IN BC'S GOLDEN TRIANGLERoyalty Properties
Silver Grail has in the past optioned 100% of its interest in certain properties within the Stewart district of northwestern BC. In all of these cases it has retained a royalty interest, something which could become profitable for the company in the event of future mineral production from the properties. Details of three such cases are itemized below:
Our Royalty Interests
Bay Silver Property
The Bay Silver property includes the old United Empire mine from which limited production of high-grade silver was seen in the 1930’s. Ore from the mine was shipped to the valley floor below by way of a tramline, portions of which still remain on the property.
The property contains numerous silver-rich showings some of them developed by hundreds of feet of tunnels. In 1983 and 1984, high-grade ore was trenched from silver- lead- zinc veins, first explored in 1919.
It is situated a few kilometres north of Stewart, British Columbia, overlooking the town and deep water port.
Known showings include the No. 4 zone consisting of a 1.2-metre-wide vein which strikes northeast and dips 20 degrees southeast. The vein contains 0.6 metres of massive galena, sphalerite and tetrahedrite in the hanging wall and 0.6 metres of quartz with disseminated sulphides in the footwall.
According to BC government filed assessment reports, a 0.61-metre chip sample across the vein assayed two grams per tonne gold, 8679.7 grams per tonne silver (253 oz/ton of silver), 20.3 per cent lead and 20.2 per cent zinc. The No. 3 zone is reported as being located about 100 metres south of the No. 4 zone. This shear zone contains long lenses of quartz mineralized with pyrite, pyrrhotite, galena and sphalerite. These lenses are up to 1.8 metres wide associated with a stockwork of sulphide stringers and are hosted in schist which has a strike of 150 degrees.
The lower showings, 300 metres east of the No. 4 zone, consist of two quartz-sulphide veins. The southernmost vein lies along the contact between a large granodiorite dike on the east and hornfelsed argillite to the west. The vein contains lenses of pyrrhotite, sphalerite, galena and tetrahedrite in a gangue of quartz. In a previous assessment report a 0.91-metre chip sample across the vein assayed 42.30 grams per tonne gold and 1,273 grams per tonne silver. A second vein 120 metres to the north assayed 15.96 grams per tonne gold and 2,268 grams per tonne silver over a narrow width.[All of this early work was carried out prior to NI43-101 and as such cannot be relied upon. It is presented here solely to provide historical context.]
In August, 2018, joint owners Silver Grail and Teuton Resources optioned the Bay Silver to AUX Resources. Recently, in early 2021, AUX Resources made the final payments on the property and now owns a 100% interest, subject to a 2% NSR (to be shared collectively between Silver Grail and Teuton), one half of which can be purchased for $1,000,000. A minimum advance annual royalty of $50,000 is set to begin in 2025.
Silver Crown property
The Silver Crown property is situated east of the Premier mine along Bear River Ridge, overlooking Long Lake. It consists of sedimentary and volcanic units of the Hazelton Group unconformably overlain by siltstone to mudstone sedimentary beds of the Spatsizi Forma-tion. Prospective mineralization occurs in a large vein system generally striking north through the property with a length of at least 1.6 km dipping very steeply to the north-west. Veining is seen outcropping in both the Spatsizi and Mount Dilworth Formations. Veins are polymetallic with strong sulphide mineralization of pyrite, galena, sphalerite +\- chalcopyrite +\- trace malachite. 2019 grab samples from the vein system produced assays of up to 9.28 g/t Au and up to 1.4% Cu.
In February, 2019, joint owners Silver Grail and Teuton Resources optioned the Silver Crown property to AUX Resources. Recently, in early 2021, AUX Resources made the final payments on the property and now owns a 100% interest, subject to a 2% NSR (to be shared collectively between Silver Grail and Teuton), one half of which can be purchased for $1,000,000. A minimum advance annual royalty of $50,000 is set to begin in 2026.
Mt. Boy Property
Silver Grail originally acquired the key claims of the historic Mountain Boy property in the early 1990’s. The property is situated 12 miles north of Stewart, BC, on American Creek. Several small, high-grade shipments of silver-bearing ore were shipped from the property in the 1920’s and 30’s. Two veins, the Main and High-Grade, have been explored by a network of tunnels.
The Mann vein, outcropping on the Mountain Boy and Hard Money claims, trends north to northeast and dips 45 to 65 degrees southwest. It can be traced for about 200 metres to the south, where the South Mann tunnel (on the Hard Money claim) exposes the vein (or a branch thereof). In the main Mann tunnel, the vein is 10.7 metres wide and comprises mainly quartz with lesser barite and calcite. Galena and sphalerite form semi massive ribbons in the vein and stibnite, chalcocite and argentite have also been reported. The best mineralization occurs on the footwall of the vein. Chip samples from the Mann tunnel assayed up to nil gold, 1848 grams per tonne silver, 1.83 per cent zinc, 0.58 per cent lead and 0.20 per cent copper across 2.1 metres (Property File - Mathews, 1942).
The High Grade vein, outcropping on the Mountain Boy and Hard Money claims, strikes north at its northern end but curves to the southeast at its southern end. It dips 20 to 25 degrees west and can be traced for about 365 metres along strike. The vein is cut off at the south end by a fault. Nearby, east-trending faults exhibit dextral lateral displacement of the vein. The vein, up to 5 metres wide, comprises sparsely mineralized quartz, jasper and barite. The highest grade mineralization occurs across a 0.2 to 0.5 metre width along the footwall where pods and veinlets of sphalerite, galena, chalcopyrite, chalcocite, argentite, native silver, stromeyerite and pyrargyrite occur. Silver values are reported to average 7217 grams per tonne across 4.1 metres from the discovery outcrop (Property File - Mathews, 1942, page 6). Chip samples from the surface, immediately north of the Daly tunnel, assayed up to 0.51 gram per tonne gold, 17,493 grams per tonne silver, 4.2 per cent zinc, 1.7 per cent copper and nil lead across 0.61 metre (Property File - Mathews, 1942).
Mt. Boy Minerals acquired a 100% interest in the property from Silver Grail subject to the NSR.[All of this early work was carried out prior to NI43-101 and as such cannot be relied upon. It is presented here solely to provide historical context.]
Silver Grail retains a 2% Net Smelter Royalty, which can be purchased by Mountain Boy for $1,000,000 until 18 months following the commencement of commercial production.