Geology and Mineralization of the Chief Danny Prospect Contango Ore - - PowerPoint PPT Presentation

Geology and Mineralization of the Chief Danny Prospect Contango Ore Inc. Tetlin Project Tok, AK

Christopher J. Van Treeck Tetlin Project Geologist, Avalon Development Corp.

Contango Ore, Inc. Disclaimer

This presentation may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, in-situ valuations, mining costs, potential mineral recovery processes, mineral resources or reserves and other related matters. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. The forward-looking statements contained in this presentation represent the subjective views of the management of Contango ORE,

• Inc. and management’s current estimates of future performance based on assumptions that are

subject to significant business, economic and competitive uncertainties and contingencies, which are beyond the control of Contango ORE, Inc. and which may or may not prove to be correct. The Contango ORE, Inc. properties addressed herein are at an early stage of development. More work is required before mineralization and project economics can be confidently modeled or determined. Actual results may differ materially from those currently anticipated and presented in this

• presentation. No representation, warranty or prediction is made or intended as to the results of future

work, the ability to obtain governmental approvals for further development or the accuracy or completeness of any of the information contained in this presentation. There is no assurance that the estimates and projections herein will be sustained in future work or that the project will otherwise prove to be economic. You should not unduly rely on these forward-looking statements in this

• presentation. Contango ORE, Inc. expressly disclaims any and all liability relating to or resulting from

the use of information contained in this presentation.

AMA 2013 Annual Convention, Anchorage AK 3

AMA 2013 Annual Convention, Anchorage AK 4

The Chief Danny Prospect July 2013

AMA 2013 Annual Convention, Anchorage AK 5

The Chief Danny Prospect October 2013

AMA 2013 Annual Convention, Anchorage AK 6

Location

AMA 2013 Annual Convention, Anchorage AK 7

Location

AMA 2013 Annual Convention, Anchorage AK 8

Location

AMA 2013 Annual Convention, Anchorage AK 9

Property History

• 2008 Juneau Exploration acquired mineral exploration and

production lease on 273,163 hectares (675,000 acres) of surface and subsurface rights to Tetlin Village Council Lands

• 2009-2010 Juneau Exploration stakes AK Mining Claims near the

lease area

• 2009-2010 Contango Mining Company, a subsidiary of Contango Oil

and Gas Company (MCF.NYSE) acquired the lease and AK Mining Claims

• 2010 Contango ORE Inc. is spun out from Contango Oil and Gas

Company, and begins trading under symbol CTGO.PK

• 2012-2013 Contango ORE Inc. stakes additional AK Mining Claims –

Property now covers 300,834 hectares (743,376 acres)

AMA 2013 Annual Convention, Anchorage AK 10

Current Exploration History 2009

AMA 2013 Annual Convention, Anchorage AK 11

Tetlin Project Current Exploration History

• Lease Signed Q3 2008, remote sensing data acquired and analyzed
• 2009 First Reconnaissance Program June-July – follow up Soil

sampling and Trenching Sept-Oct

• 2010 Prospecting & Stream Sediment, Pan Concentrate, focused

Basal Soil sampling June-Sept, IP survey Sept-Oct

• 2011 Basal Soil sampling May-Aug, Airborne Magnetic and

Resistivity (DigHEM) survey May, 11 hole (2456 m) core drilling program Aug-Oct

• 2012 Basal Soil sampling May-Sept, 50 hole (10,974 m) core drilling

program May-Sept, Inferred Resource Estimate

• 2013 Airborne Magnetic and Resistivity (DigHEM, HeliTEM) survey

May, Basal Soil sampling May-Sept, Stream Sediment & Pan Concentrate sampling July-Aug, 69 hole (14,625 m) oriented core drilling program June-Sept

AMA 2013 Annual Convention, Anchorage AK 12

Current Exploration History 2010

AMA 2013 Annual Convention, Anchorage AK 13

Tetlin Project Current Exploration History

• Lease Signed Q3 2008, remote sensing data acquired and analyzed
• 2009 First Reconnaissance Program June-July – follow up Soil

sampling and Trenching Sept-Oct

• 2010 Prospecting & Stream Sediment, Pan Concentrate, focused

Basal Soil sampling June-Sept, IP survey Sept-Oct

• 2011 Basal Soil sampling May-Aug, Airborne Magnetic and

Resistivity (DigHEM) survey May, 11 hole (2456 m) core drilling program Aug-Oct

• 2012 Basal Soil sampling May-Sept, 50 hole (10,974 m) core drilling

program May-Sept, Inferred Resource Estimate

• 2013 Airborne Magnetic and Resistivity (DigHEM, HeliTEM) survey

May, Basal Soil sampling May-Sept, Stream Sediment & Pan Concentrate sampling July-Aug, 69 hole (14,625 m) oriented core drilling program June-Sept

AMA 2013 Annual Convention, Anchorage AK 14

Current Exploration History 2011

AMA 2013 Annual Convention, Anchorage AK 15

Tetlin Project Current Exploration History

• Lease Signed Q3 2008, remote sensing data acquired and analyzed
• 2009 First Reconnaissance Program June-July – follow up Soil

sampling and Trenching Sept-Oct

• 2010 Prospecting & Stream Sediment, Pan Concentrate, focused

Basal Soil sampling June-Sept, IP survey Sept-Oct

• 2011 Basal Soil sampling May-Aug, Airborne Magnetic and

Resistivity (DigHEM) survey May, 11 hole (2456 m) core drilling program Aug-Oct

• 2012 Basal Soil sampling May-Sept, 50 hole (10,974 m) core drilling

program May-Sept, Inferred Resource Estimate

• 2013 Airborne Magnetic and Resistivity (DigHEM, HeliTEM) survey

May, Basal Soil sampling May-Sept, Stream Sediment & Pan Concentrate sampling July-Aug, 69 hole (14,625 m) oriented core drilling program June-Sept

AMA 2013 Annual Convention, Anchorage AK 16

Current Exploration History 2012

AMA 2013 Annual Convention, Anchorage AK 17

Tetlin Project Current Exploration History

• Lease Signed Q3 2008, remote sensing data acquired and analyzed
• 2009 First Reconnaissance Program June-July – follow up Soil

sampling and Trenching Sept-Oct

• 2010 Prospecting & Stream Sediment, Pan Concentrate, focused

Basal Soil sampling June-Sept, IP survey Sept-Oct

• 2011 Basal Soil sampling May-Aug, Airborne Magnetic and

Resistivity (DigHEM) survey May, 11 hole (2456 m) core drilling program Aug-Oct

• 2012 Basal Soil sampling May-Sept, 50 hole (10,974 m) core drilling

program May-Sept, Inferred Resource Estimate

• 2013 Airborne Magnetic and Resistivity (DigHEM, HeliTEM) survey

May, Basal Soil sampling May-Sept, Stream Sediment & Pan Concentrate sampling July-Aug, 69 hole (14,625 m) oriented core drilling program June-Sept

AMA 2013 Annual Convention, Anchorage AK 18

Current Exploration History 2013

AMA 2013 Annual Convention, Anchorage AK 19

Tetlin Project Current Exploration History

• Lease Signed Q3 2008, remote sensing data acquired and analyzed
• 2009 First Reconnaissance Program June-July – follow up Soil

sampling and Trenching Sept-Oct

• 2010 Prospecting & Stream Sediment, Pan Concentrate, focused

Basal Soil sampling June-Sept, IP survey Sept-Oct

• 2011 Basal Soil sampling May-Aug, Airborne Magnetic and

Resistivity (DigHEM) survey May, 11 hole (2456 m) core drilling program Aug-Oct

• 2012 Basal Soil sampling May-Sept, 50 hole (10,974 m) core drilling

program May-Sept, Inferred Resource Estimate

• 2013 Airborne Magnetic and Resistivity (DigHEM, HeliTEM) survey

May, Basal Soil sampling May-Sept, Stream Sediment & Pan Concentrate sampling July-Aug, 69 hole (14,625 m) oriented core drilling program June-Sept

AMA 2013 Annual Convention, Anchorage AK 20

Geochemical Sampling

Year Prospect Core Grab Rock Chip Channel Basal Soil Pan Con Stream Sed Core Drilling (m) Geophysics (line km) Trenching (m) Project-wide Recon

390 94 111

Chief Danny Prospect

84 484 33 710

Project-wide Recon

364 125 666 789

Chief Danny Prospect

251 610 26 34 14

Project-wide Recon

18 921 5 1 3,957

Chief Danny Prospect

1,267 20 668 2,456

Project-wide Recon

495

Chief Danny Prospect

5,223 13 69 534 10,974

Project-wide Recon

8 1164 85 278 2,414

Chief Danny Prospect

8,970 6 243 14,625

Project Totals

15,460 1,154 553 4,793 876 1,213 28,055 6,385 710

CD Prospect Totals

15,460 374 553 2,088 26 34 28,055 14 710

2009 2010 2011 2012 2013

AMA 2013 Annual Convention, Anchorage AK 21

Tetlin Project Exploration Expenditures

Calendar Year Expenditures (in millions) 2009 Project-wide Recon, Au-Cu Mineralization Discovery at CD Prospect

0.2 $

2010 Project-wide Recon, CD Prospect Soils, CD IP Survey

1.8 $

2011 Airborne Geophysics, CD Prospect Soils, CD Core Drilling

3.3 $

2012 Project-wide Recon, CD Prospect Soils, CD Core Drilling, Peak Zone Discovery & Non-Compliant Resource

5.4 $

2013 Airborne Geophysics, Project-wide Recon, CD Core Drilling, Peak Zone Resource Defintion

8.6 $ 19.3 $

AMA 2013 Annual Convention, Anchorage AK 22

AMA 2013 Annual Convention, Anchorage AK 23

Structural Pattern

AMA 2013 Annual Convention, Anchorage AK 24

Gold in Soil

AMA 2013 Annual Convention, Anchorage AK 25

n=2105

Elemental Zoning in Soils

AMA 2013 Annual Convention, Anchorage AK 26

Cu Zn Pb As Au/Cu core with Pb/Zn periphery Saddle Zone Breccia is Cu poor

CD Soil Au over Conductivity

AMA 2013 Annual Convention, Anchorage AK 27

CD Soil Au over Magnetics

AMA 2013 Annual Convention, Anchorage AK 28

Peak Zone Conductivity

AMA 2013 Annual Convention, Anchorage AK 29

Peak Zone Magnetics

AMA 2013 Annual Convention, Anchorage AK 30

Peak Zone Geophysical Signature

AMA 2013 Annual Convention, Anchorage AK 31

Peak Zone Geophysical Signature

• Peak Zone Mineralization displays a high relative

magnetic susceptibility and a high relative conductivity/low relative resistivity

• Airborne magnetic and resistivity surveys have

successfully outlined the Peak Zone mineralization in the upper 150 m of crust

• Areas with a similar geophysical signature are

located near the Peak Zone, along inferred stratigraphic horizons, and share geochemical signatures

AMA 2013 Annual Convention, Anchorage AK 32

Late Start

AMA 2013 Annual Convention, Anchorage AK 33

May 12, the road has been plowed twice, one more blizzard May 18

Drilling

AMA 2013 Annual Convention, Anchorage AK 34

Peak Zone Resource Infill/Expansion

AMA 2013 Annual Convention, Anchorage AK 35

Proposed Peak Zone Drilling

AMA 2013 Annual Convention, Anchorage AK 36

30 New Holes and a Twin of the Discovery Hole

Peak Zone Resource Infill/Expansion

AMA 2013 Annual Convention, Anchorage AK 37

Completed Peak Zone Drilling

AMA 2013 Annual Convention, Anchorage AK 38

59 New Holes including a Twin of the Discovery Hole

2013 Drill Collars in Green

Drilling Results – Grade is King

AMA 2013 Annual Convention, Anchorage AK 39

DrillHole From m To m Int m Au opt Au gpt Ag gpt Cu pct TET13062 88.90 153.70 64.80 0.382 13.101 21.0 0.482 including 109.70 118.90 9.20 0.923 31.640 28.5 0.711 including 115.40 116.20 0.80 2.013 69.000 72.5 1.785 and 125.80 126.50 0.70 1.286 44.100 52.1 0.836 and 128.10 133.70 5.60 0.985 33.774 56.5 0.833 including 132.80 133.70 0.90 1.394 47.800 172.0 3.260 TET13063 131.11 171.60 40.49 0.483 16.550 36.1 0.732 including 146.00 148.65 2.65 2.365 81.100 178.0 3.920 and 153.35 155.14 1.79 1.671 57.300 121.0 0.762 TET13069 72.90 122.60 49.70 0.001 0.032 10.9 0.538 TET13069 158.60 162.63 4.03 0.006 0.214 124.1 3.055 including 160.60 161.09 0.49 0.026 0.882 343.0 7.260 TET13076 107.80 160.58 52.78 0.001 0.042 17.6 0.696 including 139.90 144.40 4.50 0.002 0.081 90.0 3.148 including 143.70 144.40 0.70 0.000 0.009 239.0 8.320 TET13094 129.90 131.30 1.40 0.013 0.439 28.3 0.602 TET13094 134.50 153.60 19.10 0.014 0.481 130.0 0.841 including 139.70 140.30 0.60 0.029 0.990 492.0 0.928 and 146.70 152.55 5.85 0.032 1.105 254.9 1.828 including 146.70 147.40 0.70 0.039 1.320 828.0 7.340 Grade cutoffs: Au - 0.5 gpt Ag - 10 gpt Cu - 0.1 pct

Intervals include less than 3 m below cutoff grade

Completed Peak Zone Drilling

AMA 2013 Annual Convention, Anchorage AK 40

59 New Holes including a Twin of the Discovery Hole

2013 Drill Collars in Green

Section E

AMA 2013 Annual Convention, Anchorage AK 41

Section Lines

AMA 2013 Annual Convention, Anchorage AK 42

Section I

AMA 2013 Annual Convention, Anchorage AK 43

Section Lines

AMA 2013 Annual Convention, Anchorage AK 44

Section G-H

AMA 2013 Annual Convention, Anchorage AK 45

Section Lines

AMA 2013 Annual Convention, Anchorage AK 46

Primary Textures

AMA 2013 Annual Convention, Anchorage AK 47

Peak Zone Style Mineralization

• Stratabound semi-massive to massive pyrrhotite,

chalcopyrite, and arsenopyrite with lesser sphalerite and magnetite

• Green to black hornblende-chlorite and calcite

alteration

• Malachite and native Cu are present in fractures

below weathered sulfide mineralization

AMA 2013 Annual Convention, Anchorage AK 48

Weathered/Secondary Textures

AMA 2013 Annual Convention, Anchorage AK 49

Peak Zone Style Mineralization

• Stratabound semi-massive to massive pyrrhotite,

chalcopyrite, and arsenopyrite with lesser sphalerite and magnetite

• Green to black hornblende-chlorite and calcite

alteration

• Malachite and native Cu are present in fractures

below weathered sulfide mineralization

AMA 2013 Annual Convention, Anchorage AK 50

Macro Textures

AMA 2013 Annual Convention, Anchorage AK 51

Saddle Zone Breccia VCG Massive Sulfide Cataclasite Massive Sulfide

Peak Zone Style Mineralization

• Stratabound semi-massive to massive pyrrhotite,

chalcopyrite, and arsenopyrite with lesser sphalerite and magnetite

• Green to black hornblende-chlorite and calcite

alteration

• Malachite and native Cu are present in fractures

below weathered sulfide mineralization

AMA 2013 Annual Convention, Anchorage AK 52

Drill Core Geochemistry

AMA 2013 Annual Convention, Anchorage AK 53

Completed Peak Zone Drilling

AMA 2013 Annual Convention, Anchorage AK 54

Drill Core Geochemistry

AMA 2013 Annual Convention, Anchorage AK 55

Completed Peak Zone Drilling

AMA 2013 Annual Convention, Anchorage AK 56

Drill Core Geochemistry

AMA 2013 Annual Convention, Anchorage AK 57

Completed Peak Zone Drilling

AMA 2013 Annual Convention, Anchorage AK 58

Elemental Distribution

AMA 2013 Annual Convention, Anchorage AK 59

Completed Peak Zone Drilling

AMA 2013 Annual Convention, Anchorage AK 60

Expert Opinion

Labor Day Weekend Dick Sillitoe conducted a two day site visit

• The Peak Zone mineralization resembles a retrograde calcic skarn
• Semi-massive sulfide hosts the Au, Cu, Ag mineralization
• Quartz monzonite porphyry contains barren quartz magnetite A veins
• Peak Zone mineralization resembles the Fortitude skarn in the Copper

Canyon district of Nevada

• Additional mineralized marble bodies may exist
• Proximal oxidized skarn mineralization may exist coincident to the quartz

monzonite porphyry

• The arsenic-bearing polymictic breccia at the Saddle Zone is interpreted to

be an ignimbrite filling a magmatic diatreme vent and its periphery is an Au/Ag target

AMA 2013 Annual Convention, Anchorage AK 61

CD Soil Au over Magnetics

AMA 2013 Annual Convention, Anchorage AK 62

Environmental/Regulatory

2012 – Water Quality Sampling (May & Aug) ABR Initial Aquatic Fauna Survey (Aug) ABR 2013 – Expanded Water Quality Sampling (June & Oct) ABR Aquatic Fauna Survey (June & July) ABR Infrastructure Reclamation (July-September) USACE Site Visit (July) Weather Station Installation (July) Avalon Wetlands Determination (Aug) ABR

AMA 2013 Annual Convention, Anchorage AK 63

Weather Station

AMA 2013 Annual Convention, Anchorage AK 64

Environmental/Regulatory

2012 – Water Quality Sampling (May & Aug) ABR Initial Aquatic Fauna Survey (Aug) ABR 2013 – Expanded Water Quality Sampling (June & Oct) ABR Aquatic Fauna Survey (June & July) ABR Infrastructure Reclamation (July-September) USACE Site Visit (July) Weather Station Installation (July) Avalon Wetlands Determination (Aug) ABR

AMA 2013 Annual Convention, Anchorage AK 65

Advanced Exploration Activities

• Regulatory Consultant – SRK
• Acid Rock Drainage – SRK
• Metallurgical/Beneficiation – SRK
• Resource Estimation – Giroux

AMA 2013 Annual Convention, Anchorage AK 66

Guilty Parties

• Brad Juneau, Chief Danny Adams & Ken Peak
• R. Christopher Brown
• David “Griz” Adams
• Greg Maynard
• Curt Freeman
• The Author

AMA 2013 Annual Convention, Anchorage AK 67

AMA 2013 Annual Convention, Anchorage AK 68

2013 Workforce

• Avalon Remote Personnel – Geologists, Camp

Manager, Core Processing Mangers, Geotechnicians

• Avalon Local (Tok) Personnel – Geotechnicians
• Contract Personnel – Heavy Equipment Operators,

Drillers, Helicopter Pilot/Mechanic, Kitchen Staff, Environmental Scientists, Geophysical Technicians

• Tok Vendors – fuel, portable toilets, dumpsters,

lumber, site construction, road maintenance, facility rental, vehicle maintenance and repairs, cargo hauling

AMA 2013 Annual Convention, Anchorage AK 69

Community Engagement

• 2009 – Tetlin Village Transportation System vehicle donation for matching

grant, helicopter transport of Culture Camp supplies, Elder heating oil assistance

• 2010 – Helicopter transport of Culture Camp supplies, road maintenance

assistance, Tetlin Village Council emergency medical fund donation

• 2011 – Helicopter transport of Culture Camp supplies, road maintenance

assistance, Tetlin Village Council emergency medical fund donation

• 2012 – Helicopter transport of Culture Camp supplies, road maintenance

assistance, Tetlin Village Council emergency medical fund donation, Community Open House and cookout, Tetlin Basketball Tournament sponsorship, Tetlin School trip to NYC-Philadelphia-Washington sponsorship

• 2013 – Staff participation in Village Clean-up Day, Road Maintenance

Assistance, Tetlin Village Council emergency medical fund donation, Softball Tournament Sponsorship, Upper Tanana Language Conference sponsor, Tetlin Dog Mushers Assoc. sponsor, Tetlin Elders Firewood supply donation

AMA 2013 Annual Convention, Anchorage AK 70

2013 Workforce

• Avalon Remote Personnel – Geologists, Camp

Manager, Core Processing Mangers, Geotechnicians

• Avalon Local (Tok) Personnel – Geotechnicians
• Contract Personnel – Heavy Equipment Operators,

Drillers, Helicopter Pilot/Mechanic, Kitchen Staff, Environmental Scientists, Geophysical Technicians

• Tok Vendors – fuel, portable toilets, dumpsters,

lumber, site construction, road maintenance, facility rental, vehicle maintenance and repairs, cargo hauling

AMA 2013 Annual Convention, Anchorage AK 71

AMA 2013 Annual Convention, Anchorage AK 72

AMA 2013 Annual Convention, Anchorage AK 73

2009 Recon Crew

AMA 2013 Annual Convention, Anchorage AK 74

Ready for 2014

AMA 2013 Annual Convention, Anchorage AK 75

Thank You

• CTGO.PK
• www.contangoore.com
• www.avalonalaska.com

AMA 2013 Annual Convention, Anchorage AK 76