Logan Zn/Ag Project

On May 26, 2022, Almadex announced that it had acquired 100% ownership of this project, located on the traditional territory of the Ross River Dena Council and Liard First Nation, 38 km north of the Alaska Highway and 108 km northwest of Watson Lake (see map below).

The Project consists of 156 contiguous quartz mining claims located in the Watson Lake Mining District, covering over 3,200 hectares. Access for past major work programs was facilitated with a 52 km long winter road from the Alaska Highway. In 1987, a 700 m long by 20 m wide gravel airstrip was established on the Property; future use of the airstrip would require surface re-levelling, but small, short runway aircraft may be able to land at this time. The winter road permit was not renewed past 2009 and re-opening the road would require further permitting. Currently, the Project can be accessed via helicopter.

As more fully explained it its press release of May 26th, 2022, a Company predecessor discovered the Logan Project in 1979. The project was then joint ventured, leaving Almadex’s predecessor a retained 40% interest carried to “Positive Production Decision”. The majority interest subsequently changed ownership, but the property was never the focus for the various operators. Almadex was able to acquire 100% of the Logan project legally through a bankruptcy receivership, finally allowing for the project to be advanced. Key points regarding the Logan Project include:

Located 38 km north of the Alaska Highway, accessed historically by 52 km long winter road;

Historic inferred resource prepared in 2012 for the Logan Main Zone reporting 42.7 Mt with average grades of 2.76% zinc and 12.89 ppm silver at a 1% zinc cut-off grade (see below for details and disclosure);

Deposit remains open along strike and down dip.

According to historic reports, Logan contains a zinc-silver deposit consisting of fracture and vein hosted zinc-silver mineralization within a granitic intrusion. The Main Zone occurs along an 8,000m long NE-trending fault-related structure.  The Main Zone is tabular, dips 70 degrees to the NW, extends for 1,100m along strike, varies from 50m to 150m in width, and has been traced to depths of 275m and remains open. The mineralization is up to 90 metres thick in relatively gentle terrain and minimal overburden, making it attractive for open pit mining. In March, 2004, in its public filings prior to bankruptcy, Yukon Zinc Corp. noted that exploration defined low grade zinc mineralization in the East and West Zones of the deposit that require more drilling to better define resources, that historic drilling in the deeper parts of the Main Zone includes important intersections, such as  9 metres grading 10.07% zinc and 65.2 g/t silver, that could be amenable to underground mining, and that the deposit remains open at depth and along strike.

Logan has been explored by means of sequential programs of mapping, soil sampling, geophysics, and diamond drilling since the 1980s. The work conducted by or on behalf of Cordilleran Engineering, Getty Resources Ltd., Fairfield Minerals, Total Energold Minerals Inc., Expatriate Resources, and Yukon Zinc Corp. (Yukon Zinc) is briefly summarised as follows:

1979: Staking of Logan 1 to 36 quartz mining claims to cover new zinc-silver-tin-copper gossan. Geological mapping, soil and stream sediment geochemistry, hand trenching, and test IP, EM and magnetometer geophysical surveys.

1980-1985: Additional soil geochemistry, claim staking, hand trenching, and geophysical surveys were completed.

1986-1989: Exploration drilling of 103 holes totalling 16,438 metres. Fifteen trenches totalling 2,412 metres and ongoing soil geochemistry and geophysical surveys. Metallurgical testwork at Lakefield Research Laboratories under supervision of Strathcona Mineral Services Limited. Flotation of both high- and low-grade zinc samples indicated that recoveries of 93-95% zinc and 85-90% silver could be projected to a  zinc concentrate. 

2003: Additional staking and completion of a baseline environmental survey was conducted in and around the Logan property.

2006: Yukon Zinc Corp. retained Bell Geospace to conduct an Air Full Tensor Gravity (Air-FTG) survey.

2012: Wardrop, a Tetra Tech Company (Tetra Tech) was retained by Yukon Zinc to prepare a Technical Report, including an historical mineral resource estimate, on the Logan Property in 2012. The 2012 Tetra Tech Technical Report is treated as a historical mineral resource. A Qualified Person has not done sufficient work to classify the historical estimate as a current mineral resource and Almadex is not treating this historical estimate as current mineral resources.

The 2012 Logan historical mineral resource estimate is considered to be relevant and reliable. The Tetra Tech historical estimate for the Logan Main Zone deposit, used sample assay data from 56 drillholes which intersect the deposit containing 4,314 zinc and silver assays. Samples were composited to 2 m lengths and no assay values were capped. The Logan Main Zone deposit was modeled as a single mineralized geological wireframe bounded by two faults (the hanging wall and footwall faults) striking southwest and dipping moderately northwest. Where the position of the upper and lower faults bounds is uncertain a grade cut-off of 0.5% zinc was used to constrain the model.

Bulk density values of 2.95 and 2.7 were assigned to mineralization and waste rock based on 53 separate SG determinations from drill core pulp composite samples representing 556 m of diamond drill core. Interpolation was done using Ordinary Kriging on blocks 10 m x 10 m x 10 m in size. Only zinc and silver were consistently assayed throughout the three years of drilling, and therefore these were the only metals estimated. At a 1% zinc cut-off grade, the Logan Main Zone was estimated to contain 42.7 Mt at an average grade of 2.76% zinc and 12.89 ppm silver (reference Harder, M. P.Geo. and O’Brien, M. Msc., Pr.Sci.Nat., FGSSA, FAusIMM, MSAIMM (2012) NI 43-101 Technical Report on the Logan Property, Yukon prepared for Yukon Zinc Corp., Effective Date May 30, 2012, Wardrop, Tetra Tech, pp. 95).

The 2012 Tetra Tech historical estimate, reported at a % zinc cut-off grade, is summarized in Table 1.   The entire resource was classified as an inferred historical resource, based on a lack of QA/QC and specific gravity (SG) data, a lack of original assay certificates to validate the data, and an inability to confirm the locations of any drillholes. The Logan Main Zone historical estimate was classified using the definitions set out in CIM Definition Standards for Mineral Resources and Mineral Reserves (2010), which was superseded by CIM (2014). Similarly, the Main Zone estimate predates CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). To verify the historical estimate as a current mineral resource a Qualified Person would need to prepare an updated mineral resource estimate and NI 43-101 technical report with respect to the Logan Property.

Subject to permitting and stakeholder engagement, Almadex plans to commence an Independent QP review of the previous work towards the preparation of a new Technical Report and a QP site visit in the summer of 2022 after snow melt. Data review to date indicates that there is potential to enlarge the mineralised envelope of the historic resource as the deposit was generally drilled to 120-240m down dip (only one hole was drilled to 400m down dip), and the deposit remains open, particularly on the northeast side.

Table 1 above illustrates the sensitivity of the historical mineral resource estimate to different cut-off grades for a potential open-pit operation scenario with reasonable outlook for economic extraction. The reader is cautioned that the figures provided in the above table, other than those relating to the 1.0% base case cut-off, should not be interpreted as a statement of historical or current mineral resources. Quantities and estimated grades for different cut-off grades are presented for the sole purpose of demonstrating the sensitivity of the historical resource model to the choice of a specific cut-off grade.

Kristopher J. Raffle, P.Geo. (BC) Principal and Consultant of APEX Geoscience Ltd. of Edmonton, AB, and an independent “Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects, reviewed and approved the scientific and technical contents herein relating to the Logan project. 

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