HV... here you go!
Handcamp
We are all familiar with this story. Drilling completed last year, which included 12 holes, all of which had Au results above background with the best results from Hole #12. Overall, the first phase, while not amazing, definitely warrants a Phase II program. My belief is that this is where KATX/KATG will start their 2011 work, if and when they get their financing (if this is the reason for the delay). I am also interested in another stripped zone to the north that they described, but they have never released any results from work complete here.
Rusty Ridge
This is a complete head scratcher. From two holes they have only officially released numbers from the very top of the second hole. The first hole they only physically described, the key phrase that made a lot of people head for the exits was “sub-economic copper”. The first hole description was not good, but the second hole held promise, but the delay is unnerving.
Now my opinions on the following properties are ONLY based on public information from KATX’s website, where most investor would initially turn to get some idea about what they have.
Twilite
First off, the initial results are eye catching, with visible gold noted and a high of 202 g/t Au. Initial work discovery above background Au values, but for some reason work was halted and the claims dropped. KATX has them, but so far have done little to no work on these claims. I can only assume that the initial work outlined a few targets. Fort Knox Gold hit these targets and thought that the results did not warrant any further work. KATX picked them up because they saw some potential. Unfortunately this property appears to have the least amount of information available.
Colliers
Very close to were I grew up… Seems that work completed by Altius was inconclusive on the extent of mineralization. One high grade sample was noted, but the overall dimensions of mineralization remain unknown and Altius was not interested in any option. From the report, it is of my opinion that mineralization was localized and no stockwork type system was observed. Work here would also be complicated by its proximity to the bay, river, and community.
North/South Lucky
What we know:
“Copper mineralization is quite visible in an old pit near the gravel road and impressive malachite staining along with chalcocite is strata bound within the more sandy beds of the sediments. The horizon that hosts the mineralization has been traced for approx. 17kms with copper mineralization at a thickness of 300ft in places and assay results of 2.5% Cu has been discovered in exposed areas in the pit from within this horizon. This type of environment has the potential to produce low grade, large tonnage copper deposits similar to those of the Zambia copper belt. “
I will comment just on the property itself, therefore I will not comment on Vale’s land position, etc., just the property. Looking at the photos, mineralization is not widespread, i.e., massive, but assays results of 2.5% Cu are encouraging. Malachite represents the oxidation of copper minerals, such as chalcopyrite and chalcocite, the latter of which was observed. The sedimentary unit that hosts the mineralization is mapped over a 17 km, horizontal distance; however, mineralization is not noted as being over the entire distance. From their description, the sandy beds host the mineralization and this makes sense as these are probably the more permeable zones in this horizon and malachite is a hydrous carbonate mineral. What this means is that carbonate-rich fluids, probably from a limestone (source for the CO3), reacted (oxidized) with copper minerals, such as chalcopyrite/chalcocite to form malachite. Precipitation of these fluids occurred in the sandy zones, hence the malachite. However, some of this was not transported far as chalcocite is also noted. The question is whether there are more enriched zones that are buried along this 17 km section. The 300 ft thickness noted is a maximum number and we (and probably KATX/Vale) do not know what the average mineralized thickness really is at this point. Obviously the expose in the pit by itself is not enough to warrant a mine. The BIG question still remains whether this 17 km horizon has a large enough tonnage at grades high enough to mine. Malachite is a minor Cu ore, so you need more of it to make it economical. Enriched chalcocite zones would help with the grades and this is probably were the 2.5% sample was collected.
Until this horizon is mapped and/or explored the full extent of this horizon well remain unknown.
Shaylee
The descriptions and photos of Shaylee seem just as promising as Lucky; however, no assay results are reported. Although “stringers of native copper” are observed. Not enough information here to give a thumbs up or down. The observations alone warrant at least the collection of hand samples, but there is no description of how large of an area that may be mineralized as was reported for Lucky.
Clifton
Grassroots property that is in the same geologic environment as RR and Lucky. Completely open to interpretation as three different mineralized environments are considered, namely a sediment-hosted stratiform Cu, volcanic-redbed Cu, and IOCG. No assay information presented, except to mention lake anomalies for Cu, As, Pb, and Co.
Cabot
Outside of RR and HC, the Cabot property seems to have the most potential, at least from the available information. It is located along a fault zone, which is along strike with other mineral deposits to the SW. In addition, other known mineral deposits are along a sub-parallel fault zone and/or in similar rock lithologies. The work completed to date is encouraging with Cu results up to 1.90% over 2.78 m. Further, the presence of a quartz/sericite vein with good Au results should be tested to see if this is part of a larger system.
From this quick overview I would still focus on HC. RR might come into play, but it is depend on numbers from the bottom of Hole #2, which are being held. Other than that Cabot seems to be a location that warrants further work, even before Lucky. However, if Vale is willing, let them get the work done and KATX can focus their resources on HC and/or Cabot.
This overview was not as complete as I would like, but family life takes precedent. As new information becomes available these interpretations can change. If anyone wants to discuss certain properties in light of data I have not reviewed, please add it. If you want to shoot the messenger without any backup, don’t expect a reply. I can accept and welcome constructive criticism.
Hopefully at least some of this makes sense!?
My disclaimer: These are all my own interpretations / opinions based on my own experience. Don’t ask for credentials.; take it or leave it. My purpose is not to gain your trust, but to supply objective opinions on a company in which I own shares. Any investment decision is your own and I will not post if I buy or sell.
