Lithic’s Exploration
In 2006, the Company completed a program of work including 1,028 line-kilometres of high resolution, helicopter-borne magnetic surveying at a line spacing of 100 metres, approximately 25 kilometres of pole-dipole IP on lines spaced 200 metres apart in a survey centred on the main Crypto mineralization and 1:8,000 scale colour aerial photography over the general property area. The IP survey showed a well-defined chargeability anomaly to be associated with known mineralization as well as a similar anomaly in an undrilled area to the east which could represent a new zone of Crypto-style zinc mineralization.
The Company commenced a program of 10,000 metres of core drilling in July 2007 with the following objectives:
- infill and step-out drilling on the Crypto deposit for confirmation and expansion of the known zinc deposit
- test nearby IP and magnetic anomalies identified in 2006 that could reflect the presence of similar but as yet unknown zinc ± lead ± silver ± copper-bearing mineralization
- test extensions to the historically mined, high grade silver-lead deposits at the Utah Mine
- extend selected drill holes to depth to investigate the possibility that numerous molybdenite-bearing drill intercepts encountered in previous work are related to a significant buried porphyry molybdenum deposit
In July 2008, the program concluded with 10,639 metres of drilling in 15 holes having been completed. The results have been very encouraging, with multiple intersections of high grade zinc-indium mineralization which in places contain significant levels of copper. New mineralization has been outlined, both in large gaps without historical drill coverage within the deposit “footprint” as well as lateral to the historically defined extent of mineralization. In addition, multiple significant intersections of molybdenum mineralization have been encountered as well as high grade silver-zinc-lead replacement mineralization similar to but distinct from that formerly exploited at the historic Utah Mine.
Mine Development Associates of Reno, Nevada is currently engaged in preparing an updated resource estimate for the property and preliminary metallurgical test work is planned for representative samples of both the oxide and sulphide mineralization.
Selected intercepts from the 2007-2008 drill program are tabulated below:
|
Hole |
From (m) |
To (m) |
Metres |
% Zn |
% Cu |
ppm In |
Zone |
|
C-07-01 |
52.49 |
70.10 |
17.61 |
10.56 |
0.13 |
22.9 |
oxide |
|
C-07-01 |
123.75 |
136.25 |
12.50 |
27.08 |
0.59 |
8.7 |
oxide |
|
C-07-01 |
151.25 |
155.75 |
4.50 |
11.02 |
0.07 |
35.5 |
oxide |
|
C-07-01 |
337.11 |
345.95 |
8.84 |
4.34 |
0.10 |
54.7 |
sulphide |
|
C-07-01 |
367.28 |
374.90 |
7.62 |
7.74 |
0.03 |
16.5 |
sulphide |
|
C-07-01 |
404.16 |
420.32 |
16.15 |
10.50 |
0.11 |
30.6 |
sulphide |
|
C-07-01 |
458.72 |
484.60 |
23.88 |
4.22 |
0.15 |
184.9 |
sulphide |
|
C-07-01 |
498.30 |
510.50 |
12.20 |
4.26 |
0.27 |
151.1 |
sulphide |
|
C-07-01 |
601.37 |
605.94 |
4.57 |
6.26 |
0.33 |
84.6 |
sulphide |
|
C-07-01 |
623.30 |
640.10 |
16.80 |
2.93 |
0.14 |
205.8 |
sulphide |
|
Incl |
632.50 |
633.70 |
1.20 |
0.87 |
0.33 |
1,055.0 |
sulphide |
|
|
|
|
|
|
|
|
|
|
C-07-02 |
217.78 |
220.07 |
2.29 |
5.18 |
0.07 |
39.9 |
oxide |
|
C-07-02 |
367.90 |
385.27 |
17.37 |
27.30 |
0.46 |
28.9 |
sulphide |
|
C-07-02 |
392.58 |
393.90 |
1.32 |
20.88 |
2.23 |
13.2 |
sulphide |
|
C-07-02 |
416.97 |
424.59 |
7.62 |
21.51 |
0.51 |
39.0 |
sulphide |
|
C-07-02 |
435.25 |
438.61 |
3.36 |
12.89 |
0.98 |
39.3 |
sulphide |
|
C-07-02 |
513.89 |
520.45 |
6.56 |
3.20 |
0.16 |
102.0 |
sulphide |
|
C-07-02 |
566.93 |
569.37 |
2.44 |
4.97 |
0.49 |
250.2 |
sulphide |
|
C-07-02 |
639.47 |
640.54 |
1.07 |
5.17 |
0.16 |
720.8 |
sulphide |
|
|
|
|
|
|
|
|
|
|
C-07-03 |
25.30 |
30.94 |
5.64 |
3.78 |
0.36 |
3.4 |
oxide |
|
C-07-03 |
123.75 |
125.88 |
2.13 |
10.85 |
0.43 |
15.0 |
oxide |
|
C-07-03 |
145.08 |
152.55 |
7.47 |
16.08 |
0.41 |
20.9 |
oxide |
|
C-07-03 |
258.62 |
274.02 |
15.40 |
2.92 |
0.16 |
71.4 |
sulphide |
|
C-07-03 |
304.65 |
334.67 |
30.02 |
17.93 |
0.53 |
50.1 |
sulphide |
|
C-07-03 |
435.56 |
445.01 |
9.45 |
1.33 |
0.16 |
176.3 |
sulphide |
|
C-07-03 |
456.74 |
461.92 |
5.18 |
1.45 |
1.56 |
221.5 |
sulphide |
|
|
|
|
|
|
|
|
|
|
C-07-04 |
320.80 |
323.55 |
2.75 |
0.08 |
0.93 |
139.9 |
sulphide |
|
C-07-04 |
394.56 |
399.44 |
4.88 |
0.08 |
1.05 |
40.5 |
sulphide |
|
|
|
|
|
|
|
|
|
|
C-07-05 |
182.58 |
190.96 |
8.38 |
10.00 |
0.11 |
96.5 |
oxide |
|
C-07-05 |
226.77 |
244.45 |
17.68 |
7.78 |
0.06 |
33.6 |
sulphide |
|
incl |
229.82 |
235.76 |
5.94 |
16.11 |
0.05 |
68.6 |
sulphide |
|
C-07-05 |
281.64 |
295.35 |
13.71 |
6.17 |
0.02 |
53.1 |
sulphide |
|
incl |
288.04 |
293.67 |
5.63 |
9.92 |
0.01 |
90.7 |
sulphide |
|
C-07-05 |
347.17 |
375.82 |
28.65 |
4.00 |
0.38 |
111.7 |
sulphide |
|
incl |
347.17 |
356.31 |
9.14 |
3.78 |
0.04 |
172.4 |
sulphide |
|
C-07-05 |
397.76 |
401.12 |
3.36 |
5.42 |
0.42 |
114.2 |
sulphide |
|
C-07-05 |
475.64 |
477.32 |
1.68 |
4.63 |
0.45 |
385.0 |
sulphide |
The discovery of substantial grades of indium associated with zinc mineralization has been a particularly significant development in Lithic's program of work. Indium is used primarily in the manufacture of liquid crystal displays (LCDs), thin film solar panels and other applications in electronics as well as in low-melting-temperature alloys. With the rapidly increasing usage of LCD's in recent years, increased demand for indium has significantly escalated its price. A lack of quality substitutes, the fact that the small amounts used per panel are not a significant cost component and the potential growth in the use of solar panels suggests that prices will remain favourable. As is generally the case for all minor elements in ore deposits, the recoverability of indium at Crypto will need to be determined by metallurgical testwork and how much may be payable will depend on smelter demand and terms. However, the indium levels at Crypto have the potential to substantially enhance the economics of the project and may even establish Crypto as a significant indium resource in its own right.
