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Past Production and Historic Mineral Resource Estimate

 

The property hosts four historical deposits, two of which have had production of 20 million ounces of Silver. The Dolly Varden Mine produced 1.5 million ounces at an average grade of 35.7 ounces per ton in the early 1920’s, and the Torbrit mine which produced 18.5 million ounces of silver at an average recovered grade of 13.58 ounces per ton from 1949 to 1959. Two other deposits, the North Star and Wolf deposits have been defined and have development but have not seen any production.

An historic resource estimate completed on the property in 1986, and shown in the table below estimated 5.7 million ounces of silver (proven and probable) and 8.8 million ounces of silver (possible). The objective of the company’s exploration work is to confirm and reclassify the historic resources as current mineral resources and to expand the resource to a target of 40 to 50 million ounces of silver. If successful the necessary economic and technical studies will be undertaken in order to determine if the deposit(s) could become a viable mining operation.

 

Dolly Varden Property: Historic Mineral Resource Estimates 4
Post-Mining (1959) Shutdown

SOURCES OF HISTORICAL INFORMATION

Dolly Varden Mine: Skerl (1964) and Mann (1974) Dolly Varden Mine staff. Remaining resource blocks are in proximity to mined out stopes and downplunge extensions of mined out areas.

North Star Mine: Thompson & Pearson (1981) Derry Michener & Booth. Minimum mining width of 5 ft.  No prior mining.

Torbrit Mine: Leigh & Thompson (1983) Derry Michener & Booth. Comprised of 18 zones. Most zones are in the hanging wall of the glory hole and mined out stopes of the 1959 operation.

Wolf No. 1 Zone: Thompson & Pearson (1981) Derry Michener & Booth. No prior mining.  Tested by two levels of underground adits.

Wolf No. 2 Zone: Thompson & Pearson (1981) Derry Michener & Booth. No prior mining. Tested by three levels of underground adits.

Wolf No. 3 Zone: Thompson & Pearson (1981) Derry Michener & Booth. No prior mining.

Contained troy oz of Ag in Proven & Probable Categories: Historic resource estimate, not current, see Note 4

Contained troy oz of Ag in Possible Categories: Historic resource estimate, not current, see Note 4

 

NOTES

Note 1:  This resource estimate was prepared from incomplete old plans and sections, considerable verification drilling is required prior to placing reliance on this information.

Note 2: Historic Resource Classifications used in mineral resource estimates at the Dolly Varden deposits termed blocks with closely spaced drilling and bulk sampling data “Proven and Probable Reserves” and made allowances for mining operations and dilution. However, significant additional technical work is required. In the current terminology these blocks would be termed Measured and Indicated Mineral Resources, however, for the purposes of this Technical Report they are to be considered Geological Information only and subject to verification by drilling and sampling, prior to reclassification.

Note 3: Historic Resource Classifications used in mineral resource estimates at the Dolly Varden deposits termed blocks with more widely spaced drilling “Possible Reserves”. In the case of Torbrit, Thompson and Pearson (1981) reduced the confidence to Possible because the closely spaced drilling data must be subject to considerable check drilling. In the current terminology these blocks would be termed Inferred Mineral Resources, however, for the purposes of this Technical Report they are to be considered Geological Information only and subject to verification by drilling and sampling, prior to reclassification.

Note 4: The qualified person is Terry Garrow, PGeo who authored the report “Geology and Mineral Exploration of the Dolly Varden Property, British Columbia, Canada”, dated September 5, 2011 and filed on SEDAR. The Author (Qualified Person) has not done sufficient work to classify the Historical Estimates as current Mineral Resources or Mineral Reserves. Furthermore, the Issuer is not treating these Historical Estimates as current Mineral Resources or Mineral Reserves.