Silver Grail Resources

Andy

Harrison Lake Project

British Columbia, Canada

Mineral Deposit Type

• Magnesium
• Nickel
• Cobalt

Summary and Location

Silver Grail's Andy property is situated east of Harrison Lake in the Talc Creek drainage, 100 kilometers east of Vancouver, British Columbia.

The Andy claims control circa 1.5km of a 10km long, magnesium-rich, ellipsoid-shaped body of ultramafic rocks that strikes NW-SE for approximately 10 kilometers (with an average width of 2 km). The easternmost, lion's share of the body is controlled by Leader Mining International.

Leader Mining's wholly owned subsidiary, North Pacific Alloys Limited ("NPAL") is currently advancing its $1.3 billion Cogburn Magnesium Project aimed at future production from its Emory zone. NAPL filed its Draft Terms of Reference with the British Columbia Environmental Assessment Office on Oct. 18, 2005. A Production Feasibility Study received by Leader in 2003 indicated that the project was technically feasible and economically viable.

The Andy claims were optioned to Leader in 2001. Initial work requirements of the option were met by Leader but subsequent years' requirements were not, resulting in the return of the property to Silver Grail in 2005.

Magnesium Potential of the Andy Property

During the winter of 2001/2002, Leader drilled 23 holes into the 10 km long ultramafic body, three of which were collared within Teuton's Roman property. Results are tabulated below:

Hole #		Interval	Length	MgO	Magnesium
		(metres)	(metres)	(%)	(%)
Cr01-04	Overburden	0.0 - 6.1
(Dip: -90)		6.1 -50.6	44.5	42.77	25.79
Cr01-05	Overburden	0.0 - 9.1
(Dip: -90)		9.1 -50.6	41.5	40.40	24.36
Cr01-06	Overburden	0.0 - 3.1
(Dip: -90)		3.1 -50.3	47.2	41.93	25.29

The drilling results are consistent with values obtained elsewhere within the ellipsoid-shaped ultramafic body. Referring to this large body, Leader has stated "Geological mapping, surface sampling, and diamond drilling has confirmed that rocks consistently contain more than 25% magnesium, accompanied by only trace amounts of impurities. Such a large, potentially surface mineable, resource could provide many centuries of feedstock for a magnesium metal refinery."

Nickel-PGM Potential of the Andy Property

It has long been known that portions of the 10km long ultramafic body that traverses Silver Grail's Andy claims (west), Teuton's Roman claims (west-central), and Leader's Cogburn claims (central-east) contain widespread low-grade nickel (0.15-0.22% Ni) mineralization. At present, metallurgical difficulties in extracting this nickel preclude exploitation of this potential resource. However, given a high enough nickel price and advancements in hydrometallurgical techniques, it is possible that the body could one day prove economically viable.

Notwithstanding, it is believed the property still retains significant potential for hosting discrete zones of much higher-grade nickel mineralization, such as contained within the steeply-dipping, pipe-like bodies exploited at the formerly-producing Giant Mascot mine, situated in similar ultramafic rocks to the east. At Giant Mascot, significant values in platinum group metals were obtained within the nickel bearing mineralization.

An airborne geophyscal survey was completed on the Andy claims in 2006. This survey delineated several discrete EM anomalies in close proximity to the Ni-As soil geochemistry anomalies identified by previous fieldwork. Further follow-up work is planned to test the source of the airborne geophysical anomalies.

An airborne geophyscal survey was completed on the Andy claims in 2006. This survey delineated several discrete EM anomalies in close proximity to the Ni-As soil geochemistry anomalies identified by previous fieldwork. Further follow-up work is planned to test the source of the airborne geophysical anomalies.

 

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