| Placer gold was discovered in Sulphurets Creek
in the 1880s. In 1935, copper mineralization was discovered on Mitchell-Sulphurets
Ridge in a location now known as the Main Copper Zone. In 1959, gold-silver mineralization
was discovered in the Brucejack Lake area. These showings were subsequently explored
with surface and underground exploration in the 1980s and 1990s as three comparatively
small high-grade gold-silver zones by Newhawk Gold Mines Ltd. and Lacana Mining Corp.
In 1960, claims on the Sulphurets property were staked by Granduc Mines Ltd. and some
independent prospectors from Ketchikan, Don Ross and Fendell Dawson. Geological mapping,
airborne/ground geophysical and lithogeochemical surveys, packsack and diamond drilling
were completed over an eight-year period on Sulphurets Gold, Main Copper and Quartz
Stockwork Zones by Granduc and the Newmont Mines Joint Venture. Gold-silver mineralization
was discovered at the base of the Iron Cap area. Phelps Dodge and Granduc optioned and
explored the claims owned by the Ketchikan prospectors. From 1971 to 1975 Granduc continued
exploration on the Sulphurets Property. The main activities included geochemical sampling,
geological mapping and trenching on the Sulphurets Gold and Main Copper Zones.
From 1980 to 1985 Esso Minerals optioned the Sulphurets Property from Granduc with
a focus to explore for porphyry molybdenum, bulk mineable copper-molybdenum-gold and
gold-bearing vein type deposits. They initially performed work on the Iron Cap, Moly,
Brucejack Lake and Sulphurets Gold Zones. Exploration was continued primarily on the
Brucejack Lake Zone and also on Canyon, Sulphurets Lake Gold, Snowfield Gold and Quartz
Stockwork Zones. In 1985, Esso surrendered its interest in the Sulphurets Property to
Granduc.
The Alpha Joint Venture (“Alpha”) staked the Kerr Property in 1982
to cover a large altered, pyritized and gossanous zone adjacent to promising gold
mineralization discovered by Esso on the Sulphurets Property. Anomalous gold values
in soils were identified in 1983 by Alpha and based on these results Brinco Limited
optioned the Kerr Property in 1984 and funded the next phase of geological mapping,
prospecting and geochemical sampling. This work outlined a gold anomaly over one
kilometre long.
In 1985, Newhawk Gold Mines Ltd. and Lacana Mining Corp. formed a joint venture,
and optioned the adjoining Sulphurets Property from Granduc. The main focus of their
activities was to explore the Brucejack Lake prospect with an extensive underground
program. Over the next six years the joint venture also completed work on several
other mineralized zones, namely the Sulphurets Gold, Main Copper, Alder, Mitchell Gold,
Sulphurets Lake Gold, Hanging Glacier and McQuillan Zones. Work included diamond
drilling on these five zones.
In 1986, Brinco earned its 70% interest in the Kerr project and formed a 70/30
Joint Venture with the Alpha Group. Brinco then transferred its interest in the joint
venture to Western Canadian Mining Corporation. Field work results defined the
geochemical anomaly, some very high rock chip samples and preliminary drilling
results confirmed the occurrence of several mineralized zones.
In 1988, the Alpha Joint Venture transferred its 30% interest to Sulphurets Gold
Corporation which completed an Initial Public Offering on the VSE. Diamond drilling by
the Western Canadian/Sulphurets Gold Corporation Joint Venture identified the large
stockwork of pyrite-chalcopyrite which would ultimately be defined as the Kerr
copper-gold porphyry deposit. A major diamond drill program in 1988 tested the
mineralized zone over a 1,000 m strike length.
In January 1989, Western Canadian acquired 7,645,512 common shares of Sulphurets
Gold Corporation in exchange for their 70% joint venture interest in the Kerr Property.
This resulted in Sulphurets Gold Corporation becoming sole owner of the Kerr Property
with Western Canadian holding approximately 74% of the issued and outstanding shares
of publicly-listed Sulphurets Gold Corporation.
In October 1989, Placer Dome Inc. completed a lockup and acquisition agreement
with Western Canadian that delivered all of Western Canadian's share holdings in
Sulphurets Gold. By November 1989, Placer Dome's follow up tender offer to
the remaining shareholders resulted in the acquisition of 99% of the issued and
outstanding shares of Sulphurets Gold Corporation for $11.45 million. The Western
Canadian acquisition agreement also resulted in the assignment of the Tedray 13 claim
and 50% Option Agreement to Placer Dome. The owners of the remaining 50% interest
were Newhawk Gold (60%) and Granduc (40%). The Tedray 13 Claim is strategically located
at the north end of the Kerr Property. 1989 field work completed by Placer Dome included
additional diamond drilling to extend the Kerr deposit to a strike length of more than
1,600 metres extending onto part of the Tedray 13 Claim. In 1990 Placer Dome completed
a major diamond drill program on the Kerr Property to further define the deposit.
During 1992 Newhawk acquired Granduc's 40% interest in the Sulphurets Property and
Tedray 13 Claim. Placer Dome, in turn, acquired 100% interest in the Sulphurets Property
and the Tedray 13 Claim from Newhawk for $7.2 million. This acquisition included the
assignment of two underlying agreements, the Dawson Agreement and the Don Ross Agreement.
Placer completed a major diamond drill program on the Sulphurets Gold Zones and adjoining
Kerr deposit during the summer 1992. Total exploration expenditures incurred by Placer on
the Kerr-Sulphurets property through to year-end 1992 was C$6.6 million.
During 1993 Placer Dome completed resource estimates for the Sulphurets Gold
Zone and Kerr deposit.
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