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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Copper

Vizsla Copper expands Woodjam project in Southern British Columbia

Vizsla Copper can get ownership of the four claims for 400,000 shares to Trailbreaker over three years

Vizsla Copper expands Woodjam project in Southern BC
Historic core samples from the 2011 drill campaign. Image via Trailbreaker Resources.

Vizsla Copper Corp. (TSXV: VCU) (OTCQB: VCUFF) acquired a portion of the Eagle Lake property in the Cariboo Mining district from Trailbreaker Resources Ltd. (TSXV: TBK).

Announced on Monday, this land is 6,482 hectares of land next to its copper-gold porphyry Woodjam Project, and includes four of the 14 claims that comprise the property.

Under the option agreement, Vizsla Copper has the opportunity to obtain full ownership of the four claims by issuing a total of 400,000 common shares to Trailbreaker over a period of three years. However, this acquisition is subject to approval by the TSX Venture Exchange. Vizsla Copper also has the right to expedite the option at any time after the first anniversary.

Once acquired, the claims will be encumbered by a 2 per cent net smelter return royalty (NSR). Specifically, Trailbreaker and Teck Resources Limited (TSX: TECK.B) will retain a 1 per cent NSR each on three of the claims, while Trailbreaker will keep a 2 per cent NSR on the fourth claim. Additionally, Vizsla Copper has the opportunity to purchase half of the 1 per cent NSR from Trailbreaker for $500,000 and half of the 2 per cent NSR for $1 million.

“These claims are a terrific addition to the Woodjam Project,” said Steve Blower, vice president of exploration.

“They are proximal to porphyry-related copper-gold deposits and share similar geology.  Work on the Trailbreaker claims will be a high priority for the company going forward.”

In early 2022, Trailbreaker Resources acquired the Eagle Lake property based on the property’s historical drill results, such as the 2011 intercept of 3.52 grams per ton of gold over a length of 9.9 meters in drill hole MOF-5. Additionally, the property’s favorable geological setting and its strategic location between the Woodjam deposit and Engold’s Lac La Hache deposits were important considerations in the acquisition decision.

In the summer of 2022, Trailbreaker conducted a comprehensive MMI (Mobile Metal Ion) soil survey encompassing 432 samples. The primary objective of the survey was to encompass the known drill showings in the area.

The results of this survey unveiled a significant anomaly measuring approximately 850 meters by 700 meters. This anomaly exhibits elevated concentrations of gold, copper, silver and molybdenum (Au-Cu-Ag-Mo). Notably, the anomaly encompasses the location of drill hole MOF-5 and extends further east and north into an area where no historical drilling has been documented.

Read more: NevGold assays high-grade silver at Ptarmigan, expands copper trend

Read more: Gold is still the best hedge against inflation: NevGold CEO

Quesnel Terrane holds multiple advanced-stage gold projects

In addition to the copper-gold porphyry deposits, the Quesnel Terrane also accommodates numerous advanced-stage gold projects. One such project is the Spanish Mountain gold project, located approximately 45 kilometers north of Eagle Lake, which boasts a measured and indicated resource exceeding 4.5 million ounces of gold. Furthermore, the FG gold project, privately owned by Karus Gold, is positioned around 35 kilometers east of Trailbreaker’s claims within the Quesnel Terrane.

“This is a win-win deal: Vizsla gets to acquire and explore ground to expand their Woodjam project, while Trailbreaker retains the Moffat zone area where we have outlined a significant gold-copper zone,” said Daithi Mac Gearailt, CEO of Trailbreaker.

Trailbreaker’s claims are situated within the Quesnel Terrane, a geological formation known for hosting several significant copper-gold porphyry deposits in British Columbia. Notable examples of these deposits include New Gold‘s (TSX: NGD) (NYSE: NGD) Afton mine, Imperial Metals‘ (TSX: III) Mount Polley mine, Taseko Mines‘ (TSX: TKO) (NYSE: TGB) (LSE: TKO) Gibraltar mine, and Centerra Gold‘s (TSX: CG) (NYSE: CGAU) Mount Milligan and Kemess mines.

Shares of Vizsla Copper are down 4.5 per cent to $0.21 on Tuesday on the TSX Venture Exchange while shares of Trailbreaker Resources are flat at $0.24, also on the TSX Venture Exchange.

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