The Northern Territories, located to the north of Bodaibo, covers a total area of 1,852 km2 (182,500 ha), split into six properties. The area is located in the Patomo-Nechersky gold district within Lena Goldfields with a 100-year history of successful alluvial gold mining and with many active mining projects of this type still going on. The general geological opinion is that there is a high potential of elephant gold discoveries in the license area.

FACTS ABOUT NORTHERN TERRITORIES

Acquired: 2012

Mineral resources according to GKZ (’000)*: P3: 2 793 koz

Valid until: 2037

Ownership Kopy Goldfields AB: 100 %

License area: 1 852 sq km

Kopy Goldfields’ licences for bedrock gold prospecting, exploration and production are valid for 25 years, with extension options.

A majority of the river valleys in this part host alluvial gold deposits and placer miners have reported pristine gold grains in the area, which indicates the existence of bedrock sources of alluvial gold nearby. No serious and consistent bedrock gold exploration, however, has been conducted in the area to date.

The geology and age of the rock in the area is similar to that of Sukhoy Log, with stratigraphy, lithology and structural setting favourable for primary gold mineralizations. There have been numerous reports from the area of secondary gold halo, zone and points of gold mineralization, as well as many grab samples with gold.

Based on the known deposits in the area with similar characteristics, Kopy Goldfields is looking for strike extensions of above 500 meters and steep ore bodies with a thickness of 30 meters and upwards. Mineralizations consist of gold-sulphide, disseminated and veinlet-disseminated in black shale complexes.

During the review of the historic exploration data and maps of the licences, 23 targets were identified based on a combination of geo-chemical anomalies, vicinity of alluvial mines, grab samples with gold and high concentration of pathfinder elements.

Kopy Goldfields’ has prepared an exploration program for the project and the exploration approach includes covering the whole area with initial survey and further step-by-step target prioritization in order to reduce the whole area to 3-5 high potential targets, with at least 1 Moz resources each. By the end of the program, the company intends to report initial JORC Inferred resources for 3-5 targets.

During 2016, stage 1 of the exploration program was commenced with the target of covering the total licence area with a systematic and modern method for exploration to identify and prioritize multiple targets. The plan for the year is to collect 5,500 stream sediment samples, which will cover the total 1,852 km2 license area with a density of 6 samples per square km. The samples will be analyzed for a number of chemical elements, including gold. This will make it possible to identify geochemical anomalies for gold and map them. The new anomalies will then be compared with the existing ones, which have already been mapped based on historic data to test, and validate both. With this step, new targets potentially missed in the past years will be covered

The 2016 exploration program is performed by the company “Prikladnaya Geology” from Krasnoyarsk, which has also provided drilling services to the Krasny project during 2011-2016. The program will generate 20-26 targets (each target covering approximately 10 sq. km and representing one potential deposit) for next stage of exploration,

 

The following stages of the program include:

  • Running detailed geochemical survey (100×50 meters, 1,000 samples per target, potential target size 5×1 km) combined with ground geophysical, electric and gamma survey and mapping for previously prioritized 26 targets and further reduce them to 13 targets on a merit basis
  • Running ground exploration: trenching (total 1,600 meters per target: 4 trenches 400 m each) and drilling (NQ/HQ, 3 drill lines with 3 holes per line to 70 meters depth, (in total 630 meters per target) and preliminary technological testing for 13 targets
  • Prioritizing and making recommendations for further detailed exploration at 3-5 targets.
  • Running mineral processing tests, topography survey and mineralogy tests for 3-5 targets followed by JORC gold resource estimation reports similar we issued in 2013 for Krasny

* Finalizing the program before 2019

Following completion of the exploration program above for the NT, Kopy Goldfields plans to be able to report some 900 – 2,000 koz of gold resources for 3-5 targets. The target deposit is above 1 Moz gold. Following the proposed exploration scope, the company plans to be able to report for 3-5 deposits with interim resources of some 300+ koz Inferred per deposit (based on the confirmed strike and depth extension of mineralization representing only part of future resources per deposit and limited by the amount of drilling along the strike and to depth.

The general goal for the Northern Territories project is to find a partner or form joint ventures to continue mapping out the promising cluster. This would mean that the proposed exploration program could be finalized within three years.