Kingfisher Metals acquiring LGM Project, Golden Triangle, British Columbia
Kingfisher Metals Corp. [TSXV-KFR; FSE-970; OTCQB-KGFMF] has entered into a definitive agreement to acquire the LGM Project from Origen Resources Inc. [CSE-ORGN; FSE-4VXA]. The 26,771 Ha LGM Project is located immediately south and contiguous with Kingfisher’s HWY 37 Project, in Northwest British Columbia within the Golden Triangle.
Highlights: Expansion of contiguous holdings in the Golden Triangle from 362 km2 to 630 km2including KSM-type targets in west, alkalic Galore Creek-type targets in central region (Grizzly and Lucifer) and unexplored Eskay Creek-type stratigraphy to the east.
Grizzly Target trench sampling from 2006 returned 0.74% Cu and 1.09 g/t Au over 38 metres.
The LGM Project represents one of only three silica-undersaturated magmatic-volcanic complexes in the Golden Triangle with discovery potential for Galore Creek-type porphyry systems and has only seen 3,988 metres of drilling.
Historical stream sampling at Lucifer outlined a 4 km-long trend of highly anomalous stream sediment samples grading up to 7.8 g/t Au – similar in strength and scale to the Hank epithermal deposit signature at HWY 37.
LGM Project is fully permitted for diamond drilling.
Dustin Perry, CEO stated: “Acquiring the LGM Project fits into Kingfisher’s strategy to explore large district-scale opportunities and further increases our land holdings adjacent to Highway 37 in the prolific Golden Triangle. Historical results at LGM show very encouraging early-stage indications of porphyry Cu-Au mineralization with the Galore Creek potential.”
Gayle Febbo, VP Exploration stated: “The Grizzly and Voigtberg showings represent the only known showings in the region with mineralization hosted in pseudoleucite bearing volcanic rocks without a significant discovery. My work at Galore Creek focused on the structural patterns of ore shoots, and I believe comparable unrecognized patterns and potential exist for the LGM Project.”
The LGM Project lies directly south of the HWY 37 Project. It parallels Highway 37 and is bound to the south by the Galore Creek access road. The project comprises 26,771 Ha with underlying NSR royalties ranging from 1% to 2%.
The Grizzly target is a silica-undersaturated alkalic Cu-Au porphyry with a comparable setting to Galore Creek. The target is centered on a surface trench of 0.74% Cu and 1.09 g/t Au over 38 metres and lies within a 1 km by 1 km Cu-Au-Ag-Mo soil geochemical anomaly that grades up to 2916 ppm Cu, 1,100 ppb Au, 5.4 ppm Ag, and 160 ppm Mo. Excellent rock sampling results up to 5.91% Cu and 13 g/t Au at Grizzly were the focus of a small drill program in 2008, with 1442.9 m of diamond drilling.
The small program failed to identify the geometry of the porphyry intrusion and drilled exclusively along an east-west azimuth into pseudoleucite-bearing rocks. The NNE axis of mineralization in moderately S-dipping gully defined by rocks was not crossed by the 2008 drill holes. Anomalous intercepts from 2008 include 0.16 g/t Au and 0.10% Cu over 66.6 metres (hole GRZ08-11).
Follow-up geophysical surveys identified a moderate chargeability and magnetic anomaly directly below the Grizzly trench showing. Three large untested magnetic anomalies were identified at depth below the Grizzly showing, the most westerly coincides with a moderate shallow chargeability anomaly.
The Grizzly showing appears to be a high-level, Galore Creek-type setting with several untested geophysical anomalies and excellent trench results that have not been crossed by drilling. The region represents an opportunity to test higher-level, structurally controlled porphyry emplacement bodies from surface as well as deeper, bulk tonnage porphyry targets.
The source of Cu-Au mineralization at Lucifer is not yet drill delineated and several gossans on surface to the east are unsampled.
The northern LGM project lies to the southwest from the Hank-Williams Trend on the HWY 37 Project. Within this area are Texas Creek Suite intrusions mapped by the BC Geological Survey. Much of the prospective region lies in areas of extensive glaciation that have undergone significant recession since the last work was completed in the area by Skeena Resources in 1990.
Historical rock sampling of intrusive boulders at the toe of one glacier returned grades up to 0.90% Cu, 0.27 g/t Au, and 6.8 g/t Ag.
The company will issue 3,000,000 common shares in the capital of Kingfisher to Origen and pay C$75,000 in cash to Origen in exchange for the transfer of the LGM Project claims on closing. The LGM property is subject to underlying royalty agreements over different parts of the project that range from 1 to 2% with Triple Flag Precious Metals (1%), Ryan Kalt (2%), and Carl von Einsiedel (2%).
The transaction remains subject to various terms and conditions, including, but not limited to, the approval of the TSXV and CSE.
Kingfisher granted 1,700,000 stock options exercisable for five years at a price of C$0.25 per share to its directors, officers, various staff members, and an investor relations consultant (Adelaide Capital Markets Inc.).
Kingfisher has two 100%-owned district-scale projects and an option to earn 100% of the HWY 37 Project, that offer potential exposure to gold, copper, silver, and zinc. The company has 40,219,553 shares outstanding.