Resource World Magazine

54 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 8 F arshad Shirvani, President and CEO, has announced that Doubleview Capital Corp. [DBV-TSXV; DBLVF-OTC; 1D4-FSE] has entered into an option agreement for HudBay Minerals Inc. [HBM-TSX, NYSE] to earn a 65% interest in Doubleview's Hat Project. The copper-gold-cobalt-silver project is 95 km southwest of Dease Lake and 190 km south of Atlin in the Sheslay Valley, northwest British Columbia. Northwest BC is rapidly developing into one of North America's most active exploration dis- tricts with a significant number of properties being advanced from discovery to permitting and pre-production status. In 2014, Doubleview discovered the Lisle deposit, a signifi- cant copper-gold porphyry deposit at the Hat Project. Drill hole H-022 intersected 418.28 metres grading 0.51% copper equiva- lent (CuEq) from 45.5 to 463.8 metres, including 110.16 metres of 1.01% CuEq in the Lisle deposit. Another excellent drill result from the Lisle deposit included DHH-023 that returned 332.37 metres grading 0.56% CuEq from 67.9 to 400.2 metres, including 80.07 metres of 1.00% CuEq from 270.6 to 350.7 metres. The above intercepts are potentially directly related to the Hoey gold prospect 1.5 km south of the Lisle deposit. Surface chip and channel samples from the Hoey area returned metal values as high as 7.05% copper, 8.11 g/t gold and 0.54% cobalt. Geochemical soil samples from the area are strongly anomalous in precious metals, copper and other elements that accompany alka- lic porphyry-type mineralization. Under the terms of the Doubleview option, HudBay will be operator and can earn the 65% interest in three stages: spend- ing $25 million on exploration and delivering a resource estimate to earn 51%; spending a further $15 million on exploration and completing a prefeasibility study to earn a cumulative 55% inter- est; and spending all amounts required to complete a feasibility study to earn a cumulative 65% interest – all by June 2028. The agreement includes HudBay paying Doubleview $1 million in cash by the seventh anniversary date. Shirvani points out that there will be no dilution to Doubleview shareholders to advance the Hat property to feasibility. In addi- tion, the company is entitled to receive a substantial portion of the exploration tax credits over the life of the option agreement (100% of credits in the first year and 75% of the credits in the second year). "Our ultimate goal with the Hat property has been to joint ven- ture with a successful and well-respected major mining company," said Shirvani. "In this milestone agreement, we have achieved this goal. With HudBay, we have found a partner with the technical expertise and resources to move this project forward for the ben- efit of our shareholders. With a 2.5-km by 1 km identified zone, HudBay will have ample targets for its drill campaigns." Under the terms of the option, HudBay may, on a one-time basis, elect to defer one year of exploration expenditures to a later date without extending the length of the agreement or the time- line for earning an interest in the Hat property. Upon exercise of the first option, the second option or the third option, HudBay may elect to form a joint venture with Doubleview. If HudBay does not proceed with the second option, Doubleview can buy a 2% interest from HudBay for $500,000, which would result in Doubleview holding a 51% interest in the project and becoming operator. Before the HudBay agreement was signed, Doubleview had already made exploration plans for the Hat Project. The company has resumed exploration with reopening the camp and start-up of technical surveys. With HudBay on board, both companies will now work together on the exploration programs. The Hat property is located in the Stikine mining district of northwestern British Columbia, an area that features several very large copper-gold and copper-molybdenum deposits, including Galore Creek (NOVAGOLD and Teck – 9B lbs copper, 8M oz gold and 136M oz silver with 0.50% copper, 0.30 g/t gold, 5.20 g/t silver), Schaft Creek (Teck and Copper Fox – 5,611.7M lbs copper, 5.8M oz gold, 363.5M lbs molybdenum and 51.7M oz silver at 0.27% copper, 0.19 g/t gold, 0.018% molybdenum and 1.72 g/t silver), Red Chris (Imperial Metals – 7.983M lbs copper, 11.643M oz gold and 37.92M oz silver 0.35% copper, 0.35 g/t gold and 1.14 g/t silver), and is a short distance north of former produc- ing Eskay Mine (historic production 3.3M oz gold and 160M oz Doubleview signs option for Hudbay to earn 65% of Hat Project by Ellsworth Dickson Continued on page 69 MINING LEFT TO RIGHT: Farshad Shirvani, President and CEO of Doubleview Capital Corp. Photo by Ellsworth Dickson. R. Stuart (Tookie) Angus, LLB. Photo courtesy Doubleview Capital Corp.

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