St. Elmo Gold Project
St Elmo Gold Project, Elko County, Nevada
Brocade Metals Corp.
• St Elmo is a district-scale gold project situated on the northern flank of the northeast-trending Midas Trough metallogenic trend. The Midas Trough hosts several established gold mines including Ivanhoe, Ken Snyder and Jerritt Canyon as well as the past-producing mines of the Island Mountain and Jarbidge districts
• The project includes two former small-scale underground producers – the St Elmo gold mine (ca. 1940s) and the Rosebud silver-lead-zinc mine (intermittent production from 1934 to 1985)
• Gold mineralization at St Elmo occurs in north to northeast-trending, steeply east-dipping quartz veins, stockwork zones and breccias up to 5 m wide hosted by brittle quartz-sericite-pyrite altered Prospect Mountain Quartzite. Mineralization is of the high-sulphidation epithermal type based on gold’s association with pyrite and copper-bearing sulphide minerals (eg. chalcopyrite, covelite, digenite and enargite).
• Readily accessible underground workings at St Elmo include a 500’ (152m) long, 5.5’ wide by 6.5’ high westward crosscut from the 7500 Level portal, 715’ (220m) of drifting, and a small amount of stoping. Limited rehabilitation is required as the workings are generally in excellent condition. An estimated 3500 tons was mined during the 1940s. The 7200 Level adit is inaccessible.
• The main mineralized structure has been traced at surface for 975 m north of the adit and for 240 south of the adit; surveys indicate that it has a depth of more than 300 m from surface.
• In 1988, Newmont completed a comprehensive mapping and sampling review of St Elmo, and confirmed erratic, but locally exceptionally high gold grades (up to 20 ounces per ton); it regarded the deposit to be limited in scale and did not conduct any further work.
• In 1990, Harrison Western Mining opened 230’ (70m) of underground drift to explore a previously unrecognized splay of the main vein; it extracted and stockpiled 1500 tons (1360 tonnes) of vein material reportedly averaging 11.3 g/t Au.
• Three small drilling campaigns (Mason Exploration Associates in 1999, Nevoro Nevada in 2007 and Golden Predator in 2009) established continuity of the vein system at depth
• Silver-lead-zinc mineralization at Rosebud, a secondary target, occurs in shallow-dipping silicified zones developed within a series of imbricate thrusts. In 1962, eleven holes drilled to intersect the down-dip extensions of the tabular bodies reportedly intersected zones grading 12 – 15 ounces per ton silver over 1.5 – 2.1 m; these intersections have not been followed up.
• In 2007, a NI 43-101 Technical Report was completed for the project by Denroy Resources Corporation, which at the time controlled 415 contiguous unpatented claims.
Project Status – 2015
• 35 contiguous unpatented lode mining claims covering 292.6 hectares
• Brocade’s wholly owned Nevada subsidiary owns a 50% interest in 32 claims and has a property option agreement to December 2018 to acquire the remaining ownership interest for all 35 claims. There is a 1.5% net smelter return payable to option or with 0.75% available to re-purchase for $500,000 to the later of December 31, 2018 and commercial production.
Property Location and Access
• Centered 111 km north of Elko via State Highway 225 and the Gold Creek Road
• Excellent dirt roads provide access to areas of past mining and exploration
• Approximately 45 minutes north of Veris Gold’s Jerritt Canyon mining/custom milling operation
Brocade Metals’ Verification Sampling
• Continuous channel sampling in 2013 produced a range of gold results. In the North Cross-Cut, 5.6 m of vein, breccia and clay fault gouge averaged 15.5 g/t Au, including a 2.6 m footwall portion of the vein that averaged 28.4 g/t Au.
• Channel samples collected elsewhere in the mine ranged from less than 0.1 g/t Au to 90.2 g/t Au. Silver is elevated in most samples, typically > 10 g/t Ag where gold grades are elevated.
• Surface grab samples of vein mineralization produced values up to 24.02 g/t Au.
• Stockpiles of ore mined from St Elmo in 1990 sit on nearby private land; composite sampling of these stockpiles produced values ranging from 3.43 g/t Au to 7.41 g/t Au.
Recent Drilling Highlights
• In 1999, Mason Exploration Associates evaluated the down-dip potential of the vein system beneath the underground workings with 3 drillholes totaling 574.0 m. Drillhole GC-01 intersected 1.9 m grading 14.31 g/t Au within a 19.2 m wide zone averaging 2.24 g/t Au.
• In 2007, Nevoro Nevada completed a 6-hole, 759.0 m drill program on the property. Drillhole SEM-02 intersected 4.6 m averaging 1.24 g/t Au.
• In 2009, drilling by Golden Predator included 17 percussion holes & 3 diamond drillholes with an aggregate length of 3,161.1 m. Percussion hole GPSE-011 intersected a 3.3 m interval grading 16.84 g/t Au & 41.5 g/t Ag.
Metallurgical studies (Hazen Research, 1990) on a 360 kg sample of mineralization averaging 80.91 g/t Au and 39.43 g/t Ag showed that at a 10-mesh grind approximately 20% of the gold could be recovered by gravity as a direct smelting product. The gravity tailing would be ground to 150-mesh size and treated in a flotation or cyanide circuit with 85 – 90% gold recovery.
Conclusions and Next Steps
• At St Elmo, confirmation of size and grade of mineralized structures, sound condition of underground workings and proximity to paved highways provide excellent opportunity for low-cost, near-term production.
• A two-year test mining plan and budget is being fine-tuned and permit applications submitted; Work components include: mapping and systematic sampling of workings, surveying, 3D modeling, underground and surface drilling, drifting and stoping, shipping and processing of ore.
• At St Elmo, the potential for new discoveries at-depth, along 2-3 km of strike length, and on several sub-parallel structures located west and east of the 7500 Level portal is excellent; additional staking is required to strengthen land position and cover multiple target areas.
• A planned NI 43-101 compliant Technical Report will incorporate 2007, 2009 and 2013 results.