| | |
| |
|
| | Rateria Property  The Rateria property is comprised of several mineral claims totaling approximately 3,832 hectares and is located 10 kilometres southeast of Teck Cominco's Highland Valley Copper mine concentrator, near Logan Lake, British Columbia, Canada. Highland Valley is made up of several deposits, including the Valley, Lornex, Highmont, JA and Bethlehem. In 2007, the Highland Valley Copper mine reported a $737 million operating profit from material with an average grade of 0.37 percent copper. The scale of production, blending ore from several pits and efficiency of the mill, all result in a highly profitable operation. The Rateria property was staked in 1999 during a period of low copper prices. The property is adjacent to Teck Cominco on the west and north side. Under the terms of an option agreement, Happy Creek has one final payment of $50,000 cash and 250,000 common shares by March 25, 2009 to earn a full 100 percent interest into the property. The company also has the option to purchase 100 percent of the net smelter royalty (NSR) for $3,000,000. Geology Notably, the Rateria property is underlain with the same rocks hosting the copper deposits currently being mined to the north by Teck Cominco. The Guichon Batholith is comprised of multiple intrusive phases, progressively younger in age towards the centre. The Rateria property covers a portion of the central to eastern phases of the Batholith that are quartz diorite to quartz monzonite in composition and includes the Bethsaida, Skeena, Bethlehem and Chataway phases, respectively. Dykes of younger rocks cut older ones, and geological contacts between the different phases and dykes are important structures that control fracturing, associated hydrothermal alteration, and copper mineralization. The copper sulphide minerals identified to date on the Rateria property are comprised dominantly of bornite (63.3 percent copper) and minor chalcopyrite (34.6 percent copper). Chalcocite (79.8 percent copper) also occurs to depths of over 140 metres either as a primary mineral or as a secondary mineral replacing bornite. Pyrite (iron sulphide), a very common and abundant mineral in most types of porphyry copper deposits, is actually quite low in overall quantity in Highland Valley deposits. The relatively high percentage of bornite (and in part chalcocite) and low percentage of pyrite results in a relatively clean and high grade copper concentrate that is desirable by concentrate purchasers. Minor copper oxides malachite, azurite, and black pitch copper (neoticite), occur in minor amounts near surface, and historical drill logs indicate native copper is present in minor amounts locally. The copper sulphides occur within fractures containing quartz, muscovite (sericite), and clay (kaolin/montmorillonite), commonly referred to as phyllic and argillic alteration, respectively, and are typical of Highland Valley deposits. K-feldspar, quartz, magnetite-hematite alteration minerals also occur but to date appear less common. The best mineralized zones are controlled by the degree of fracturing and intensity of phyllic to argillic alteration, and in part spatial proximity to geological contacts between various phases of the Guichon batholith. Exploration Initial Induced Polarization Program Between 1965 and 1995 two-dimensional (2D) IP surveys were used in conjunction with geology and geochemical surveys to identify the Highland Valley Lornex, Valley and Highmont copper deposits. An IP survey performed to the southeast of the Valley deposit led to the drilling and discovery of the JA deposit beneath an average 150 metres of overburden. For the time, these 2D IP surveys were considered to be the best geophysical tool in identifying large copper deposits. In 2005 Happy Creek carried out IP surveys on the company's Rateria property, using a new 3D IP technology. Happy Creek was the first company to implement the use of the newly developed 3D technology in the Highland Valley. Three-dimensional IP surveying incorporates recent advances in computer technologies and increased electrical sensitivity in order to obtain and process data, something that was not available with previous surveying. This new technology is gaining popularity and is considered by many to be more effective than the previous 2D technique in revealing the location of mineralization, in particular whose normal signatures are diminished or covered by near-surface or adjacent, features. The company's 2005 3D IP program identified Zone 1, an easterly trending anomaly averaging approximately 1.6 kilometres by 600 metres in dimension that develops approximately 75 to 100 metres below surface and extends to a depth of 250 metres, remaining open to depth. Phase I Drill Program -- Zone 1 As a new public company in 2006, Happy Creek undertook a first pass drill program on a small portion of the Rateria property designed to test the Zone 1 anomaly. Phase I intersected 94.0 metres containing 0.15 percent copper, 32.0 metres of 0.24 percent copper and local higher grade zones including 1.0 metre grading 3.88 percent copper and 126.0 g/t silver. Further drilling in 2007 continued to outline Zone 1, which remains open in extent. Highlights of the 2007 drill program are as follows:
Additional Induced Polarization Program In early 2008, Happy Creek completed additional 3D IP geophysical surveys on the Rateria property. These surveys identified a large, moderate to strongly positive anomaly ("A" anomaly) approximately 1.5 kilometres northeast of the initial survey. The "A" anomaly extends to more than 400 metres depth and overall is approximately 1.2 kilometres by 600 metres in dimension. As with Zone 1, the area of the "A" anomaly was covered three times between 1970 and 1993 using widely spaced reconnaissance style IP using the older equipment and survey parameters. These surveys did not reveal the "A" anomaly, and it was not targeted for drilling. Additionally, three other targets of interest, "B", "C" and "D", were identified by the 2008 IP program. Diamond drilling in 1993 was conducted to the east and southeast of the "A" anomaly, where a 1993 IP survey had identified a positive anomaly. While significant portions of the core were not sampled, bornite and chalcopyrite were noted in the drill logs to depths of over 300 metres. Results from portions that were sampled returned low, but geochemically anomalous copper values. Isolated intervals of four to six metres returned 0.11 to 0.15 percent copper. The highest grade interval returned from the 1993 drilling was 0.48 percent copper over 5.0 metres, approximately 500 metres southeast from Happy Creek's "A" anomaly. A 1970 percussion hole is located on the northeastern edge of the "A" anomaly and intersected 730 part per million copper (0.073 percent copper) over 10 feet at the end of the hole, which is felt encouraging in light of the hole being only 110 feet (35.0 metres) in depth. Phase 2 Drill Program -- "A", "B", "C" and "D" Targets Happy Creek is pleased with results to date from the Rateria property. Relative to the 2005 IP survey and subsequent drill results from Zone 1, results obtained from the IP survey for the new "A" "B", "C", "D" targets are larger and much stronger in intensity. The results from the "A" anomaly are comparable to those obtained at the Lornex, Valley or JA deposits. The overall size of this new IP anomaly provides a geological target of 500 million tonnes with a currently unknown grade. It will be the company's first priority for the upcoming summer 2008 drill program, starting in June. Additional drilling is planned to expand upon the encouraging results obtained in Zone 1 and to test at least three other new targets. Happy Creek is continuing the 3D IP survey over the remainder of the Rateria property. Page last updated: June 2008 2007 Project Summary
| | Projects
| | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Disclaimer | | |
| |  | | |
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)