Junior delivers promising results near historic Sullivan Mine

Of the past-producing regions in Canada, one of the most prolific and well-documented sites is the Sullivan Mine near Creston BC.

Discovered in 1892, the Sullivan deposit rested in a highly mineralized zone formed through an ancient sea bed. This bed formed layers of massive sulphide layered with sedimentary rock, known as a Sedimentary Exhalative (Sed-Ex) Deposit. These deposits, it turns out, are one of the major producers of lead and zinc, accounting for an estimated 50% of the world’s supply.

Over its 100-year lifetime, the Sullivan mine produced approximately 150 million tonnes of ore including three billion ounces of silver, eight million tonnes of zinc and eight million tonnes of lead—worth over $30-billion at current metal prices. The mine’s importance in BC’s economic history has been well-documented, with a large body of literature and recent media describing the challenges and rewards, as seen in this video.

And, like many great discoveries, the Sullivan mine produced even greater anticipation. During the later years of the mine’s life, rumours of a nearby “sister” deposit were never far from everyone’s lips.

Iron Range Project

Fast-forward to today and the story now revolves around two junior companies, working together in what is known as the Iron Range Project.

Located about 70 km southwest of the Sullivan, the Iron Range Project is a joint-venture between Providence Resources Corp [PV – TSX.V] (60%) and Eagle Plains Resources [EPL – TSX.V] (40%).

The Iron Range deposits were originally staked in 1897 and were covered by Crown grants held by Cominco Ltd. and the Canadian Pacific Railway, who also owned the Sullivan. In 2000, Eagle Plains staked the current claims after the Crown grants reverted, adding 35,800 hectares to the land package to total 56,200 hectares. Since then, both companies have explored the property, with geological mapping, geochemical surveys, diamond drilling and a 690-line-kilometre airborne geophysical survey.

Being one of only a few mineral belts in the region where the stratigraphic interval that hosts the Sullivan deposit is exposed, the Iron Range is highly prospective for lead and zinc mineralization. And interestingly, new to the area, the Iron Range also contains gold.

As the above image indicates, recent exploration in the Iron Range Project illustrates the possibility of  undiscovered mineralization. The 2010 and 2011 exploration programs, which Providence operated, tested a large anomaly in the southeast corner of the property and delineated two zones of gold-bearing massive sulphide mineralization. After expanding the budget several times due to encouraging results, Providence came up with a total of 29 drill holes, which demonstrated the presence of a significant deposit known as the “Talon Zone.” The 350m by 30m zone hosted precious and base metal mineralization, with Hole IR-10-010 producing the most favourable results:

Shortly after the 2011 drill program at the Talon Zone, Providence conducted a borehole and surface induced polarization survey, continued geological mapping in the south central portion of the property, and undertook an airborne gravity survey over the whole property. Results from the airborne survey showed 3 high-priority VTEM electromagnetic geophysical anomalies that have been delineated in the Row target area, and are coincident with a 5km-long arsenic, zinc and lead soil geochemical anomaly.

In other words, the follow-up for 2012 is more exploration. The 2012 exploration program, which began in March, will evaluate all existing exploration data and will drill test the high priority targets. Phase I of the 2012 drilling program will commence in the spring, while extensive field work will be conducted in the summer with Phase II of the drilling to commence in the fall.

For Providence and Eagle Plains, 2012 will provide the next crucial step in the exploration process. With promising results hinting at the possibility of a large deposit,  Providence is looking to further uncover the Iron Range Project. To solidify its commitment, the Company recently filed an NI 43-101 on the project, dated March 15, 2012, and has also exercised its option with Eagle Plains.

Of course, having the historic Sullivan Mine nearby is crucial for the Iron Range’s narrative. The possibility of a similar deposit has generated a strong buzz in the local communities and the mining industry as a whole. This interest provides Providence and Eagle Plains with the awareness needed to stand out among the army of juniors that will descend across BC as the summer approaches. And with tight management, a bit of luck, and a lot of exploration, we expect the Iron Range story to pick up steam, and maybe even take up where the Sullivan left off.

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Chris Devauld ProspectingJournal

Disclaimer: The author does not currently hold any shares of any of the companies mentioned in the article. However, some members of Prospecting Journal may or may not have interests in one or more of the companies mentioned at the time of publication. Staff members from the Prospecting Journal reserve the right to acquire interests in any of the companies mentioned after 36 hours have elapsed upon initial publication of this article. Providence Resources is a sponsor of ProspectingJournal.com.