Mars Project
Location
The 19.4 square kilometre Mars Property is located approximately 65 kilometres northeast of Whitehorse in south central Yukon.
Overview
New Dimension Resources has an option to earn up to a 100% interest in Strategic Metals' Mars copper-gold property ("the Property") located in south central Yukon.
The Property features a gold-copper porphyry target defined by a 1 x 3 kilometre northwest oriented zone of potassic alteration with associated chalcopyrite and magnetite bearing veins and stockworks. This large target is also defined by an airborne magnetic anomaly and copper, gold, and molybdenum soil anomalies.
Mineralization on the Property is believed to be related to a silica-saturated alkalic intrusion similar to the Mount Milligan, Mount Polly and Copper Mountain deposits in British Columbia. These deposits typically have elevated gold and silver values and decreased molybdenum when compared to more classic porphyry copper deposits.
New Dimension can earn an initial 50% property interest by spending $3.5 million in exploration expenditures and making payments totaling $600,000 to Strategic Metals over a four year period. Of the $600,000, up to $250,000 in value can be issued in the Company's stock at the election of the Company.
The Company can also elect to earn an additional 15% (aggregate 65% property interest), by spending $15 million (total exploration to date), by issuing to Strategic Metals 19.9% of the outstanding shares of NDR, and by completing a pre-feasibility study. The Company can then elect to earn a further 35% (aggregate 100% interest) by making a decision to commence the construction of a mine within 12 years from the signing of the agreement and by maintaining Strategic Metals' equity interest in the Company. Upon NDR earning 100%, Strategic Metals and the original vendors would retain a 2.5% net smelter return (NSR) production royalty.
Work Performed
Exploration has been carried out intermittently in this area since copper mineralization was first discovered in 1971. Work to date has been restricted by thick overburden coverage and has included geological mapping, hand trenching, soil geochemical surveys, ground and airborne geophysics, and seven (7) short diamond drill holes.
The geochemical soil surveys reveal a significant northwest trend with the majority of the samples containing greater than 100 ppm copper, to a maximum of 2594 ppm copper. Gold values show a high of 485 ppb and locally overlap the areas of anomalous copper values. The drill holes tested only a small portion of the property with the main geophysical and geochemical anomalies still untested by drilling. Although the previous diamond drilling was outside the main area of interest, one hole did identify a significant gold interval (4.37 metres of 6.43 g/t) that coincides with a moderately high magnetic anomaly.
In 2008, Strategic Metals consolidated the property ownership and in 2010 conducted a helicopter-borne VTEM/magnetic geophysical survey. This survey identified a number of magnetic highs that are coincident with anomalous soil geochemical values. These strong magnetic responses overlay areas of high resistivity that may coincide with potassic alteration. This geophysically attractive target continues into areas of high gold-in-soil values that have not been drilled. The Company will be testing these features with its initial drill holes.
Planned Exploration
A diamond drill program totaling 1,000 metres is underway at the Property. Results will be announced once received and interpreted by the Company.