The Ulu Property (“Ulu”) covers an area of 947 hectares, located approximately 523 kilometres (“km”) north of Yellowknife NWT within the Kitikmeot Settlement Area of Nunavut at longitude 110° 58’W and latitude 66° 54’N. The hamlet of Kugluktuk is approximately 210 km to the northwest, and Cambridge Bay, approximately 340 km to the northeast. Ulu consists of the renewable 21-year Crown mining lease No: NL3563, which has an expiry date of Nov 18, 2038.
Ulu is accessible by fixed wing aircraft from Yellowknife. A 1,200 metre by 32 metre gravel airstrip is situated 3.5 km south of the camp. Float-equipped aircraft may also land on West Lake, located approximately 1 km from the camp. Additionally, Ulu may be accessed by a seasonal ice road from the Lupin mine.
Camp infrastructure at Ulu is comprised of offices, mine dry, kitchen facilities, telecommunications equipment, sewage treatment, mine shop and housing for 60 persons with supporting electric generators, a water filtration system and fuel storage tanks.
The Ulu Property hosts an advanced gold project, which between 1989 and 2006 saw significant exploration and development. Past explorers include: BHP Billiton (1989 to 1993), Echo Bay Mines Ltd. (1995 to 2002), and Wolfden Resources Inc. and successor companies (2004 to 2011). Elgin Mining Inc. acquired the Ulu Property in May 2011. Presently, Ulu is permitted for mining based upon past work that includes approximately 1.7 km of underground development and approximately 405 diamond drill holes that produced 97,820 metres of core. Bulk sampling by Echo Bay produced a stockpile containing an estimated 2,227 tonnes of material, grading 13.8 grams per tonne (“g/t”) for an estimated 988 contained ounces of gold.
Supplementing the exploration data, metallurgical test work on gold mineralization in 2015 returned gold recoveries of greater than 90% by applying gravity, flotation and cyanidation.
The Flood Zone is hosted by iron-rich tholeiitic basalt and is composed of anastomosing shear-hosted auriferous zones. This steeply dipping system has been traced for 435 metres on surface. The current interpretation identifies one main anastomosing vein zone, which occupies a fold hinge and essentially contains all previously interpreted zones plus additional mineralization not included in earlier interpretations. The current Measured and Indicated Resource on the Flood Zone lies between surface and a vertical depth of 525 metres. The deepest Flood Zone drill intersection assayed 14.9 g/t gold over 7.7 metres at a depth of 610 metres below surface.
Technical Report on the Ulu Property
In April 14, 2015, the Company reported Giroux Consultants Ltd. (“Giroux”) had completed an independent Technical Report entitled “Technical Report on the Ulu Gold Property, Nunavut, Canada.” The Technical Report was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and contains a mineral resource estimate for the Flood Zone, the principal occurrence and only developed gold zone within the Ulu Property. This mineral resource estimate replaced the historic 2011 mineral resource estimate for the Flood Zone gold deposit contained in the historic 2011 technical report prepared for Elgin Mining Inc.
The new mineral resource estimate includes increased tonnage and contained ounces, when compared to previous resource estimates. The primary reasons for these increases were the reinterpretation of the vein system and changes in prevailing economic considerations including gold price, exchange rates and the positive impact of the proximity to the Lupin Gold Mine. The vein system reinterpretation was the result of corrections to the Ulu database and shaping a model using all of the data, which the Consultants believe reflects a more realistic representation of the continuity of the mineralized system. This improved continuity resulted in larger zones (less selective than previously) and a justification for deeper modelling, in excess of 45% deeper than previously modelled.
The current Ulu mineral resource estimate is presented below at a 4 g/t gold (“Au”) cut-off value:
|Classification||Tonnes||Au (g/t)||Au (ounces)|
|Measured & Indicated||2,500,000||7.53||605,000|
|Classification||Tonnes||Au (g/t)||Au (ounces)|
Notes to the Resource Estimate
- Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
- Confidence in the estimate of Inferred Mineral Resources is insufficient to allow the meaningful application of technical and economic parameters. There is no guarantee that all or any part of a mineral resource can or will be converted into a mineral reserve.
- The mineral resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
- The following parameters were used to derive the 4 g/t gold cut-off:
- - estimated CA $100/tonne mining, CA $25/tonne processing and CA $10/tonne general and administrative costs
- - Transporting gravity and flotation concentrate to the Lupin Gold Mine to produce dore, CA $25/tonne transport costs
- - CA $1500/oz gold price
- - Process recoveries of 90%
- - Smelter payables of gold at 96%
- - Refining charges of gold CA $12/oz
Previous owners identified 27 additional gold bearing zones on the Ulu Property. WPC plans to focus on the further exploration on these zones as well as tighter definition, strike and depth extensions on the Flood and Gnu zones.
The Technical Information on the Ulu Property has been prepared in accordance with Canadian Regulatory requirements as set out in NI 43-101. The technical information was reviewed by Warren Robb, P. Geo., a Qualified Person for the purposes of NI 43-101.