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REGIONAL NEWS - EXPLORATION ROUNDUP Teck and Copper Fox Form Schaft Creek Joint Venture Teck Resources and Copper Fox Metals have entered into a joint venture agreement covering the Schaft Creek coppergold exploration property in northwest British Columbia. Teck will hold a 75% interest and Copper Fox will hold a 25% interest in the joint venture. Teck will be the operator. The new agreement replaces a 2002 option and joint venture agreement between the two companies. Under the new agreement, Teck will make an initial $20-million payment to Copper Fox and has committed to make two additional $20-million payments, the first following a decision to bring the property into production and the second following the completion of mine construction. Teck has also agreed to fund the first $60 million of costs of the joint venture prior to a production decision. Teck is planning a 10,000-m drilling program at Schaft Creek during the 2013 field season focused on exploration, potential resource expansion, and geotechnical controls. Schaft Creek had 1.2 billion metric tons (mt) of measured and indicated resources at a 0.15% copper equivalent cut-off as of May 2012. Grades were 0.26% copper, 0.017% molybdenum, 0.19 g/mt gold, and 1.69 g/mt silver. Contained-metal estimates stood at 7.1 billion lb of copper, 455 million lb of molybdenum, 7.4 million oz of gold, and 66.7 million oz of silver. (www.teck.com and www.copperfoxmetals.com) The Milagro anomaly is the largest identified thus far by the stream sediment sampling program. Skarn and epithermal mineralization are developed within a 20-km x 10-km area of hydrothermal alteration. The main target is open to the north and is drill ready, and all permits are expected to be received in the second half of 2013. An additional three Milagro target areas are in the detailed mapping and sampling phase, and reconnaissance sampling and mapping are in progress over the entire Milagro altered area. (www.osisko.com) Exploration Briefs Fission Uranium, the operator, and its 50% joint venture partner, Alpha Minerals, initiated a C$6.95-million, 44-hole, 11,000-m drill program and ground geophysics surveys in early July at their Patterson Lake South uranium exploration property in the southwest region of Saskatchewan's Athabasca Basin. A highly successful winter program that discovered high-grade uranium in three separate zones along an approximately 850-m trend. All holes are planned to be radiometrically surveyed using a Mount Sopris 2GHF1000 Triple Gamma probe, which allows for accurate measurements in high-grade mineralized zones. Other work during this summer program will include establishing an environmental base line study in order to have independent data recovered over a sufficient time period for future environmental reporting purposes. Sampling for the purpose of characterizing geometallury is being considered. (www.fissionuranium.com and www.alphaminerals.ca) Osisko Mining has reported positive initial results from its greenfields exploration activities in the Guerrero gold belt, Guerrero state, Mexico. Six main anomalies have been identified that are at or near drill stage, and 114 targets remain to be reviewed. The exploration program has covered 11,870 km2 of gold-prospective geology. Geophysics have been completed over 320 km2. Drilling at the Cuervo anomaly indicates the presence of gold-silver-copper skarn mineralization within a 4-km x 2-km corridor. Subsequent to the preliminary exploratory drilling, mapping and sampling have extended the defined mineralization along strike. Sheffield Resources has announced assay results from reverse circulation drilling at its Oxley potash project near Three Springs in Western Australia's Mid West region. The drilling tested an 8-km strike length of the target microsyenite unit, obtaining mineralized widths up to 75 m (average 36 m) and K2O grades up to 9.8% (average 8.4%) at a 6% K2O cut-off. Coherent higher-grade zones occur within these intervals, with widths up to 39 m (average 15 m) and K2O grades up to 10.4% (average 9.9%) at a 9% K2O cut-off. Sheffield also completed three diamond drill holes at Oxley. Drill core from 22 E&MJ; • AUGUST 2013 these holes was being processed in late July, with results expected during the third quarter of 2013. Oxley mineralization is an unconventional, hard-rock style of potash mineralization, hosted by a series of ultrapotassic microsyenite lavas, which typically contain more than 90% sanidine (potash) feldspar. These host rocks are exposed at surface and dip gently under cover in a series of open folds. Sheffield is planning preliminary metallurgical testwork to evaluate the process required to extract potassium from the sanidine feldspar to produce muriate of potash or sulphate of potash products. The test work will also explore the potential to produce secondary products, including iron, titanium and aluminum compounds. (www.sheffieldresources.com.au) Agnico Eagle is conducting a C$3.5-million, summer-2013 exploration program on the Homestake Ridge gold-silver property in west-central British Columbia under an option agreement signed with Homestake Resource Corp. in August 2012. The agreement allows Agnico Eagle to earn a 65% interest in the property by funding C$25.3 million in exploration and development costs over a five-year period. Geological and geochemical studies commissioned by Agnico Eagle have identified several target areas for detailed mapping, rock and soil sampling, geophysics, and drilling. Initial surface exploration will focus on the Eskay Horizon in the upper Hazelton stratigraphy, which is exposed for several kilometers of strike-length on the property. Limited drilling of this horizon by Homestake in 2009-2010 intersected thick intervals of altered felsic rocks with strong silver enrichment over tens of meters in two holes. Agnico Eagle expects to drill approximately 6,000 m during the 2013 season. Some additional ground geophysics is contemplated to augment earlier IP/ resistivity surveys and a property-wide airborne AeroTEM III survey conducted by Homestake. The Homestake Ridge property is located approximately 32 km north-northwest of the tidewater communities of Alice Arm and Kitsault, British Columbia. (www.homestakeresource.com) www.e-mj.com