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Mexico: Tropico Project
The Tropico property covers an east-northeast striking, 17 km long by 2 to 3 km wide, Late Jurassic to Early Cretaceous Layered Mafic Igneous Complex that intrudes Paleozoic schists (metasediments). The Complex is cored by pyroxenite, or mixed pyroxenite-gabbro, which in turn is enclosed by gabbro. It is intruded by Late Cretaceous to Early Tertiary diorite, which is locally cut by quartz diorite to granodiorite (possibly part of the Sinaloa Batholith). Late stage Oligocene volcanics overlie much of the Complex.
The primary exploration targets are large tonnage, potentially open pitable, low-grade zones of disseminated copper sulphide mineralization with associated platinum, palladium and gold. These would be preferentially deposited proximal to gabbro-pyroxenite contacts in stratigraphically controlled zones where there is a change from predominantly plagioclase cumulate to pyroxene cumulate (both at the hangingwall and footwall contacts of the pyroxenite or mixed pyroxenite-gabbro core). There is also potential for massive, high-grade, copper-nickel-platinum-palladium-gold occurrences in "feeder-pipe" zones or along major faults or within fold structures.
Historically, the project area has been subjected to considerable prospecting, soil geochemistry and ground geophysics, originally by BHP Minerals in the late 1990's, and subsequently, additional geochemistry, extensive mechanical trenching and drilling during the period 1999 to 2002, by a joint venture comprised of Santoy Resources Ltd. and Almaden Minerals Ltd. of Vancouver. This latter work was largely financed by Sumitomo Metal Mining Co. Ltd. of Japan. Expenditures to date are in the order of $4.5 million.
To date, nine sulphide occurrences have been identified at Tropico, consisting of variable amounts of chalcopyrite, cubanite, bornite, pyrrhotite, pyrite and minor pentlandite. Some of the better mineralized trenches at the Maricela Occurrence were reported to assay 0.50 to 1.00 % copper (Cu) and up to 1 gram/tonne combined platinum (Pt) + palladium (Pd) + gold (Au) (generally with a platinum to palladium ration in the order of 0.75:1) over widths of 15 to 160 metres. Some 39 drill holes totaling approximately 6,550 metres are reported in the Santoy-Almaden Joint Venture ("the JV") summary report (28 core holes by the JV). The best reported drill intercepts were 0.5% Cu and 0.75 g/t Pt+Pd+Au over 38.9 metres (hole M-02-08) and 0.39 % Cu and 0.55 g/t Pt+Pd+Au over 128.1 metres (hole M-01-03) at Maricela; and 0.54% Cu and 0.52 g/t Pt+Pd+Au over 47.0 metres and 0.82% Cu and 0.70 g/t Pt+Pd+Au over 15.5 metres at San Pablo (hole SP-02-01). Generally, most drill intercepts were lower grade than reported overlying trench sampling, possibly attributable to minor supergene enrichment (for trench and drill results, the reader is referred to nine news releases filed by Santoy Resources Ltd. on the SEDAR website between Jan. 19/01 and Dec. 20/02.
The project was terminated by the JV in December, 2002 due to depressed metal prices (copper at $0.75/lb., platinum at $590/oz., palladium at $230/oz., and gold at $345/oz.) and a proposed follow-up drill program was never initiated.
The Project acquisition has been undertaken in three transactions. Firstly, the Company acquired two concessions by direct application to the government. Secondly, the Company has entered into an option agreement with the Santoy Resources (60%) - Almaden Minerals (40%) JV whereby Skeena may earn up to 60% interest in the JV lands and technical database by reimbursing staking costs (approximately $12,000), a work commitment of $3 million over 5 years ($100,000 in year one), and issuing 1,250,000 Skeena shares over 5 years (250,000 upon regulatory approval). A 2% NSR interest is reserved for the JV, with half of that interest purchasable for fair market value at the time of presentation of a feasibility study. As the Skeena and Santoy boards are not fully at arm's length, this agreement has been approved by the independent committees of both companies.
The Company has also entered into an option to purchase 100% interest in the interior San Pablo concession from Minera Cascabel SA de CV for $500,000 in total cash payments over 4 years ($85,000 to be paid upon regulatory approval), a minimum work commitment of two times the minimum required under Mexican mining law during the period of the agreement, and the issuance of 500,000 shares of Skeena over 4 years (100,000 to be issued upon signing).
The Company has contracted Fugro Airborne Surveys to undertake a helicopter-borne DIGHEM multi-frequency electromagnetic and magnetic survey (1,100 km of 100 metre spaced lines) of the property. The survey coverage and orientation are designed to investigate down-dip areas of known mineralization and those areas covered by a thin mantle of recent volcanics. The survey has been permitted, and is expected to be flown in March, 2008.
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