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Greenfield Exploration

2020 Progress

Snip

At Snip in the Golden Triangle of British Columbia, Hochschild’s partner, Skeena Resources Limited, announced a maiden resource in July 2020 at their 100%-owned Snip Gold Project in northwest British Columbia, Canada.

The underground constrained Indicated resources include 244,000 ounces of gold hosted within 539,000 tonnes at an average gold grade of 14.0 g/t Au. Resources within the Inferred category include 402,000 ounces of gold hosted within 942,000 tonnes at an average gold grade of 13.3 g/t Au (Table 1). In the determination of reasonable prospects for economic extraction, long hole stoping is contemplated. Sensitivities to the gold cut-off are presented in Table 2.

Table 1: Snip Indicated and Inferred underground resources reported undiluted at a 2.5 g/t Au cut-off grade within stope optimised mining shapes.

 

Domain

Tonnes

(000)

Contained Grade Au (g/t)

Contained Metal

Au (000 oz)

Indicated Mineral Resources

 

 

 

 

 

Main – V

165

12.8

68

 

Main – S

337

15.0

163

 

Twin West

37

10.4

12

Total Indicated

 

539

14.0

244

Inferred Mineral Resources

 

 

 

 

 

Main – V

287

13.1

121

 

Main – S

599

13.4

258

 

Twin West

56

12.4

23

Total Inferred

 

942

13.3

402

Skeena has recently completed a second drilling campaign to follow up on the first campaign from 2019 with the aim of expanding the resource. Results from the programme are pending.

In September 2018, Skeena granted Hochschild an option to earn a 60% undivided interest in Snip by spending twice the amount Skeena had spent since it originally optioned Snip from Barrick. Under the Heads of Agreement agreed between Skeena and Hochschild, Hochschild had three years from the closing (by 16 October 2021) to provide notice to Skeena that it wishes to exercise its option. Once exercised, Hochschild will have three years to:

  • incur expenditures on Snip that are no less than twice the amount of such expenditures incurred by Skeena from 23 March 2016 up until the time of exercise of the Option by Hochschild. As of 30 June 2020, Skeena had incurred C$18.9 million of expenditures at Snip;
  • incur no less than C$7.5 million in exploration or development expenditures on Snip in each 12-month period of the Option Period; and
  • provide 60% of the financial assurance required by governmental authorities for the Snip mining properties

 

Other projects

In 2020, there was considerable disruption to the programme from the Covid-19 crisis but exploration work was possible later in the year at: the Cooke Mountain gold project owned by Adamera Minerals Corp in Washington State, U.S. the Horsethief project owned by Allianza Minerals Ltd in Nevada, U.S.; Los Cuarentas owned by Riverside Minerals in Sonora, Mexico along with Sarape owned by Orogen Royalties also in Sonora; and the Illipah project owned by EMX Royalty Corp also in Nevada.  

In 2021, the greenfield and advanced project budget is set at $11 million and the Company expects to drill five to six prospects in Peru, the U.S. and Mexico.

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