DD Property

Location


The road accessible DD Property is close to rail, power and a local workforce, and is located approximately 35 km southwest of Cranbrook, British Columbia. The property is comprised of the DD claims, 2340 ha of land, that PJX owns 100% of the mineral rights, subject to a 2% Net Smelter Return (NSR) to Doug Anderson (1%) and David Pighin (1%).

The DD Property is also located approximately 120 km east of Teck’s Trail Metallurgical Complex that produced some 8 million tonnes of zinc, 9 million tonnes of lead, and over 285 million ounces of silver from processing Sullivan Mine concentrate. The Sullivan Mine produced concentrate for over 90 years before being closed in 2001.


Exploration Potential


The DD Property occurs within a sedimentary basin called the Panda Basin that is geologically similar to the Sullivan Basin hosting the Sullivan deposit located about 45 km to the north.

The Company believes that the DD Property has similar potential to the Company’s Vine and West Basin Properties for hosting a Sullivan type (Sedex) zinc-lead-silver deposit.

The Sullivan Deposit occurs at a geological horizon called the LMC (Lower-Middle Aldridge Contact). No holes have tested the LMC horizon on the DD Property.

Historic holes drilled to test the LMC horizon in vicinity of the DD Property have encountered geology that supports the potential for a Sullivan Type Deposit. The thickness, alteration and anomalous zinc-lead mineralization of the LMC horizon progressively increases in intensity the closer holes are drilled to the DD Property (see cross section “Panda Basin Geology adjacent to DD Property”). This points to the DD Property as the location with the best potential to host a Sullivan Type deposit in the Panda Basin. A similar increase in thickness, alteration and anomalous zinc-lead mineralization in the LMC horizon occurs in proximity to the Sullivan Deposit in the Sullivan Basin.

From 2016 to November 2019, Teck Resources Limited (Teck) had an option to acquire an interest in the DD property.

One 1425 metre long sub-vertical hole (Pan-18-01), drilled on the DD Property in 2018, stopped short of the LMC horizon, in a gabbro sill rock unit. The hole is accessible and needs to be extended and drilled through the gabbro sill to test the potential for a Sullivan type deposit at the LMC horizon. (see - Idealized Section Showing the Correlation between Proven Sullivan Type Geology and Drill Hole Pan-18-01)

Albite-silica-sericite-garnet alteration is ubiquitous throughout hole Pan-18-01. Strong pervasive and fracture-controlled quartz-albite-white mica alteration occurs from 1262-1361m, proximal to the upper contact of the lowermost gabbro sill. These types of alteration are consistent with a geological environment that could host a Sullivan type deposit.

On July 20, 2020, PJX and DLP Resources Inc. (“DLP”) announced signing a definitive Option Agreement in relation to the DD Property. Under the terms DLP can earn a 50% undivided interest in the DD Property by spending $4 million in exploration expenditures and making a total of $250,000 cash payments to PJX over 48 months of the effective date of the agreement. DLP would have the right to earn an additional undivided 25% interest (75% total) by delivering a bankable commercial feasibility study on the property within 96 months of the effective date of the agreement. Upon DLP's exercise of the Option and acquisition of a 50% or 75% interest in the Property, as applicable, the parties will enter into a joint venture agreement for the further development of the Property.


Next Steps


PJX management believe that the DD Property has the next best potential, after the Vine Property, to host a massive sulphide deposit. This potential is based, in part, on historical drilling results in the area around the property, and that only 2 holes have been drilled on the property and neither hole has tested the target LMC horizon that hosts the Sullivan (zinc, lead, silver) deposit located 45 km north of the property.

The multi-year-area-based exploration permit to drill on the DD Property has been received. Drilling to extend hole Pan-18-01 and test the potential of the LMC horizon is planned to commence in late July or early August, 2020.

  • PJX Property Map