Honey Badger Silver Inc. (TSX-V: TUF) (“Honey Badger” or the
“Company”) is pleased to announce that it has acquired a 100%
interest in the Clear Lake deposit in the Whitehorse Mining
District of the Yukon, for a total consideration of $250,000 in
cash, subject to a 1% net smelter return royalty (“NSR”) on all
metals other than silver. The Clear Lake deposit is
classified as a sedimentary-exhalative deposit (“SEDEX”) known to
contain a significant amount of silver while representing an
important source of zinc and lead.
Highlights:
- Historical inferred resource
prepared by SRK Consulting in 2010 in accordance with National
Instrument 43-101 ("NI 43-101") of 5.5 million ounces of silver at
22 grams per tonne, in addition to 1.3 billion pounds of zinc
grading 7.6% zinc and 185 million pounds of lead grading
1.08%(A)(B);
- Highly accretive acquisition
cost;
- Property benefits from Class 3 Land
Use Approval valid until 2029, which allows for up to 31,500 metres
of diamond drilling and 2000 metres of reverse circulation
drilling;
- Good potential to confirm and
possibly incrementally expand existing resources with diamond
drilling and discovery of additional mineralization on the
property.
Chad Williams, Chairman of Honey Badger
stated, “The Clear Lake acquisition represents a milestone
as we acquire, on an extremely value-accretive basis, a quality
asset with in-situ silver resources in one of the best mining
jurisdictions in the world, where we are currently active at our
higher-grade Plata silver project. This acquisition demonstrates
our stated strategy of identifying and executing highly accretive
targeted silver acquisitions. Clear Lake not only provides our
shareholders with exposure to silver resources but also offers the
possibility of unlocking value from the significant zinc and lead
endowment, which is not of primary interest to Honey Badger, in a
royalty/stream spin-off or even potentially other innovative
instruments, such as a commodity-linked non-fungible token (“NFT”)
– watch for more news on this front.”
Rationale for the Clear Lake Acquisition
and Strategic Options Moving Forward:
With the Clear Lake acquisition, Honey Badger
acquires a historical resource of 5.5 million ounces of silver. The
transaction marks an important step in the Company’s strategy of
aggregating silver assets at various stages of development, to
provide shareholders with maximum exposure to silver prices, and
the Company remains very active evaluating assets as part of this
ongoing strategy. In addition, the Clear Lake historical resource
includes significant zinc and lead (1.3 billion pounds of zinc and
185 million pounds of lead). Honey Badger will be exploring various
options for monetizing this historical base metal resource,
including the possible sale of a stream or royalty on the zinc
and/or lead, or other means.
The historical resources were estimated by SRK
for Copper Ridge Exploration Inc. and reported in an NI 43-101
technical report dated February 3, 2010 and was 43-101 compliant at
the time of signing. A qualified person has not done sufficient
work to classify the historical estimate as current mineral
resources or reserves and the issuer is not treating the historical
estimate as current mineral resources or reserves.
About the Clear Lake
Deposit:
The Clear Lake deposit is classified as a SEDEX
massive-sulphide zinc-lead-silver deposit. SEDEX deposits are known
to contain a significant amount of silver while accounting for
approximately 50% of the world’s current zinc and lead
reserves(C).
The Clear Lake deposit hosts a historical NI
43-101 Inferred Resource prepared by SRK for Copper Ridge
Exploration (A)(B), containing 7.76Mt @ 22 g/t silver, 7.6%
zinc and 1.08% lead (Table 1).
Table 1: Summary of Clear Lake Historical Inferred Resource
Estimate, SRK Technical Report, 2010(1)
TonnesMillions |
Ag (g/t) |
Zn (%) |
Pb (%) |
Ag (Moz) |
Zn (Mlbs) |
Pb (Mlbs) |
7.76 |
22g/t Ag |
7.6% |
1.08% |
5.5 |
1,300 |
185 |
Notes to Accompany the Clear Lake Inferred
Resource Table:(1) Mineral resources are
historical in nature, they were estimated by SRK in February 2010
for Copper Ridge Exploration Inc.(2) The Mineral
Resources were classified in accordance with definitions provided
by the Canadian Institute of Mining (“CIM”) as stipulated in NI
43-101(3) The resource estimate was based upon 63
drill holes totaling 13,168 metres of
drilling(4) The mineral resources are reported at
a 4% (lead+zinc) cut-off. (5) Lead grades were
capped to 1.5% and silver grades were capped at 60
g/t.(6) Grade values for Pb, Zn and Ag were
interpolated into 12 metre by 12 metre by 9 metre blocks using
ordinary kriging (OK).(7) Density Model: All air
block were assigned a value of zero, all waste blocks were assigned
2.7 t/m3 and all mineralized blocks were assigned 4.07
t/m3(8) SRK applied a 2 metre minimum thickness requirement
to all intersections used in the model; if a high grade interval
was less than the minimum thickness the interval was not used to
estimate the block model
Clear Lake Mineralization and
Geology:
The Clear Lake deposit occurs in Devonian- to
Mississippian-aged Earn Group shale.
Base metal mineralization at Clear Lake occurs
in two discrete horizons. Firstly, in the massive
sulphide-siliceous horizon, combined zinc-lead mineralization
grading over 5% occurs in three elongate-shaped lenses, 5 to 30
metres thick and 450 metres in length that extend at least 300
metres down dip. A second tuff-barite horizon, 75 metres into the
hanging wall of the deposit, has a number of intersections of
greater than 10% zinc over widths of one to six metres.
The deposit has potential for expansion at depth
and along strike and SRK’s 2010 report recommends that an
additional nine core holes totalling 1,500 metres be drilled to
test the lateral and vertical extent of the mineralization at Clear
Lake (A).
Property Size, Infrastructure and
Access:
The Clear Lake property comprises 121 contiguous
claims covering approximately 2,500 hectares, situated 65
kilometers east of Pelly Crossing, 90 kilometers northeast of
Carmacks and 225 kilometers north of Whitehorse. A winter road
links the property to the all-weather North Klondike Highway at
Pelly Crossing, approximately 65 km to the west. The property lies
on Category B Settlement Land within the Selkirk First Nations
Traditional Territory.
The Clear Lake property has a Class 3 Land Use
Approval valid until 2029, which allows for extensive diamond
drilling, as well as clearing of airstrip and trail networks.
Past Exploration:
The bulk of the exploration work at Clear Lake
was carried out by various mining syndicates and exploration
companies from the mid-1970s to the early 1990s. During this
period, the Clear Lake property was subject to several drilling
campaigns, which has included a total of 18,219 metres of diamond
drilling in 71 holes.
In addition to drilling, work included extensive
bulldozer gridding, line cutting and mapping, numerous geophysics
surveys (electromagnetic (“EM”), magnetometer and gravity surveys),
soil sampling programs and overburden drilling programs targeting
basal tills. This work led to the discovery of the main sulphide
body at Clear Lake in 1978, by drilling a gravity anomaly
coincident with magnetic and EM anomalies.
Copper Ridge Exploration Inc. who optioned the
property in 2008, engaged Geotech Ltd. to complete a
helicopter-borne VTEM survey and follow-up induced polarization and
gravity surveys over a number of conductors identified by the VTEM
survey. These targets were never drilled. Since 2008,
two till and biogeochemical sampling surveys were completed in 2016
and 2018, by Darnley Bay Resources and Eastern Zinc Corp,
respectively.
Figure 1: Historical drilling in relation to
massive sulphide zone at surface, SRK Technical Report,
2010(A)https://www.globenewswire.com/NewsRoom/AttachmentNg/705c8682-f8bf-4873-b107-7685919df301
Figure 2: Cross-Section of Clear Lake Deposit,
SRK Technical Report,
2010(A)https://www.globenewswire.com/NewsRoom/AttachmentNg/d8177504-a1e9-4814-96e0-7ddc4d8efb8b
Technical information in this news release has
been approved by Heather Burrell, P.Geo., a senior geologist with
Archer, Cathro & Associates (1981) Limited and qualified person
for the purpose of National Instrument 43-101.
Notes:(A) Clear Lake Lead-Zinc-Silver Deposit,
Yukon, Prepared by SRK Consulting for Copper Ridge Exploration
Inc., February 2010, Authors Gilles Arseneau, Ph.D., P. Geo.,
Donald G. MacIntyre, Ph.D., P. Eng., Reviewed by Gordon Doerksen,
P. Eng
(B) The foregoing resource estimate is
historical in nature. The historical estimate was not prepared by
the Company. The Company considers the 2010 historical estimate to
be relevant and reliable given the high quality of the historical
estimate completed and the fact that the estimate was prepared in
accordance with NI 43-101. The Company has not independently
verified the resource estimate, and therefore, it cannot be relied
upon as a current mineral resource for the Company.
(C) ZINC INVESTING, SEDEX Deposits: Right
Economics to Supply Global Zinc Demand, Investing News Network,
Apr. 05, 2018
ON BEHALF OF THE BOARDChad WilliamsChairman and
Director
About Honey Badger Silver
Inc.
Honey Badger Silver is a Canadian Silver company
based in Toronto, Ontario focused on the acquisition, development
and integration of accretive transactions of silver ounces. The
company is led by a highly experienced leadership team with a track
record of value creation backed by a skilled technical team. With a
dominant land position in Ontario’s historic Thunder Bay Silver
District and advanced projects in the southeast and south-central
Yukon including the Plata property 180 kms to the east of the Keno
Hill silver district, Honey Badger Silver is positioning to be a
top-tier silver company.
For more information, please visit our website
above, or contact: Ms. Christina Slater:
cslater@honeybadgersilver.com(647) 848-1009
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Cautionary Note Regarding
Forward-Looking Information
This news release contains "forward-looking
information" within the meaning of the applicable Canadian
securities legislation that is based on expectations, estimates,
projections and interpretations as at the date of this news
release. The information in this news release and any other
information herein that is not a historic fact may be
"forward-looking information".
Although the Company believes that the
assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that
such events will occur in the disclosed timeframes or at all. The
Company disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
Honey Badger Silver (TSXV:TUF)
Historical Stock Chart
From Oct 2024 to Oct 2024
Honey Badger Silver (TSXV:TUF)
Historical Stock Chart
From Oct 2023 to Oct 2024