History and Results (Finlay Minerals, AuRico Metals)
Finlay Minerals acquired the property from Electrum in 1999 and has established 11.6 kilometers of grid lines, 9.8 kilometers of magnetic surveys, 8.3 kilometers of IP surveys, collected 131 soil samples, 48 rock samples, and prepared a geological map.
In 2004 Finlay conducted a helicopter supported drilling program consisting of 7 holes totaling 1,653 meters. Exploration targeted coincident soil geochemical and geophysical (IP, magnetics) anomalies associated with a prominent rusty area known as the Atty Gossan Zone (photo above). At the Awesome epithermal showing near the centre of the property soil and rock sampling and an induced polarization survey were completed. Drilling failed to intersect porphyry style mineralization. However, in three holes, zones of pyrite-magnetite mineralization associated with brecciated andesite were intersected over core lengths of up to 70 meters. Whether this represents the uppermost effects of a porphyry system is yet unknown.
In 2007 the Company commissioned Quantec geoscience to carry out a deep penetrating Titan IP geophysical survey. The survey identified three anomalies that were recommended to be drill tested. These anomalies may represent a northerly extension of the Kemess East (see ATTY Hillshade Map) copper-gold porphyry located east of the Kemess Underground deposit (formerly known as Kemess North). AuRico Metals (formerly Northgate Minerals) discovered the Kemess East zone in 2014 by drilling a similar deep Titan I.P. anomaly.
AuRico Metals has been active at Kemess Underground and Kemess East (2011 to 2017) and have progressed the deposits through to feasibility and environment assessment studies.
In 2013, AuRico Gold completed its feasibility study on the Kemess Underground Zone with the outline of the development of an underground block cave operation. Annual production is projected at 105,000 ounces of gold and 44 million pounds of copper at cash costs of $213 per ounce of gold, net of by-product credits, over a mine-life of approximately 12 years. Base case commodity price assumptions are $1,300/oz gold, $3.00/lb copper and $23/oz silver and an exchange rate of US$/CDN$1.00.
A review of the 2004 Toodoggone airborne survey reveals the presence of large potassium and thorium/potassium anomalies in the area drilled by Finlay as well as over the Awesome epithermal showing. Such geophysical signatures could be prospective for mineralization. Finlay plans to commission a detailed analysis of this data to assist with future work programs.
On December 15, 2014 AuRico Gold announced the discovery of a new porphyry mineralized system named Kemess East. Following on January 21, 2015, AuRico further announced an initial resource of 5.5 million Gold Equivalent Ounces at Kemess East bringing the Total Kemess Property (Kemess East and pre-existing Kemess Underground) resource to 10.6 million Gold Equivalent Ounces.
On March 23, 2016 AuRico Metals announced a positive feasibility study update on the Kemess Underground reporting a measured & indicated mineral resource estimate of 246,400,000 tonnes containing 1,195,300 lbs. of copper grading 0.22%, 3,328,000 ounces gold grading 0.42%g/t and 13,866,000 ounces silver grading 1.75g/t. Also on March 23, 2016, AuRico Metals announced a high-grade core to the Kemess East Deposit with an indicated mineral resource estimate of 39,200,000 tonnes totaling; 344,000,000 lbs. of copper grading 0.40%, 627,000 ounces gold grading 0.50g/t, 2,512,000 silver grading 1.99g/t and 7,100,000 lbs. molybdenum grading 0.008%. (http://www.auricometals.ca/kemess/kemess-underground-project/default.aspx)
Since 2006 AuRico has completed 71 drill holes in the Kemess East with 31 of these holes completed since late 2013 (44,633 meters). Most of the mineralized drill intersections on the Kemess East occur between 1.1 and 1.3 km south of the Atty property border.
Finlay Minerals plans to drill test several Titan IP anomalies, as they may reflect similar copper-gold porphyry mineralization as seen south at Kemess East.