Our next Juicy Jurisdiction is my home province of British Columbia, Canada. Like Nevada, this is another jurisdiction with a long mining history that reliably ranks well in the Fraser Institute Annual Survey of Mining Companies. But that is where the similarity to Nevada ends!
I spoke with geologist Charles Greig, Vice President Exploration at GT Gold, who has spent his career exploring in BC and beyond. He started his geology journey sampling soils in the highly prospective Toodoggone district in northeast BC in 1981. Almost thirty years later he believes, “there’s no better place to work than BC in terms of potential, the ability to develop, the [rock] exposure, the variety of the geology – it is a fantastic place and hard to beat.”
Charlie is currently working in northwest BC’s Golden Triangle but has explored all corners of the province with the BC Geological Survey and at projects such as Brucejack Lake (Pretivm), Red 2 Mountain (Lac Minerals, IDM), Silbak Premier (Westmin, Ascot), and IKE (HDI-Amarc). He helped create GT Gold and has guided their exploration programs since they listed in 2016.
Lots of land, lots of options
As an exploration and mining jurisdiction BC has a lot going for it, but the number one feature is its size. “BC is huge,” says Charlie.
Mountains cover 75% of the province. Rock exposure is great in the mountains and, as Charlie points out, if we stretch and flatten out the mountainous land surface, we are left with a lot of surface area to explore.
There are also the valleys and plateaus of central BC, such as the Chilcotin and Cariboo areas, which are less rugged. But these valleys tend to be thickly forested at the surface; below the trees, the rocks are covered in thick layers of glacial sediments smeared across the province in the last ice age or covered by young volcanic rocks just tens of thousands of years old.
For explorers, this means it is easier to drive and walk around in the valleys and on the plateaus but the sought-after rock may be obscured. On the flipside, it is harder to get around in the mountains but the rock is better exposed.
Mountain exploration programs are more expensive, incurring the costs of hiring a helicopter to move people, drills and mining equipment. But at the same time, Charlie says, “at least you know fewer people have been out there looking in the same place, so chances of finding something new and different are increased.”
Copper, gold (and other stuff!)
Unlike Nevada, BC has a wide range of mineral deposit types. “Certainly, there are some great gold deposits but then there’s the optionality provided by the copper-gold-silver or copper-moly porphyry deposits,” Charlie says.
In a nutshell, the geology of BC is shaped by its position on the eastern rim of the Pacific Ocean. It is an active plate boundary, where the massive tectonic plates that cover the globe are being pushed against each other and the ocean plate is being subducted under the continental plate.
The upper plate resists and becomes wrinkled forming new mountains while the lower plate melts below, like adding wood to a fire. Geologists familiar with BC talk excitedly about plate collisions, orogenic (mountain building) phases, voluminous arcs (lines of active volcanoes producing lots and lots of lava), and accreted terranes (huge packages of rock with a specific geologic history).
Bottom line: All this tectonic activity generates the heat and metal-rich (hydrothermal) fluids to form a wide range of mineral deposit types.
BC is particularly well known for its giant porphyry copper deposits. Porphyry deposits form when a volume of magma rises through the earth and, as it cools, forms a core of igneous rock with a distinct ‘porphyritic’ coarsely crystalline texture.
As the system cools further, hydrothermal fluids escape into the surrounding rock carrying dissolved metals. These fluids bleach the surrounding rocks, changing the chemistry and the minerals in them, forming the discrete, often mineralized, alteration zones porphyry systems are known for.
Porphyries tend to be low grade but they make sense to mine when they offer scale and are accessible. There have been dozens of successful porphyry mines in BC, especially in the southern half of the province, and many are still operating. And the BC porphyry story is still very much going strong: GT Gold’s Saddle North discovery is the latest major gold-rich copper porphyry discovery in 3 the province and Newcrest acquired 70% of the Red Chris mine for US$804 million last year to form a partnership with Imperial Metals on a relatively new mine tapping another large – and this time rich – BC porphyry.
Porphyries are also important as ‘engines’, by which I mean the huge amounts of heat and fluid involved in the intrusion can also create other deposit types, including epithermal, skarn and breccia deposits. The Saddle South zone at GT’s project is a good example: it’s a high-grade epithermal gold system peripheral to a major gold-copper porphyry.
Porphyries are essential in the world of mining for their scale…but explorers, and the investors who buy exploration companies, often prefer grade. BC also has that to offer.
Pretivm’s Brucejack mine is a good example. According to the 2020 technical reports, Brucejack has 4.2 million ounces of gold (15.7 million tonnes grading 8.4 grams of gold per tonne) and a 13-year mine life. That’s a good amount of gold – but it’s the grade that catches attention. Some of the early underground drilling intersected zones grading greater than 1,000 grams per tonne gold.
Those hits came from an area called Valley of the Kings, which joined a list of zones or deposits in BC that have, over time, offered up phenomenally high gold grades. That, my friends, is why explorers and investors flock to the Golden Triangle.
Of the ‘other’ deposit types, Charlie says, “There’s also some potential in nickel, for example, and very large zinc, lead, silver deposits like the Sullivan [a SEDEX deposit near Kimberley in the southeast of the province]. People are still looking for the next one.”
“There are also some big resources farther up in the north, north-central BC, north of McKenzie in the Kechika belt, that haven’t been exploited. They’ve been discovered and I think there are probably more discoveries to make there,” Charlie says.
BC also has potential for the more obscure minerals, such as the rare earth elements. Charlie says, “People haven’t looked for the more obscure things as hard as they’ve looked for say the copper and gold porphyries in BC.”
The Golden Triangle draws a crowd
I said that explorers and investors like grade and the data on who’s exploring where in BC backs that up. In 2019, northwest BC’s Golden Triangle accounted for 55% of total mining and exploration expenditure for the province. It’s a proportion that has been rising every year over the last decade or so.
Why is the Golden Triangle so popular? After all, it’s a rugged and ice-covered area where you can only work your projects for a few months each year. But those challenges are worth it considering the potential prize, which is to discover another Valley of the Kings (super rich gold vein system) or Saddle North (big, rich gold-copper porphyry) or Eskay Creek (rich gold-silver-copper-zinc VMS deposit).
And importantly – new roads and power lines have made the area far more functional than it was even ten years ago, while receding glaciers keep exposing more rock.
The Golden Triangle used to be isolated but not any more. In 2012-14, BC Hydro built the 344- kilometre Northwest Transmission Line into the northwest. The power utility also drove several new roads into the heart of the area to build and service several new run-of-river hydro projects, which 4 made big areas for more accessible for explorers. And Highway 37 is paved and port facilities are available in Stewart.
“This kind of infrastructure is a huge boost for mining,” Charlie notes, particularly for big, low grade deposits that need a lot of power to mine.
“With those roads in there and the addition of nearby power, it can really make the difference to developing a mineral deposit and gives incentive to people to explore,” says Charlie.
Glaciers in the north of BC, particularly on the coastal mountain range, are receding quickly. At the Red Mountain project, for example, ice has retreated significantly since Charlie worked there in the early 1990s.
“If you look back at the oldest geologic maps say around the Stewart area, from the 1910’s and that era, you can really see how much ice has been lost,” Charlie says. On one hand, this exposes fresh rock outcrop for companies to explore, but on the other it is a stark reminder of a changing climate.
In BC, community, particularly local First Nations, acceptance has the power to make or break a project.
Explorers in BC apply for a mineral claim with the provincial government and a permit to carry out mechanised exploration activities. Traditional land holders are informed by the government of the activity to take place and the responsibility is on the explorers to build a relationship with the relevant First Nation/s.
“Companies understand – for the most part now – that you have to start relationships very early on,” says Charlie, “Most [First Nations] have a resource person. There’s an education process that has to go on, they learn from experience, like we all do.”
The Golden Triangle is in the traditional territory of the Tahltan First Nation, and partly in the Nisga'a and Gitxsan territories. On the whole, these communities are savvy to the resource sector and willing to work with exploration and mining companies.
One approach that has worked for Charlie is to try to employ First Nations people during exploration and to build individual relationships at every level, not just at the top. “It’s real people working together on the ground from day one,” he says.
Charlie points to Pretium’s Brucejack gold mine as evidence that: “you can get into these tough areas and actually make something happen.”
The remote Toodoggone mineral district to the east of the Golden Triangle in northeast BC is Charlie’s pick. The district hosts different gold, silver and copper mineral deposit types and is close to Centerra Gold’s Kemess copper and gold project.
“That’s a great area for exploration and for potential deposit to be developed. There’s power up to that area and I think it has a bright future,” he says, of the area he started working in almost 40 years ago.
His advice to explorers is: “The way you find mineral deposits is boots on the ground.”
In her letter, Resource Maven explains what she is buying and selling, and why. Maven has bought into several of the markets best - performing stocks well ahead of the curve. She regularly identifies exciting new exploration opportunities and manages the inherent risk by selling some into speculative gains. And the mine builder and operator stocks that form the basis of the portfolio give strong, ongoing leverage to the rising prices of gold and silver. She has your precious metal bases covered.
You were 100% right in todays prediction. I bought in at the times you said, in the method you said (Twice) I have enjoyed the gains!
Thank you for your help and guidance as always.
Besides your far superior record, your format is the best I’ve seen in PM newsletters. It’s so easy to go back for older info on companies when appraising my portfolio. This compliment is from someone who has hired about a dozen letter writers so it has perspective. Keep up the good work.