Property Descriptions
Shorty Creek
In January 2005, Select Resources acquired the Shorty Creek property ("Shorty") which is located in the Tolovana District about 60 miles northwest of Fairbanks, Alaska, along the paved, all-weather Elliot Highway that is the principal route used to access the North Slope petroleum production areas. Shorty has been described by a state geologist of Alaska as perhaps the best drill-ready gold exploration project in the state; and it directly offsets, and is on trend with, International Tower Hill's ongoing exploration drilling program at its Livengood Gold Project which has so far defined 12.5 million ounces of gold (indicated and inferred).
Shorty Creek is a gold or possible polymetalic exploration project where we have conducted previous campaigns of exploration work that included geochemical sampling and drilling which have identified anomalous concentrations of gold, copper, molybdenum, and their pathfinder elements.
In 2005 we carried out geophysical and satellite interpretation programs over a large portion of Shorty Creek and a multi-element soil auger geochemical program extending over one of four distinctive aeromagnetic anomalies, covering an area approximately of one mile, resulting in the identification of five precious metal and base metal anomalies. This same year we acquired mineral rights to 178 State of Alaska mining claims through staking and lease arrangements from Gold Range Ltd., covering approximately 17 square miles. In 2009, additional property was acquired through contractors, essentially doubling Shorty's property position to about 40 square miles, and was based on geophysics and third-party gold geochemistry.
Also in 2009, we acquired regional geochemistry data from the State of Alaska and an interpretation of that data by the University of Alaska which significantly enhanced the potential of Shorty Creek. The State's geochemistry data was collected over a 1,000 square mile area that includes Shorty Creek. From this data, the University determined that the highest two-and-one-quarter percent (2.25%) concentrations of precious and base metals are clustered in a 45 square mile area and about eighty-five percent (85%) of this cluster lies within the boundaries of the Shorty Creek prospect.
To date, we have not identified proven or probable mineral reserves on Shorty Creek. Based on archived data, including the State of Alaska geochemistry data and the University of Alaska study, significant mineralization has been identified on the property; and if determined to be of adequate size, quality, and spatial distribution, the final extent of this mineralization could prove to be economic in the future. Further exploration is required before a final evaluation as to the economic and technical feasibility can be determined. To that end, we have contracted Avalon Development Corporation to prepare an NI 43-101 (Canadian form) report for Shorty Creek which should be completed in the second quarter of 2010 and continue to pursue options for funding additional exploration work on the property.
There is no assurance that a commercially viable mineral deposit exists on this mineral property. The current economic conditions by all reasonable accounts point towards continued strength for precious metal prices with gold having occasionally exceeded $1,000 per ounce prices. Given that it may well take years for complete economic turnaround, Select plans to maintain a strong focus on this property.
The following table sets forth the information regarding the acreage position of the Shorty Creek claim block as of December 31, 2009:
Gross Acres
24,440Net Acres
24,440
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Richardson
The Richardson Property ("Richardson") is located in the Richardson District, one of the most prospective and underexplored gold exploration districts in east-central Alaska. Our claims are located near the all-weather paved Richardson Highway, about seventy miles southeast of Fairbanks, Alaska, and just south of the nearby Trans-Alaska Pipeline corridor that provides access to our claims from the north. We acquired the bulk of the Richardson property in 1987, and it covers 29,640 acres of land, all of which is owned by the State of Alaska.
The Richardson Project is an early-stage gold exploration project with past placer production and pilot-size lode gold production. Geophysical and geochemical signatures are consistent with intrusion-related gold systems. Nine highly prospective zones have been identified in previous exploration programs carried out by the Company and previous owners.
In late 2005, we initiated geophysical and satellite interpretation programs over the entire Richardson Property and a multi-element soil auger geochemical program, extending along approximately 4.5-miles of the Richardson Lineament that appears to extend 12 to 15 miles in length. The survey found six precious metal and other element anomalies. We also conducted 3,050 feet of diamond drilling in the Democrat Mine area which indicated gold and silver mineralization.
To date, Select has not identified proven or probable mineral reserves on the Richardson property.
There is no assurance that a commercially viable mineral deposit exists on this mineral property. The current economic conditions by all reasonable accounts point towards continued strength for precious metal prices with gold having occasionally exceeded $1,000 per ounce prices. Given that it may well take years for complete economic turnaround, Select plans to maintain a strong focus on this property.
The following table sets forth the information regarding the acreage position of our Richardson, Alaska claim block as of December 31, 2009:
Gross Acres
29,640Net Acres
28,821
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Admiral Calder
Select Resources' industrial minerals project is the Admiral Calder calcium carbonate quarry ("Calder") located in Alaska on the northwest end of Prince of Wales Island, approximately 150 air miles south of Juneau and 88 air miles northwest of Ketchikan. Independent estimates conclude that Calder may hold in excess of 25 million tons of high chemical grade, high brightness, and high whiteness calcium carbonate resource in place. By some authorities, Calder has the potential to be "a world class producer of calcium carbonate for several markets" (Harben and Lobdell, Peter Harben, Inc. 2005)
Select paid $3.0 million in 2005 to acquire Calder from Sealaska Corporation, which had invested approximately $20 million to partially delineate and develop the mineral deposit, including installations of mining materials handling equipment, marine loading facilities, and other infrastructure on the property. The quarry covers only 15 acres, but the entire property covers 572 acres of patented mining ground and includes all operating permits and tideland leases. Less than 10% of the acreage has been explored, and geologic mapping suggests substantially more resources exist on the property. The property has been in a "care and maintenance" mode since 2005 while we pursued additional capital, potential partners, and calcium carbonate product customers that would facilitate restarting quarry operations. Improved global economic conditions in the future should stimulate demand for calcium carbonate which is a key ingredient in over 1,200 products including paper and paints. Industrial minerals projects such as Calder must be competitive with other producers in terms of quality, volume, and CIF pricing to gain customers. Calder's seaside location and marine loading facilities offer a distinct competitive advantage.
In 2009, Select continued negotiations with prospective buyers for calcium carbonate who had obtained product quality tests from outside parties. These tests confirmed the extremely high quality of the calcium carbonate in the size range of over ten microns and also better quantified the reduced whiteness and brightness for the two micron size fraction. In 2010, we are pursuing options to monetize Calder, including: 1) redevelopment of the quarry; 2) outright sale or lease; 3) joint venture; or a combination of these three options.
The following table sets forth the information regarding the acreage position of the Admiral Calder property as of December 31, 2009:
Gross Acres
572Net Acres
572
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