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Illinois Creek

Illinois Creek Project

Western Alaska Copper & Gold’s (WAC&G) most advanced stage asset is the Illinois Creek oxide gold-silver project, a past-producing run of mine (ROM) heap leach mine that operated between 1997 and 2002, a time of historically low gold and silver prices. WAC&G through a joint venture agreement with Piek Inc. has the option to capture 100% of the property for work and cash buyout

The Illinois Creek project is part of the Illinois Creek Mining District, which in addition to including the Illinois Creek deposit, includes the Round Top, Honker Gold, Waterpump Creek, and TG North properties. As with the other properties in this district, the Illinois Creek project and development infrastructure is located entirely on Alaska state lands with a favorable development scenario along the Lower Yukon River

Existing Illinois Creek Mine Infrastructure

Illinois Creek Project

In 2019, WAC&G retained BD Resource Consulting, Inc. and SIM Geologic Inc. to prepare an updated mineral resource estimate for the Illinois Creek Project. The focus of this National Instrument (NI) 43-101 technical report for Illinois Creek is the gold and silver mineralization hosted in gossans related to the deep oxidation of a major CRD system developed at or near the contact with a thick, basal dolomitic quartzite section capped by extensive graphitic, chloritic, and quartz muscovite schists. The NI 43-101 Technical Resource Study was completed October 1, 2019

The Illinois Creek project shows exceptional heap leach grades when compared to other North American heap leach projects. An updated 2019 resource estimate (figure to the right) is based on over 500 historical drill holes

Existing Illinois Creek Mine Infrastructure
IC Resource Study Table

Illinois Creek National Instrument 43-101 Technical Report

In 2019, WAC&G retained BD Resource Consulting, Inc. and SIM Geologic Inc. to prepare an updated mineral resource estimate for the Illinois Creek Project. The focus of this National Instrument (NI) 43-101 technical report for Illinois Creek is the gold and silver mineralization hosted in gossans related to the deep oxidation of a major CRD system developed at or near the contact with a thick, basal dolomitic quartzite section capped by extensive graphitic, chloritic, and quartz muscovite schists. The NI 43-101 Technical Resource Study was completed October 1, 2019

The Illinois Creek project shows exceptional heap leach grades when compared to other North American heap leach projects. An updated 2019 resource estimate (figure to the left) is based on over 500 historical drill holes

Illinois Creek National Instrument 43-101 Technical Report

In 2019, WAC&G retained BD Resource Consulting, Inc. and SIM Geologic Inc. to prepare an updated mineral resource estimate for the Illinois Creek Project. The focus of this National Instrument (NI) 43-101 technical report for Illinois Creek is the gold and silver mineralization hosted in gossans related to the deep oxidation of a major CRD system developed at or near the contact with a thick, basal dolomitic quartzite section capped by extensive graphitic, chloritic, and quartz muscovite schists. The NI 43-101 Technical Resource Study was completed October 1, 2019

The Illinois Creek project shows exceptional heap leach grades when compared to other North American heap leach projects. An updated 2019 resource estimate (figure to the right) is based on over 500 historical drill holes

IC Resource Study Table
IC Resource Study Existing Pit Compared with New 1400 Gold Pit Shell (2019)
Illinois Creek Resource Estimate - View of Drilling Density
IC Resource Study Existing Pit Compared with New 1400 Gold Pit Shell (2019)
Illinois Creek Resource Estimate - View of Drilling Density

Opportunity & Plans

There are multiple opportunities to add value and resource to the Illinois Creek Project. One highly significant opportunity to emphasize is the synergies between the Illinois Creek project and WAC&G’s high-grade Honker Gold project. Honker Gold has demonstrated high grade resource potential of 200K oz Au at grades of >6 gpt Au, and it could provide significant scale to support a two resource, single processing operation, mine scenario. Learn more about the Honker Gold project

Other opportunities include:

  • The gold-silver (Au-Ag) resource is open down dip and along strike
  • Major optimization upsides exist at the historical mine, particularly on the process and recovery side. Merrill Crowe processing could strongly impact silver recoveries and Cu pre-strip or suppression using a SART process could provide a valuable copper concentrate and  improve gold recoveries. Metallurgical testing is underway and should be completed in Q2 2021
  • The existing leach pad, which did not utilize Merrill-Crowe processing, has an estimated 3-5M oz of remaining Ag, and 50-80K oz of gold. Drill sampling of the leach pad and waste dump is planned for 2020 in order to evaluate the economic potential of the leach pad. Reprocessing of the leach pad could provide an early stage operational cash flow to the project
  • The Illinois Creek gold-silver resource is open to expansion
  • Current resource estimation is largely drill limited. Mineralization remains open along strike and down dip and is a function of metals pricing and the strip ratio.
  • The west end of the Illinois Creek fault is displaced roughly 300 meters NW by the post-mineral West Pit fault. Soil sampling along exploration lines by Piek Exploration in 2015 further defined continued resource potential to the west
  • The east end of the Illinois Creek fault remains open and dives under cover along Illinois Creek. Silver-rich mantos developed in the hanging-wall in this area are extremely thick with intervals of >40 meters of gossan. These mantos are not included in the 2019 resource
  • The intersection of the Illinois Creek fault with the Last Hurrah and Camp structures trending more northerly towards Waterpump Creek has yet to be tested and is a major potential target area
Illinois Creek Mine and Heap Leach Pad
Illinois Creek Existing Infrastructure Aerial View

Opportunity & Plans

There are multiple opportunities to add value and resource to the Illinois Creek Project. One highly significant opportunity to emphasize is the synergies between the Illinois Creek project and WAC&G’s high-grade Honker Gold project. Honker Gold has demonstrated high grade resource potential of 200K oz Au at grades of >6 gpt Au, and it could provide significant scale to support a two resource, single processing operation, mine scenario. Learn more about the Honker Gold project

Other opportunities include:

  • The gold-silver (Au-Ag) resource is open down dip and along strike
  • Major optimization upsides exist at the historical mine, particularly on the process and recovery side. Merrill Crowe processing could strongly impact silver recoveries and Cu pre-strip or suppression using a SART process could provide a valuable copper concentrate and  improve gold recoveries. Metallurgical testing is underway and should be completed in Q2 2021
  • The existing leach pad, which did not utilize Merrill-Crowe processing, has an estimated 3-5M oz of remaining Ag, and 50-80K oz of gold. Drill sampling of the leach pad and waste dump is planned for 2020 in order to evaluate the economic potential of the leach pad. Reprocessing of the leach pad could provide an early stage operational cash flow to the project
  • The Illinois Creek gold-silver resource is open to expansion
  • Current resource estimation is largely drill limited. Mineralization remains open along strike and down dip and is a function of metals pricing and the strip ratio.
  • The west end of the Illinois Creek fault is displaced roughly 300 meters NW by the post-mineral West Pit fault. Soil sampling along exploration lines by Piek Exploration in 2015 further defined continued resource potential to the west
  • The east end of the Illinois Creek fault remains open and dives under cover along Illinois Creek. Silver-rich mantos developed in the hanging-wall in this area are extremely thick with intervals of >40 meters of gossan. These mantos are not included in the 2019 resource
  • The intersection of the Illinois Creek fault with the Last Hurrah and Camp structures trending more northerly towards Waterpump Creek has yet to be tested and is a major potential target area
Illinois Creek Mine and Heap Leach Pad
Illinois Creek Existing Infrastructure Aerial View

Next Steps & Goals

WAC&G will evaluate the historic geotechnical data from the mine permit data set and the 1996 Feasibility Study by USMX/Dakota Mining. WAC&G also plans to complete a new processing design based on the 2021 metallurgical testing studies

In 2021, WAC&G plans to expand the resource by additional drilling along the east and west extensions of the Illinois Creek Mine structure, complete a PEA in Q3/4, and begin fast tracking the Illinois Creek Project into feasibility and permitting utilizing the pre-existing 1996 feasibility de-risking studies and new additional studies.  WAC&G is currently engaged with the State of Alaska Large Mine Permit Team to facilitate the permitting process
 

WAC&G’s goal is to achieve a 600-750K oz project with 8-10 year mine life, and a production profile of 50-75K oz/yr Au Eq.

WAC&G is looking to raise additional capital for 2021 resource expansion drilling

  • 2,500 meters inferred drilling at Honker (37 meter spacing)
  • 2,000 meters inferred drilling in Illinois Creek $1400 pit and extensions

The 2022 drilling program could be upgraded to pre-feasibility stage with additional 2021 conversion drilling and added studies, including:

  • 2,000 meters inferred to indicated drilling at Honker (20 meter spacing)
  • 1,500 meters inferred to indicated drilling at Illinois Creek  (30 meter spacing)
  • Additional geotechnical and environmental background studies

Reports

WAC&G has commissioned the following reports. If you would like to learn more about either, please contact info@wacg.rocks

  • NI 43-101 Technical Report on the Illinois Creek Project

Next Steps & Goals

WAC&G will evaluate the historic geotechnical data from the mine permit data set and the 1996 Feasibility Study by USMX/Dakota Mining. WAC&G also plans to complete a new processing design based on the 2021 metallurgical testing studies

In 2021, WAC&G plans to expand the resource by additional drilling along the east and west extensions of the Illinois Creek Mine structure, complete a PEA in Q3/4, and begin fast tracking the Illinois Creek Project into feasibility and permitting utilizing the pre-existing 1996 feasibility de-risking studies and new additional studies.  WAC&G is currently engaged with the State of Alaska Large Mine Permit Team to facilitate the permitting process
 

WAC&G’s goal is to achieve a 600-750K oz project with 8-10 year mine life, and a production profile of 50-75K oz/yr Au Eq.

WAC&G is looking to raise additional capital for 2021 resource expansion drilling

  • 2,500 meters inferred drilling at Honker (37 meter spacing)
  • 2,000 meters inferred drilling in Illinois Creek $1400 pit and extensions

The 2022 drilling program could be upgraded to pre-feasibility stage with additional 2021 conversion drilling and added studies, including:

  • 2,000 meters inferred to indicated drilling at Honker (20 meter spacing)
  • 1,500 meters inferred to indicated drilling at Illinois Creek  (30 meter spacing)
  • Additional geotechnical and environmental background studies

Reports

WAC&G has commissioned the following reports. If you would like to learn more about either, please contact info@wacg.rocks

  • NI 43-101 Technical Report on the Illinois Creek Project