Mineralization at the Berg deposit forms a ring around a broadly cylindrical, multi-phase intrusive stock known as the Berg Stock. The mineral resources comprise two highly fractured mineralized zones in the northeast and southern portions of the annulus. Hypogene mineralization is characterized by several generations of veining, and a well-developed supergene enrichment blanket is superimposed on the hypogene mineralization.
A total of 53,754 metres over 215 holes have been completed on the deposit by prior operators including Kennecott, Placer Dome, Terrane Metals, and Thompson Creek Metals. Drilling in most areas of the Berg deposit remains wide-spaced and mineralization is open to depth and outward from the Berg Stock. The deposit has been shown to have excellent vertical continuity with significant mineralization intersected greater than 550m below surface.
Table listing select historic holes drilled in 2011 by Thompson Creek Metals
Hole |
From (m) |
To (m) |
Interval (m) |
Cu % |
Mo % |
Ag g/t |
Cu Eq %* |
---|---|---|---|---|---|---|---|
BRG11-215 |
54.0 |
404.2 |
350.2 |
0.41 |
0.031 |
8.3 |
0.60 |
including |
54.0 |
134.4 |
80.4 |
0.56 |
0.036 |
13.9 |
0.83 |
BRG11-219 |
6.0 |
69.0 |
63.0 |
0.56 |
0.070 |
60.5 |
1.44 |
BRG11-221 |
15.0 |
350.2 |
332.2 |
0.46 |
0.039 |
5.6 |
0.65 |
including |
15.0 |
132.0 |
114.0 |
0.58 |
0.025 |
5.4 |
0.72 |
BRG11-223 |
27.0 |
178.3 |
151.3 |
0.50 |
0.017 |
4.8 |
0.61 |
BRG11-228 |
33.0 |
294.6 |
261.6 |
0.35 |
0.035 |
5.3 |
0.52 |
BRG-11-229 |
15.5 |
325.4 |
309.9 |
0.46 |
0.016 |
4.6 |
0.56 |
including |
15.5 |
191.5 |
176.0 |
0.63 |
0.020 |
4.8 |
0.75 |
*Cu Eq. (copper equivalent) has been used to express the combined value of copper, molybdenum, and silver as a percentage of copper, and is provided for illustrative purposes only. No allowances have been made for recovery losses that may occur should mining eventually result. Calculations use metal prices of US $3/lb copper, $22 silver, and $10/lb molybdenum using the formula Cu Eq.% = Cu% + (Mo% x 3.33) + (Ag g/t x 0.0107).
Table 1. Mineral Resource Estimate for the Berg Deposit with Effective Date of March 9, 2021.
Grade |
Contained Metal |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Material Type |
Resource Category |
Cut-Off (CuEq %) |
Tonnes |
Cu |
Mo |
Ag |
CuEq |
Cu |
Mo |
Ag |
CuEq |
||
Supergene |
Measured |
0.2 |
86.9 |
0.41 |
0.03 |
2.46 |
0.50 |
789 |
52 |
6.9 |
960 |
||
Indicated |
0.2 |
88.5 |
0.29 |
0.02 |
2.67 |
0.37 |
572 |
43 |
7.6 |
724 |
|||
Measured & Indicated |
0.2 |
175.4 |
0.35 |
0.02 |
2.57 |
0.44 |
1,362 |
95 |
14.5 |
1,685 |
|||
Inferred |
0.2 |
7.2 |
0.23 |
0.01 |
4.26 |
0.29 |
37 |
2 |
1.0 |
47 |
|||
Hypogene |
Measured |
0.2 |
120.3 |
0.28 |
0.04 |
3.42 |
0.41 |
752 |
97 |
13.2 |
1,098 |
||
Indicated |
0.2 |
314.1 |
0.22 |
0.03 |
3.10 |
0.34 |
1,537 |
226 |
31.3 |
2,343 |
|||
Measured & Indicated |
0.2 |
434.3 |
0.24 |
0.03 |
3.19 |
0.36 |
2,289 |
323 |
44.6 |
3,441 |
|||
Inferred |
0.2 |
20.8 |
0.22 |
0.02 |
3.57 |
0.30 |
101 |
8 |
2.4 |
138 |
|||
Leachate |
Measured |
0.2 |
0.0 |
0.04 |
0.09 |
5.62 |
0.21 |
0 |
0 |
0.0 |
0 |
||
Indicated |
0.2 |
0.2 |
0.14 |
0.12 |
2.37 |
0.25 |
1 |
1 |
0.0 |
1 |
|||
Measured & Indicated |
0.2 |
0.2 |
0.13 |
0.12 |
2.41 |
0.25 |
1 |
1 |
0.0 |
1 |
|||
Inferred |
0.2 |
0.1 |
0.11 |
0.09 |
6.13 |
0.21 |
0 |
0 |
0.0 |
0 |
|||
Total |
Measured |
0.2 |
207.2 |
0.34 |
0.03 |
3.0 |
0.45 |
1,541 |
149 |
20.1 |
2,058 |
||
Indicated |
0.2 |
402.8 |
0.24 |
0.03 |
3.0 |
0.35 |
2,110 |
270 |
39.0 |
3,069 |
|||
Measured & Indicated |
0.2 |
610.0 |
0.27 |
0.03 |
3.0 |
0.38 |
3,651 |
419 |
59.1 |
5,126 |
|||
Inferred |
0.2 |
28.1 |
0.22 |
0.02 |
3.8 |
0.30 |
138 |
11 |
3.4 |
185 |
Notes:
1) Copper Equivalent (CuEq) calculated using metal prices of $3.10/lbs Cu, $10.00/lb Mo, and $20/oz Ag. Recoveries were applied to correspond with estimated individual metal recoveries based on limited metallurgical testwork for production of a copper and molybdenum concentrate: supergene zone (Cu = 73%, Mo = 61%, and Ag = 52%), hypogene zone (Cu = 81%, Mo = 71%, and Ag = 67%), leachate zone (Cu = 0%, Mo = 61%, and Ag = 52%). Smelter loss was not applied.
2) A cut-off value of 0.2% CuEq was used as the base case for reporting mineral resources that are subject to open pit potential. The resource block model has been constrained by a conceptual open pit shell, however, economic viability can only be assessed through the completion of engineering studies defining reserves including PFS and FS. The CIM Definition Standards (May 10, 2014) were followed for classification of Mineral Resources. It cannot be assumed that all or any part of Inferred Mineral Resources will be upgraded to Indicated or Measured as a result of continued exploration.
3) Dry bulk density has been estimated based on 2,996 in situ specific gravity measurements collected between 2007 and 2011. Values were applied by geology model domain (n = 18) representing the weathering profiles and major lithological units; values ranged from 2.38 t/m3 to 2.74 t/m3.
4) There are no known legal, political, unnatural environmental, or other risks that could materially affect the potential development of the mineral resources.
5) All numbers are rounded. Overall numbers may not be exact due to rounding.
Top, horizonal section through the Berg Deposit at 1475 meters above see level showing copper equivalent grade. Bottom, vertical section A-A’ looking north, through the Berg deposit showing copper equivalent grades.
Under the terms of the 5 year Option Agreement, Surge issued to Centerra C$4 million in Surge common shares (6,825,939 shares, about 5.5% ownership in Surge) upon TSX approval. In addition, on each of the five anniversaries after the date of the Option Agreement, a further C$0.2 million in Surge shares will be issued to Centerra bringing the total of all share payments equivalent to C$5 million.
During the five-year option period, Surge must incur C$8 million in project related expenditures, with an initial C$2 million of spending commitment before December 2022.
After the above commitments are met by Surge, the option will be deemed to have been exercised, and a 70%:30% joint venture will be formed and a formal joint venture agreement established. Dilution of either party below 10% interest will result in their interest converting to a 1.0% net smelter returns royalty, half of which can be bought back by the other party for C$5 million.