ANALYSIS – ProspectingJournal.com – April 6, 2011 – In the world of mining, many times the confidence in your properties can be better exemplified by the activities of your neighbours than by those of your own. This is the case for Troymet Exploration Corp. [TYE – TSX.V], on at least two of its three precious metal projects located in British Columbia and Manitoba.
Immediately adjacent to Troymet’s Key Project in Northern BC is Richfield Ventures Corp. [RVC – TSX.V] and its Blackwater Project. Upon conveying its results recently, Richfield secured a joint-venture agreement with nearby Silver Quest Resources [SQI – TSX.V], only to open this week to be acquired by New Gold Inc. [NGD – TSX] for a handsome amount that valued Richfield shares at $10.38, or a total value of $550 million. Whether there were any competing bids made for Richfield prior to the New Gold deal, is unknown at this time.
Troymet’s 100% owned Key property (19,477 acres) is not only flanked by Richfield’s holdings, but by Silver Quest’s 3Ts and Capoose Projects as well. The Capoose resource was last updated to 56 million silver oz at about 25 g/t & 800K gold oz at 0.37 g/t plus zinc at a 0.4 g/t gold cut-off in Indicated and Inferred categories. As well, recent numbers from Richfield, released prior to this year’s PDAC Conference in Toronto showed what Troymet’s team always knew was in the area: Gold, and lots of it. The March 2, 2011 news release showed an indicated resource of 1.83 million ounces of gold and 2.34 million ounces inferred, and an update given on March 15 further confirmed these results.
“Richfield’s project is historical, with exploration going back to 1977,” said Kieran Downes, President, CEO and Director of Troymet Exploration Corp. “Our principal targets are in this neck of the woods.”
Until recently the results hadn’t started to truly arrive on the scene due to the heavily soil-covered nature of the terrain. But, while the entire flurry of neighbourly activity took place so close to Troymet’s Key Project, it’s no wonder that the company was pleased to update its drilling program to open this week. Targeting the Crag grid on the west side of the property, and the area of Good News Lake on the Bluff grid to test the GN Fault, Troymet tested the Key Project through 9 holes stretching east and west over 6km. Troymet is currently awaiting results from its drilling. The area is easily accessible by road and contains large targets on which no prior drilling has taken place. Seasonal restrictions due to break up have put testing on halt for the time being.
“This whole area is blanketed by soil, about 2 to 10 feet of it. That’s one of the reasons that this area has been so difficult to explore, because you can’t see what you’re looking for,” says Downes. ”So, soil geochemistry is a big driver out here for us.”
“To help us focus for drilling, we surveyed with induced polarization (NYSE:IP),” says Downes. “Now IP is important because IP picks up disseminated sulphides, and it’s a classic method of mapping and focusing on drill targets.. We selected our best targets for drilling based on the available data.
At this stage, Troymet’s assays are pending. But with nearly 20k acres to explore, Troymet has a lot of territory left to explore. Troymet plans to expand the prospecting, soil sampling and ground geophysics to cover the remainder of the property after spring break-up. To date, less than a third of the property has been explored in any detail. As well, Troymet has identified drill targets in areas of rugged topography that were not accessible during the winter program, and it plans to test these when drilling resumes after break-up.
“There’s a big swath of ground between the common boundary between us and Silver Quest that’s yet to be explored. When we came to fly the core claims with VTEM, I acquired extra claims around the core claims as a ‘cordon sanitaire’” says Downes. “The whole purpose there was that if we ended up with a conductor on the limit, I didn’t want somebody else to own it.” So far, this ground remains to be explored.
Troymet is also focused on its McClarty Lake Project in Manitoba, which today is the focus of drilling efforts by its partner HudBay Minerals [HBM – TSX]. The 60/40 partnership with HudBay is finally moving forward, with HudBay looking to earn-in an additional 20% through injecting $750k worth of drilling programs into the area.
While HudBay’s drilling efforts help to prove the Discovery zone, Troymet is also poised to capitalize on its 100% owned MAC1, MAC2 and MAC3 claims which flank the HudBay option claims. Troymet’s exploration indicates the mineralized horizon continues from the Discovery zone onto the MAC claims. We believe the Discovery zone connects to the MAC conductor,” says Downes. “Now that we’ve drilled in this area and found the conductor, we know that this horizon continues all the way up between Discovery and the MAC conductor, and now the question is: What mineralized zones remain to be discovered along this trend?”
Like Downes’ strategy with the Key Project, the outlying areas that Troymet acquired ahead of time are proving valuable. Over the five claims that Troymet holds interest in, three are 100% owned, and the other two are currently held in a majority share with HudBay. Should the map of the Discovery zone expand any further, the value in Troymet’s 100% owned properties would inevitably increase.
“You might look at the HudBay drilling area and believe that this is quite a small area, but suddenly if you prove it up here, now you’ve got a great lateral extent,” says Downes. “Once you find a horizon that’s productive, you’ve gotta run with it. And we have it. These horizons typically occur in a basin. It’s the same thing that showed with HudBay’s Lalor Lake and with Chisel North projects. They talk about the same stratigraphy, and the same horizons. We’re exploring along areas that are favourable. We drilled it, and we know it’s real.”
As HudBay completes its drilling obligations, the assays on the MAC conductor are still pending. But, the vote of confidence from HudBay to continue drilling on the Discovery zone, and complete their end of the earn-in shows that only time will tell what evolves there. With each indication of that Troymet’s hunch is correct, additional interest to the area from outsiders grows.
“If HudBay has success, and we believe we have it here, you’d like to think that somebody would like to control all of the structure,” says Downes. “Somewhere down the line, there’ll be a business deal, I hope.”
Coupling the interest that could plausibly be generated for either the McClarty Lake Project through HudBay’s activities, and the Key Project through the sale of Richfield, Troymet is in good company at this time. With more work to be done upon the end of break up and the welcome sunshine of Summer, Troymet can currently bask in the glow of the company it keeps.
G. Joel Chury
Editor in Chief
Disclaimer: The author does not hold any shares of any of the companies mentioned in the article. However, some members of Cordova Media Inc. which owns the ProspectingJournal.com may or may not have interests in Troymet Exploration at the time of publication. A fee has been paid for the publication of the article, and should be looked upon as advertorial content.