Mining and Exploration highlights

C. Paul Jago - P.Geo., Regional Geologist, Prince George BC

Omineca and Northeast regions, British Columbia, 2015-16

Mines and selected exploration projects, 2015

Main mineral deposit types mined

and/or explored for in 2014:

- Epithermal gold-silver & gold vein

- Porphyry copper-gold ± Ag ± Mo

Porphyry molybdenum

- Sediment-hosted zinc-lead ± Ag

- Niobium ± REE (specialty metals)

- Nickel-iron alloy (awaruite)

- Barite veins

- Phosphate

- Limestone, Dimension stone

- Med volatile bituminous coal

- Anthracite coal

Updated mineral exploration expenditure & drilling statistics

Expenditure

$70.8 million

in 2015 (23.3% less YOY)

Drilling

57,350 m(14.6% less YOY)

Mineral production in BC

$6.9 B

Average increase of $345 M/y since 2003

20132014 $272 M

(2015)

Skeena Region = 43.0%Omineca-Northeast Region = 26.1%

69% of expenditure from Northern BC

Average increase of $26 M/y since 2003

Northeast Region:

- Peace River Coalfield

Peace River Coalfield: mines

• five metallurgical coal mines

(and mine developments) placed on

C&M since 2013:

Trend-Roman - Anglo American plc

Perry Creek - Walter Energy, Inc.

Brule - Walter Energy, Inc.

Willow Creek -Walter Energy, Inc.

Quintette-Babcock - Teck Coal Limited

HA

RT R

AN

GES

• mined inventory transported in January at:

Trend-Roman - Anglo American plc

• and processed and transported to May at:

Brule - Walter Energy, Inc.

Willow Creek -Walter Energy, Inc.

2015:

HA

RT R

AN

GES

Metallurgical coal

Sukunka - Glencore plc (75%), JX Nippon Oil

& Energy Corp. (25%)

• Env. Assessment (under review)

• updated resource/geologic model

• eng. & env. studies - proposed open-pit mine

• <3 Mt saleable coal (initially)

• >20 year mine life, ~540 jobs ops

• 145 Mt in situ resource (M & I)

• Env. Assessment (issued in Oct, 2015)

• driving decline (1350 m)

• drilling (11 holes - hydrogeo., explor.)

• 2016: bulk sample complete - mine permitting

• proposed underground longwall mine

• avg. production of 4.8 Mt/y saleable coal.

• 25 year mine life, ~760 jobs ops

• 261.6 Mt (proven reserve)

Murray River - HD Mining Int’l Ltd.

Peace River Coalfield: mine evaluation

Murray River HD Mining International Ltd.

Peace River Coalfield area: mine evaluation

Industrial mineral phosphate (fertilizer)

HA

RT R

AN

GES

Wapiti East - Fertoz International Ltd.

• scoping study, upgraded resource

• <75,000 t/y mine lease application submitted (late 2014)

• proposed seasonal shallow open-pit mine

• >20 year mine life

• 0.81 Mt at 22.3% P2O5 (Ind.)

• 2016: 10,000 t bulk sample sales (Wapiti East & Fernie projects)

• field & lab testing for organic certification

• direct application fertilizer product

Omineca Region: - Kechika trough

- Toodoggone River area

- Muskwa ranges

Fireside - Fireside Minerals Ltd.

• 2015 barite production:

65,000 tonnes mined

32,000 tonnes milled

• sold as a weighting agent for

drilling fluids in oil/gas

exploration, prevents blowouts

NACAQNST

Akie - Canada Zinc Metals Corp.

• diamond drilling (8 holes; 5350 m)

• 2014-15 airborne gravity gradiometry data

• updating NI 43-101 resource estimate

• environmental baseline studies

• permitted for underground development

& drilling

Kechika trough: grassroots to advanced

Kechika Regional

• 140 km trend of contiguous properties

• 2014-15 airborne gravity gradiometry

data received for:

Yuen North & Mt. Alcock properties

Sediment-hosted Zn-Pb-Ag

Cardiac Creek deposit (Akie)

• 19.6 Mt at 8.2% Zn, 1.6% Pb, 13.6 g/t Ag (Ind.)

= 3540 Mlbs Zn , 685 Mlbs Pb, 8.6 Moz Ag

• 8.1 Mt at 6.8% Zn, 1.2% Pb, 11.2 g/t Ag (Inf.)

Drilling highlights 28.51 m of 10.22% Zn, 2.34% Pb, 20.45 g/t Ag (A-15-121)

23.36 m of 8.63% Zn, 1.68% Pb, 14.64 g/t Ag (A-15-122)

21.41 m of 9.47% Zn, 2.11% Pb, 18.22 g/t Ag (A-15-124)

15.76 m of 9.71% Zn, 1.74% Pb, 15.75 g/t Ag (A-15-125)

1300 m strike length700 m down-dip extent20 m avg. true thickness

NACAQNST

Cirque - Teck Resources Limited,

Korea Zinc Company Limited

• drilling (5370 m; 5 holes)

• geochemical sampling (rock, soil)

• mapping, prospecting

• 2014-15 airborne gravity gradiometry data

received

Kechika trough: grassroots to advanced

Kechika Regional (Pie Option): Yuen, Cirque East, Pie, Elf

• drill target definition

• geochemical sampling (rock, soil)

• mapping, prospecting, core relogging

• gravity geophysical survey (12.5 line-km)

• 2014-15 airborne gravity data received

• Pb-Zn anomaly (2.2 x 0.5 km) defined on Yuen

North Cirque deposit (Cirque)

non NI 43-101 compliant:

38.5 Mt at 8% Zn, 2.2% Pb, 47.2 g/t Ag (Ind.)(MacIntyre, 1998 - Bulletin 103)

1000 m strike length300 m down-dip extent<60 m thickness

Akie

Cirque

NACAQNST

Aley - Taseko Mines Limited

• Env. Assessment (pre-ap.)

• eng. & metallurgical studies

• geochemical characterization of ore

• environmental baseline data collection

• proposed open-pit mine

- 10,000 t/d processing

• avg. 9000 t/y niobium production

• 24 year mine life

• 83.8 Mt at 0.50% Nb2O5;

~292,900 tonnes Nb (P&P)

Muskwa ranges: grassroots to mine evaluation

Coral - Minfocus Exploration Corp.

• geochemical sampling (rock),

mapping, prospecting

• 3.21% Zn, 0.70% Pb avg. grade in

12.9 m long trench

MVT zinc-lead deposit

Carbonatite-hosted niobium

Magnetite, apatite, phlogopite, Nb-oxides

1200 x 400 m proposed open pit

NACAQNST

Kemess Underground - AuRico Metals Inc.

• proposed underground panel cave mine

• 2015: geotechnical drilling, test pitting

• 2016: Env. Assessment (under review)

• feasibility study update

• 24,600 t/d processing - 12 year mine life

• ore is 200-550 m below surface

• using Kemess South infrastructure

• pre-production capex = C$603 million

• 4-year development period, >400 jobs

Toodoggone River area: advanced to mine evaluation

Porphyry Cu-Au-Ag-Mo

• avg. annual production:

106 Koz Au, 47 Mlbs Cu

• LOM production:

1.4 Moz Au, 573 Mlbs Cu, 4.5 Moz Ag

2 km

• 107.4 Mt at 0.27% Cu, 0.54 g/t Au, 2.0 g/t Ag (P&P)

= 629.6 Mlbs Cu, 1.9 Moz Au, 6.9 Moz Ag

• 246.4 Mt at 0.22% Cu, 0.42 g/t Au, 1.8 g/t Ag (M&I)

NACAQNST

Toodoggone River area: advanced to mine evaluation

Kemess East - AuRico Metals Inc.

• one km east of KUG

• 2015: drilling (15 holes; 27,719 m)

• Kemess East & Kemess Offset zones

• open in three directions

• geochemical sampling (rock),

mapping, prospecting

• high-grade deposit core delineated

• 2016: metallurgical testwork program

• updated resource estimate based on

lithological, structural & alteration models

Porphyry Cu-Au-Ag-Mo

• 39.2 Mt at 0.40% Cu, 0.50 g/t Au, 2.0 g/t Ag

= 344 Mlbs Cu, 627 Koz Au, 2.5 Moz Ag (Ind.)

• 109.6 Mt at 0.37% Cu, 0.38 g/t Au, 2.0 g/t Ag (Inf.)

• High grade core:

19.2 Mt at 0.47% Cu, 0.72 g/t Au, 2.0 g/t Ag (Ind.)

Kemess East -AuRico Metals Inc.

• drilling highlights:

• 305 m of 0.625 g/t Au, 0.433% Cu (KH-15-01)

• 301 m of 0.466 g/t Au, 0.394% Cu (KH-15-02)

• 458 m of 0.640 g/t Au, 0.437% Cu (KH-15-23)

• 590 m of 0.516 g/t Au, 0.366% Cu (KH-15-27)

• 772 m of 0.465 g/t Au, 0.365% Cu (KH-15-30)

• mineralization: 850-1600 m depth

Toodoggone River area: advanced to mine evaluation

NS

Kemess East zone Kemess Offset zone

NACAQNST

Epithermal Au-Ag

Toodoggone River area: early stage

Lawyers - PPM Phoenix Precious

Metals Corp.

• drilling (24 holes, 4002 m), prospecting

• Cliff Creek North (1600 m strike length) &

Duke's Ridge (1480 m) zones

• verify and infill historic results

• P2 vein discovery:

0.7 m over 274 g/t Au, 7542 g/t Ag

• first drilling program in 9 years

Groundhog – Atrum Coal Groundhog Inc.

• proposed Groundhog North Mining Complex

• updating PFS for underground & highwall mines

• 2016: underground bulk sample permit (<100 Kt)

Bowser Basin: advanced stage

Anthracite coal • planned initial small-scale mine permit (<250 Kt/y)

• eng. studies and env. baseline data collection

• coal quality testing & washing simulations

• improved yields >80% for Duke E seam

• upgraded resource & geological model

Magnetite replacement and breccia body Lawyers

Groundhog North - proposed initial portal development

• 349.4 Mt in situ anthracite (M&I) - Groundhog North

• 259.7 Mt in situ anthracite (M&I) - East of Skeena

NACAQNST

Kliyul - Teck Resources Limited,

Kiska Metals Corporation

• drilling (4 holes, 1908 m)

• geochemical sampling (rock), mapping,

prospecting

• drilling highlights:

245.0 m of 0.18% Cu, 0.53 g/t Au (KLI-15-034)

162.4 m of 0.20% Cu, 0.26 g/t Au(KLI-15-033)

Ingenika fault corridor: grassroots to early stage

Porphyry Cu-Au

Red Lion – Garibaldi Resources Corp.

• aeromagnetic, radiometric survey,

• IP survey (47 line-km)

• geochemical sampling

• mapping, prospecting

• area of Cu-Au anomalous RGS stream

sediments (including Kliyul)

Copper King - Pacific Empire Minerals Corp.

Menard - HPX Quesnellia Holdings 1 Inc.

• IP survey (5 line-km) at Copper King

• geochemical sampling (rock, soil, silt) at Menard

• mapping, prospecting

Magnetite replacement and breccia body Ingenika fault corridor: grassroots to early stage

Kliyul - Teck Resources Limited,

Kiska Metals Corporation

Porphyry Cu-Au

Omineca Region: - Quesnel Terrane

CA NA

QNCCST

SM

Mt. Milligan - Thompson Creek

Metals Company Ltd.

• ramp-up continued to

60,000 t/d processing in

Jan 2016

• second SAG mill discharge

screen deck installed

• engineering for permanent

secondary crushing circuit

• 2015 production:

71.4 Mlbs Cu, 218.1 Koz Au

2016 guidance:

55-65 Mlbs Cu, 240-270 Koz Au

• 2016 production from higher

grade gold zones

• 2016 planned capex ~$72 M

($47 M secondary crusher)

• 23 year mine life, ~450 employ.

Porphyry Cu-Au-Ag

Quesnel Terrane: mine and early stage

North Grid - Thompson Creek Metals Company Ltd.

• drilling (2000 m) on two targets: Mitzi, Snell

• similar geophysical-geochemical signatures as

mineralized stocks at Mt. Milligan deposit

• Reserves:

506.4 Mt at 0.196% Cu, 0.349 g/t Au (P&P)

= 2185 Mlbs Cu, 5.69 Moz Au

CA NA

QNCCST

SM

Col-Later - Pacific Empire

Minerals Corp.

• IP survey (68 line-km)

• drilling (6 holes, 2493 m)

• testing two geophysical

anomalies on the till-blanketed

western side of property

Porphyry Cu-Au

Quesnel Terrane: mine and early stage

Chuchi - Kiska Metals Corp.

• IP survey (10 line-km),

prospecting

• chargeability anomalies within

and flanking the BP zone

(1.5 x 1.5 km) intrusive centre

• new drill targets

Kwanika, Kwanika East-Smoke & Jewel - Serengeti

Resources Inc.

• 2015: heliborne magnetics survey

(328 line-km at KE-S, 55 line-km at Jewel)

• 2 km-long ring-shaped cluster of mag highs (Jewel)

• 2016: re-evaluating Kwanika PEA - drill program in deposit area (JV w. DAEWOO Minerals Canada Corp.)

Col-Later

Chuchi

Omineca Region: - Nechako Plateau

- Cache Creek terrane

- Slide Mtn terrane/Cassiar platform

Endako - Thompson Creek

Metals Company Inc. (75%),

Sojitz Moly Resources Inc.

• July 2015 - placed on

care and maintenance

• reserves:

33.4 Mt at 0.049% Mo (M&I)

= 36 Mlbs molybdenum

Nechako Plateau: mine evaluation

Blackwater - New Gold Inc.

• Env. Assessment (under review)

• eng. & env. studies - -

- alternative TSF evaluation

• proposed open-pit mine

- 60,000 t/d processing

• avg. annual production:

413 Koz Au, 1.74 Moz Ag (LOM)

• 17 year mine life, ~500 jobs

• 344.4 Mt at 0.74 g/t Au, 5.5 g/t Ag

= 8.17 Moz Au, 60.8 Moz Ag (P&P)

Epithermal Au-Ag (int. sulfidation)

W E

600 mNew Gold, 2013

QNCCST

SM

KO

CA

BW-623: silica halos on

pyrite-sphalerite pseudomorphs

~1300 x 950 x 350 m depth mineralized-altered body

Nechako Plateau: early stage

Blackwater South - New Gold Inc.

• 3 target areas: BW South,

Dave, Kaolinite Ridge

• drilling (5150 m) - following up

2014 porphyry Cu-Mo-Ag discovery

at NW margin of Blackwater pluton

• heliborne magnetics survey

• ground geophysics (IP, mag)

• geochemical sampling (soil, rock)

• mapping, prospecting

Epithermal Au-Ag

Porphyry Cu-Mo-Ag

QNCCST

SM

KO

CA

Buck - New Gold Inc.

• heliborne geophysics (magnetics)

• geochemical sampling (rock)

• mapping, prospecting

• Late Cretaceous granite pluton

DBS-14-003130 m at 0.19% Cu, 0.118% Mo, 2.58 g/t Ag 284 m at 0.10% Cu, 0.029% Mo, 0.84 g/t Ag

DBS-14-004174 m at 0.09% Cu, 0.055% Mo, 0.65 g/t Ag 98 m at 0.05% Cu, 0.033% Mo, 0.47 g/t Ag

Nechako Plateau

Cache Creek terrane: grassroots to early stage

2 X Fred - Kootenay Silver Inc.

Theia Resources Ltd.

• 2014: trenching, sampling (rock)

• 244 samples in 16 trenches

avg. 0.49 g/t Au, 8.7 g/t Ag

• 2015: shallow drilling (4 holes, 717 m)

incl. 35.4 m at 0.55 g/t Au, 9.39 g/t Ag

• 3.0 x 1.4 km area vein system

Epithermal Au-Ag (low sulfidation)

Au-quartz veins

QNCCST

SM

KO

CA

Trout - Venerable Ventures Ltd.

• soil sampling

• 900 x 100 m NE-trending

Au-As-Sb geochem anomaly

BT - Porpoise Bay Minerals Ltd.

• trenching, prospecting

• area of anomalous gold

surface samples <0.318 g/t Au

Slide Mtn terrane

Cassiar platform: mine evaluation

Giscome - Graymont Western

Canada Inc.

• Env. Assessment (under review)

• eng. & env. studies

• final lime plant & quarry design

• bulk sample (1000 t), test pitting

• proposed 600,000 t/y limestone quarry

• vertical lime kiln to produce 198,000 t/y lime

• 50+ year mine life

• <60 jobs construction, ~15 ops

• >100 Mt of limestone in situ (Ind.)

(>95% calcite, <5% Mg-carbonate)

QNCCST

SM

KO

CA

Industrial mineral limestone

In summary:

Omineca region

• exploration expenditure for 2015 is estimated at $39.6 million - 7% less than in 2014

• total drilling for 2015 is estimated at 55,200 m (32% more than in 2014)

• grassroots + early stage exploration = 24.7% of expenditure

Northeast region

• exploration expenditure for 2015 is estimated at $31.3 million - 37% less than in 2014

• total drilling for 2015 is estimated at 2,150 m - 92% less than in 2014

• reflecting difficult metallurgical coal market conditions

Thank you. Q’s? References• Cui, Y., Miller, D., Nixon, G., and Nelson, J., 2015.

British Columbia digital geology. British

Columbia Geological Survey Open File 2015-2.

• Nelson, J. L., Colpron, M., and Israel, S.K., 2013.

The Cordillera of British Columbia, Yukon, and

Alaska: tectonics and metallogeny. In: Colpron,

M., Bissig, T., Rusk, B., and Thompson, J.F.H.,

(Eds.), Tectonics, Metallogeny, and Discovery -

the North American Cordillera and similar

accretionary settings. Society of Economic

Geologists, Special Publication 17, pp. 53-109.

Acknowledgments

Thanks to the geologists and miners

who were generous with their time and

resources, and those who provided

expenditure and related information. I

also thank the Regional Geologists and

the Mineral Development Office for

additional support, and the skilled staff

at the Ministry of Energy and Mines

regional office in Prince George.