BOUNDARY PROJECT Old Nick
OLD NICK PROPERTY
Old Nick Technical Report - July 18, 2007
Old Nick is one of British Columbia's largest sulfide nickel, cobalt deposits. The deposit is located adjacent to Trans-Provincial Highway #3, 29 kilometres east of Osoyoos.
The Old Nick is a pyrrhotite-pentlandite disseminated quartzite-hosted stratiform nickel-cobalt deposit traced on surface with a width of 110 metres and a length of 350 metres. Nickel soil geochemical and IP geophysical anomalies suggest the deposit is longer. Bench and column leach metallurgical test work on the Old Nick indicates the potential for recovery of nickel and cobalt by on-site leaching, solvent extraction and electrowinning.
The deposit area was prospected for gold during the 1850's when Rock Creek was an active placer gold camp. However, it was not until the 1960's that the deposit was explored for its nickel and cobalt potential. At that time Newmont Mining Corp. of Canada Ltd. did extensive drilling, trenching and metallurgical testing. They relinquished the Property because of poor metallurgical (flotation) results, but did recognize the potential for possible deposit development by leaching, subject to advances in hydrometallurgical technology
Bench scale and large column testing of nickel/cobalt bearing samples from surface and subsurface (diamond drill core) in 1995-1997 indicates that there is potential for economic recovery of nickel and cobalt by open pit mining, on-site heap or vat leaching, solvent extraction and electrowinning. Recent advances in nickel leaching technology provides considerable encouragement for further advancement of the Old Nick deposit toward prefeasibility level work.
In July 2007, the Company tabled an NI 43-101 resource report on the Old Nick deposit, authored by David P.Eng., of Geospectrum Engineering, the independent Qualified Person responsible for preparing the resource estimate. The Old Nick nickel-cobalt deposit resource is presented below at a 0.14 % nickel cut-off:
| Classification |
Tonnes |
Ni (%) |
Co (%) |
| Inferred |
17,236,048 |
0.1914 |
0.0095 |
- Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
- The mineral resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.
There were 48 drill holes - 25 diamond and 23 shallow percussion holes - and 15 trenches used to define the deposit model. The average drill hole spacing of the diamond drilling is at 50 metre centres.
Mr. Makepeace has recommended a 2 phase success contingent exploration program on the Old Nick deposit. The Phase I program of drilling and metallurgical testing is estimated at $1,050,000. The Phase II program of definition drilling and bulk metallurgical testing is estimated at $2,750,000.
With current elevated nickel and cobalt prices, the Company believes Old Nick has significant value, which has not yet been unlocked.
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