Base Metals

Exploration

Local Mineralisation

airborne-em
Figure #1. RTP magnetic and resistivity from airborne EM showing the area of the proposed IP (grey) survey. Historical NNE gradient array lines over Lloyds Mine and Burraga South workings colour coded IP anomalies (Red: >20ms, Orange: 16-20ms, Blue: 12-16ms).

Within EL6463 copper – gold – silver +/- zinc +/- lead mineralisation is generally restricted to the Lloyds corridor, although localised anomalous base metal values also occur in the Mossgrove North prospect. The mineralisation is best developed in the Hanrahan’s Agglomerate but also occurs in the upper part of the Excelsior Porphyry.

At Lloyds mine copper mineralisation occurs as two quartz – sulphide veins, although most production was from the main vein. The predominant sulphide mineral in the veins was chalcopyrite with sphalerite on the vein walls and pyrrhotite disseminated in the wall rocks. Galena and tetrahedrite were also reported, but not at economically important levels. Disseminate base metal mineralisation was reported as forming a halo to the veins. The main vein varied in width from 0.3m to 12 m, striking roughly east - west and dipping moderately north. The main vein has a typical strike extent of 180m, terminating in faults at both ends. The intersection of the terminating faults with the vein results in the ore plunging to the northeast.

Recent work on the mineralisation and alteration in and near Lloyds Mine (Corbett, 2008) concluded that the Burraga deposits represent deep, low sulphidation epithermal Cu - Au grading to a carbonate - base metals mineralised system which in turn may be part of a larger porphyry system. The evidence for a porphyry system includes the presence of deep, low sulphidation epithermal mineralisation, monzonite dykes, skarnoid rocks and biotite (potassic) alteration.

geological-cross-section
Figure #2. Conceptual geological cross-section showing Lloyd’s as a possible surface expression of a deeper concealed intrusion related source.

Other workers have proposed a volcanic hosted massive sulphide (VHMS) model for the Burraga base – precious metal mineralisation. This interpretation is based on the largely stratiform nature of the mineralisation and sulphur isotopic evidence.

A review of the structural setting of the Lloyds mine (Jackson et al., 2010) shows that the Hanrahan Agglomerate and upper part of the Excelsior Porphyry is a NNE striking, moderately east dipping shear zone and that anomalous copper soil geochemistry and alteration are coincident with this shear zone. The bounding structures of this shear zone form the limiting faults to the Lloyds mine veins. The shear zone exhibits evidence for early sinistral reverse movement associated with foliation development and later dextral strike slip movement associated with quartz veining and copper mineralisation. The shear zone on the eastern side of the Lloyds corridor is less well developed.

Near Term Targets

ZDD-018, 338.8m to 342.34m - unmined Lloyds shoot intercepted at depth.
ZDD-018, 338.8m to 342.34m - unmined Lloyds shoot intercepted at depth.

BCE is primarily targeting the old Lloyds Mine and two nearby look-a-likes for 15 – 45Mt @ 1– 2% copper. Lloyds and Lloyds look-a-likes each have the potential to host between 5 – 15Mt @ 1– 2% copper. The targets are drill ready with the halo mineralisation surrounding the previous under ground mine workings being the primary target at Lloyds. Deeper targeting of the unmined portion of the Lloyds shoot would follow and in conjunction with resource development drilling at the nearby look-a-likes. The nearby targets like the extension of the Lloyds shoot have been mined to lesser extents historically and could potentially yield higher grades than the Lloyds remnant halo mineralisation. Lloyds and the nearby targets have surface expression and/or have been mined to varying degrees from surface. Given the existing widths and grades and in the context of the historical mining, the Company believes that in today’s cost / price regime open pit operations would be possible should the resource development be successful. The Company would in due course assess the best options for economic extraction should the resource development prove successful to depth.

BCE has undertaken two drilling programmes since acquiring the Tenements in September 2010. The details of the programmes and highlights which confirm the existing data, models and exploration targets are summarised below:

July 2011 – 5 RC drill holes totalling 498m with deepest hole at 162m were drilled in and around Lloyds. Significant intercepts include:

DRILL HOLE ID  From (m)  To (m)  Interval Length (m)  Cu (%) Pb (%) Zn (%) Au (g/t) Ag (g/t) Comment
ZCRC-01 11 48 37 1.2 0.0 0.3 0.1 6.9 Lloyds. Includes 18m of void (stope)
ZCRC-03 56 74 18 0.5 0.1 0.2 0.0 3.3 Lloyds. Includes 2m of void (stope)
ZCRC-04 59 67 8 0.7 0.2 0.2 0.2 9.6 Lloyds.
ZCRC-05 89 101 12 1.1 0.4 1.4 0.2 30.3 Lloyds.
ZCRC-10 119 121 2 0.6 0.1 0.2 0.3 10.6 Lloyds.
ZCRC-10 126 133 7 0.3 0.0 0.0 0.0 1.6 Lloyds.
ZCRC-10 139 141 2 0.8 0.0 0.1 0.3 6.5 Lloyds.

February 2012 – 18 RC drill holes (1,905m) and 1 diamond core drill hole (446m) were drilled on various targets in and around Lloyds. Significant intercepts include:

DRILL HOLE ID  From (m)  To (m)  Interval Length (m)  Cu (%) Pb (%) Zn (%) Au (g/t) Ag (g/t) Comment
ZCRC-007 22 32 10 0.8 0.2 0.1 0.1 7.2 Lloyds.
ZCRC-008 12 15 8 2.9 0.2 0.5 0.2 32.4 Lloyds. Includes 5m of void (stope); ends in void
ZCRC-011 96 104 8 1.4 0.0 0.1 0.4 8.9 Lloyds.
ZCRC-012 122 126 4 1.4 0.0 0.1 0.1 9.6 Lloyds.
ZCRC-015 118 134 16 0.5 0.0 0.1 0.0 4.7 Lloyds.
ZCRC-015 137 147 10 1.4 0.0 0.2 0.1 8.3 Lloyds includes 2m of void (stope)
ZCRC-023 45 53 8 1.1 0.2 0.6 0.1 14.2 Lloyds North
ZCRC-025 47 58 11  0.7  0.1  0.3  0.6  9.4  Llyods North 
ZCRC-026 29 32  1.8  0.0  0.0  0.2  8.4  Lloyds North 
ZCRC-021 4 13  0.2  0.0  0.0  0.0  1.3   

Longer Term Targets

BCE has a field wide open pit and underground target of 45–135Mt @ 1– 2% copper. Re-assessment of the available database has provided a framework to assess potential resource quantum throughout the field. Block modelling of the existing data and using the geological information from Lloyds suggests resources of in excess of 100Mt of copper ore are plausible. Mineral bearing shoots hosted in VMS style deposits occur in clusters, Lloyds is one of such shoots which the Company believes could potentially host 5 – 15Mt @ 1– 2% copper. The average number of shoots in Canadian VMS style deposits (which host the majority of VMS deposits worldwide) is nine, this would provide a target of 45 – 135Mt at Burraga which is of similar quantum to the block modelling and field work carried out by BCE to date.

Resources

Lloyds Mine Tailings

Section through tailings
Section through tailings

As a result of the mining of copper at the Lloyds Mine there now exists a tailings dump and two (2) slag dumps of up to 350 Kt. The tailings resource contains a drill proven 234Kt @ 1.2% Cu. Metallurgical testing of the tailings undertaken by BCE confirms a greater than 70% recovery rate from processing of the tailings. The scoping study commissioned by BCE assesses the commercial potential of reprocessing the tailings, slag and minor hard rock resources from the surface of Lloyds Mine, and concludes that such a project, subject to further testing and financial investigation, is financially and commercially viable with capital expenditure at approximately $13 million, generating a net profit of $75 million over 4.4 years of operation. The Company is committed to undertaking further testing and investigation with a view to considering the various opportunities to monetise the project.

Copper EL 6463 Lloyds Mine Tailings
Category Cut Off (Cu %) Tonnes Cu (%) Au (g/t) Ag (g/t) Cu (t) Au (oz) Ag (oz)
Indicated 0 125,000 1.2 0.3 10.0 1,500 1,200 40,100
Inferred 0 109,000 1.2 0.3 9.7 1,300 1,000 34,000
Total 0 234,000 1.2 0.3 9.8 2,800 2,200 74,100
 
Parameters
Deposit Estimation
Method
Data
Spacing
Data
Type
Grade
Top-Cuts
Bulk
Density
           
           
Copper Tailings
EL 6463—Lloyds Mine Tailings Inverse Distance Squared 10 x 20 m Hand Auger 1.6 t/m3