Ox Cu-Mo Deposit

Ox Cu-Mo Deposit

The Ox deposit is located 4 km northeast of the Seel deposits and contains a crescent-shaped zone of disseminated and vein-controlled porphyry Cu-Mo mineralization.  Mineralization contains pyrite, chalcopyrite and molybdenite hosted in hornfelsed sedimentary rocks near the western margin of a granodiorite porphyry stock.  


Ox Deposit Simplified Geology and Drill Hole Locations.

A simplified cross section through the Ox deposit is shown below with geology and drill intersections indicated.   Mineralization occurs within clastic sedimentary rocks and feldspar porphyry dikes and sills along the margin of a crowded feldspar-biotite porphyritic intrusion.  

Simplified cross section A-A’ through the Ox Deposit, section location is shown above.

The geometry of the Ox mineralized zone and the resource constraining pit are shown in the figures below.  The mineralized zone at Ox starts at surface and has a shallow geometry favorable for potential open pit exploitation. 

Geometry of the Ox Mineralized Zone and the Conceptual Resource Constraining Pit

The cross section below illustrates that the highest grades at Ox occur close to surface.

Cross Section Through the Ox Mineralized Zone Showing the Outline of the Conceptual Resource Constraining Pit

Select drill hole results from Ox are shown in the table below.

Select drill hole results from the Ox Deposit.


Drill Hole   

From (m)

To (m)

Width (m)*

Cu %

Mo%

Au g/t

Ag g/t

Cu Eq.%**

Ox13-46

5.1

167

161.9

0.36

0.028

0.06

1.85

0.53

including

19

97

78

0.49

0.035

0.08

2.15

0.71

Ox13-61

7.7

76.2

68.5

0.4

0.048

0.07

1.46

0.65

including

22

72

50

0.46

0.055

0.09

1.67

0.76

Ox13-62

5.8

86

80.2

0.43

0.035

0.07

1.73

0.63

including

44

86

42

0.51

0.041

0.09

1.99

0.75

Ox13-70

11.1

202

190.9

0.29

0.035

0.05

1.97

0.48

including

122

202

80

0.36

0.039

0.06

2.8

0.58

including

144

158

14

0.81

0.030

0.14

6.66

1.1

Ox13-71

24.6

384

359.4

0.25

0.031

0.04

1.19

0.41

including

24.6

197

172.4

0.32

0.042

0.06

1.87

0.55

including

57

109

52

0.5

0.037

0.09

2.65

0.73

Ox13-78

8.7

234.3

225.6

0.3

0.032

0.05

1.73

0.48

including

74

100

26

0.44

0.032

0.06

2.43

0.63

Ox13-80

18.3

246

227.7

0.34

0.032

0.05

1.73

0.52

including

28

45.6

17.6

0.46

0.024

0.07

2.23

0.62

Ox13-99

15.3

116.5

101.2

0.33

0.035

0.07

1.78

0.53

including

76

116.5

40.5

0.46

0.046

0.1

2.69

0.74

Ox13-110

5.4

108.7

103.3

0.44

0.04

0.06

1.89

0.66

including

5.4

46

40.6

0.57

0.034

0.09

2.62

0.79

Ox13-112

10

125

115

0.39

0.024

0.08

1.91

0.56

including

36

125

89

0.42

0.021

0.08

2.04

0.58

including

52

66

14

0.88

0.015

0.17

4.06

1.09

*Width refers to drill hole intercepts, true widths have not been determined. EOH = end of hole.
**Cu Eq. (copper equivalent) has been used to express the combined value of copper, molybdenum, gold 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 $2.50/lb copper, $1200/oz gold, $15 silver, and $10/lb molybdenum using the formula Cu Eq.% = Cu% + (Au g/t x 0.701) + (Ag g/t x 0.0087) + (Mo% x 4.01).

Current measured and indicated resources for the Ox deposit are shown in the Tables below along with sensitivity to different net smelter return (NSR) cut off grades.

Ox Deposit Mineral Resources at C$8.50/T NSR Cut Off by Resource Category.

Category

Tonnes (‘000’s)

CuEq

Cu %

Au g/t

Mo%

Ag g/t

CuEq

Cu

Mo

Ag

Au

%

 

 

M lbs

M lbs

M lbs

K oz

K oz

Measured

30,492

0.37

0.26

0.04

0.028

1.5

249

175

19

1,471

39

Indicated

3,204

0.32

0.23

0.04

0.021

1.4

23

16

1

144

4

Ox Deposit Resource Sensitivity to Cut Off Grade for Measured and Indicted Resources.

NSR Cut-off C$/t

Tonnes (‘000’s)

Cu %

Mo %

Au g/t

Ag g/t

15.00

27,136

0.28

0.030

0.05

1.7

12.50

30,626

0.27

0.028

0.05

1.6

10.00

33,052

0.26

0.027

0.04

1.5

8.50

33,696

0.26

0.027

0.04

1.5

7.00

33,966

0.26

0.027

0.04

1.5

5.00

34,134

0.26

0.027

0.04

1.5

0.01

34,273

0.26

0.027

0.04

1.5

The current technical report supporting the resource statement and PEA is available on SEDAR or the Company’s website at www.surgecopper.com and has an effective date of January 2016.  The resource estimate uses $8.50 per tonne NSR cut-off value.  Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.  A ‘Measured Mineral Resource’ is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit.   An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit.  Copper Equivalent (CuEq) calculations are based on base case metal price (US$3/lb Cu, US$1260/oz Au, US$10.30/lb Mo, and US$17/oz Ag) and process recovery assumptions  and take into account smelter payable rates and refining costs.  M&I = measured and indicated. The resource update and Preliminary Economic Assessment was completed by P&E Mining Consultants Inc. in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.

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