- Exploration and Geology
Kuanping (KP) Project
12.39 km2 satellite property, located ~33 km north of the Ying Mining District
100% interest acquired in 2021 for US$13.5 million
Previous exploration defined six silver-lead-zinc and one gold-silver vein structures
12,000 m 2022 drilling campaign underway (~2,000m completed in fiscal Q1/23)
Future production to leverage existing processing facilities at Ying
Kuanping (KP) is an exploration and development stage satellite project. An application for a mining permit has been submitted and is pending review and approval by the relevant provincial government authorities
Previous exploration activities included 1,458 m of adits, 3,387 m3 of trenching, and 11,759 m of diamond drilling in 52 diamond drill holes between 2006 and 2013, focused on the 1 km by 1 km northwest corner of the project area. Exploration has defined six silver-lead-zinc vein structures and one gold-silver vein structure. The most explored vein structures are K3 and K4. K3 dips 25 - 55° to the north-northwest, and extends 600 m along strike and 400 m down-dip from surface, while K4 dips 35 - 65° to the northwest, and extends 960 m along strike and 540 m down-dip from surface. K3, K4 and a majority of other veins are still open along strike and at depth.
Based on the drill grid spacing of 68 m to 170 m along strike, and 45 m to 230 m down dip, mineral resources for silver, lead, zinc, and gold were estimated in 2013 by the Geological Brigade No. 1 of Henan Province Non-ferrous Metals Geological and Mineral Resources Bureau using Chinese standards (not NI 43-101 compliant), and were posted on the auction website. The mineral rights fee related to the estimated mineral resources, with a calculated value of US$5.4 million (RMB¥34.8 million) based on current regulations, has been previously paid in full.
Highlights of selected drill hole intercepts:
Hole ZK40305 intercepted a 4.15 m interval from 179.49 m, grading 536 grams per tonne (“g/t”) silver (“Ag”), 2.47 g/t gold (“Au”), 2.05% lead (“Pb”), and 8.00% zinc (“Zn”)
Hole ZK30703 intercepted a 0.23 m interval from 131.45 m, grading 1,462 g/t Ag, 0.69 g/t Au, 0.84% Pb, and 1.41% Zn
Hole ZK41501 intercepted a 0.36 m interval from 100.63 m, grading 1,561 g/t Ag, 5.98 g/t Au, 9.09% Pb, and 14.14% Zn
Hole ZK41105 intercepted a 0.48 m interval from 215.77 m, grading 848 g/t Ag, 10.00 g/t Au, 9.82% Pb, and 7.92% Zn
Hole ZK40311 intercepted a 0.43 m interval from 348.33 m, grading 92 g/t Ag, 8.78 g/t Au, 9.25% Pb, and 4.5% Zn