Liard Announces Filing of Amended and Restated Management Information Circular and Amended Technical Report
CALGARY, April 17 /CNW/ - Jan Alston, President of Liard Resources Ltd.
(the "Company") announces that at the request of the Alberta Securities
Commission (the "ASC"), the Company has filed an Amended and Restated
Management Information Circular (the "Circular") and Amended Technical Report
pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral
Projects (the "Technical Report").
The Company has applied for the revocation of cease trade orders issued
by the British Columbia Securities Commission, the Ontario Securities
Commission and the Alberta Securities Commission on June 2, June 3 and June
10, 2004, respectively (collectively, the "Orders") and the revival of its
business in order to carry out the acquisition of an interest in the Silver
Valley Two Mile Joint Venture originally announced on December 5, 2008.
Revocation of the Orders is part of the Company's efforts to re-structure its
corporate and financial affairs.
During the process of reviewing the Company's application to have the
Orders revoked, the ASC, as principal regulator, advised the Company by letter
that it had completed a review of the Circular dated March 24, 2009 with
respect to a Plan of Arrangement involving the Company, Silver Royal Apex,
Inc., Liard USA Inc. and the shareholders of Silver Royal Apex, Inc. (the
"Arrangement") and its Technical Report entitled, "Exploration of the Two Mile
Creek Project area near Osburn, Idaho for Lead and Silver" dated February 17,
2009 (collectively, the "Disclosure Documents") and provided the Company with
certain comments in respect of the Disclosure Documents.
The Company has resolved all of the ASC's outstanding comments and has
filed the following amended and restated Disclosure Documents, which are
available on the System for Electronic Disclosure and Retrieval at
www.sedar.com:
1. Amended and restated Circular;
2. Amended and restated Technical Report;
The Circular has been revised for the purpose of adding certain disclosure
required by National Instrument 51-102 - Continuous Disclosure Obligations,
Form 51-102F6 - Executive Compensation and National Instrument 52-110 - Audit
Committees. The additional information disclosed in the amended and restated
Circular is reproduced below:
Audit Committee Matters
Currently the audit committee of Liard consists of the following:
Jan Alston Not independent as he is the CEO of the Company.
He is financially literate based on his education
(law degree - 1981) and business experience.
Bruce Murray Not independent because of the consulting contract
between the Company and a private company
controlled by his affiliates. He is financially
literate based on his education (commerce degree -
1979) and business experience.
Laurel Eckhart Independent. She is financially literate based on
her business experience.
External Auditor Fees
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2007 2008
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Audit Fees - $99,620
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Audit Related Fees - -
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Tax Fees - -
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All Other Fees - $10,000
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Total - $109,620
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Notes:
(1) Preparation of December 31, 2004 to 2008 audits and preparing
corporate tax returns for December 31, 2006 to 2008.
(2) Fees for the compilation report on the proforma financials and
procedures and preparation of consents.
Reliance on Exemption
The Company is relying upon the exemption in section 6.1 of National
Instrument 52-110.
Executive Compensation
The following table discloses, for the period indicated, total
compensation received by the following executive officers: those who
acted as the Company's Chief Executive Officer and Chief Financial
Officer (the "Named Executive Officers"). The Company did not have
any executive officers whose total salary and bonus exceeded
$150,000.
Please refer to www.sedar.com for the table disclosing executive
compensation.
Options to Acquire Common Shares Granted during the Year Ended
December 30, 2008
No options were granted or exercised by the Named Executive Officers
during the period indicated.
Compensation of Directors
$80,000 in remuneration was paid to directors in their capacity as
directors. Directors of the Company are also eligible for
participation in the option plan. Consulting fees of $44,990 was
charged to the Company by a private company controlled by affiliates
of Bruce Murray. No options were granted to directors and officers of
the Company during the financial year ended December 31, 2008.
Employment Contracts
The Company has not entered into employment contracts with the Named
Executive Officers.
Pension Plans
The Company has not established a pension plan for the benefit of its
executive officers.
Deferred Compensation Plans
The Company does not have any deferred compensation plans relating to
a Named Executive Officer.
Compensation Discussion and Analysis
The Company has been inactive for approximately 3 years and has a
board of four. No separate compensation committee has been appointed.
Executive compensation is reviewed and approved by the independent
directors, Laurel Eckhart and John Niedermaier.
As an inactive company which has just recently taken the steps to
find a new business and update its regulatory filings, its executive
compensation philosophy, objectives and processes are simple. In
achieving the Company's objective, the CEO which is a part time
position without salary or benefits, expended considerable time on
the affairs of the Company. His compensation is based on the amount
of time spent, and on what he could have earned elsewhere, payable as
a management fee. No options or other stock based compensation were
awarded. No bonus was considered. Given the current state of the
Company the Board has not formulated any comprehensive compensation,
policies, objectives, benchmarks or processes.
---------------------------
With respect to the Technical Report, the amendment and the restatement
involves revisions necessary to thoroughly address the requirements of
National Instrument 43-101 - Standards of Disclosure for Mineral Projects and
Form 43-101F1. The revised technical information that appears on pages 35-47
of the Circular is provided below:
Two Mile JV Property
Following is information about the Two Mile JV Property, which has
been summarized or is a direct extract from the Thomson Report.
Certain figures and tables from the amended Thomson Report, dated
April 14, 2009, are included in this Information Circular. The
remaining figures and tables are contained in the Amended and
Restated Technical Report (NI 43-101), which has been filed on SEDAR
at www.sedar.com. Please see the full text of the Thomson Report for
full citations of the authors referenced below.
Most of the information about the property and surrounding areas are
given in United States terms and units although metric units are also
used at times. References to currency are always in United States
dollars.
Property Description and Location
The Two Mile Creek Exploration Project is situated in the Coeur
d'Alene Mining District, Shoshone County, Idaho (See Figure 1). The
main rocks in the exploration area are quartzites of the Burke and
Revett Formations and argillites of the Prichard Formation. The Coeur
d'Alene Mining District hosts numerous lead and silver deposits.
Please refer to www.sedar.com for graphical representation of
Figure 2.
Figure 2: Two Mile Creek Exploration Project location map with claim
block outline and geophysical traverses (red lines oriented ESE)
shown in Figure 3.
The Two Mile Creek Exploration Project can be reached by exiting
Interstate Highway 90 at the Osburn, ID exit via Two Mile Creek Road,
and is comprised of 3 patented mining claims (Table 1 and Figs. 1 and
2) and 710 unpatented mining claims (Appendix 1). The property covers
an overall area of 22 square miles. Azteca Gold Corp. has increased
its holdings of unpatented claims in 2008 due to proactive staking
activities. The claims are located in Sections 1 and 12 T. 48 N.,
R. 3 E., Sections 3, 4, 5, 6, 7, 8, 9, 10, 17 and 18 T. 48 N.,
R. 4 E., Sections 13, 24, 25 and 36 T. 49 N., R 3 E., and Sections
15, 16, 17, 18, 19, 20, 21, 22, 27, 28, 29, 30, 31, 32, 33 and 34 of
T. 49 N. R. 4 E. An outline of the claim block and the patented
claims are shown in Figure 2.
Table 1: Three (3) patented mine claims for the Two Mile Creek
Exploration Project.
Patented Mineral Survey
Claim Name Number
---------------------------------
Emmerson 3460
---------------------------------
Essex 3460
---------------------------------
Hardscrabble 2062
---------------------------------
The Two Mile Creek Exploration Project previous mine activity is
limited to a few prospector tunnels, most of which are now closed by
cave in. A Plan of Operations for Mining Activities was submitted to
the U.S.D.A. Forest Service and was approved in October 2007. The
approved plan permitted 6 drill site locations to test the results of
a geophysical survey conducted by Quantec Consulting Inc. in May
2007. This report presents the potential for mineralized zones as
indicated by the geophysical survey conducted by Quantec Consulting
Inc. and as reported by Azteca Gold Corp. in their Dec 8th 2008 press
release regarding hole DDH-005A. This update also presents new assay
results from a section of core from hole DDH-005A reported by Azteca
Gold Corp. in their January 13, 2009 press release and information on
progress of the drilling of hole DDH-006.
Accessibility, Climate, Local Resources, Infrastructure and
Physiography
The Two Mile Creek Exploration Project is located near Osburn, Idaho
within the Coeur d'Alene mining district, Shoshone County, Idaho. The
area is accessed from Spokane, Washington via Interstate 90 east, to
the Osburn exit.
The Two Mile Creek Exploration Project area is in a sub-alpine area
with average annual rainfall of approximately 25 inches and average
annual snowfall of approximately 48 inches. Summers are generally dry
and warm while winter can bring heavy accumulations of snow in the
mountains. The climate is favorable for year-round exploration
operations. The exploration project area is in low foothills of
gentle to moderate terrain.
The closest major airports to the Two Mile Creek Exploration Project
area are in Spokane, Washington (32 miles west of Coeur d'Alene on
I-90) and Missoula, Montana (108 miles east of Lookout Pass on I-90).
Necessary supplies, equipment, and services to carry out exploration
and mine development projects are available in Kellogg, Wallace,
Mullan, Coeur d'Alene, and Wardner, Idaho, as well as Spokane,
Washington. A trained mining workforce is available in the
above-mentioned communities.
History
A document written by John Platts (1954) discusses the existence of a
few tunnels in the Two Mile Creek area. He states "two short
prospector's tunnels driven into the west bank over the old road show
veins containing ore minerals. Although the ore has not been exposed
in commercial quantities in the short tunnels, there are indications
in the surrounding area of the presence of a much more extensive vein
structure." Further up the creek a short drift followed a narrow
silver vein that was discontinuous and follows a bedding plane in
quartzite (Platts, 1954).
Platts (1954) also discussed two diamond drill holes that were
drilled "several years ago." Neither drill hole intersected
commercial grade ore, but "sludge samples taken from near the seam
and near the dikes contained silver in various amounts up to
1.5 ounces per ton." (Platts, 1954) The author has no assay reports
from these drill holes. Mr. Platts' report should be taken as his
opinion and not as a statement from a "Qualified Person" by NI 43-101
standards.
A geochemical reconnaissance program, covering the bulk of the Coeur
d'Alene District mining region, was conducted by the U.S. Geological
Survey in the late 1960s. The sampling was widely spaced and the
analytical data averaged (Springer, 1974). As a result of the
geochemical survey, a broad general picture was developed that
strongly indicated a northwesterly continuation of the 9 known
mineral belts of the Coeur d'Alene mining district (Springer, 1974).
The Two Mile Creek Exploration Project area lies within the
geochemical survey area.
In May 2007 Quantec Consulting Inc. conducted a geophysical survey
utilizing a Titan-24 Distributed Array. The Titan system is a
multi-channel, distributed-array geophysical data acquisition system,
recording broadband Magnetotelluric (MT) resistivity data, Direct
Current (DC) resistivity data and Induced Polarization (IP)
chargeability data (Quantec Consulting Inc., 2007). The Titan system
provides three independent data sets capable of accurately measuring
subsurface resistivities to depths in excess of one kilometer,
chargeability (mineralization) for deeper than conventional IP
systems can provide (Quantec Consulting Inc., 2007). Quantec
Consulting, Inc. has reported that this technology has been
successful in other parts of the United States and Canada in locating
massive sulfide deposits. The survey consisted of five lines,
oriented ESE, and was designed to maximize the coverage of the of the
Silver Royal Apex claim block (Figs. 2 and 3).
The Titan-24 survey has identified several deep chargeable, high
priority drill targets. The priority targets are all located in the
southeast corner of the property with two targets on Line A (Fig. 4),
and the remaining two on Line B (Fig. 5). Several additional
secondary targets have also been identified and consist of moderate
IP responses located on indicated fault zones that may be favorable
locations for vein style mineralization (Quantec Consulting Inc.,
2007). The targets along line A have largely been the initial focus
of the Azteca Gold Corp. drilling program. The easternmost target on
Line A was shown by geophysics to begin at a depth of about 1500 feet
below the surface; a smaller target in the west on Line A was shown
by geophysics to begin at a depth of about 600 feet below the surface
(Fig. 4).
Figure 3: Two Mile Creek Exploration Project area location map, with
geophysical survey lines. Drill hole locations are also illustrated
including surveyed locations of DDH-005A and DDH-005B.
Please refer to www.sedar.com for graphical representation of
Figure 3.
Figure 4: Line A geophysical (IP) targets illustrated in vertical
cross-section with drill holes DDH-005A and DDH-005B.
Please refer to www.sedar.com for graphical representation of
Figure 4.
Figure 5: Line B geophysical (IP) targets illustrated in vertical
cross-section with drill holes DDH-002 and DDH-003.
Please refer to www.sedar.com for graphical representation of
Figure 5.
Local Geology
The stratigraphy of the Two Mile Creek Exploration Project is
composed primarily of the Revett, Burke, and Prichard Formations with
minor amounts of igneous rocks. The Revett Formation is composed of
vitreous pure quartzite beds from one to six feet thick. The Burke
Formation is composed of quartzite, siliceous argillite, and minor
amounts of argillite. The Prichard Formation is composed of
monotonous succession of quartzose argillites to argillites
(Pennebaker, 1971). A monzonitic body is present on the eastern
boundary of the project area, and several basic dikes and syenite
dikes have been reported on the property (Pennebaker, 1971).
The Revett and Burke Formations are located east of the intersection
of the Carpenter Gulch and Two Mile Faults. To the west of these
faults lies the Prichard Formation. The Carpenter Gulch Fault is a
thrust fault with a generally N-S strike and a westerly dip of about
30 degrees. The movement of this fault has placed older Prichard
Formations on top of younger Burke Formation. The Carpenter Gulch
Fault curves and connects with the Two Mile Fault this in turn joins
the Blackcloud Fault (Pennebaker, 1971).
Veins within the project area vary in thickness depending on which
rock is hosting the vein (Juras, 1995). According to Juras (1995) a
vein hosted by quartzite that is several feet thick will decrease in
thickness when it is hosted by siliceous argillite and further
decrease, possible even disappear, when hosted by argillites. The
mineralization of the Two Mile Creek areas is vein hosted.
Deposit Type
The Coeur d'Alene Mining District is situated at the western end of
the Lewis and Clark Shear Zone (Bennett and Venkatakrishnan, 1982;
Leach et al., 1988). Precious metal and base-metal deposits occur
throughout the Lewis and Clark Shear Zone (Leach, et al. 1988). The
deposits are primarily veins within the Belt Supergroup (Leach, et
al., 1998), and mines in the district exploit ore in the steeply
dipping veins (Bennett and Venkatakrishan, 1982).
The Two Mile Creek Exploration Project area hosts many quartz veins
associated with faults that potentially contain lead and silver
deposits. The project is in the Coeur d'Alene Mining District.
Mineralization
Pennebaker (1971) identified two types of mineralization within the
Two Mile Creek Exploration Project area. The first is the Royal vein.
This vein contains quartz, ankerite, pyrrhotite, pyrite, sphalerite,
and galena. It cuts the Prichard Formation on the western side of the
project area and is in the hanging wall of the Carpenter Gulch Fault.
In the footwall of the Carpenter Gulch Fault near the center of the
property is the second type of mineralization. It consists of several
thin veins that, according to Table 3 of Pennebaker's (1971) report,
were high in silver. The author does not have access to either the
original lab reports or the samples that were collected by Pennebaker
and others for his report. In Pennebaker's opinion the relative
concentrations of silver, copper, antimony, and lead indicated that
these veins were typical of Silver Belt type ore. The eastern side of
the property has received very little exploration.
Exploration
The Brennan-Preuss Report noted that a Plan of Operations for Mining
Activities was submitted to the U.S.D.A. Forest Service for
permitting of 6 drill sites that would test the results of the
geophysical survey. Permitting with the Forest Service was successful
in October 2007, allowing for the 6 permitted drill hole sites to be
placed within the Two Mile Creek Exploration Project area. These
drill holes were selected to test the results of the geophysical
survey conducted by Quantec Consulting Inc. in May 2007. To date,
Azteca Gold Corp. has been actively pursuing a drill operation
discussed below.
Drilling
To date, there has been some progress in drilling activity conducted
in the Two Mile Creek Exploration Project area by Azteca Gold Corp.
and its contractor(s). Since the October 2007, a total of 7 diamond
core drill holes have been placed within the property boundary. Two
of the 7 drill holes are active at the time of this report (DDH-005B
and DDH-006; Fig. 2). Table 2 provides the status of currently active
and completed drill site activity in the Two Mile Creek Exploration
Project area as of February 17, 2009. Figure 3 shows the location of
drill holes discussed below and shown in Table 2 as well as the
cross-sectional view of geophysical targets along geophysical
traverse Lines A and B (Figs. 4 and 5).
Azteca Gold Corp. and their drilling contractor regularly pay
particular attention to the position of the drill hole, regularly
surveying all drill holes with a Reflex EZ-Trac, multi-shot magnetic
down-hole survey tool, manufactured by Reflex. Additionally, at the
date of this amended report, Azteca Gold Corp. had previously
contracted Directional Drilling Services Inc. to perform gyro-surveys
of both drill holes DDH-005B and DDH-006 to confirm the accuracy of
the magnetic surveys. Both holes have been surveyed to 8,650 and
6,400 ft., respectively, and it has been confirmed that the magnetic
surveys and the gyro surveys are in very good agreement (within the
expected accuracy of each tool). The positions of the drill holes in
plan view are illustrated in Figure 3. The surveys indicate that
drill hole DDH-005A at the intercept with the massive mineralization
(7,950 ft. depth) has an approximately easting of 450 ft. and a
northing of 375 ft. from the collar location. Additionally drill hole
DDH-005B wedges off from drill hole DDH-005A at 3,950 ft. and is
following a trajectory angling north of DDH-005A. So, for example, at
a depth of 6,000 ft., drill hole DDH-005B is 75 ft. west and 50 ft.
north of drill hole DDH-005A at an equivalent depth, projecting an
approximate 200+ ft offset between the drill holes at final depth.
See Figure 6 for a perspective 3-D illustration of the locations of
the surveyed drill holes DDH-005A and DDH-005B.
Table 2: Two Mile Creek Exploration Project drill hole locations and
status as of February 17, 2009.
Please refer to www.sedar.com for Table 2.
Figure 6: Scale perspective 3-D model of drill holes DDH-005A,
DDH-005B, and DDH006 showing the extent of surveyed drill holes. The
property boundary is also illustrated.
Please refer to www.sedar.com for graphical representation of
Figure 6.
Azteca Gold Corp. contracted M2 Technical Inc. to log the core
collected from DDH-001, DDH-001A, DDH-002 and DDH-003. Assays have
also been performed on samples from these drill cores. The author has
examined the log files as well as the assays and has determined that
the results are not significant enough to report here.
Azteca Gold Corp. Dec 8th, Dec 22nd, 2008, and January 13, 2009 press
releases reported that mineralization was encountered in drill hole
DDH-005A. However, as of this date the core has not been completely
logged. The author has examined the length of the drill core assayed
(see below) stored at secure Azteca Gold Corp. facilities as well as
numerous hand samples and thin sections from selected parts of the
core. The first preliminary assays on the mineralization of drill
hole DDH-005A are reported below and were received by Azteca Gold
Corp. in early January 2009 and were reported in the press release on
January 13, 2009. Assaying and subsequent assay releases will be
ongoing for holes DDH-005A, DDH-005B, and DDH-006 during 2009.
Although the primary target (recognized by geophysics) was indicated
to be located at a depth of about 1500 ft., Azteca Gold Corp. decided
to focus their efforts the drill site of DDH-001 and DDH-001A by
extending deeper into the subsurface along DDH-005A and DDH-005B.
11.1 Description of Drill Core DDH-005A
DDH-005A is an NQ-sized core hole collared at approximately 3,650 ft.
elevation with total depth ("TD") of 8,784 ft. or about 5,134 ft.
below sea level. Azteca Gold Corp. has advised the author that at
7,950 ft. the mineralization becomes massive. The massive
mineralization continues for approximately 50 ft. intermittently,
with continuity of the massive mineralization over as large as 10 ft.
intercepts. Preliminary assay results are presented below.
The author examined the core between depths 7,898 ft. and 7,961 ft.
From 7,898 ft. to 7,937.50 ft. the core consists of quartzite cut by
stockwork veins of galena and sphalerite ranging in thickness from
1.5 mm - 1.0 cm. Veins increase in modal abundance at the deeper
sections of this interval. The veins are oriented steeply with
respect to the core axis; the core was not oriented during drilling.
At 7,937.60 ft., massive mineralization of sphalerite + galena is
evident and extends to a depth of 7,953.6 ft. where it abruptly
changes back to quartzite with stockwork veining. A second massive
mineralized section of the core is seen between 7,965 and 7,966 ft.
The orientation of the massive parts of the core relative to the core
axis is indeterminable. Within the first massive section described,
between 7,946.70 and 7,946.90 ft., a younger chalcopyrite-bearing
quartz vein is present. The chalcopyrite is in a thin vein, which is
steeply oriented relative to the core axis. Pyrrhotite is observed at
a depth of 7,973.50 ft. in a vein which is steeply oriented relative
to the core axis.
11.2 Description of Drill Core DDH-005B
Another drill hole, DDH-005B was successfully wedged-off of the
parent drill hole DDH-005A at approximately 3,960 ft. and was at a
depth of 7,227 ft. The separation of the two drill holes as measured
in plan-view is increasing as planned as of February 17, 2009. The
target total depth of drill hole DDH-005B is 9,500 ft. with the
purpose of investigating further the extent of down dip
mineralization in which hole DDH-005A was terminated at a TD of
8,784 ft. Disseminated and stockwork type mineralization has been
encountered from 3,960 ft. to the current depth reported above.
Azteca Gold Corp. anticipates that DDH-005B will intersect similar
mineralization to that encountered in DDH-005A but stresses that the
same mineralization is not necessarily guaranteed.
11.3 Description of Drill Core DDH-006
Approximately 0.62 mi (1 km) west of drill hole DDH-005A and
DDH-005B, vertical drill hole DDH-006 has progressed to a depth of
5,115 ft. with HQ-size core. Target total depth had not been decided
at the time of this report. The purpose of drill hole DDH-006 is to
further investigate a geophysical anomaly along strike of the Two
Mile Fault. Azteca Gold Corp. reported in a press release dated
February 2, 2009 that drill hole DDH-006 intersected what they
believe to be a mineralized stratigraphic sequence at 2,300 ft. with
disseminated mineralization. At a depth of about 3,575 ft. stockwork
type veining was intersected. The mineralization encountered in
DDH-005A (assays presented below) does not necessarily suggest that
there will be a similar intersection in DDH-006. As of February 17,
2009, Azteca Gold Corp. has split and sent to the assay lab, the
intervals 3,576 to 3,592 ft. The author has not examined any part of
this drill core at this time.
11.4 Preliminary Assay Results of DDH-005A
As of this date, forty-one contiguous core samples collected from
drill core DDH-005A (over the interval 7883.0 - 7968.5 ft. through
massive mineralization and adjacent stock-work type veining) have
been analyzed for Ag, Pb and Zn by American Analytical Services Inc.
between 12/31/08 and 01/07/09. The lab, located in Osburn, ID,
received the samples on 12/22/08 with a submittal form indicating the
specimen number, date of collection, hole number (DDH-005A), hole
depth start, and specimen length (in ft.). Results were reported with
a Certificate of Analysis dated 01/07/09. Assay results were reported
in ppm. Table 4 shows the results of these analyses in terms of
Zn (%), Pb (%) and Ag (g/tonne) and provides the general mineralogy
and relative orientation of the mineralization with respect to the
core axis for each of the intervals reported.
Table 4: Assay results for core samples from drill hole DDH-005A
Please refer to www.sedar.com for Table 4.
Sampling Method and Approach
Each box of core contains five two-foot rows of core. Wood blocks are
placed approximately every 10 ft. corresponding to the known drill
core length and the wood blocks are labeled with the drill depth. A
step-by-step process is followed for each core box and includes first
photographing the core box. The core is broken into lengths
appropriate for cutting using a hydraulic core splitter. The core
splitter is cleaned between splits with high-pressure air, a vacuum
and damp cloth wipe-down. Sampled core sections are placed in
uniquely labeled assay bags. Un-sampled and un-used portions of the
core are placed back in to the box from the location from which it
was taken. Sections of core selected for cutting are cut in half
lengthwise, with procedure for splitting equally across any visually
obvious veining or bedding. Intervals of core selected for assay
range from 0.5 to 5.0 ft. in length. Samples selected for assay
analysis are done so to characterize visible mineralization
(stockwork veins or massive ore).
Sample Preparation, Analyses and Security
Core extracted at the drill site is labeled and boxed and removed
from the site and transported by the drill crew to a secure facility
in Osburn, ID. No core is left on-site unattended. Core is removed
from the site after every shift. Azteca Gold Corp. employees then
transfer the core boxes to another secure facility in Spokane Valley,
WA (70 miles west) where they are processed (described in previous
section) by Azteca Gold Corp. employees. No core is ever left
unattended in any vehicle. All samples are properly labeled with
unique IDs and hole number, depth interval and sample ID data are
entered into an Excel spreadsheet, a hard copy is printed and a
CD-ROM is burned for safe storage at a separate location.
J. Thomson has examined the core preparation and sampling facilities
in Spokane Valley, WA and discussed the sample preparation process
with Azteca Gold Corp. personnel.
Azteca Gold Corp. employees fill out an American Analytical Services
Inc. Assay request form and send it via email to American Analytical
Services Inc. in Osburn, ID. The two companies discuss, via phone, a
date and time for delivery. Only Azteca Gold Corp. employees drive
and deliver the samples and sign for a chain of custody with
authorized American Analytical Services Inc. personnel present.
American Analytical Services Inc. informs Azteca when samples have
been analyzed and materials and samples are ready for pick-up.
Results are presented to Azteca Gold Corp. on CD-ROM. Samples are
picked up and brought back to Azteca Gold Corp. storage for
archiving.
American Analytical Services Inc. is a certified and licensed
chemical assay lab. This lab contractor has consistent quality
assurance processes in-place including insertion of random blanks and
standards as part of their quality control process. Samples delivered
to the lab by Azteca Gold Corp. personnel are analyzed using standard
titration and FA/ICP geochemical methods. A Certificate of Analysis
was provided by the laboratory to Azteca Gold Corp. To maintain
confidentiality, location and depth information are not provided to
the assay lab. The author spoke with Mr. Dave Swenson of American
Analytical Services Inc. who described the handling of samples
delivered to their lab. Samples are logged and dried in an oven for
24 hours followed by crushing in a jaw crusher, and cone crusher.
Samples are then ground in a shatter box. Barren rock is run through
the jaw and cone crushers between each sample. The shatter box is
cleaned after each use. 250 grams of the powdered samples are then
sent to the acid digestion lab. Once digestion is complete, the
samples are sent to the instrumentation lab for analysis using FA/ICP
geochemical methods. If the samples contain high Pb and Zn (e.g.,
(greater than)100,000 ppm), titration is performed as well as
gravimetric sulfur analysis. Ag and Au are analyzed using gravimetric
techniques. If the values of Ag and Au are high, they are reanalyzed
using fire assay. Duplicates are run after every 20 samples. Data is
provided on a CD-ROM to Azteca Gold Corp.
The operator, Azteca Gold Corp., periodically sends drill core
samples (typically 2nd pulps) to independent labs (in the U.S. and
Canada) to verify the results of the lab contractor (American
Analytical Services Inc.). The company periodically submits known
assay value QC materials to the lab to verify result quality. For
example, Azteca Gold Corp. sent samples from drill core DDH-001A to
an independent U.S. lab in 2007/2008 and in 2009 they submitted
samples (2nd pulps) of the massive mineralization intercept of drill
core DDH-005A to a Canadian Lab for verification of the massive
intercept results. Additionally, in 2009, Azteca Gold Corp. has,
occasionally re-submitted pulps back to the lab for verification and
comparison with the original assay.
Data Verification
As described in the previous section, quality control measures of
core collection and geochemical analyses performed at American
Analytical Services Inc. are in compliance with standard industry
best practice methods. The author has verified the data presented in
this report.
Adjacent Properties
The following information is from Mitchell and Bennett's (1983)
compilation of historic production in the Coeur d'Alene Mining
District. Table 3 lists production statistics for each property
hosted by the Burke and Prichard Formations. The information is not
necessarily indicative of the mineralization in the Two Mile Creek
Exploration Project area.
Table 3: Production statistics from the Coeur d'Alene Mining District
properties hosted by the Burke and Prichard Formations (compiled from
Mitchell and Bennett, 1983).
Please refer to www.sedar.com for Table 3.
Mineral Processing and Metallurgical Testing
To date, no metallurgical testing has been performed on the
mineralized material with regard to potential metal recovery issues.
Mineral Resource and Mineral Reserve Estimates
To date, no mineral resources or mineral reserves have been
identified in the Two Mile Creek Exploration Project area by Azteca
Gold Corp. or its contractors.
Other Relevant Data and Information
Two Mile Program Budget
-----------------------
Table 5 illustrates a program budget for the project designed to
reach the objectives outlined below under "Recommendations". The
program will be conducted throughout 2009. The continuation of the
exploration program from this phase to the next phase will be
contingent on favorable results determined during the planned 2009
exploration program. All amounts are in US dollars.
The Two-Mile Creek Exploration Project is a 50%-50% joint venture
between Silver Royal Apex, Inc. and Azteca Gold Corp. Both entities
are required to contribute 50% of the total 2009 budget.
The budget reflects drilling of 4 holes total in 2009 yielding
approximately 19,000 ft. of core. Drill holes DDH-006 and DDH-005B,
and two subsequent wedge-off holes are anticipated within this 2009
budget along with expected deep-hole geophysical investigations. The
Azteca Gold Corp. geophysics budget is based on proprietary proposals
from industry-leading geophysics providers. DDH-006 is expected to
terminate at approximately 9,000 ft. DDH-005b was wedged-off at
3,950 ft. and continues to similar depths as DDH-005A. This leaves
approximately 5,250 ft. of the 19,000 ft. allocation for two or more
additional short holes wedged-off from DDH-005A/005B each at depths
of 6,000+ ft. These additional drill holes (DDH-005C and DDH-005D)
represent two directional (wedge-off) holes intended to explore the
extent and orientation of the DDH-005A massive mineralization
intercept.
Table 5: Two Mile Creek Project Exploration Project budget.
Expense item Unit cost QTY Amount
---------------------------------------------------------------------
Field/travel $25,000 1 $25,000
---------------------------------------------------------------------
Field vehicles $10,000 1 $10,000
---------------------------------------------------------------------
Geochemical samples
($/sample) $50 100 $5,000
---------------------------------------------------------------------
Metallurgy/QA $15,000 1 $15,000
---------------------------------------------------------------------
Geologist ($/mo) $2,500 6 $15,000
---------------------------------------------------------------------
Field assistants ($/mo) $1,500 6 $9,000
---------------------------------------------------------------------
Environmental audit/permits $5,000 1 $5,000
---------------------------------------------------------------------
Drill road/site preparation
($/Hr) $90 100 $9,000
---------------------------------------------------------------------
Drilling ($/ft, target
footage) $175 19,000 $3,325,000
---------------------------------------------------------------------
Core Splitting/Prep
($/ft, footage) $4 19,000 $76,000
---------------------------------------------------------------------
Drilling assays ($/sample) $75 3,800 $285,000
---------------------------------------------------------------------
Aerial photography $2,000 1 $2,000
---------------------------------------------------------------------
Geophysics $150,000 1 $150,000
---------------------------------------------------------------------
Surface access agreement $15,000 1 $15,000
---------------------------------------------------------------------
Program Budget $3,946,000
------------
Interpretations and Conclusions
The Two Mile Creek Exploration Project represents an early stage
exploration target considered prospective for the discovery of
high-grade lead and silver mineralization. The status of the
exploration project to date includes a drill operation targeting a
potential deposit indicated by the results of the Quantec (2007)
geophysical survey. Phase 1 of the exploration project included
surface mapping and the drilling of several shallow holes and one
deeper hole (DDH-005A) during the 2007-2008 time period. Azteca Gold
Corp. decided, for reasons they consider to be proprietary, in 2008
to pursue drilling significantly deeper below the identified
geophysical IP targets and have discovered significant mineralization
in DDH-005A that is not uncharacteristic of other deep mines in the
Coeur d'Alene Mining District (e.g., containing galena and
sphalerite).
Two active drill holes are being worked as of the date of this report
(DDH-005B and DDH-006). In addition, progress has been made on
preliminary characterization of core DDH-005A, and assays of selected
drill core samples have been performed. Based on mineralization
encountered in DDH-005A and DDH-005B (wedge-off of 005A at 3,960 ft.)
described above, a second diamond drill rig was positioned for a
collar elevation of approximately 3,050 ft. and drilling of DDH-006
one km to the west of DDH-005A began during the week of December 8,
2008. As of February 17, 2009, the depth of DDH-006 was 5,115 ft.
While the geophysics (IP) data has been made available for review by
the author, at this time, Azteca Gold Corp. and JV Partner Silver
Royal Apex hold the results of the geophysical investigation as
proprietary information. Detailed IP plots are unable to be released
to the general public in this updated report. However, a simplified
representation of the Line A and IP target areas are shown in
Figure 7 as well as previously in Figures 4 and 5.
Figure 7: Line A geophysical targets and projections of the progress
of DDH-005A, DDH-005B and DDH-006 (as of February 17, 2009). Note
that the actual drill holes are slightly to the north and south,
respectively.
Please refer to www.sedar.com for graphical representation of
Figure 7.
Recommendations
Recommendations focus on the core that has been extracted to date.
The primary focus should be on logging the core from deep drill holes
DDH-005A, DDH-005B and DDH-006 to gain a complete understanding of
the orientation of the potential mineralization. Assays of core
samples should continue. Down-hole geophysical studies should be done
to determine the lateral extent of mineralization. Metallurgical
testing should be performed on mineralized samples to determine
feasibility of extraction. The author also recommends that a detailed
geologic map of the property be prepared to accurately locate the
trace of faults in the project area and to determine their
orientations relative to the potential targets recognized in the
geophysical surveys done in 2007 and to the drill cores. The project
developers should work aggressively in the development of models to
describe the thickness and 3-D extent of any potential ore body,
which is apparently located at significant depth.
-------------------------
Liard was an investment holding company with shareholdings in public
junior oil and gas exploration and production companies. Substantially all of
these investments were sold in 2006 and the net proceeds were distributed to
the Company's shareholders as dividends. In 2007 and 2008 the Company was
inactive. Successful completion of the proposed transaction will re-activate
the Company as a junior mining exploration company. The name of the Company,
pending shareholder approval, will be changed to Royal Apex Ventures, Inc. It
is anticipated that Jan Alston and Bruce Murray will remain on the board of
the Company after completion of the transaction, and that management of the
Company will be assumed by representatives of Silver Royal Apex, Inc., the
current owner of the interest in the Silver Valley Two Mile Joint Venture,
with Justin Rice becoming Chairman of the Board and Mark C. Russell, of
Spokane, Washington, taking the position of President and CEO.
WARNING: the Company relies upon litigation protection for "forward
looking" statements. The information in this release may contain
forward-looking information under applicable securities laws. This
forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause actual results to differ
materially from those implied by the forward-looking information. Factors that
may cause actual results to vary material include, but are not limited to,
inaccurate assumptions concerning the exploration for and development of
mineral deposits, currency fluctuations, unanticipated operational or
technical difficulties, changes in laws or regulations, the risks of obtaining
necessary licenses and permits, changes in general economic conditions or
conditions in the financial markets and the inability to raise additional
financing. Readers are cautioned not to place undue reliance on this
forward-looking information. The Company does not assume the obligation to
revise or update this forward-looking information after the date of this
release or to revise such information to reflect the occurrence of future
unanticipated events, except as may be required under applicable securities
laws.
For further information: Jan Alston, President, Telephone: (403)
816-6974, Email: janalston@shaw.ca
