefly.

Woodjam is located in the Cariboo, a region that is prolific with copper-gold mineralization. Between 1858 and 1865, the Cariboo Gold Rush occurred, bringing thousands of miners to the area.

In June 2009, the Woodjam project was split into two properties that are now known as Woodjam North and Woodjam South. The Woodjam North section of the property, encompassing 40,500 hectares was optioned to Gold Fields Limited. The Woodjam South section, encompassing 7,500 hectares was retained by Cariboo Rose.

Exploration has demonstrated that the Woodjam property is prospective for bulk-tonnage gold-copper-molybdenum deposits similar to other porphyry deposit areas in B.C.'s Quesnel Terrane.

Woodjam North has three large mineralized target areas that cluster together in a 4.0 x 3.0 kilometre area.

Geology

The Quesnel-Stikine Terrane, also known as the Quesnel Trough, is a large regional depositional belt extending 2,000 kilometres from the U.S. border in the south to the Stikine River in the north. The region hosts several large tonnage copper-gold 'porphyry type' deposits including Imperial Metals' Mount Polley Mine, Cross Lake Minerals' QR mine, Terrane Metals' Mt. Milligan deposit and Northgate's Kemess Mine. In addition, the prolific Gibraltar Cu-Mo mine lies 50 kilometres to the west of Woodjam, outside the Quesnel Trough. Quesnel Trough alkali-porphyry deposits typically occur in basalts and andesitic flows, fragmental rocks and alkalic intrusive complexes. They are generally gold-copper deposits consisting of chalcopyrite-pyrite and minor bornite sulphide mineralization. Sulphide zones are developed adjacent to concentrically-zoned alkaline plutons that are themselves seldom sulphide bearing.

Breakthrough in 2007

An IP study performed in 2007 gave evidence that a large intrusive/hydrothermal complex measuring approximately five kilometres by six kilometres underlies the Woodjam North and South properties, with at least three large IP chargeability anomalies. The Megabuck and Takom Zones, were already associated with known copper and gold mineralization while the Deerhorn Zone has had no previous exploration until this year.

The geophysical survey data dramatically expands the area of interest for exploration on the Woodjam North and South properties and suggests a much greater potential for discovery than previously envisioned. Northeasterly trending geologic features have long been considered important in determining the location of large mineralizing systems in the generally northwest trending Quesnel Terrane. This recent data suggests that such a feature is present and is aligned with the known mineralized areas on the property.

The Gold Fields Program in 2009

Gold Fields started with a property wide exploration program that included: Geological mapping over all areas covered by soil and induced polarization (IP) surveys, approximately 85 line-kilometres of line-cutting and an induced polarization survey at 100 metre line-spacing over the Corner Lake grid (extending northwards from the Megabuck and Deerhorn Zones), a 5,000 line-kilometre airborne magnetic-radiometric survey on lines spaced 100 metres apart, 500 gravity stations on a nominal 250 metre spacing with local more detailed 100 metre nominal spacing over the Takom area and a soil sampling survey consisting of 4,250 samples collected over the Takom-Corner Lake grid.

Gold Fields drill tested two areas, completing 11 core holes for 3,589.6 m in the Takom Zone and 3 core holes for 993.6 m in the Deerhorn Zone for a total of 4,583.3 m. Both these areas tested and stepped out from mineralization previously outlined by the WJV on the Woodjam North property and lie several kilometers south and east respectively, from the previously drilled Megabuck Zone.

Highlights of the assay results received by Gold Fields include the following: 0.58 g/t Au and 0.43% Cu over 101.0 m (from 114.0 m in hole TK09-001 at Takom) and 1.16 g/t Au and 0.26% Cu over 89.50 m (from 165.0 m in hole DH09-003 at Deerhorn).

The four mineralized zones on the Woodjam North Property are Megabuck, Megabuck East, Takom and Deerhorn:

Megabuck Zone

The Megabuck Zone shares many geological features with Mount Polley, including a suite of generally alkalic Triassic-Jurassic intrusives and related volcanics. Megabuck represents an unusual porphyry copper style of occurrence with an extraordinarily high gold to copper ratio of 1:1,400 such that mineralization grading 0.14% copper from weak but pervasive disseminated chalcopyrite and minor bornite contains one gram of gold per ton.

Drilling during the 2004-2006 seasons largely focused on the Megabuck Zone where significant gold-copper mineralization has been outlined over an area of several hundred metres and remains open-ended. Drilling includes hole 04-32 which intersected 274.0 metres of 0.14% copper and 1.03 g/t gold.

Selected drill results from Megabuck Zone include:

HOLE INTERVAL (m) GOLD (g/t) COPPER
1974-1 58 1.39 0.13
1974-1 17 1.34 0.15
1974-2 36 1.41 0.11
1983-4 47 1.28 0.11
1999-20 144 0.72 0.12
2002-24 20 0.42 0.04
2002-25 54 0.52 0.10
2002-26 2 8.16 0.01
2002-27 12 0.42 0.05
2004-32 361 0.84 0.12
2004-37 348 0.82 0.12


Megabuck East Zone

In 2008, a reconnaissance hole, WJ-08-94 with results in the table below, was completed south of the Deerhorn target and approximately 1.5 km northeast of the Megabuck Zone. This hole was anomalous in copper from the bedrock interface to the bottom of the hole. Two narrow intercepts (at 31.00 m and 196.00 m) carrying anomalous gold values are associated with quartz-tourmaline veining which is commonly occur in close proximity to mineralized zones. A large area of anomalous chargeability lies to the southwest of this hole and has not yet been drill tested.

Megabuck East Zone Drill Summary for 2008
Hole Location From (m) To (m) Interval (m) Cu (%) Mo (%) Au g/t
08-94 Megabuck East 31.00 37.00 6.00 0.04 - 0.85
Including   196.00 208.00 12.00 0.10 - 0.12


Takom Zone

There is also a zone called the Takom to the south of Megabuck. Two diamond drill holes were drilled perpendicular to each other into the Takom (Cu-Au) zone intersecting mineralized monzonite intrusives and volcanics grading 0.1 g/t Au and 0.12% Cu over 82.6 metres (05-48) and 0.16 g/t Au and 0.18% Cu over 31.0 metres (06-71). The target area is outlined by a 3 km long IP geophysical anomaly. In 2008, the best grade hole ever in Takom was drilled (results below) which indicates a well mineralized zone is present.

Takom Zone Drill Summary for 2008
Hole Location From (m) To (m) Interval (m) Cu (%) Mo (%) Au g/t
08-87 Takom 98.62 226.00 127.28 0.26 - 0.40
Including   109.20 181.00 71.80 0.34 - 0.60
Including   109.20 142.00 32.80 0.45 - 1.04


Deerhorn Zone

In 2003, three drill holes were completed in a separate area of the property east of the Megabuck Zone. The second hole of the 2003 program returned 15.4 metres grading 0.90% copper. Recent Drilling in 2008, in two holes spaced 100 m apart, has intersected intervals of quartz-chalcopyrite-magnetite veining as well as disseminated chalcopyrite mineralization. The intrusion hosting mineralization in the newly-drilled Deerhorn Zone visually appears similar to that intersected in the Megabuck Zone.

In 2008, a new mineralized area was discovered by drilling with results in the table below. The geophysical anomaly measures approximately 400 m by 800 m and remains largely untested.

Deerhorn Zone Drill Summary for 2008
Hole Location From (m) To (m) Interval (m) Cu (%) Mo (%) Au g/t
08-92 Deerhorn 43.59 279.81 (eoh) 236.22 0.10 - 0.13
Including   43.59 91.50 47.91 0.12 - 0.22
Including   214.50 243.02 28.52 0.21 - 0.54
08-93 Deerhorn 33.53 102.50 68.97 0.22 - 0.50
Including   75.50 90.50 15.00 0.32 - 0.87


Access

The project area is in a low elevation terrain with moderate topography. The property is bisected by a well maintained network of logging roads and is amenable to drilling on a year-round basis. To view in Google Earth click here.

Comparables

At Woodjam, the company is targeting mineralization similar to what occurs at Cadia Hill in Australia (Newcrest Mining Limited) and the Kemess deposit in BC. (Northgate Minerals Corporation). Cadia Hill commenced production in 1996 with a resource of 210 million tonnes grading 0.72 g/t gold and 0.18% copper while Kemess commenced in 1999 with a resource of 200 million tonnes grading 0.22% copper and 0.63 g/t gold. Gold-copper mineralization at Cadia Hill, Kemess, Mount Polley and Woodjam are all associated with monzonite intrusives into adjacent, generally mafic, volcanic rocks.

Status

The Woodjam Joint Venture, consisting of Fjordland Exploration Inc. (60%) and Cariboo Rose Resources (40%) optioned the Woodjam North property to Gold Fields Ltd. in June 2009.

Under terms of that option deal Gold Fields may earn an initial 51% interest by expending C$7.0 million in exploration, and making $350,000 in cash payments to the Joint Venture, over a three year period with a minimum expenditure of $1.0 million in the first year. Gold Fields may extend the option to earn a further 19% interest in the Woodjam North property by funding a further C$12.0 million in exploration over a 4-year period. Should Gold Fields elect not to extend the option, then the Woodjam Joint Venture (Fjordland/Cariboo Rose) will have the right to make an offer for Gold Fields' 51% interest and if it is not accepted it then will have the right of first refusal on any offers to acquire Gold Fields' vested 51% interest.

Fjordland Exploration Inc. earned a 60% interest in the project from Cariboo Rose and a joint venture agreement was signed in early 2006. Since that date, the Woodjam project has been a joint venture with Cariboo Rose holding the remaining 40%. Fjordland Exploration is headed by Tom Schroeter (P. Eng, P. Geo.) who has over 35 years experience related to the mining industry in Canada. Tom worked with the British Columbia Ministry of Energy, Mines and Petroleum Resources, for the last 34 years.

Gold Fields Limited is one of the world's largest unhedged producers of gold with attributable production of four million ounces per annum from nine operating mines in Peru, South Africa, Ghana and Australia. The company has total attributable ore reserves of 83 million ounces and mineral resources of 251 million ounces. In addition, the company has an extensive exploration portfolio with highly prospective projects in all of the major gold provinces of the world.

Exploration on the Woodjam Project is active and ongoing. The Woodjam JV works closely with Gold Fields to progress the project in a cost effective manner for shareholders.

Click here to view Woodjam North Maps

Click here to view Woodjam Photos

Technical Document

Woodjam NI43-101 (pdf)
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This page was created on Fri Sep 10, 2010 at 3:55:41 AM Pacific Time.