British Columbia is home to one of the largest, most productive mineral trends on the planet. The Quesnel Terrane (more commonly known as the Quesnel Trough) is a Triassic‐Jurassic age arc of volcano sedimentary rocks that hosts a number of large copper and gold porphyry deposits, several of which are currently in production.
Geoscience BC, in conjunction with the BC Geological Survey mounted a major program in 2007 to build up a modern geoscience data base over the Quesnel Trough in order to facilitate the discovery of additional hidden resources. Now, this data set is likely the most comprehensive of its kind in North America and possibly the world.
It’s now understood that the Southern region of the Quesnel Trough is deserving of careful and comprehensive exploration by directly applying the knowledge and techniques developed in the important producing areas to the south.
All of the major pre-Tertiary geological elements seem to have potential for large, economical mineral deposits; none should be ignored. A thorough knowledge of the thickness and distribution of the Tertiary rocks and the development of geophysical methods to “”see through”” them is of particular importance.
Since 1859, the region has been the site of significant placer gold production, including some very large-scale mining operations.
Today’s exploration and mining companies have been met with tremendous success in revisiting these old mines, using modern data and exploration techniques. Systematic geophysics and diamond drilling allow for examination and testing of rock well beneath historic workings for the first time, opening up potential for major new discoveries.
Targeting and Developing Historic Mines Proven To Be Lucrative
New Gold Inc (TSX:NGD), with a market capitalization of $1.4 billion, is an example of this strategy culminating into a major success.
New Gold’s New Afton gold-silver-copper mine is an underground (block cave) mine located within the footprint of the historic Afton mine, 10 km west of Kamloops, British Columbia. The original Afton project was an open pit mine that was operated by Teck Corporation between 1977 and 1997. In targeting a specific mineral deposit, New Gold constructed underground tunnels, along with a new concentrator and tailings facility. They achieved commercial production in July 2012 at which time the mine had an expected 12 year life. Between 2013 and 2019 the mine produced between 69,000 and 105,000 ounces of gold each year.
Sentinel Resources Corp. (CSE:SNL, OTC:SNLRF) Acquires Concessions Covering Historic Waterloo High Grade Silver-Gold Mine.
Intending to apply similar strategies as New Gold Inc, Sentinel Resources Corp. (CSE:SNL, OTC:SNLRF) announced an option to acquire 100% of the historic Waterloo high grade silver-gold property, centered around four major mining operations, including the New Afton mine.
Waterloo highlights:
- Road accessible, 3,130 hectare project close to developed infrastructure
- High-grade silver and gold veins exposed over an area of approximately 4.0 by 0.7 kilometers
- Grab samples from historic workings returned assays of 2,790 grams per tonne (g/t) silver (Waterloo) and 45.70 g/t gold (Au showing)
- The property has not been systematically drill tested and numerous untested targets are defined
President & CEO Rob Gamley commented, “The Waterloo project, which includes the historic Waterloo Mine, has clearly shown the potential to host high-grade silver and gold mineralization. Historic work on the project such as geological mapping and prospecting have produced compelling results of high-grade silver and gold – metals which have been mined in the region for over 100 years.”
Waterloo, situated in the historic Lightning Peak silver and gold camp, is located 65km East of Kelowna, BC and roughly 5 hours drive from Vancouver.
The property has undergone small-scale production from high-grade gold and silver prospects since the early 1900’s. A shallow drill program was conducted by a previous operator, producing 12 short holes.
Sentinel Resources Corp. (CSE:SNL, OTC:SNLRF) will be the first company to investigate the true potential of Waterloo through a systematic exploration and diamond drill program. The plan is to conduct further geophysics and sampling with the intent to drill deeper into the most prospective silver and gold bearing structures.
Given the success rate of surrounding mines, the potential for high grade, low cost gold and silver resource development is intriguing.
Sentinel will be directing its efforts to a well mineralized, 4 km trend centered across the property. High grade grab samples along this trend, including 2,790 g/t silver and 46 g/t gold will help provide guidance on where the company will focus exploration in order to advance their understanding of the underlying structures.
Adding sizzle to the steak, the map below depicts crosscutting subsurface structures which could significantly expand the footprint for potential high-grade gold-zinc discoveries. These zones of structural intersections remain largely untested and represent priority targets for follow-up.
With the project acquisition news Sentinel Resources Corp. (CSE: SNL, OTC:SNLRF) announced a financing of up to $500,000, which will be used to kick off the exploration program.
Post-financing Sentinel will have approximately 20.5 million shares outstanding and a market capitalization under $10 million.
B.C. based junior exploration companies modeling their exploration and drill programs based on similar geology have seen their market caps and shares take off, driven by the ongoing gold and silver bull market.
Given its tight share structure and small market cap, exploration success and new discoveries could provide significant torque to share price movement.
Stay tuned for updates from Hot Stocks Review on this potentially explosive developing story and visit Sentinel’s website to learn more.
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