Projects

Mangazeisky Silver Project


Mangazeisky Silver Project, Russian Federation

One of the highest grade silver project in the world; low cost, high return that is currently in the construction phase for silver commissioning in early 2017

Highlights

  • 100% owned Mangazeisky Exploration licence covers a 35 km mineralised structural corridor, located approximately 400 km north of Yakutsk in the Republic of Sakha, Russia;
  • In September 2013, the Company was granted a 20-year Mining Licence for the Vertikalny deposit;
  • In June 2016, the Company announced the positive results of its NI 43-101 Feasibility Study, filing the Technical Report on SEDAR in July 2016;
  • In August 2016; tthe Company announced an updated NI 43-101 mineral resource estimate at the Vertikalny deposit, subsequently initiating an updated feasibility study;
  • In September 2016, the Company was awarded a seven-year extension for its Exploration Licence (now 556.45 sq km), with no minimal work requirement;
  • In September 2016, the Company received minority and disinterested shareholder approval for its US$55 million Facilities Agreement, for the financing of the final development, construction and commissioning of the Vertikalny deposit
  • In October 2016, the Company announced the NI 43-101 positive Updated Feasibility Study results, subsequently filing the Technical Report on SEDAR in November 2016;
  • In October 2016, NI 43-101 mineral resource estimate (“MRE”) update included (Note-reserves are included in the Indicated resources):
    • Reserve of 0.8 Mt averaging 852 g/t Ag totaling 22.5 million ounces of silver;
    • Indicated mineral resource of 1.0 Mt averaging 1,045 g/t Ag totaling 33.8 million ounces of silver, and
    • An additional Inferred mineral resource of 1.5 Mt averaging 511 g/t Ag, totaling 24.2 million ounces of silver;
  • Strong Potential for additional high-grade feeder pits, within six km of Vertikalny deposit there are NI 43-101 MRE on three deposits and Russian compliant resources on two additional targets.

Location and Infrastructure

The Mangazeisky Silver Project is located in the north-central potion Yakutia Russia, approximately 400 kms north of the capital city of Yakutsk (population 300,000). The economic development of the region around the Mangazeisky Project is low with little or no infrastructure with limited access to the site, including seasonal winter road from December to April and for the remainder of the year the project is accessible primarily by helicopter or fixed wing aircraft from either Yakutsk or Batagai.

The closest village to the Mangazeisky Project is Sebyan-Kuel which is located approximately 50 km south. The village of Sangar, located 240 km southwest of the Project, is the administrative centre for the district of Kobyask Ulas within which lies the Mangazeisky Project.

Mineralisation and Geology

The Mangazeisky Exploration Licence area is located within the Verkhoyansk mobile belt of northeastern Yakutia. The fold-and-thrust belt forms part of a major orogenic system separating the Siberian North Asian Craton to the west from the immense expanse of accreted terrains, which form most of the Russian Far East.

The belt extends for 2,000 km from the Laptev Sea to the Sea of Okhotsk. The belt is made up of a rock package that is greater than seven km in thickness and is comprised of Late Precambrian to Triassic rocks deposited along the paleo‑Pacific margin of the Siberian Craton. This margin developed as a consequence of rifting events which occurred in the Late Precambrian and again during the Late Devonian to Early Mississippian periods. Deformation events during the Late Jurassic to Early Cretaceous periods were accompanied by low-grade metamorphism in the internal parts of the belt and the emplacement of high-level granitic bodies. During the Tertiary period, strike-slip faulting occurred within the fold-and-thrust belt. The central part of the belt is dominated by a thick monotonous succession of Carboniferous and Permian turbidites which are metamorphosed to lower greenschist grade. Granodiorite and granite plutons intrude the core of the range and are associated with extensive gold-bearing quartz vein systems.

The silver mineralization is epigenetic. To date, Mangazeisky host four types of mineralisation:

  1. Vertikalny deposit – narrow steep dipping veins that cross-cut stratigraphy, feature grades in excess of 1,000 g/t Ag over widths ranging up to 3 metres
  2. Mangazeisky N &S deposit – strata-bound silver-bearing, quartz-carbonate-sulphide structures with lead, zinc by products with grades greater than 900 g/t Ag
  3. Nizhny Endybal deposit – thicker linear-type stockwork with carbonate-silver sulphosalt mineralisation
  4. Porfirovy prospect – rhyolite porphyry area associated with quartz, quartz-carbonate and quartz-sulphide veining

Surface Expression of the Vertikalny Vein, Mangazeisky Silver Project

Surface Expression of the Vertikalny Vein, Mangazeisky Silver Project

Surface Expression of the Vertikalny Vein, Mangazeisky Silver Project

For more detailed information regarding the Mangazeisky Silver Project, please refer to Section NI 43-101 for full technical reports.