Happy Creek samples over 10,000 ppb Au at Silver Dollar

Jan 27, 2016

HAPPY CREEK EXPANDS GOLDFINCH ZONE WITH SAMPLES OVER 10 G/T GOLD IN SOIL ON THE SILVER DOLLAR PROPERTY

Happy Creek Minerals Ltd. is providing an update on its 100-per-cent-owned Silver Dollar property, located in the Camborne mining camp, approximately 45 kilometres southeast of Revelstoke, B.C.

In September, 2015, the company collected 203 soil samples from the Goldfinch claim. The samples were collected 25 metres apart on east-west-oriented lines that are 50 metres apart. Samples were prepared and analyzed for gold and multielements by two methods at Act Labs of Kamloops, B.C. For one method, a 0.5-gram sample was digested by aqua regia then ICP/MS analyses performed with results reported in parts per billion. All samples were also analyzed for gold by fire assay and neutron activation (INNA) using a 10-gram pulp sample.

Results

For the INNA analyses, samples range from 1.1 to 2,550 ppb (2.55 grams per tonne) gold, and 46 samples contained greater than 100 ppb gold and 29 contained over 200 ppb gold. For the 0.5-gram ICP/MS method, samples range from 0.5 to greater than 10,000 ppb (10 g/t) gold, and 21 samples contained greater than 100 ppb gold, and eight contained over 200 ppb gold. Comparative analyses of the two methods and analytical duplicates suggests some gold is relatively coarse grained and that a nugget effect exists. Historical reports from the Goldfinch indicates visible gold occurs in drill core with samples up to 0.85 metre of 141.58 g/t gold, and wider intervals of 42 metres of 2.5 g/t gold. Interpretation suggests the larger sample size and fire assay with INNA results produce more consistent, reliable results. A range of gold values in soil between 37 and 75 ppb are considered moderately positive and those over 75 ppb, strongly positive.

Key points

Moderate to strongly positive gold values occur in a northwest-southeast trend that extends over 500 metres beyond the historical Goldfinch workings. The zone is thought to be part of the main regional-scale Camborne structure connecting the Goldfinch and Menhinick Creek adits, a distance of approximately one kilometre. On the southernmost grid line, nine of 10 continuous samples were over 111 ppb gold and up 2,500 ppb gold. This corresponds to a zone, approximately 225 metres in width, that remains open to the south and east. Two adjacent lines to the north contain similar values up to 868 ppb gold over 175- and 100-metre widths, respectively.

A second zone containing moderately positive values up to 625 ppb gold is from 100 to 200 metres in width, and extends over a distance of 350 metres on the west side of the grid. This zone remains open in extent to the west and south.

For both of these geochemical zones, evidence of historical drilling or other work was not observed.

David Blann, PEng, president, states: “The Goldfinch zone is becoming an attractive, large scale gold target. 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.”

Compilation and geological work are continuing to interpret the economic potential of the property.

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