Lucky Mike Project
The Lucky Mike property situated near Merritt, is a multi-target porphyry copper prospect, consisting of 22 contiguous mineral claims (comprising an aggregate 4,003 hectares). On July 20, 2011, the Company entered into an Option Agreement (the “Agreement”) with a non-related third party (the “Optioner”) for the Lucky Mike project. The Agreement was amended on September 13, 2012.
To exercise the option, the Company must complete the following over a period of four years:
- Pay the vendors $55,000 in cash
- Issue 100,000 common shares to the Optioner
- Incur a minimum of $900,000 in exploration expenditures
- $100,000 in the first year
* To date Plate Resources has paid $25,000 cash, issued 50,000 common shares and incurred $300,000 in exploration expenditures.
In accordance with the terms of the Agreement, the Optioner will retain a 2% net smelter returns royalty (the “NSR”) in respect of the property. The Company has the option to purchase the NSR at any time during a five year period commencing from the date upon which the Property is put into commercial production in consideration of the payment of $1,000,000.
The main targets in the project area include:
- Tungsten Copper skarns, well developed at the Lucky Mike prospect
- Silver lead zinc-gold veins and breccias (Sunshine prospect, Zones 1-3, Sophia and the Alameada Veins south of Lucky Mike)
- Porphyry copper gold targets near Swakum Mountain
- Porphyry copper-molybdenum targets near Rey Lake
Of these, the porphyry targets are considered the most important and will be the focus of exploration by the company. An initial program of prospecting and mapping will be considered for the new claims, which include the RWS copper Minfile occurrence near Rey Creek and which surround another copper occurrence owned by others.
Three major showing areas are the Lucky Mike skarn showing, (Cu, W), The Sunshine shear zone, (Pb, Zn, Ag) and the Sophia Breccia, (Pb, Zn). The Sunshine and the Sophia showing areas are shear and breccia zones of galena, sphalerite and tetrahedrite.
The various assessment reports reflect three strongly mineralized areas suggestive of a porphyry deposit at depths. All three showings have been drilled.
Prior to trading, in 2011, as part of the Initial Public Offering requirements, Plate completed a preliminary exploration project on the Lucky Mike property which included mapping and sampling, completed by Qualified Person geologist James Turner, P.Geo. and prospector Craig Lynes.
Work to the value of $130,200 included:
- Initial sampling and mapping trip on July 12, 2011 by Craig Lynes and Jim Turner P.Geo. Six selected rock samples from the Lucky Mike and the Sunshine.
- Additional sampling by Crag Lynes. Between September 28-30th 2011, 23 rock chip and channel samples were taken from the Lucky Mike and Sunshine mineralized areas.
- An airborne geophysical survey was completed in 2011 covering 576 line km over all but 7 new claims, by Precision Geosurveys of Vancouver, British Columbia. This included magnetic and radiometric surveys. An interpretation of this survey was done by GeoSci Ltd of Surrey, British Columbia.
- The cost of this summary report.
- Accommodation, meals and expenses.
*A number of magnetic anomalies appeared to correlate with potassic radiometric responses, indicating that the intrusive plutons which have magnetite content also have potassic content, either as original K-feldspar components or as potassic alteration. This is consistent with the model for intrusive hosted copper porphyrys.