New discoveries. Higher grades. Bigger stakes.
It comes as no surprise that after recent news regarding Doubleview Capital’s (DBV, TSX-V) Hat Property, including game-changing hole 23 and compelling evidence that the Lisle Zone discovery is merely a southeastern portion of a much larger NW trending Cu-Au porphyry system, major stakeholders are now making their voices heard regarding this important project and the entire Sheslay district in general.
An inevitable development and a highly encouraging sign, actually, because no deposit goes into production in mining-friendly British Columbia without this kind of noise, posturing and lively interaction among industry, government and First Nations. The Red Chris is the latest example, and that new producer rests on a prolific trend that includes the Sheslay district just 100 km to the northwest.
The Northwest Transmission Line and the Red Chris are already changing the economic landscape of northwest British Columbia. What if there are 2 or 3 or more “Red Chris” deposits in the Sheslay district? The potential stakes are huge, and the power-play is on.
A Fresh Stamp Of Value Lifts The Sheslay District To A New Level
Significantly, as we outline in this BMR exclusive, a huge stamp of value and urgency has just been placed on a region that holds enormous wealth creation potential for all stakeholders, now that numerous geologists and others in the know are in agreement that the Sheslay district is showing all the characteristics associated with a potential world class series of Gold-rich Copper porphyry deposits throughout 375 sq. km of claims held by the area’s 3 biggest players – Doubleview, Prosper Gold (PGX, TSX-V) and Garibaldi Resources (GGI, TSX-V). Garibaldi is the largest landholder now with 286 sq. km following Friday’s news, and the Grizzly is screaming to be drilled with funds in place as a potential third discovery.
This is one of the most important exploration areas in the entire country – by itself, it could light a spark in the coming weeks that rekindles a struggling junior resource market. Keep in mind, it was Doubleview’s drilling discovery in early 2014 that ignited an immediate staking rush, one of the few we’ve seen in Canada in recent years. Approximately $10 million has been spent on exploration in this district since 2013, and much, much more could be poured into the area in the years ahead for both exploration and development.
Money isn’t all that’s on the line here, though it’s a common thread connecting all parties. The Sheslay district is in Tahltan territory. Not only, of course, do the Tahltan have critical economic interests at stake (Tahltan Drilling, for example, completed each of Doubleview’s first 23 holes – they currently have 8 rigs sitting idle, and Tahltan are looking for other work as well), but they also have legitimate concerns regarding how exploration and potential resource development proceed at the Hat and throughout the district – just like at Red Chris and key projects elsewhere. The Tahltan must be respected. This means close consultation and no surprises.
Doubleview, Prosper and Garibaldi have each been granted multi-year exploration/drilling permits from the B.C. Ministry of Energy and Mines. The Tahltan were not excluded from that process and voiced no major objections. But regular consultation/dialogue between each company and the Tahltan is essential, plus of course there’s the broader issue of ongoing negotiations between the Tahltan Central Council and the provincial government over a long-term approach to land issues. It’s in the best interests of all stakeholders to work closely and respectfully with each other.
A Rich History Of Exploration
Exploration in the Sheslay district goes back decades, and in the late 1980’s a 160-km access road was built through part of this area to link with the Golden Bear high-grade Gold mine approximately 25 km west of the Sheslay River (in 2005, B.C. Minister of Mines Bill Bennett presented Goldcorp Inc. (G, TSX) with the Jake MacDonald Mine Reclamation Award for the Golden Bear).
Exploration in the Sheslay district goes back more than half a century – pictured here on the Hat years ago is Tom Lisle (P.Eng), a long-time area prospector. Doubleview has honored Lisle by naming its first discovery zone after him.
Only in the last 2 years has it become obvious – increasingly so over the last 6–9 months – that the Sheslay district is very “pregnant” – deposits appear likely from one end to the other along a series of NW/SE parallel trends over a widening mineralized corridor that’s known at the moment to stretch for as much 30 km. One important geological theory is that the catalyst for all of this – the “heat engine” – is Mount Kaketsa, a pluton that rests mostly along the far western side of Garibaldi’s Grizzly. The rocks in this district have been “cooked up” in a very serious way – that’s the conclusion of every geologist we’ve spoken to.
What these companies will need to prove, of course, are the existence of economic deposits. The right geological mix appears to be there, however, and already some major producers are closely monitoring exploration and drilling results from the area. The district is clearly just 1 or a few more drill holes away from something very big. All things considered, it makes perfect sense that Chad Norman Day has suddenly entered the picture – interestingly, following DBV hole 23 and just before more drilling at the Hat and first-ever drilling at the Grizzly.
Chad Norman Day – Tahltan Central Council President
“Chad Day is a reasonable guy who you can do business with,” a source within the B.C. Ministry of Energy and Mines told BMR as we conducted due diligence regarding a letter that was recently posted on the Tahltan web site, directed at 3 unnamed companies (we’ve learned they are Doubleview, Prosper and Garibaldi). Teck Resources (TCK.B, TSX), Ashburton Ventures (ABR, TSX-V), Alix Resources (AIX, TSX-V), and others with ground in the Sheslay district, were ignored.
“This is about the Tahltan resetting the relationship in the Sheslay district, not about stopping exploration,” a source close to the Tahltan, wishing to remain anonymous, told BMR.
A front page story in the Saturday, May 30, edition of the Vancouver Sun spoke volumes about the “seismic shift” – First Nations managing wealth instead of managing poverty – that has occurred in British Columbia.
“First Nations are emerging as economic power brokers in B.C.,” the page 1 headline read, “signing settlements and partnerships with industry and government worth billions.”
The 28-year old Day, who was elected President of the Tahltan Central Council in July of last year after serving as an elected Councillor of the Tahltan Band from 2012 and honing his skills at law school in Victoria, is a rising star in the Tahltan Nation. He was born in Vancouver and moved to Telegraph Creek when he was young, followed by Smithers. By all accounts, he’s bright, athletic, and has earned income from the mining industry. He delivered a powerful video message to his people recently regarding the benefits of the Tahltan deal with Imperial Metals (III, TSX) on Red Chris, and Tahltan voters overwhelmingly accepted the agreement in the April referendum. BMR has attempted to contact Day for an interview as he’s somebody the industry and investors need to know better.
“Government and industry understand that the First Nations people need to benefit when these things are built,” Day was quoted in the Vancouver Sun article. “But with the Tahltan, it actually makes a lot of sense to partner with us because we have the capacity, we have the work ethic, we have the experience.”
Tahltan Central Council President Chad Norman Day, who just recently negotiated an “historic” agreement with Imperial Metals (Red Chris mine) that was lauded by both the company and the Tahltan.
“Tahltan Act To Protect Sheslay”
Below is a recent screen shot from the Tahltan home page. What we’re illustrating here with the blue dashed lines that we’ve added is the irony of the “Protect Sheslay” letter adjacent to “Tahltan Approve Management And Revenue Deal For Red Chris Mine.”
What this symbolizes, in other words, are the deep connections between the Sheslay district and the Red Chris – not only are they on the same geological trend, of course, but both are very much about protecting economic opportunity for the Tahltan.
There is nothing wrong with that. This is Tahltan territory and Day, standing up for all of his people, is also the first to argue that many parts of this vast area the size of Portugal are of highly significant cultural, spiritual and social value to the Tahltan.
This includes the Sheslay River itself (west of the Grizzly, Star and Hat) which has never been disturbed from decades of exploration and never would be disturbed by any future mining operations – B.C. ‘s laws already ensure that.
Screen shot from Tahltan web site – we’ve added the dashed lines to show the interesting juxtaposition of “Tahltan act to protect Sheslay” with “Tahltan approve management and revenue deal for Red Chris mine”.
And Now The Letter…
Indeed, after hole 23 and the impressive rise of the Hat Project from a grassroots property just 2 years ago, combined with what’s now known about hundreds of sq. km of district claims in general, this letter underscores just how richly endowed the Sheslay district likely is. It wouldn’t be getting this attention if it wasn’t. It’s a message for the companies and the government.
In Chad Day’s own words, “With the Tahltan, it actually makes a lot of sense to partner with us because we have the capacity, we have the work ethic, we have the experience.”
Doubleview, Garibaldi, Prosper…a major? Get ready to “partner up”.
Note: John and Jon both hold share positions in DBV and GGI.
It appears a major mining company or companies have been moving silently in the Sheslay district, not surprising since DBV have 23 drill holes with mineralization and it appears the Tahltan are abreast of the developments and attention the district is attracting.
All of the developments going on in the Sheslay district may have been the reason for the complete silence over the past weeks from DBV. As things unfold the news will be released and it looks good . Patience everyone patients , Rome was not built in a day. .Great article BMR , thanks for shedding some light on the matter .
Comment by Les — June 7, 2015 @ 6:46 am
So…I can’t quite tell if this is good news or bad…wouldn’t push back from the Tahltan cause these three companies big problems? Could this slow production and exploration? I’d assume that DBV doesn’t need any road-blocks (no pun intended) at this point in time considering they may be ready to kick things into high gear right away.
Comment by Steve A. — June 7, 2015 @ 6:59 am
This is the best development yet in the district, Steve, besides DBV’s discovery holes, because this only happens when there’s something of major value at stake. This is the natural progression of the Sheslay district to a new stage, same pattern as seen with all other key mining projects in the province. Les made some good points.
Comment by Jon - BMR — June 7, 2015 @ 7:15 am
Thanks Jon. I’m new to all of this, I appreciate your insights.
Comment by Steve A. — June 7, 2015 @ 7:30 am
Steve A . It sounds like The Tahltan have good reason to continue with the progress being made in the area as it appears they have 8 drill rigs that they would like to also be put to work and the fact the Tahltan just made an agreement with Red Chris ,May 2015 This gives me every indication The Tahltan are eager to continue with developments not place road blocks for DBV , GGI and PGX.IMHO
Comment by Les — June 7, 2015 @ 8:21 am
Exciting report. I would think that one of the companies interested in sheslay would have to be Tech res. Just maybe behind scene activity is all about bringing the whole group together. Agreement before any potentially exciting drill results released or more drilling started. Just my weird thoughts. Richard l
Comment by richard l — June 7, 2015 @ 9:19 am
Richard l – not weird thinking at all , what appears to be nothing happening at all is more than likely a pressure cooker of activity going on sielently . Antofagasta has a connection with Dr. Razeque and I’m quite positive they or any other major would not want anyone taking notice of their presence at this time. Tahltan knows a lot more than the public in general as all this is going on in their back yard. All of the parties involved will remain silent until anyagreements are reached. Again IMHO
Comment by Les — June 7, 2015 @ 10:49 am
Maybe Regoci knows more to : “These claims are very complementary to our ongoing exploration program at the Grizzly and they’ve been acquired at an opportunistic time in the market cycle”. What market cycle is he talking about? market cycle of the distric!?
Comment by Martin — June 7, 2015 @ 12:22 pm
Thanks Les! Sounds like the exciting times may be finally around the corner. Hopefully going to be a good summer for DBV (and all other players in the Sheslay).
Comment by Steve A. — June 7, 2015 @ 1:22 pm
Jon
I’m not seeing how this is good news, the letter clearly states:
“Our people have been clear that mining in the Sheslay will not be tolerated, and the Tahltan Nation does not support mineral exploration activities occurring in this area.”
Are they just saying this so that the companies wanting to mine in the area have to come to them and negotiate first? The letter is saying please do not do any exploration until they formalize a plan with the province of British Columbia..
Comment by Greg — June 7, 2015 @ 2:24 pm
I believe they are referring to the Sheslay River area, not the already permitted Sheslay mining district?
Comment by Dan — June 7, 2015 @ 2:40 pm
Greg…you need to grasp the full picture here and what’s really going on. A few points:
1. Who do u think handled the drilling on the first 23 holes at the Hat? Tahltan Drilling. Does it make any sense than the Tahltan Nation does not support mineral exploration activities in the Sheslay district when their own drilling company drilled the first 23 holes at the Hat? Plus the fact that exploration has been carried out in this district for more than half a century?
2. The first sentence of the letter refers to the Sheslay River. There’s a huge difference between the Sheslay River and the Sheslay District.
3. Doubleview and Garibaldi (and Prosper) have the full legal authority to proceed to drilling immediately. Nothing is stopping them. The letter also doesn’t demand they cease exploration. These companies have 5-year permits and the Tahltan did not oppose the drilling applications.
Suddenly the “game” changes after hole 23 and with DBV set to drill again, and GGI ready to drill for the first time.
This has a lot to do with money, jobs, etc., and all that could be in the ground in the Sheslay district. Follow the money. And it’s about bargaining power vs. the government on the broader negotiations over land issues. It’s also about respect. This is Tahltan territory. Regular consultation/dialogue and respect at all times are a must.
The drills will turn and this will be a huge summer especially for DBV and GGI. What this drama underscores is that the stakes have risen tremendously. That only happens when there’s something very significant in the ground, and big money at play. I’m more excited than ever now about how the Hat and the entire district are going to play out.
Comment by Jon - BMR — June 7, 2015 @ 2:41 pm
I for one, will be adding to my ggi retirement fund at this level, and we should get something out of Mexico very shortly.. Good luck.
Comment by Tombc — June 7, 2015 @ 2:48 pm
Jon,
ok got it, forgot about the Tahltan Drilling the Hat. Thanks
Comment by Greg — June 7, 2015 @ 2:52 pm
Les it is exactly what I think about the silence of DBV since 3 weeks,if we have negociation between DBV and Antofagasta we have statut quo on all news. This is explain why we don’t have nothing on hole23 !
Comment by Guy Delisle — June 7, 2015 @ 5:31 pm
This letter has been out since May 21st? nobody mentioned it 3 weeks ago?
Comment by STEVEN1 — June 8, 2015 @ 6:10 am
Good point, Steven…we picked up on it recently but from our perspective we wanted to make sure we carried out appropriate due diligence and research to understand the full picture and what was really going on with this and what was behind it…
Comment by Jon - BMR — June 8, 2015 @ 6:35 am