Copper Reef Mining Corporation


Show printable version of 'Royalties' item in a New Window


Copper Reef Royalties

The following is a list of properties or contiguous Property Groups on which Copper Reef holds a Royalty in the Flin Flon Greenstone Belt of Manitoba and Saskatchewan. The Basemetal Properties are subdivided into Dominantly Zinc; Copper- Zinc; and dominantly Copper. Generally they are all polymetallic with appreciable contents of Zinc, Copper, Silver and Gold and occasionally Lead.

McIlvenna Property (Foran Ming Corporation) Zn-Cu-Ag -Au (Royalty only)

Copper Reef holds a $0.75/t royalty on the McIlvenna property owned by Foran Mining. The property which surrounds Copper Reef's Hanson Lake Property is reported to contain roughly 29 million tonnes, using a $45 (US)/t NSR cut off, (see Foran Mining Corporation news release March 27, 2013). Copper Reef has a royalty on any addition discoveries or tonnes that may be found on this property.

Bigstone (2% Royalty only) (Cu-Zn-Ag- Au)

This is a large property in Saskatchewan held by Foran Mining where Copper Reef holds a 2%NSR on any resource existing or ever discovered on the property. In 1990, past operators estimated a historical mineral resource for the Bigstone deposit of 3.75 million tonnes grading 2.03 per cent Cu and 0.33 gram per tonne gold using a 1-per-cent Cu cut-off. A sensitivity analysis was also completed at that time using cut-off grades from 1 per cent to 2.5 per cent Cu, which is presented in the attached table.

Cu cut-off

2.01,983,600 2.570.170.4811.3

Balsam (2% Royalty only) (Cu-Zn-Ag-Au)

This property in the Hanson Lake area owned by Foran Mining is contiguous to the south east to their Macilvenna Property. Copper Reef holds a 2% NSR on metals derived from this property

Thunder zone: discovery of high-grade copper mineralization with 4.08 per cent copper, 0.43 gram per tonne gold and 27.0 g/t silver over 3.66 metres, including 10.60 per cent Cu, 0.70 g/t Au and 62.5 g/t Ag over 1.10 m in drill hole BA-13-77 at a vertical depth of 205 m. This hole was drilled to test a newly identified, high-priority geophysical target from a recent deep-penetrating time-domain electromagnetic geophysical survey on the property, and this zone is open in multiple directions

B2 zone in the program highlights include:
  • Hole BA-13-74: 1.29 per cent Cu, 0.28 gram per tonne Au and 12.3 g/t Ag over 4.56 m, including a massive sulphide interval of 3.97 per cent Cu, 0.84 g/t Au and 39.1 g/t Ag over 0.85 m;
  • Hole BA-13-78: 8.40 per cent Zn, 0.28 g/t Au and 12.6 g/t Ag over 3.21 m of semi-massive sulphide, followed approximately three m further downhole by massive sulphide with 6.66 per cent Zn, 0.27 g/t Au, 10.6 g/t Ag over 0.78 m;
  • Hole BA-13-75: copper stockwork mineralization with 0.47 per cent Cu and 0.30 g/t Au over 6.31 m, including 1.34 per cent Cu and 0.73 g/t Au over 1.87 m;;
  • Hole BA-13-76: massive sulphide grading 4.11 per cent Zn over 2.23 m.

Balsam zone

Holes BA-13-72 and -73 were drilled to test the up plunge, southeast strike extent of the Balsam zone near surface, where the 1984 discovery hole for this area intersected 3.19 per cent Cu, 3.30 per cent Zn, 3.60 g/t Au and 52.48 g/t Ag over 6.50 m in hole BAL-11.

Hole BA-13-72 returned 2.28 per cent Cu, 1.3 g/t Au and 13.8 g/t Ag over 0.43 m;

Pine Bay Mine (1% NSR Royalty Only) (Cu, Au-Zn Ag)

Copper Reef holds a1% NSR on Calinex's Pine Bay Mine Property in the main camp just south of Copper Reef's Albert,-Lew-Amulet-Mur Property.

The project host several significant mineral occurrences established by previous operators, including a known VMS deposit (Pine Bay). A report sourced from government of Manitoba archives, dated 1970 and completed by Wright Engineers Limited, estimated via polygonal method that the deposit at pine bay contains 667,900 tons grading 3.90% copper at a cutoff grade of 2.0% Cu, 783,000 tons grading 3.54% Cu at a cutoff grade of 1.5% Cu, and 1,113,200 tons grading 2.76% Cu at a cutoff grade of 1.0% Cu. Readers are cautioned that estimates are historic in nature and do not comply with national instrument 43-101.

The Royalties also extend on to the Cabin Zinc Zone; the former Baker Patton Mine which is underlain by a very large gravity anomaly possibly indicative of copper-zinc massive sulphides; Anomaly 8 , a unexplained large gravity and EM anomaly between the Pine Bay Mine and the Cabin Zinc zone; the former producer the Don Jon Mine and any other discovery that might be made on the property.

East Big Island (1% NSR Royalty Only) (Zn, Au, Ag, PGE's)

Copper Reef also holds as well an interest in this property through 750,000 shares of Callinex Mines Inc. upon completion of the option agreement.


4 Km East of Flin Flon, Manitoba, 63K13

Au - Zn - Ag, Platinum Group

Property Status:
20 Claims 2,567 Ha, Sufficient assessment credits to keep claims in good standing for approximately 30 years

The claim units comprising the "Mik" claims forming part of the Big Island Group Property are subject to a 2% Net Smelter Return interest in favour of Northgate Minerals Corporation and 1% Net Smelter Return interest in favour of Copper Reef Mining Corporation.


    Big Island EAST Property
    • One VMS zone, Diamond drilling between 1987-1991 delineated a deposit (Non 43-101) ranging between 100,000-150,000 tons at 10-15% zinc, 1-2% copper, 1-3 oz/ton Ag and 0.05-0.09 oz/ton Au. The Best intersection was 22.44% Zn, 0.58% Cu, 2.73 oz Ag and 0.17 oz Au/ 40.67 feet.
    • Untested Spectrum Airborne on same horizon toward Trout Lake Mine.
    • 2 km east from HBMS' Trout Lake Mine (20,000,000 tons)
    • Has on strike stratigraphy and same lithologies as the McBratney Lake (PGE) occurrence 500 m to the south, best drill intercept of 8.9 g/t Pd, 1.6 g/t Pt , 1.6% Cu and 1,2% Ni / over 40 ft (12.2 m (Hudson Bay's McBratney Occurrence).
    • Recently Flown (2010) by a VTEM 35 Airborne Survey.


    The Big Island East and Bartley Group shown in magenta and part of the Green form the western portion of a large contiguous land package held by Copper Reef in the main Flin Flon Camp, The Group contain two main VMS horizons and mineralization. On the West side is the Big Island Deposit Horizon, thought to be a fold repetition of the Trout Lake Mine Horizon and the Cuprus- White Lake Mines Horizon on the east and north sides; north of the former Cuprus and White Lake Mine. The Bartley Lake Group was acquired through Foran Mining from Aur Resources in the same deal that the Big Island, Bib, Steeves Lake Group were acquired by Foran. The Big Island East Property was never owned by Granges or Aur Resources and was acquired from Foran who indirectly through M'Ore Exploration Services acquired it from Northgate Mining in 1997. In addition the property in its central area has potential for Cu, Pt Group mineralization related to feeder dikes of the large Mikanagan gabbro sill. The Property Group was flown with VTEM in the winter of 2010.

    Holdings in the Main Flin Flon Camp

    Claim Map showing the East Big Island, Bartley Lake Group

    GEOLOGY-Tara Lake-McBratney Lake Trend

    The geology of the property is dominated by primitive arc volcanic sequences intruded by mafic layered intrusions and their feeder dyke systems. Narrow exhalite horizons and sedimentary horizons occur within the sequence. The mafic sequence known as the Bear Lake Block contains extensive large areas of epidote alteration which makes it a highly prospective location for VMS deposit.

    The white Lake horizon is poorly defined as very little outcrop is exposed of this horizon on the stratigraphically lower side of the Mikanagan sill. There as been very little drilling along this horizon on this property.

    The geology of the Ni-Pt- Pd Potential is described further in this document.

    Geological Targets

    VMS Potential Tara Lake Horizon

    Diamond drilling between 1987-1991 delineated a deposit ranging between 100,000- 150,000 tons at 10-15% zinc, 1-2% copper, 1-3 oz/ton Ag and 0.05-0.09 oz/ton Au. After the discovery of the Tara Lake Deposit, exploration work focused on diamond drilling along the Tara Lake exhalative horizon and three other exhalative horizons. Intensive mapping, prospecting, and trenching were also undertaken. This horizon has been extensively explored. The property could because of the grade of the Tara Lake deposit warrant deep exploration along the horizon.

    Also some Spectrum and VTEM Airborne anomalies remain untested especially along the east side of the property towards Trout Lake.

    Cuprus - White Lake Mine Horizon

    Very little work was done on the east side of the property which host the Cuprus - White Lake Mine Horizon. This horizon on this property is very under explored.

    Ni-Cu-PGE potential

    The impressive results of a follow-up diamond drilling program by Fort Knox Gold Resources Ltd. on their McBratney Lake Palladium-Platinum Property east of Flin Flon, Manitoba has prompted Foran Mining Corporation to evaluate the potential of their Big Island Property for Ni-Cu-PGE deposits. The Big Island Property is located immediately adjacent the McBratney Lake Property. The BIG Zone Pd-Pt Occurrence on the McBratney Lake Property is located approximately 1.6 km south of the Big Island Property boundary.

    Sampling and diamond drilling by Fort Knox indicates the presence of a series of mafic plugs, dykes, and sills east of Manistikiwan Lake and south of the Big Island Property that are PGE-bearing. Government and industry mapping suggests that this swarm of mafic intrusions continues north onto the Big Island Property.

    The BIG Zone PGE Occurrence on the McBratney Lake Property is apparently located along a north-south striking and sheared contact between a mafic intrusion and andesitic volcanic flows. Mineralization consists of disseminations, blebs, and massive stringers of pyrite, pyrrhotite, chalcopyrite and violerite. A confirmation drill hole completed in January, 2001 by Fort Knox intersected an impressive 16.8 m of mineralization that assayed 8.9 g/t Pd, 1.8 g/t Pt, 1.1% Cu and 0.6% Ni.

    Although there has been a significant exploration effort on the Big Island Property, this work has focused exclusively on the volcanic stratigraphy and the discovery of VMS and gold deposits. It is clearly evident that the Ni-Cu-PGE potential of the mafic intrusions on the property has not been considered in the past. The detailed exploration work completed by previous workers on the property is of tremendous benefit to the proposed Ni-Cu-PGE exploration program. The location of prospective mafic intrusions has been mapped in detail, and ground magnetic, VLF-EM, and pulse-EM surveys completed. This information allows for target selection for diamond drilling and to identify areas requiring additional prospecting and sampling.

    The McBratney Lake Pd-Pt Occurrence

    In July, 2000, Fort Knox Gold Resources Inc. announced that it had optioned the McBratney Lake Pd-Pt Property from Hudson Bay Exploration and Development Company (HBED). The McBratney Lake Property is immediately adjacent to the southwest corner of the Big Island Property. In 1991, HBED discovered a high-grade zone of Pd-Pt mineralization that assayed up to 10.65 g/t combined Pt-Pd over 12.2 m. The zone, named the BIG Zone, was intersected a total of three holes. As HBED was not a publicly-owned company at the time, news of the discovery of this zone was not made available to the public. The discovery of Pd-Pt mineralization of this grade and thickness in the Flin Flon area was unprecedented, as the area has never been prospected for PGE-deposits.

    From December, 2000 to February, 2001, Fort Knox undertook an exploration program consisting of an induced polarization survey which was followed by a six-hole diamond drill program. The first hole, a twin of the discovery hole, intersected 16.8 m that assayed 8.9 g/t Pd, 1.8 g/t Pt, 1.1% Cu and 0.6% Ni. Holes designed to intersect down dip and to the north along strike intersected impressive Pd-Pt over much narrower widths. Holes drilled 12.5 m and 25 m south along strike failed to intersect the mineralized contact zone. Very little is known about the style of PGE-mineralization associated with the BIG Zone on the McBratney Lake Property. The following summarizes the total knowledge of the author regarding the McBratney Lake Property based on publically available information and in discussions with Fort Knox personnel:

    Big Island Property Simplified Geology Map

    1. The mineralized zone occurs along a north-sough trending, faulted-gabbro-andesitic volcanic flow contact.
    2. Mineralization consists of disseminations, blebs, and massive stringers of pyrite, pyrrhotite, chalcopyrite and violerite and has been traced along strike for 650 ft.
    3. The zone has been cut-off to the south by a possible east-west striking fault structure.
    4. Fort Knox will use a detailed magnetometer survey in the discovery area to explore for the down-plunge or faulted off extensions of the mineralized zone.
    5. The host gabbro body is a layered pluton 1000 m long by up to 200 m wide and consists of primarily medium-grained, mesocratic gabbro with lesser amounts of pyroxenite and quartz-diorite.
    6. Fort Knox suggests that structural lineations in the surrounding country rocks plunge steeply to the south, and that this may have some sort of control on the Pd-Pt mineralization. However, similar mafic intrusions near the Tara Lake Cu-Zn Deposit on the Big Island Property have been observed cross-cutting folded volcanic stratigraphy.
    7. The rough locations of the Fort Knox and HBED holes are known to be approximately 1.6 km south-west of the Big Island Property.
    8. A north-east striking fault appears to cut-off the northern extension of the host gabbro intrusion. This fault continues onto the Big Island Property where it cuts-off the southern extension of a prospective mafic intrusion with associated PEM, magnetic, and VLF-EM anomalies.
    9. Fort Knox has discovered anomalous Pt-Pd ranging from 0.7-1.0 g/t combined Pt+Pd in gabbroic intrusions located near the south-east corner of on their McBratney Lake Property. These intrusions, known as the Wonderland Lake Intrusions, are part of the same dyke swarm that hosts the BIG Zone and cuts across much of the East Big Island Property.

    VTEM Surveys

    Copper Reef has flown both the Bartley Lake and East Big Island Properties as part of a larger survey.

    The large Magnetic Anomaly in upper right corner is the Tartan Lake Gabbro Complex on Mikanagan Claims

    VTEM-TMI Cuprus-White Lake Horizon, East Big Island, Bartley Lake

    VTEM-EM Profiles East Big Island, Bartley Lake, & North Part of Mikanagan
    Two main anomaly groups are Tara Zn-Au Deposit on the west and the Bartley Lake anomaly at the top

    Morgan/Woosey (2% NSR Royalty Only) (Zn-Cu-Ag-Au)
    Cook (1% NSR Royalty Only) (Zn-Cu-Ag-Au)

    Rockcliff Copper Corp. or its assignees on a production decision will pay an advance royalty payment to Copper Reef of $1.0 million.

    Copper Reef also holds as well an interest in this property through 1,600,000 shares of Rockcliff Copper Corp.


    • Property is the only other large land package in the zinc rich Lalor Lake Mine Stratigraphy not held by Hudbay.
    • Contains a number of zinc showings and deposits. Including: the Bruce Morgan (200,000 tonnes with a historic grade of 8% Zn); the down plunge extension the Pen Zone (665,000 tonnes of 8.3% Zinc only 200 m to the south west of the Cook Lake property); as well as other showings with drill intersections of Copper and Zinc, such as the Irene Lake Prospect (4.58% copper, 3.82% Zinc, 38.8 g/t Silver, 1.5 g/t Au over 0.5 m) and the GW (10% Zn, 2.1g/t gold, 28.9 g/t silver over 0.6m).
    • Recently flown VTEM airborne Electromagnetic survey has outlined a new target near the GW zone and is Drill Ready.
    • No deep penetrating surveys below 150 -200 m similar to what found Lalor have been carried out on the property.


    Figure 1: Location Map of Bruce Morgan and Woosey Lake Properties

    These claims are located approximately 20km southwest from Snow Lake. Access is 11 km along the Chisel Lake Mine road, then 9 km over the rail bed to the area. They can be found on NTS sheet 63K/16SW.

    Figure 2: Claim Location Map for the Bruce Morgan Property (yellow), the Woosey Lake Property (blue) and the Cook Property (green)


    Bruce Morgan Property —
    10 % NPI to Bruce Dunlop, returns interest with an advance royalty payment of $150,000 upon Bruce Morgan Property production decision.

    Previous Expenditures

    Bruce Morgan Project to date:    Aur $1,005,927 / Granges to 1995: $1,893,489



    The Bruce Morgan-Woosey- Cook claim groups are the only properties in the Chisel Basin Stratigraphic group that host a number of zinc deposits that is not controlled by Hudbay. This is the same stratigraphic sequence that is host to Hudbay's recently developed large Lalor Lake Zinc-Copper Gold Mine. Copper Reef's Bruce-Morgan Property contains the largest zinc deposit (200,000 tonnes with a historic grade of 8% Zn) not held by Hudbay in the Snow Lake camp. The Morgan deposit's alteration zone extends to the north and this has not been drilled. The alteration is similar to that which is found in the Chisel Basin and beneath Lalor. Copper Reefs also has on these properties a number of other prospects including the down plunge extension Hudbay's Pen Zone (665,000 tonnes of 8.3% Zinc only 200 m to the south west of the Cook Lake property) as well as other showings with drill intersections of Copper and Zinc, such as the Irene Lake Prospect (4.58% copper, 3.82% Zinc, 38.8 g/t Silver, 1.5 g/t Au over 0.5 m) and the GW (10% Zn, 2.1g/t gold, 28.9 g/t silver over 0.6m). The Property also contains a number of undrilled airborne anomalies from various surveys, one of which is drill ready and is very close the GW prospect. What is, however most exciting is there has been little to no deep penetrating geophysical surveys on these properties below 150-200m of the type that found the Lalor deposit. Recently Copper Reef has picked up 4 addition claims for staking costs along this key stratigraphy.


    Figure 3: Plan view of the 1.89 Ga Anderson ('primitive arc'), Chisel ('mature arc') and Snow Creek ('arc-rift') sequences of the Snow Lake arc assemblage. The two large synvolcanic intrusive complexes, Sneath and Richard, belong to the Anderson and Chisel sequences, respectively. Arrows show the facing directions of supracrustal rocks. The late successor arc intrusive rocks truncate the ca. 1.84 Ga thrust faults (teeth) and are themselves cut by ca. 1.78 Ga normal faults (solid lines).
    Filled circles and ovals (red, Cu-Zn; purple, Zn-Cu) show distribution of VMS deposits: A, Anderson Lake; C, Chisel Lake; Ck, Cook Lake (located just north of map boundary); CN, Chisel North; G, Ghost Lake; La, Lalor; Li, Linda; L, Lost Lake; M, Morgan Lake; Pt, Pot Lake; P, Photo Lake; Pn, Pen; Rd, Raindrop; R, Rod; Ra, Ram; S, Stall Lake; Ir, Irene prospect; WG, WG Woosey Project.

    The rocks that host the Snow Lake Volcanogenic Massive Sulphide (VMS) deposits occur within two distinct volcanic sequences: Shown in Figure 3 below are the two main volcanic sequences

    A lower primitive volcanic sequence (Anderson) with a simple bimodal lithologies dominated by basaltic and felsic volcanic rocks. This sequence has produces the smaller (less than 5 million tonnes) copper rich deposits such as the Anderson, Stall and Rod mines. The alteration zones from the hydrothermal fluids circulating along fracture zones produced small VMS deposits usually at or near the Basaltic and felsic volcanic contacts.

    An upper more evolved (the magma had more time to fractionate) volcanic sequences (Chisel), composed of intermediate to felsic rocks with considerable breccia dominate the zinc rich deposits of the chisel sequences. The alteration zones are more complex and more extensive having been able to strip (leach) the great amount of volcanic breccias in this sequence of their metals to be redeposited into generally larger Zinc Rich VMS deposits. This is the sequence that dominated Copper Reef's property.

    Between the two sequences is the mud horizon composed of barren massive sulphide muds that represent a quiescent period between the volcanic eruptions, intrusions and subsequent alteration and deposit formation that produce and occur within the underlying primitive dominantly mafic sequence and the overlying more evolved dominately intermediate to felsic sequence. This barren massive sulphides mud make an excellent geophysical conductor but is not associated with economic mineralization although it may flank deposits of the lower sequence. The 'Foot-Mud horizon' (thick red dashed line) is a pyritic, fine-grained volcaniclastic unit located at the contact between the Anderson ('primitive arc') and Chisel ('mature or evolved arc') sequences.

    Main Lithological Units

    Figure 4: Snow Lake Lithologies
    Shown below are the main bimodal lithological units with basaltic aphyric flows (dark green) with minor felsic volcanic rhyolites (yellow) dominating the Lower Anderson Sequence, whereas the upper evolved Chisel sequence is dominated by feldspar porphyritic basaltic andesitic flows and breccias and a lot more dacitic (orange) and rhyolitic flows and breccia (yellow) than the lower sequence.
    The Chisel-Lalor VMS System

    The Lower Chisel supracrustal rocks contain two discrete components. The first consists of felsic and mafic volcaniclastic rocks, which are derived by mass wasting of a source terrane located to the west, and a geochemically distinctive basalt flow (Snell) that was derived from more mature and evolved arc magmatism than that responsible for the underlying Anderson sequence. The second component is a suite of differentiated basalt, andesite, dacite and rhyolite flows that are geochemically distinct. The Zn-Cu VMS deposits are spatially associated with rhyolite flow-dome complexes lying atop this latter succession. Ubiquitous pillows in the mafic flows, lobe and tongue facies in rhyolite flows, and graded bedding in mafic volcaniclastic rocks indicate that the Lower Chisel rocks were deposited subaqueously. The Lower Chisel sequence is cut by a wide variety of intrusive rocks, ranging from dikes less than a metre across to large plutons several kilometers in diameter. Most of these intrusions are demonstrably synvolcanic, and many can be clearly related to specific extrusive equivalents. The abundant (locally up to 50% by volume) synvolcanic dikes support the hypothesis that rifting and caldera development likely accompanied accumulation of the Lower Chisel sequence. The 1.7 km by 7.3 km synvolcanic Richard intrusive complex is a long-lived intrusion that played an integral role in generating and sustaining the Chisel-Lalor VMS system. The synvolcanic character of the Richard intrusive complex is clearly supported by a U-Pb zircon date of 1889 +8/6 Ma and: 1) the presence of miarolitic cavities, which indicate shallow depth of emplacement; 2) geochemical similarity of the Richard tonalite and the overlying ore-hosting Chisel and Ghost rhyolite flows; 3) an increase in intensity of regional-scale semiconformable alteration zones in the Lower Chisel sequence close to the Richard intrusive complex; and 4) internal vein-breccia systems, which suggest epizonal intrusion.

    Regional Alteration Zones

    The volcanic sequences of the Snow Lake arc assemblage contain prominent zones of alteration that visibly affect approximately 25% of the volcanic strata and associated synvolcanic intrusions. These alteration zones, which were formed by synvolcanic hydrothermal activity, were subsequently recrystallized during 1.81 Ga regional metamorphism and can be readily recognized by their unique metamorphic mineral assemblages. Centimetre-scale, euhedral crystals of chlorite, phlogopitic biotite, amphibole, muscovite, garnet and staurolite are common within metamorphically recrystallized semiconformable alteration zones. Recrystallized discordant alteration zones also contain coarse-grained kyanite and andalusite.

    The first, and oldest, hydrothermal event occurs in the Anderson sequence rocks is focused within the Anderson and Daly felsic extrusive complexes. It is interpreted to be genetically related to formation of the Anderson, Stall and Rod Cu-Zn VMS deposits, in the former complex, and the Raindrop and Pot lake base metal occurrences, in the latter. This hydrothermal activity also affected the underlying Sneath intrusive complex, where it is manifested, most typically, as 'fracture-controlled' zones of alteration. These are interpreted to result from 'collapse' of the hydrothermal system into the subvolcanic intrusion as it cooled. The alteration caused by this hydrothermal activity includes both stacked, semiconformable zones, 35 km long and as much as 1000 m in total thickness, and discordant alteration 'pipes' that commonly terminate upsection at known VMS deposits and occurrences. These alteration zones are truncated by a late phase of the Sneath intrusive complex, which is considered evidence of the coeval nature of the volcanism, alteration and plutonism.

    The second hydrothermal event took place at the end of Anderson sequence volcanism. This hydrothermal activity resulted in silica and epidote addition to Welch basalt at the top of the Anderson sequence. A 300-500 m thick zone of alteration was produced directly underlying the 'Foot-Mud tuff-exhalite' at the top of the Anderson sequence. Both the alteration and the Foot-Mud exhalite have the same strike length as the underlying Sneath subvolcanic intrusion.

    The third hydrothermal event is located within Lower Chisel volcanic rocks and is spatially associated with Lower Chisel intrusive rocks, in particular dikes of the 'Powderhouse' dacite and early phases of the Richard intrusive complex. Resultant alteration by the hydrothermal fluids, which is largely confined to the Edwards mafic volcaniclastic rocks, is interpreted to be synvolcanic and related to generation of VMS deposits, as it only affects strata underlying the Chisel-Chisel North-Ghost-Lost-Lalor VMS horizon. The alteration zone is truncated to the west by late phases of the Richard intrusive complex and by late faulting. An alteration system underlying the Cook Lake and Bomber VMS occurrences trends to the southwest into a large alteration system along Parisian Creek, Woosey Lake and Morgan Lake; it may represent the western extension of the 'Chisel footwall' alteration system.

    Geology of Copper Reef's Property and Showings and Targets

    The geology of Copper Reef's property and showing are shown in Figure 5, along with other deposits of the Chisel Basin, most noted Lalor approximately 2 km from Copper Reef's property boundary.

    The Bruce Morgan and Woosey properties are underlain by rocks of the Early Proterozoic Snow Lake arc assemblage. These rocks consist predominantly of variably altered dacitic to basaltic volcanic breccias, agglomerates, tuffs and pillowed flows. The entire sequence has been intruded by syn-volcanic tonalite, concordant gabbroic sills and discordant granodiorite plugs. Four mineralized/ cross cutting alteration zones (Morgan, DW, Mullen and Bud zones) have been identified by mapping and diamond drilling. Potential exists for the discovery of new mineralized zones, along the Morgan and DW Horizons. In addition, potential also exists for locating new massive sulphide zones associated with several untested Spectrem (Hudbay) and VTEM electromagnetic anomalies.

    Cook Lake Property (2 claims, north part of package)

    Figure 5:Mines, Deposits and Showings of the Chisel Sequence
    Kobar Lake Claim   
    This claim is located 2 km west of the large new Lalor deposit presently being mined and developed by HudBay. It is thought that this claim may contain the down plunge extension of the Pen 2 zone (owned by Hudbay Minerals) which hosts approximately 665,000 tonnes of 8.3% Zinc only 200 m to the south west of the Cook Lake property.

    Cook Lake Irene Claim
    This claim is located just a few hundred meters north of Copper Reef's 100% wholly owned Woosey Lake Property. The Irene claims contain two poorly defined areas of mineralization: the Irene Lake Zone (4.58% copper, 3.82% Zinc, 38.8 g/t Silver, 1.5 g/t Au over 0.5 m) and the SCC Zone (a 5.1 m thick unit of low grade (<1%) copper and zinc massive sulphide).

    Bruce Morgan Property:

    • The Morgan deposit contains approximately 200,000 tonnes grading 8 % Zn. Previous work by Aur suggests the deposit likely plunges to the north. This area has never been tested. It is largest Zn deposit in Snow Lake not held by HudBay Minerals.
    • Cross-cutting alteration zone identified down-plunge from the Morgan deposit. Strongest and widest alteration zone identified to date.
    • Identification of Bud alteration zone located just south of the southeast end of Morgan Lake, remains poorly tested.
    • Spectrem and VTEM electromagnetic survey data indicates that there are untested conductive zones.
    • Finlayson Find Gold Occurrence: 19.95 g/t Au over 2.3 metres.
    • Blue Zone: 5.76 g/t Au over 0.6 metres.

    Bruce Morgan OTHER TARGETS

    Test possibility of northerly plunge of Bruce Morgan zone.
      Test untested Spectrem aILEM/pulse anomalies.
    • Bud zone HUM conductors
    • Untested FILEM north of Morgan Island
    • Untested SpectrEM northeast of Morgan Island
    • Untested SpectrEM in SW corner of property
      Evaluate base metal mineralization intersected along northeastern property boundary
    • Test portion of DW zone missed by 1998 drilling.
    • Test strong off-hole PEM anomaly in RE-98-03.
    • Review gold potential of property.

    Figure 6: Plan Map of the Morgan Lake Property from Aur Resources

    Figure 7: Vertical Long Section, Morgan Lake Deposit: from Aur Resources

    Woosey Property

    New Targets:

    - Untested A2 VTEM target ready for drilling(winter) in the Woosey Lake area especially in the area of an old hole which ran 10 % Zn, 2.1 g Au/t, and 28.9 g Ag/ t over 60 cm under the southern part of Woosey Lake called the GW Zone.

    Figure 8: Copper Reef 2010 VTEM Survey showing the A and A2 VTEM conductors.
    Geophysical Models

    Figure 9: Woosey Lake Flanking Model

    The larger EM anomaly (A1) represents a strata bound sedimentary sulphide horizon and has been adequately tested by previous drilling. The Flanking short strike EM anomaly (A2) is the type generally liked by geophysicist as typical of VMS deposits. This is a ready made drill target

    Recent Airborne Surveys


    Copper Reef has flown both the Woosey and Morgan Properties in 2010; the following maps show the EM Profiles and TMI Magnetic map from over both contiguous properties.

    The northern Portion of the Woosey Claim Group as well as the Cook Claims have not been flown by VTEM which is one of the better deep looking Airborne Electromagnetic Systems.

    Figure 10: VTEM 2010 EM Profiles over the Woosey - Morgan Group

    Figure 11: VTEM 2010 TMI Magnetic Map over the Woosey - Morgan Group

    Other Properties - (Royalties only )

    Copper Reefs holds a 2% NSR royalty on Foran's Hanson Property (different from Copper Reef's Hanson Property), located south of Foran's McIlvenna property in the Hanson Lake Area.

    Copper Reef hold a 2%NSR on Foran's Sam Property which host a significant copper-gold-silver prospect. Along the Coronation Mine Trend west of Flin Flon

    Copper Reef holds a 2% NSR on Foran's Reed Property in Snow Lake, Manitoba, south of Copper Reef's Morgan Lake Zinc-Silver-Gold deposit.

    Royalties on 4058667 Manitoba Ltd Properties
    Fay Lake - 1%; Nek (Egg Claim) - 1%


    Pine Bay, Thompson Bay. Gar Sue and Don Jon Royalties in Red. Copper Reef Properties main Flin Flon Camp in Green

  ©2014 Copper Reef Mining Corporation
Copper Reef Mining Corporation