Resource World Magazine

J U N E / J U L Y 2 0 1 6 www.resourceworld.com 41 miNiNg hAPPY CREEK MINERALS LTD. [HPY-TSXV] recently released the first resource estimate on its 100%-owned Fox tungsten prop- erty located 70 km northeast of 100 Mile House, south-central British Columbia. The Ridley Creek Zone includes a NI 43-101 com- pliant 505,000 tonnes indicated grading 0.468% WO 3 (tungsten trioxide) at a 4.1:1 strip ratio and a 0.1% WO 3 cut-off. The cut-off was determined by using a WO 3 price of CDN $208.15/BTU. This represents contained tungsten of 237,000 MTUs. Inferred resources are pegged at 280,000 tonnes grading 0.456% WO 3 . The Fox property hosts a large-scale 10 x 3 km tungsten skarn mineral system that features seven mineralized zones at surface with all zones open to expansion. The Ridley Creek Zone itself is about 350 by 175 metres in size and is a gently-dipping tabular mineralized body ranging in thickness from 5 to 25 metres. David Blann, P.Eng., President, CEO, said, "For a single, 45-degree pit-constrained tungsten resource using current metal prices, the Ridley Creek Zone has a combination of grade and low strip ratio that are an excellent start. The deposit is still open in extent and we have six other zones that could potentially add to this. The work completed has provided a solid technical founda- tion to continue with more detailed engineering and assessment, and with the efficient drill-out of this and our other zones. As a new discovery in the western world, we are pleased to achieve this milestone and we look forward to advancing Fox as a leading new tungsten project." While it is a little early to develop specific mining plans, Happy Creek management surmises that the horizontal geometry of all the deposit makes it most likely amenable to a multiple, sequenced open pit mining scenario that would be followed by an underground operation. As the current pit shell uses conservative 45-degree slopes, it is thought that performing some geotechnical work could potentially allow for a steeper angle and thus, lower strip ratio. The following operational costs were used to create the pit constrained resource: CDN $5/tonne mining, CDN $20/tonne milling, CDN $5 G&A. This is based on a CDN $208.15/MTU WO 3 price. These economics would apply to both indicated and inferred resources. This year's work will include additional engineering studies to advance the Ridley Creek Zone. As well, exploration will continue on it and the other six, at-surface, tungsten prospects. This will include trenching and an approximate 2,000-metre drilling pro- gram on them, including the new South Grid target area. These efforts are being conducted in order to expand known mineralization and investigate other prospective areas for poten- tial tungsten resources, notably three other targets. At one of the targets on Deception Mountain, the BN, drill hole F12-27 returned 4.1 metres grading 1.78% WO 3 ; 14.8 metres of 4.0% WO 3 ; 24 metres of 0.79% WO 3 . Another prospective target on Deception Mountain is the BK Zone where last year prospecting located two new outcrops 20 and 60 metres south, respectively, of previous trenches contain- ing 3 metres of 2.0% WO 3 , and 7.3 metres of 1.25% WO 3 . One new outcrop returned 3.57% WO 3 , 0.34 g/t gold, 2.9 g/t silver, 1,060 g/t bismuth and 3.5 g/t indium in a grab sample. This summer's exploration is leading to the preparation of a Preliminary Economic Assessment. Happy Creek has other promising prospects in its portfolio, notably, the Rateria and West Valley properties which adjoin to the east and west, respectively, the southern portion of the Teck Resources Highland Valley Copper mine property, and adjoins to the north, the former Craigmont copper mine property, located north of Merritt, British Columbia. Highland Valley Copper is Canada's largest copper producer, (140,000 tpd). Exploration by Happy Creek has returned drill results that included 152.5 metres grading 0.35% and 95.0 metres of 0.67% copper in two new discoveries that are 6.5 km from a producing open pit. This summer's exploration work is planned to include ground induced polarization surveys, and the company is also consider- ing conducting a drilling program leading to this property's first NI 43-101 resource estimate later this fall. Another Happy Creek prospect is the 100%-owned Silver Dollar property located in the Camborne mining camp, approxi- mately 45 km southeast of Revelstoke, BC where soil sampling on the Goldfinch claim returned over 10 g/t gold. "The Goldfinch zone is becoming an attractive, large scale gold target," said Blann. "With historical drill results including 42 metres of 2.5 g/t gold starting at surface and the wide, strongly positive gold in soil results, there is opportunity for both high gold grades and large tonnage in a near-surface setting". n happy crEEK minEraLS releases Fox tungsten resource estimate Drilling at the Fox tungsten project 70 km northeast of 100 Mile House, south-central British Columbia. Photo courtesy Happy Creek Minerals Ltd.

• Cover