Anthill Resources Ltd.
Anthill Resources Ltd.

Projects

Yellowhead

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Anthill Resources has taken serious interest in a major copper deposit project in BC, Yellowhead Harper Creek project.

The project is located approximately 90 km north-north-east of the city of Kamloops in south-central B.C. The Company now holds mineral tenures with an area of 42,636 ha (775 ha subject to a 3% NSR capped at $2.5 million adjusted for inflation and 618 ha, not in the current resource, subject to a 2.5% NSR).

Project History and Development


Discovered in 1966 by Noranda Exploration and US Steel, the two companies completed 26,854 m of drilling in 155 holes and continued their exploration efforts until 1981. Yellowhead Mining was formed in 2005 and assembled a 42,600 hectare mineral claim package near Vavenby, B.C. Yellowhead completed approximately 51,305 m of drilling in 150 holes through December 2011. A 1,000 line kilometre airborne geophysical survey over 9,000 hectares has identi_ed several high priority targets for further exploration.

Yellowhead is conducting an Environmental Assessment within the Federal and Provincial processes. The company has signed a Negotiation Agreement with the Simpcw First Nation. The Simpcw First Nation has an administrative office in Chu Chua, BC about 110 km by road from the Harper Creek Project. This agreement sets out the negotiation principles and objectives to achieve a long term definitive Accommodation Agreement. The company plans to advance the project through to production by completion of an environmental assessment report, permitting, detailed engineering and project financing. Currently startup is scheduled for early 2015. The company plans to continue its program of step out drilling to expand the resource.

Geology and Mineralization


The Harper Creek Project is an extensive volcanogenic sulphide system, with a mineralized envelope greater than 2.5 kilometres along strike, over 2.0 kilometres down dip, in a 1 kilometre thickness of volcano-sedimentary stratigraphy. Copper mineralization is tabular, striking east-west and dipping about 15° to 25° to the north with a number of high copper grade cores that persist with depth within a multiphased stringer zone. The deposit is open along strike to the east, down dip and at depth.

Harper Creek is hosted in the Eagle Bay Assemblage, comprised of the Lower Paleozoic Greenstone Belt. There are intensely altered sequences of black shales, mudstones, mafic and felsic flows and tuffs. A broad lower-grade zone of copper and gold/silver is linked to multi-phased stringer or feeder zones. Higher grade copper-bearing massive sulphides are adjacent to porphytic rhyolite flows. Vertical zonation ranges from upper lead/zinc/silver/barite/pyrite to deeper copper(some zinc)/silver/gold/pyhrrotite.

Project Highlights


- Detailed Feasibility Study _led March 29, 2012
- NPV8: US$749.7M; IRR 20.2% at US$2.50/lb Cu, US$1,250/oz Au, US$20/oz Ag and US$/CDN$ 0.86:1
- Estimated production over life-of-mine: 3.63 billion pounds copper, 372,000 oz. gold and 14 million oz. silver in concentrate
- Mine life 28 years at a milling rate of 70,000 tonnes/day
- Stripping ratio 0.81:1 life-of-mine
- Total proven and probable reserves 704.4 Mt at 0.262% Cu, 0.029 g/t Au and 1.14 g/t Ag @ 0.14% Cu cut off
- Adjacent rail, road, power and town infrastructure
- Project is 100% owned by Yellowhead Mining*
- Senior management has extensive international experience with large scale open pit copper projects
- Excellent potential to significantly expand the resource
* Subject to 3% NSR royalty capped at $2,500k, adjusted for inflation, plus a further 2.5% NSR royalty on approximately 1.5 million tonnes of ore which is expected to be mined beginning in year 16 of the mine plan.

The table below provides a summary from the NI 43-101 compliant resource update, as announced on February 16, 2012. Contained copper is 5.26 billion pounds in Measured and Indicated Categories and 0.53 billion pounds in the Inferred Category (*Inferred gold and silver grades cannot be correlated to the copper resource tonnage and shall not be used to calculate precious metal mineral content).
 

Cut-off Grade

Resource

Cu Grade

Au Grade*

Ag Grade*

(0.2% Cu)

Tonnage(kt)

(%Cu)

(g/t)

(g/t)

Measured

348,515

0.31

0.034

1.3

Indicated

466,482

0.28

0.030

1.3

Measured and Indicated

814,997

0.29

0.032

1.3

Inferred*

80,169

0.30

0.033

1.4



 

Yellowhead's management notes that the deposit is open down-dip to the north, up-dip to the south, along strike to the east and at depth. Further there are specific geophysical anomalies and mineralized outcrops within 3.0 km of the current pit limit that have been identified for further assessment in 2012. Yellowhead Mining plans to advance the Harper Creek Project through to production by completion of an environmental assessment report, permitting, detailed engineering and project financing.

 



 

Environment Assessment


The Company and its consultants have been collecting a wide range of project-specific environmental baseline data. In 2007, the Company initiated water quality and fisheries inventory work. Comprehensive water, archaeology, wildlife, fisheries inventories and other baseline studies were started in 2011 and are expected to be completed by fall 2012. On October 21, 2011, the Company announced that the British Columbia Environmental Assessment Office ("EAO") approved the Application Information Requirements ("AIR") for Harper Creek. The AIR, or Terms of Reference, specifies the information that must be contained in the Application for an Environmental Assessment Certificate pursuant to both the BC Environmental Assessment Act ("BCEAA") and the Canadian Environmental Assessment Act ("CEAA"). The Project Description and Application Information Requirements is available on the BC Environmental Assessment Office ("BCEAO") website http://www.eao.gov.bc.ca.

http://a100.gov.bc.ca/appsdata/epic/documents/p333/1295903690301_5aa204813a3a28bbaad434d7890ebbdd62ee07f028154720b0c5f52e258d5011.pdf

http://a100.gov.bc.ca/appsdata/epic/documents/p333/1324486256257_52f0eacc11967dc2f94835822071af1c135a39a7fafb7a9c9345318e1c23535e.pdf

In parallel with the Feasibility Study, management of the EA and geotechnical/hydrological work is being undertaken by Knight Piésold Limited ("KP"). Assistance on the collection of information needed for the EA application is being provided by Dillon Consulting Ltd., (water quality), SRK Consulting (Canada) Inc., (geochemistry), BioteQ Environmental Technologies Inc., (water treatment), Terra Archaeology (archeological) and Keystone Wildlife Research (wildlife). Laurie McNeil and Associates is conducting the socio-economic assessment and review of the project. Representatives of the local First Nations communities were recruited to provide input and assist these specialists with the collection of baseline information.

The EA Application is scheduled for submission in the fall of 2012. Environmental monitoring will continue for the life of the project.

 

Local First Nations and Other Communities in the North Thompson Valley


The Company recognizes its responsibility to involve local First Nations and other communities in the North Thompson Valley, and has begun consultation with these groups which include visits to the mine site. The Company intends to conduct its exploration and development of Harper Creek in an environmentally, socially and economically responsible manner and maintain operations that are in the best business interests of the Company's shareholders, First Nations and local communities.

The Company has signed General Services Agreements with Simpcw First Nation and the Adams Lake Indian Band. Both communities have been involved with the collection of baseline information to support the EA application. The Company is in the process of negotiating a Benefit Sharing Agreement with Simpcw First Nations, and looking at ways to work with local First Nations on employment and training opportunities associated with the construction and operation of the Harper Creek Project.

Preliminary Economic Assessment


An independent Technical Report and Preliminary Economic Assessment of The Harper Creek Project was filed on April 1, 2011 and was completed by Wardrop, a Tetra Tech Company, ("Wardrop").

Wardrop was supported by:
•Knight Piésold Limited ("KP"): mine waste and water management
•Dillon Consulting Limited ("Dillon") environmental
•G&T Metallurgical Services Limited ("G&T"): metallurgical test work with the announced results of the Preliminary Economic Assessment

The base case economic analysis projected that the Harper Creek Project's estimated net present value was US$598 million (@ 8% discount rate) and an internal rate of return of 19.8% based on 100% equity financing using long-term metals prices of US$2.66/lb Cu, US$1,058/oz Au and US$16.57/oz Ag. Based on these positive results, the Feasibility Study was commenced on April 13, 2011.


More detail, please refer to: www.yellowheadmining.com

 
Anthill Resources Ltd.