Gold Drop

GGX Gold’s most developed project is the Gold Drop property in Greenwood, BC, which was mined intermittently from 1919 to the 1980s with most production prior to 1942. Gold Drop’s historical production totals 7572 tonnes at an average grade of 5.2 g/t Au and 93.4 g/t Ag. The 7572 tonnes was mined from three main veins (Amandy, North Star and Gold Drop). There was also limited mining at the Roderick Dhu vein in 1940 (25 tonnes mined at 19.9 g/t Au and 275 g/t Ag).

    Historical expenditure of approx $10m (current dollar terms) spent on Gold Drop, and $1 million spent recently by XIM.
    In addition to drilling this summer, GGX will be establishing small scale production using hopper/feeder module which can run four tonnes per hour.
    • Material from Gold Drop’s property returned over 90% recovery:

Download the 2016 Gold Drop 43-101

Land Package: Comprised of 9 crown grants and 11 mineral claims that together cover an area of approximately 9200 hectares.

Location: The Gold Drop property is centered about 9 kilometres northeast of Greenwood, in Southern British Columbia.

Permitted: Permitted: Notice-of-work permit from the Ministry of Energy and Mines for phase 1 exploration work on the Gold Drop property has been granted. The approved work permit is a multiyear permit, valid until Dec. 1, 2018, that enables the company to establish up to 20 drill sites and up to 25 excavator trenches on the property. The primary purpose of the work permit is to allow the company to identify areas for bulk sampling.

Description: Description: The property covers geologically prospective ground in the well-mineralized Greenwood District, and hosts 8 or more known low-sulfide, gold-bearing veins or vein systems, including the North Star (082ESE152), Gold Drop (082ESE153), Amandy (082ESE126), Lakeview (082ESE056) and Moonlight (082ESE224).

Infrastructure: Power is available on the property. Water is available, seasonally, from a small pond or several small creeks on the property, or from Jewel Lake. Services, including room, board and fuel, are available in Greenwood (population < 700). Grand Forks, with a population of about 8,000 in the city and immediate surrounding area, is a major supply center. Most services needed for exploration are available in Grand Forks, located 40 km east along Highway 3 from Greenwood. The closest full-service airports are located in Kelowna, Penticton or Castlegar.

Access: There is road access to the property from Greenwood, by Highway 3 for 4 km to the Boundary Creek road, for 1.5 km and a further 9 km on the Jewel Lake road to the Jewel Lake-Eholt road. Access to the eastern part of the property can be obtained through the Dentonia mine site. Several spur roads provide 4-wheel drive access to other parts of the property.

The terrain is moderate to locally steep, with elevations ranging from 1135 metres along the shores of Jewel Lake, to 1612 metres at the summit of Mt. Pelly and 1800 metres near the summit of Roderick Dhu. Outcrop on the property is variable, typically averaging less than 10%. Rock exposure is better in steeper portions of the property but is scarce in the more gently sloping areas. The scarcity of outcrop in these low sloping areas hampers prospecting and mapping efforts. Vegetation consists of relatively open second growth fir and larch forest, with little undergrowth. Portions of the property have recently been logged. The climate is moderately dry, with hot summers and little rainfall. Snowfall is in the order of 2-3 metres and the property is generally snow free from early May to late October. Water is available, seasonally, from small ponds or several small creeks on the property, or from Jewel Lake.

Climate: The climate is moderately dry, with hot summers and little rainfall. Snowfall is in the order of 2-3 metres and the property is generally snow free from early May to late October.

Geology & Mineralization: Metamorphic rocks of the Paleozoic Knob Hill Complex underlie the claims. These rocks have been intruded by granodiorite and diorite of the Jurassic-Cretaceous Nelson Plutonic suite and by biotite syenite and diorite/andesite dykes of the Eocene Coryell suite. Gold-bearing veins in the area post-date the Nelson intrusives and pre-date the Coryell suite. The area is complexly faulted, including north-trending, steeply dipping strike-slip and normal faults, and low-angle detachment-type faults, both which post-date mineralization.

The deposit style, tabular (high-grade) veins tend to occur in more competent host rocks. Veinlets, stringers and stockworks form in less competent lithologies and within broad fracture zones and can result in lower grade bulk-mineable deposits. Potential also exists on the claims for low-grade, bulk-tonnage gold mineralization related to broad fracture or stockwork zones. GGX Gold has acquired the property on the basis of both its exploration and mining potential.

Processing: The property is in proximity to several mills including the Kinross Kettle River Buckhorn mill which is currently operating at half capacity.

Bulk Sampling: Historical production totals 7572 tonnes at an average grade of 5.2 g/t Au and 93.4 g/t Ag from three main veins (Amandy, North Star and Gold Drop). The average mined grade is significantly affected by a large volume of very low grade material that was removed from the North Star mine in 1934-35. Omitting production from these years, the average grade for the remaining 2505 tonnes mined from the property is 13.1 g/t Au and 133.7 g/t Ag. There was also limited mining at the Roderick Dhu vein in 1940 (25 tonnes mined at 19.9 g/t Au and 275 g/t Ag).

History: Historic work on the property can be divided into 3 periods, an early period of activity in the late 1890’s and early 1900’s when most of the veins were discovered, a period of work in the 1930’s and 1940’s when most of the underground development work was done and when most of the historical production was achieved, and a more recent phase from 1980 through to the present when limited surface and underground exploration work was done. Most of the historic work was geared towards finding ore zones along the veins that could be mined. Only very minor trenching and drilling has been done, and systematic property-wide exploration work is lacking.

Path Forward: A two-phase, $500,000 program is recommended to further explore the property and to assess the potential for small-scale mining of gold-bearing veins.

Phase 1: The Phase 1 program has a budget of $150,000 and includes geological mapping, excavator trenching, and soil geochemical surveys in the Amandy and Gold Drop-North Star areas. Possible surface bulk sampling is also included in Phase 1, to better determine the average grade of veins exposed by trenching.

Phase 2: Phase 2 includes ground geophysical surveys. It also includes trenching, diamond drilling and bulk sampling to follow-up to any targets identified by the Phase 1 program.
Depending on the above results, rehabilitation of select underground workings could be included in Phase 2, to allow mapping and bulk sampling. Phase 2 is contingent on the results of Phase 1 and has a budget of $350,000.