Theia Resources Ltd. has initiated the first drill program to be conducted on the 2 X Fred property located in the mineral-rich Nechako plateau of central British Columbia, Canada.
The program will consist of approximately six to eight drill holes (600 metres of NQ core). The objective is to drill test the veins down dip in search of high grades typical of many epithermal vein systems.
- Newly discovered epithermal quartz vein system over a 2.5 by 1.75 km area.
- 563 rock samples taken from grab and channel samples in 2014 averaged 0.4 gram per tonne ("g/t") Au and 7.1 g/t Ag.
- The highest assay value from sampling reported 5.5 g/t Au and 100 g/t Ag.
- Excellent potential for high grade gold/silver deeper in the system.
Petrographic work and macroscopic textures indicate the 2X's Fred veins are exposed in the upper levels of a low sulphidation epithermal vein system likely at temperatures less than 200 C and therefore above the interval where high-grade bonanza mineralization in a low sulphidation vein system would be expected. Consistently anomalous gold ("Au") and silver ("Ag") of all veins exposed at such a high level in the system indicates excellent potential for high grade mineralization deeper in the system.
Rock sampling including trenching in 2014, consists of 563 rock samples taken from grab and channel samples that averaged 0.4 gram per tonne ("g/t") Au and 7.1 g/t Ag. This includes 244 channel and composite rock samples taken from 16 trenches that averaged 0.49 g/t Au and 8.7 g/t Ag. The highest assay value from sampling reported 5.5 g/t Au and 100 g/t Ag. The longest continuous exposure of vein material totaling 24 meters (near true width) averaged 0.53 g/t Au and 6.9 g/t Ag and the highest grade was 1.52 g/t Au and 24.2 g/t Ag over 3.65 metres. See news release January 27, 2015
Two X's Fred is a newly discovered epithermal Gold/Silver quartz vein system over a minimum 2.5 by 1.75 km area. Individual veins traced along strike in excess of 500 meters with true widths ranging from less than one meter to over 40 meters. More than 12 veins have been found to date. Located in the mineral rich Nechako Plateau of British Columbia ~32 km SW of the city of Vanderhoof and consists of 10 land tenures covering 4,618.19 hectares.
Samples will be sent for analysis by Bureau Veritas (Acme) Laboratories in Vancouver, British Columbia. A QA/QC program was initiated which involved insertion of standards, blanks and duplicates into the sample stream. Drilling will be NQ sized diamond drill core and has been contracted to Ridgeline Diamond Drilling of Smithers, British Columbia.
The foregoing geological disclosure has also been reviewed and verified by Kootenay Silver Inc.'s CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, standards of disclosure for mineral projects).
Terms of agreement
To fulfill the terms of the letter agreement, Theia must spend an aggregate total of $2.5 million on exploration over five years and issue up to 750,000 shares with 200,000 shares due on regulatory approval of the letter agreement and 200,000 common shares of Theia on or before the first year and second anniversaries and 150,000 common shares on or before the third anniversary, of the execution date. Subsequent to exercise of the earn-in, Theia and Kootenay will form a 60/40 joint venture. Financing of further work on the Properties will be on a proportional basis under the direction of a management committee with voting rights proportional to ownership percentage. Either party may be diluted on the basis of a standard formula if they do not contribute to the planned programs. If either party is diluted below 10 percent, their interest will convert to a 1.5-percent NSR (net smelter return) royalty.