Happy Creek Minerals Ltd. – Diversified Metals Exploration
Overview
Happy Creek Minerals Ltd. (TSXV:HPY) is an exploration company with properties in British Columbia, Canada. Happy Creek has 100% interest in 541 square kilometers of carefully selected and strategic mineral claims that adjoin or are close to existing mines and have excellent resource-based infrastructure. Through low-cost exploration methods and modern technology, the Company has advanced its early stage projects to the drilling stage which resulted in several important new discoveries.
- Two new copper(molybdenum, silver, gold and rhenium) discoveries adjacent to Teck’s Highland Valley copper mine property- 6.5 kilometres from an operating open pit.
- Identified large scale copper, molybdenum and gold potential that are extensions to the former Boss Mountain molybdenum mine.
A new, large scale, high grade, near surface tungsten discovery located 25km east of the former Boss Mountain molybdenum mine.
All of Happy Creek’s properties are in proximity to existing mines with access to excellent road networks, power, water, labor and other resource based infrastructure. The company completed private placements of $3,400,000 in January 2012, and is planning an aggressive exploration program on the Highland Valley copper and Fox tungsten properties.
Key Properties
Highland Valley Property – Logan Lake, British Columbia
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The Highland Valley Property near Logan Lake, British Columbia is comprised of the Rateria and West Valley properties and total 66 mineral claims totalling 14,843 hectares (148 square kilometres). The Rateria property is bound to the north and west by Teck’s Highland Valley Copper mine, currently Canada’s largest producing copper mine, grading around 0.27% copper. Happy creek’s Rateria and West Valley properties are underlain with the same rocks hosting these copper deposits.
Rateria: bornite-chalcocite copper minerals in drill core
Highlights of drilling on its first new discovery (Zone 1) at the Rateria Property include R10-12 with 253.7 meters of 0.24% copper including 120.0 meters of 0.38% copper, R11-01 with 95.0 metres of 0.67% copper, 3.6 grams per tonne (g/t) silver, R11-8 with 250.0 metres of 0.25% copper and R11-11 with 102.5 metres of 0.43% copper, 2.9 g/t silver and 0.11 g/t rhenium. To date, 30 holes have outlined a continuously mineralized copper zone that is 1.2 kilometres in length and is open in extent. In 2008, the Company discovered a second zone (Zone 2) with 135.0 meters of 0.43% copper, 0.008% molybdenum and 0.10 g/t gold, and 103.25 metres of 0.34% copper. Zone 2 has also returned drill results including 38.2 meters of 0.029% molybdenum and 2.14 g/t rhenium. Rhenium is a strategic, rare metal with prices ranging around $6,500.00 per kilogram ($6.50/gram) that occurs in some porphyry copper deposits. Happy Creek is the first in Highland Valley to announce rhenium results in drill core. The Zone 2 rhenium results are important for their potential value contribution, and their geological implication of porphyry copper style mineralization that is comparable to other large mines in the world.
In October 2008, Happy Creek purchased a 100% interest in the West Valley Property, including 49 mineral claims totalling approximately 9,175 hectares located approximately four kilometers west of the Rateria property, and is bounded to the east and north by Teck’s Highland Valley mine property. The property is located adjacent to and in part on the Lornex Fault, a key structure found within the giant Lornex and Valley copper deposits to the north. In early October 2008 stream sediment rock sampling and prospecting were conducted, and rock samples returned 0.32% to 1.2% copper in grab samples over a 600 meter distance and an old trench returned 0.70% copper over 10 meters, and 6.0 metres of 0.40% copper. These samples are from around the Fir, LL and Jay 2 historical prospects.
To the north of this area, new outcrops containing positive copper and locally gold were located in 2009 and followed up with geophysical surveys and three reconnaissance drill holes in 2010. The drill holes intersected low grade copper values and pyrite over their entire length with up to 1.2 g/t gold over 2.5 metres that suggest the holes may have intersected the periphery or edge of a copper system. The Fir, LL, and Jay 2 areas as well as several other prospective areas remain untested by drilling, and work is planned to advance these prospects, and identify new ones during 2012.
During 2011, Happy Creek completed additional geophysical surveys three kilometers south of Zone 1, on the Rateria Property and covered several historical prospects including the Sho. The Company cleaned and hand trenched the Sho prospect and one part averaged 1.49% copper and 8.4 g/t silver over 4.12 metres in true width. Approximately 400 metres south of the Sho, a grab sample returned over 1.0% copper, 8.16 g/t silver and 0.10 g/t gold. Positive results in rock and stream sediment samples and several large scale geophysical targets support the potential for this area to host new copper deposits.
Drilling in 2012 is planned to further define and expand Zone 1 and Zone 2, and to test a number of the targets generated by surface exploration.
Cariboo Properties
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Happy Creek has a 100% interest in a number of strategic properties located approximately 57 kilometres northeast of 100 mile House, in south central British Columbia, also known as the south Cariboo region.
Silverboss Property
The 100% owned Silverboss property comprises approximately 155 square kilometres of mineral claims that surround the former Boss Mountain molybdenum mine, Canada’s first significant moly producer with average grades of around 0.20% molybdenum. Mining was suspended in 1983 during low molybdenum prices and a modest resource remains.
The Company’s exploration on the adjoining Silverboss property has identified large scale molybdenum, copper and gold targets that are locally within 350 metres from one of the existing open pits. Results suggest the mineralized system is much larger than previously known, and reflects a natural synergy with development of the adjoining mine property. Recently, a South Korean mining company has obtained a Letter of Intent with Xstrata (the Boss Mountain mine’s owner) to conduct additional exploration and develop the former mine property with the purpose of confirming and expanding the historical resource and taking it back into production.
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Silverboss property maps showing copper, molybdenum, in soil and rock that extend 1.5 kilometres beyond the known deposits, and new copper and gold targets identified. The Company is planning to perform additional surveys on the property during 2012.
Fox Property
Happy Creek acquired a 100% interest in the Fox property in 2005. The Fox property is accessible via existing paved and all-weather gravel logging roads that run through the centre of the property.The relatively new and early stage 24,260 hectare property is located approximately 25 kilometers to the east of the Boss Mountain molybdenum mine, in the south Cariboo region of British Columbia, Canada. Between 2006 and 2010, the Company outlined a tungsten-molybdenum system that is 10 kilometers by 3 kilometers in dimension. The Nightcralwer and Ridley Creek areas of the property contain high grades of tungsten (up to 7% W03) and molybdenum (up to 12% Mo).
Scheelite(tungsten) mineral under Ultra Violet Light
Results from drilling in the Nightcrawler-Discovery zones in November 2007 include 5.0 meters containing 0.33% WO3, 2.0 meters of 0.74% WO3, 2.0 meters of 0.48% WO3, 0.50 meters of 1.8% WO3, and 0.45 meters of 1.13% WO3. Additionally, two intercepts approximately 150 meters apart returned 1.7 meters of 0.51% molybdenum and 0.50 meters of 0.51% molybdenum, respectively. Mineralization at the Nightcrawler-Discovery zone occurs over an area approximately 500 meters by 1.5 kilometers in dimension and remains open in extent.
Approximately four kilometers to the north of the Nightcrawler-Discovery zone, encouraging soil and rock geochemical results cover an area approximately 500 meters by 3 kilometers in dimension. Hand trenching and chip sampling in 2010 on three outcrops over a 2 kilometre distance returned significant values of tungsten. From north to south, highlights of the three zones are 3.0 metres of 2.0% W03, 2.0 metres of 5.0% W03, and 0.8 metres of 2.95% W03, respectively. In 2011, the first ever drilling of this area was performed adjacent to one of the surface showings:
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The Ridley Creek area of the Fox property contains high tungsten values that are comparable to mines around the world and are near surface.Multiple zones over a 2.0 kilometre distance. In 2011, a geophysical survey has identified a very compelling target located beneath these drill holes that is thought to represent an additional large scale, tungsten-bearing zone. In addition, the Nightcrawler zone remains open in extent and together with the Ridley Creek Zone, the Fox property is believed to be an important, early stage tungsten discovery in Western Canada. The Company is planning to continue drilling and exploring the property during 2012.
Other Properties
The Company also owns a 100% interest in several other properties that have generated positive results and are thought to have potential to develop economic resources.
On the Company’s Hawk property, surface chip sampling has returned 5.0 metres of 1.05% copper, 0.80 g/t gold and surface samples contain up to 4.5% copper, 18.0 g/t gold, 105.0 g/t silver. This copper-gold property shares similarities with the Mount Polley mine to the north.
Exploration by the Company on the Hen and Art-DL properties have developed several compelling new gold targets with trenching returning 4.0 metres of 2.0 g/t gold and grabs samples up to 35.06 g/t gold. An historical adit on the DL property has returned samples up to 42.9 g/t gold over 1.0 metre, and in 2010, drilling over one kilometre to the south of the adit returned 4.03 g/t silver over 72.5 metres that indicate a large scale gold-silver system is present.
Management
David Blann, P.Eng. – President and Director
David Blann, P.Eng. received a diploma in Mining Engineering Technology from BCIT in 1984 and a B.Sc. in Geological Engineering from Montana Tech, Butte, Montana in 1987. Mr. Blann has been engaged in precious and base metal exploration, development and production stage projects for over 28 years.
He has worked dominantly within Canada and the U.S.A., with some experience in Mexico, Chile and Africa. Much of his career within British Columbia, Canada was focused on locating new epithermal gold-silver and porphyry copper systems within the Quesnel Trough. Mr. Blann has been a director or vice president of several junior mining companies and is a founder of the Company.
Dale Hansen, CMA – Chief Financial Officer
Mr. Hansen is a Certified Management Accountant with over 20 years of experience in the oil and gas industry. During his tenure at Suncor Energy, Dale spent two years in Fort McMurray, Alberta as Financial Accounting Manager. He has a proven track record of performance in leading cross organizational change initiatives and system implementation projects.
Charles Chebry, CMA – Director
Mr. Chebry has been a Director of Happy Creek Minerals Ltd. (TSXV:HPY) since June 2008. Mr. Chebry is also involved in the following mineral exploration companies: Chairman and Director of Cedar Mountain Exploration Inc. (TSXV:CED), Chief Financial Officer of Kivalliq Energy Corp. (TSXV:KIV), Chief Financial Officer and a Director of Argonaut Exploration Inc. (TSXV:AGA).
Mr. Chebry has been a Director of CBR Gold Corp., (TSXV:CBG), since July 2002 and served as President and founder of its predecessor company Arta Enterprises Inc. from December 2000 to July 2002. Mr. Chebry was Chief Financial Officer, Vice President of Finance and a Director of Olympia Financial Group Inc. (TSXV:OLY), from March 1997 to December 2006 and remains a Director.
He served as the Vice President-Finance, Chief Financial Officer and a Director of Olympia Trust Company from April 1999 to December 2006 and remains a Director. Mr. Chebry has a Bachelor of Science from the University of Alberta and is a Certified Management Accountant.
Paul Reynolds, P.Geo – Director
Paul Reynolds is a professional geologist with over 22 years experience working in Canada, USA, Bolivia, Argentina and Guyana. He specializes in the conception and management of mineral exploration ventures. Mr. Reynolds is a member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia.
Paul has extensive experience in public company management and is currently a Director of TerraX Minerals Inc., and Logan Resources Ltd. Mr. Reynolds was formerly the Chairman of Athlone Energy Ltd., which was sold to Daylight Resources Trust during 2008.
Sassan Liaghat, PhD, Senior Geologist
Sassan Liaghat is a Geologist with a background in technical research related to mineral deposits at McGill, U.B.C., and the Mineral Deposits Research Unit (MDRU) at U.B.C. Mr. Liaghat has also gained valuable field experience as an exploration geologist with Amarc Resources and Nova Gold Resources in B.C. Canada. Mr. Liaghat has worked full time with the Company since early 2009 and now leads the Company’s field exploration teams and manages the Company’s GIS and mapping database.
