Island Zinc Project

Latest News from Island Zinc

In April of 2017, the Company announced it had reached an option agreement whereby Precipitate can acquire a 100% interest in the Island Zinc project located near Port Hardy, north Vancouver Island, British Columbia.

Island Zinc Location

The Project is located in northern Vancouver Island British Columbia, approximately 20 kilometres west of the Pacific Ocean port community of Port Hardy. Access to the property is via a high quality, all season gravel road and a number of subsidiary access roads which have facilitated of a few generations of logging. The reclaimed Island Copper Porphyry deposit mine site is 25 kilometres to the southeast.

Island Zinc Project Highlights

The Island Zinc project is a high grade zinc-lead-silver carbonate replacement target hosting historical workings (including a collapsed inclined adit and two shallow shafts) centered on surface exposures of large and lengthy bands of sphalerite-galena mineralization. Work by previous operators includes sampling, mapping, trenching, surface blasting, geophysics, shallow depth diamond drilling and small scale sub-surface mining. Select highlight results reported by prior operators and recent Precipitate rock samples include:

  • Select rock grab samples assay up to 12.3% zinc, 9.4% lead and 932 g/t silver (Precipitate 2017)*
  • Rock chip channel sample: 2.1 metres @ 3.9% zinc, 2.5% lead and 744 g/t silver (1989)
  • Drill hole NL66-19: 8.8 metres @ 5.6% zinc, 2.8% lead and 178 g/t silver from 13.4m depth
  • Drill hole NL66-20: 5.5 metres @ 7.3% zinc, 6.9% lead and 370 g/t silver from 17.4m depth*

* see disclaimer note below

Project historical records describe widespread replacement style mineralization showings within the host exploration target limestone over a strike distance of 800 metres (“m”), representing only a portion of the estimated 3,000m of mapped host limestone bisecting the property. Most prior work focused on the impressive surface showings of massive (up to 2 metres wide) banded sphalerite and galena at the Main historical showing. There is unexplored potential, particularly along strike (east to west) and down dip (to the south) where prospective mineralization may be masked by either glacial till or relatively thin layers of overlying volcanic rocks. These peripheral areas have never been explored by modern methods.

Preliminary Exploration Plan

Precipitate’s initial priority is to complete a detailed geophysical gravity survey over much of the property to identify any potential large and dense sphalerite-galena mineral bodies within the host limestone rocks near, distal, or down dip from known mineral surface occurrences. Selective ground geophysical magnetic surveying will follow the gravity work as a means to identify drill worthy targets with a combined non-magnetic and gravity positive signature.

Option Agreement Terms

Precipitate has an option to earn a 100% interest in the Property, comprising seven mineral tenures (675 hectares), by completing staged payments of cash and shares totalling $95,000, 250,000 Precipitate common shares and incurring an aggregate of $275,000 of work expenditures on the Property over a four year term, as follows:


Cash payment

Shares issued


Work Commitment


On signing agreement

$10,000

Nil

Nil

paid

At or before first signing anniversary

$15,000

25,000

$25,000


At or before second anniversary

$20,000

50,000

$50,000


At or before third anniversary

$25,000

75,000

$75,000


At or before fourth anniversary

$25,000

100,000

$125,000


A 2% Net Smelter Return royalty (‘NSR’) is payable to the vendor. Precipitate may purchase one-half of the NSR Royalty at any time for a purchase price of $500,000, and may purchase the remaining one-half (1 %) for $1,000,000.

Island Zinc Exploration History

Island Zinc was first explored in the 1930’s by American Smelting and Refining whose work included various surface explorations, two short 10 metre deep inclined shafts and a 34m long adit (“Lee adit” or “Main Showing area”). These workings are now collapsed and inaccessible. From 1965 to 1974, Giant Explorations completed detailed work including blast trenching, hand stripping/pitting, road building, geological mapping, magnetic-VLF geophysical surveying and 38 shallow diamond drill holes (‘X-ray’ core) totalling 1,442 metres; dominantly focused on the Pit, Hilltop, Main and Pond showings region of the property. Reported highlights of the Giant Explorations diamond drill program include holes NL66-19: 8.8 metres @ 5.6% zinc, 2.8% lead and 178 g/t silver (from 13.4m depth) and hole NL66-20: 5.5 metres @ 7.3% zinc, 6.9% lead and 370 g/t silver (from 17.4m depth). From late 1970’s to late 1980’s various small exploration companies completed limited and brief exploration work, including grid line cutting, geological mapping, and repeated sampling of the property’s more notable zinc showings. In 1988 Hisway Mining, collected rock chip-channel samples at the Pit and Pond showings, located about 600m west and 200m east respectively to the Main showing. Chip-channel sampling at Pit reported 2.1 metres @ 3.9% zinc, 2.5% lead and 744 g/t silver, while Pond yielded 1.5m @ 9.2% zinc, 4.0% lead and 267 g/t silver *. In 1988, Hisway drilled two short inclined diamond drill holes at the Pit showing (combined total 89m); from which the company collected no samples. In early 2017 Precipitate, as part of its’ due diligence work, collected rock grab samples from the Main, Pond and Pit historical showings to verify historical data. Laboratory results from these rock samples show zinc values up to 20.6%, lead values up to 9.4% and silver values up to 932 ppm.

Island Zinc Carbonate Replacement Deposit (CRD) & Geology

The exploration target zinc-lead-silver mineralized Triassic Quatsino Formation limestones conformably overly Karmutsen Formation intermediate volcanics and are in turn overlain by a thin volcano-sedimentary package of Jurassic Bonanza Group rocks (ranging 15m to 30m thick). Jurassic Island Intrusions (granodiorite to quartz diorite) lie to the south and west, and locally host copper-gold porphyry mineralization. Quatsino Formation limestones are widely known on North Vancouver Island to host small copper-iron skarns. On property, these target limestones have an east trend, a south dip ranging 35-60 degrees and an estimated thickness of 150m. Rock units are cut by northeast and northwest trending faults with offsets up to 100m.

The wide spread property replacement mineralization, noted on surface over an aggregate strike length of nearly 1 kilometre, is hosted in locally silicified, leached, fractured and brecciated limestone rocks. Sulphide mineralization is predominantly represented by sphalerite and galena, with lesser chalcopyrite, pyrrhotite and pyrite. Historical reports describe outcropping and shallow surface mineralization habits as irregular, disseminated, patchy, stringer and lengthy massive sulphide bands to 2 metres thick; often proximal to felsic dyke rocks and faults. Much of the property limestone appears unaltered, except where it is locally silicified, leached and contains iron oxides associated with replacement mineralization. Structural controls have not been identified. The replacement mineralization is considered to be ‘manto type’ sheet like occurrences, with gentle plunges along east-west and south directions. No sub-vertical “chimney” ore has yet been identified.

US Geological Survey data for Carbonate Replacement Deposits lists a tonnage range of 0.5-20 Mt, with 50% of deposits being at least 1.6 Mt, and the top 10% at least 14 Mt. Typical grade range is 4-14% combined lead and zinc; 50% of deposits have at least 150 g/t silver, and the top 10% grade 630+ g/t silver.

* Note: Certain information and data detailed here concerning the Island Zinc property and past work done thereon and results therefrom is historical, being derived from publicly available sources including company assessment reports and British Columbia Minister of Mines Annual Reports. The reliability of some historical data is unknown but is considered relevant by Company management. The historical data may be non-NI 43-101 compliant and should not be relied upon. It is the Company’s intention to verify the historical data, however confirmation work may produce results that differ substantially from the historic results. There is a risk that current exploration and test work will not result in the Company replicating historical results. Rock grab samples are selective by nature and are unlikely to represent average grades on the property.

This page has been reviewed by Michael Moore P. Geo., Vice President, Exploration of Precipitate Gold Corporation, the Qualified Person for the technical information in this news release under NI 43-101 standards.

Maps