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Very High Assays in Early Exploration
Location: Yukon Territory, Canada
Minerals: Silver, gold
Ownership: 100%
Status: Exploration by optionee Mega Silver
The Eagle property, located in the Keno Hill mining camp north of Whitehorse, has produced very high assays for silver since exploration first occurred there in the 1950s. In 1950-51 the vein was exposed by bulldozer trenching. In 1963-64, Jersey Consolidated Mines Ltd. exposed over 120 metres of the vein. An 11.6 metre section, based on 9 chip samples at 1-to-2 metre intervals, reportedly averaged 442.3 g/t silver, 6.5% lead and 3.9% zinc across an average width of 0.46 metres (including a 1.2 metre section averaging 1,570.3 g/t silver across 0.55 metres; cited by: Archer, 1979).
EAGLE VEIN -- HISTORIC REPORTED DRILLING (YTG MinFile 105M 021)
| Year |
Operator |
Reported Structure |
Reported Intercept (m) |
Silver g/t |
Lead % |
Zinc % |
| 1964 |
Jersey Yukon Mines Ltd. |
Branch Vein |
2.1 |
1,885.7 |
12.8 |
4.2 |
Main Vein
(parallel intercepts) |
0.15 |
7,624.9 |
1.2 |
|
| 0.4 |
682.3 |
11.6 |
|
| 1978/79 |
Teck Corporation |
Main Vein
(DDH JB3) |
1.5 |
366.6 |
5.4 |
6.8 |
Part of the Historic Keno Hill Mining Camp
The Keno Hill mining camp is one of Canada's most productive for silver, lead and zinc. Between 1920 and 1988, the total reported production was 4,787,423 tonnes with recovered grades of 1.3 kg/t silver, 5.6% lead and 3.1% zinc. Subsequent exploration in the district has discovered additional large mineral deposits, and these may become productive in the near future.
Parallel to Structures of the Historic Hector-Calumet Mine
The Eagle Vein is located roughly 1.5 kilometres south of, and parallel to, the vein structures of the Hector-Calumet Mine which generated almost half of all metal produced in the Keno Hill camp from 1935 to 1972. The Eagle vein varies from 0.6 to 4.9 metres in width with mineralized lenses of silver-rich galena, sphalerite and tetrahedrite in a siderite, pyrite and quartz gangue.
Optioned to Mega Silver in 2008
Avino acquired the Eagle Property in 2005 and optioned it to Mega Silver Inc. in 2008. Under the agreement, Mega Silver can earn the exclusive right and option to acquire a 100% title and interest in the property by incurring exploration costs totaling $7.1 million over five years, making total cash payments of $400,000 over five years to Avino and issuing 500,000 common shares of Mega Silver in Years 4 and 5 to Avino.
After earning a 75% interest, Mega Silver may either elect to form a Joint Venture with Avino or earn an additional 25% interest, whereby Mega Silver must take the property into production within 3 years, subject to a 2.5% Net Smelter Return and minimum $200,000 annual advance royalty payments payable for 5 years or until production begins.
Work Proposed for 2009
Mega Silver is reportedly planning 3,500 meters of exploration drilling in the are for 2009.
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