Lithic’s Exploration
In 2006, the Company completed a program of work including 1,028 line-kilometres of high resolution, helicopter-borne magnetic surveying at a line spacing of 100 metres, approximately 25 kilometres of pole-dipole IP on lines spaced 200 metres apart in a survey centred on the main Crypto mineralization and 1:8,000 scale colour aerial photography over the general property area. The IP survey showed a well-defined chargeability anomaly to be associated with known mineralization as well as a similar anomaly in an undrilled area to the east which could represent a new zone of Crypto-style zinc mineralization.
The Company commenced a program of 10,000 metres of core drilling in July 2007 with the following objectives:
- infill and step-out drilling on the Crypto deposit for confirmation and expansion of the known zinc deposit
- test nearby IP and magnetic anomalies identified in 2006 that could reflect the presence of similar but as yet unknown zinc ± lead ± silver ± copper-bearing mineralization
- test extensions to the historically mined, high grade silver-lead deposits at the Utah Mine
- extend selected drill holes to depth to investigate the possibility that numerous molybdenite-bearing drill intercepts encountered in previous work are related to a significant buried porphyry molybdenum deposit
As of mid-May 2008, approximately 8,650 metres of drilling in 13 holes have been completed. The program is ongoing and two drills are operating on the property. Samples are being submitted on a weekly basis to ALS Chemex in Elko, Nevada for analysis and the results are reported periodically over the course of the program. The Company has a rigorous QA/QC protocol in place for the sampling process involving multiple standards at a range of grades as well as blanks and various field and preparation duplicates.
The results to date have been very encouraging, with multiple intersections of high grade zinc-indium mineralization which in places contain significant levels of copper. New mineralization has been outlined, both in large gaps without historical drill coverage within the deposit “footprint” as well as lateral to the historically defined extent of mineralization.
Selected intercepts are tabulated below:
|
Hole |
From (m) |
To (m) |
Metres |
% Zn |
% Cu |
ppm In |
Zone |
|
C-07-01 |
52.49 |
70.10 |
17.61 |
10.56 |
0.13 |
22.9 |
oxide |
|
C-07-01 |
123.75 |
136.25 |
12.50 |
27.08 |
0.59 |
8.7 |
oxide |
|
C-07-01 |
151.25 |
155.75 |
4.50 |
11.02 |
0.07 |
35.5 |
oxide |
|
C-07-01 |
337.11 |
345.95 |
8.84 |
4.34 |
0.10 |
54.7 |
sulphide |
|
C-07-01 |
367.28 |
374.90 |
7.62 |
7.74 |
0.03 |
16.5 |
sulphide |
|
C-07-01 |
404.16 |
420.32 |
16.15 |
10.50 |
0.11 |
30.6 |
sulphide |
|
C-07-01 |
458.72 |
484.60 |
23.88 |
4.22 |
0.15 |
184.9 |
sulphide |
|
C-07-01 |
498.30 |
510.50 |
12.20 |
4.26 |
0.27 |
151.1 |
sulphide |
|
C-07-01 |
601.37 |
605.94 |
4.57 |
6.26 |
0.33 |
84.6 |
sulphide |
|
C-07-01 |
623.30 |
640.10 |
16.80 |
2.93 |
0.14 |
205.8 |
sulphide |
|
Incl |
632.50 |
633.70 |
1.20 |
0.87 |
0.33 |
1,055.0 |
sulphide |
|
|
|
|
|
|
|
|
|
|
C-07-02 |
217.78 |
220.07 |
2.29 |
5.18 |
0.07 |
39.9 |
oxide |
|
C-07-02 |
367.90 |
385.27 |
17.37 |
27.30 |
0.46 |
28.9 |
sulphide |
|
C-07-02 |
392.58 |
393.90 |
1.32 |
20.88 |
2.23 |
13.2 |
sulphide |
|
C-07-02 |
416.97 |
424.59 |
7.62 |
21.51 |
0.51 |
39.0 |
sulphide |
|
C-07-02 |
435.25 |
438.61 |
3.36 |
12.89 |
0.98 |
39.3 |
sulphide |
|
C-07-02 |
513.89 |
520.45 |
6.56 |
3.20 |
0.16 |
102.0 |
sulphide |
|
C-07-02 |
566.93 |
569.37 |
2.44 |
4.97 |
0.49 |
250.2 |
sulphide |
|
C-07-02 |
639.47 |
640.54 |
1.07 |
5.17 |
0.16 |
720.8 |
sulphide |
|
|
|
|
|
|
|
|
|
|
C-07-03 |
25.30 |
30.94 |
5.64 |
3.78 |
0.36 |
3.4 |
oxide |
|
C-07-03 |
123.75 |
125.88 |
2.13 |
10.85 |
0.43 |
15.0 |
oxide |
|
C-07-03 |
145.08 |
152.55 |
7.47 |
16.08 |
0.41 |
20.9 |
oxide |
|
C-07-03 |
258.62 |
274.02 |
15.40 |
2.92 |
0.16 |
71.4 |
sulphide |
|
C-07-03 |
304.65 |
334.67 |
30.02 |
17.93 |
0.53 |
50.1 |
sulphide |
|
C-07-03 |
435.56 |
445.01 |
9.45 |
1.33 |
0.16 |
176.3 |
sulphide |
|
C-07-03 |
456.74 |
461.92 |
5.18 |
1.45 |
1.56 |
221.5 |
sulphide |
|
|
|
|
|
|
|
|
|
|
C-07-04 |
320.80 |
323.55 |
2.75 |
0.08 |
0.93 |
139.9 |
sulphide |
|
C-07-04 |
394.56 |
399.44 |
4.88 |
0.08 |
1.05 |
40.5 |
sulphide |
|
|
|
|
|
|
|
|
|
|
C-07-05 |
182.58 |
190.96 |
8.38 |
10.00 |
0.11 |
96.5 |
oxide |
|
C-07-05 |
226.77 |
244.45 |
17.68 |
7.78 |
0.06 |
33.6 |
sulphide |
|
incl |
229.82 |
235.76 |
5.94 |
16.11 |
0.05 |
68.6 |
sulphide |
|
C-07-05 |
281.64 |
295.35 |
13.71 |
6.17 |
0.02 |
53.1 |
sulphide |
|
incl |
288.04 |
293.67 |
5.63 |
9.92 |
0.01 |
90.7 |
sulphide |
|
C-07-05 |
347.17 |
375.82 |
28.65 |
4.00 |
0.38 |
111.7 |
sulphide |
|
incl |
347.17 |
356.31 |
9.14 |
3.78 |
0.04 |
172.4 |
sulphide |
|
C-07-05 |
397.76 |
401.12 |
3.36 |
5.42 |
0.42 |
114.2 |
sulphide |
|
C-07-05 |
475.64 |
477.32 |
1.68 |
4.63 |
0.45 |
385.0 |
sulphide |
A particularly important development in Lithic’s program of work has been the discovery of substantial grades of indium associated with zinc mineralization. Indium is used primarily in the manufacture of liquid crystal displays (LCDs) and other applications in electronics as well as in low-melting-temperature alloys. With the rapidly increasing usage of LCDs in recent years, increased demand for indium has significantly escalated its price and the producer price in early 2008 is in the order of US$685 per kilogram, which is somewhat more valuable than silver.
As is generally the case for all minor elements in ore deposits, the recoverability of indium at Crypto will need to be determined by metallurgical testwork and how much may be payable will depend on smelter demand and terms. However, the indium levels at Crypto have the potential to substantially enhance the economics of the project and may even establish Crypto as a significant indium resource in its own right.
Following the completion of drilling, an independent, NI 43-101 compliant resource estimate will be generated on the basis of both the results of current drilling and historical data. In addition, preliminary metallurgical test work is planned for representative samples of both the oxide and sulphide mineralization in the Crypto deposit. A new and comprehensive NI 43-101 report incorporating this information is anticipated for the latter half of 2008.
