Storm Copper Update

July 31, 2012

The regional infrastructure around the Aston Bay project is highly developed for the Arctic, with a hotel 20 minutes away by helicopter and a major Army base 100 kilometers away. The project is located on tidewater, and we have a regular supply route from Yellowknife by airplane and a sealift by barge.

Yellowknife and Iqaluit are like day and night in terms of supplies, as Yellowknife has a Walmart, Office Depot, and most major national chains. You can buy almost anything on Old Airport Road.

Locally, a Twin Otter is based in Resolute, which means food and fuel shopping runs can be done without a dedicated plane. Resolute also holds a significant Canadian military presence. For a town of its size, its infrastructure is fairly extensive.

During exploration work, we benefit from a tidewater location with inexpensive barge shipping, as well as an air supply out of Yellowknife. The combination is significantly better than most of the eastern Arctic projects.

Storm Copper Update

It appears that the copper targets dwarf the zinc targets in size. The Storm Copper Project possesses 4-5 drilled targets and likely another 3-4 targets that have yet to be drilled. The scale is visually quite impressive.

The geology is complex; the mineralization could be vertical or horizontal, but the pre-GPS mapping of the historical information is inaccurate. Nonetheless, we have excellent scope to reinterpret the historical data.

  • We have found 3-4 different alignments of drill holes, so zones and intersections may be 40-200 meters off from where they were assumed to be historically.
  • Very little care was taken on lower grade mineralization sampling. There are shoulder zones around the high grade areas that will need to be sampled. The shoulder zones could increase the size of the intersections if we are willing to drop the 1% copper cut-off grade. Intersections appear to be significantly larger at a 0.5% cut-off grade.

Extra targets: While from the air it may be difficult to discern copper mineralization in many areas, upon landing, visually one can see copper in the rock and malachite in the frost boils. There are likely more targets than have been historically drilled which we should examine. What is nice is the 3,500 zone does not show up on the VTEM, but it appears on the surface boils. There are 3-4 other areas like the 3,500 zone that are worth a few drill holes or at least a surface program.

This year we will sample a few key intersections, find as many of the drill hole collars as we can, and map the outcrop of the mineralized zones.

Next year’s plans:

  • Sample a significant amount of new core
  • Complete a regional soil/grab sample program
  • Spend time developing new drill targets
  • Consideration will be given to conducting ground geophysics

Turning a drill loose on a complex target before we understand what we have from historical drilling is a waste of resources. We have a lot of work to do in order to consolidate and update the historical data.