MD&A ending 30.06.2018
Consolidated Financial Statements
Chief Executive Officer, President, and Director
As the Chief Executive Officer, Mr. Storm is responsible for operations, acquisitions, project development, as well as for financial operations in conjunction with the Chief Financial Officer.
Mr. Marks has 40+ years of experience as a business owner and manager of operations in the mineral exploration, underground mining and placer mining industries in Western Canada.
As a German businessman with over 40 years of experience in wholesale trading, Mr. Finger has a broad network among European investors with high interests in financing commodity explorations, especially oil, gas, and minerals, at his disposal. Mr. Finger holds a diploma from the University of Mainz in Germany.
Chief Financial Officer and Secretary
Mr. Morfopoulos is a businessman and accountant with over 30 years of experience in corporate management. As CFO, Mr. Morfopoulos is responsible for the coordination of financial operations in conjunction with the President as well as outside accounting, tax and auditing firms. Mr. Morfopoulos acquired a B. Commerce (Hons.) degree from the University of Manitoba in 1975.
Mr. Quinn is a founding partner of the Houston mining transactional law firm Quinn & Brooks LLP. Mr. Quinn has over 25 years of legal and management experience as well as extensive experience in M&A transactions, corporate governance, public disclosure, governmental affairs, environmental law, and land management. Mr. Quinn has a Bachelor of Science degree in Business Administration from the University of Denver, a Juris Doctor degree from the University of Denver College of Law and has completed two years of graduate work in mineral economics at the Colorado School of Mines.
Vice President Exploration
Mr. Burton is currently the President of Burton Consulting Inc. and is registered as both, a Professional Engineer and Registered Professional Geologist in British Columbia. He served on the B.C. Yukon Chamber of Mines (a.k.a. Association for Mining Exploration) and has taught their Placer Mining Course in association with the British Columbia Institute of Technology for over 20 years. Mr. Burton is a University of B.C. graduate with a B.A. degree in Geology (class of 1954).
About Tudor Gold
Tudor Gold (TSX-V: TUD, Frankfurt: TUC.F) is a very promising exploration company focused on precious and base metal exploration properties in the province of British Columbia, Canada. The company has 4 properties, all located in the famous ‘Golden Triangle‘, an area that hosts multiple past producing mines, two new mines and several large world-class deposits that are approaching potential development. The Company has a 60% interest in the Electrum and Treaty Creek properties, with additional 100% owned projects, or earn-in options, including Crown and Eskay North.
The company’s flagship ‘Treaty Creek’ property is adjacent to world-class projects such as the ’KSM‘ project (49,2 million ounces Gold in the M+I category) of Seabridge Gold and the ’Snowfield‘ project (25,9 million ounces Gold in M+I category) of Pretium Resources.
Investor – Highlights
- Tudor Gold is an emerging exploration company in the prolific Golden Triangle region of western Canada.
- Tudor controls 38,172 hectares in 10 properties that are all located near world-class deposits such as ‘Brucejack’ and ‘Snowfield’ (Pretium Resources) and ‘KSM’ (Seabridge Gold).
- The Company has a highly experienced and successful management team led by the renowned Walter Storm, Co-founder of Canadian miner Osisko Mining. Osisko Mining was acquired by Agnico Eagle and Yamana Gold in 2014 for approximately $ 4.5 billion.
- Tudor believes that drilling of the Copper Belle zone, on the Treaty Creek property, up to the end of 2017 has indicated the potential for 8 to 1.9 million ounces of gold contained within 50 to 45 million tonnes grading 1.12 to 1.35 g/t Au.We wait for additional results from the 2018 drilling program.
- The development of the nearby KSM gold / copper mineral deposit (Seabridge) with a planned tunnel route through Treaty Creek is beneficial for Tudor Gold.
- The various concession areas in Tudor Gold’s project portfolio have tremendous exploration potential. More than 90% of the areas at ‚Treaty Creek‘ are still unexplored.
- Tudor Gold’s large land positions and mineral zones provide an attractive M&A target for mining companies active in the region or conglomerates that want to secure a position in the ‘Golden Triangle’.
The 17,130 hectare Treaty Creek Project borders Seabridge Gold Inc.’s KSM property to the southwest and borders Pretium Resources Inc.’s Valley of the Kings project to the southeast. The past producing Eskay Creek mine lies 12 km west of the Treaty Creek property and the Snowfield deposit is located approximately 8 km south, southwest of the Treaty Creek property. The KSM project (reserves of 38.2 million ounces of gold – www.seabridgegold.net) and Snowfield Project (25.9 million contained ounces of gold in the measure and indicated categories – www.pretivm.com) are among the world’s largest undeveloped gold projects, while the Valley of the Kings deposit (6.9 million ounces of gold – www.pretivm.com) currently ranks as the world’s highest grade gold deposit in the commissioning phase (Mining News Feb. 1, 2016). In June of 2016, Tudor acquired a 60% interest in the Treaty Creek. American Creek Resources Ltd. (TSXV-AMK) and Teuton Resources Corp. (TSXV-TUO) each hold a 20% interest carried through to a production decision. The property is subject to 3% NSR royalties. There are no known resources or reserves on the Treaty Creek property and the presence of mineral deposits on properties adjacent to or in close proximity to the Treaty Creek property is not necessarily indicative of mineralization on the Treaty Creek property.
Tudor Gold believes that exploration of the Copper Belle zone up to the end of 2017 has indicated the potential for 1.8 to 1.9 million ounces of gold contained within 50 to 45 million tonnes grading 1.12 to 1.35 g/t Au. This is based on previous exploration results, including 57 current and historic drill holes totaling 22,974 m. Thirty of the holes (15,424 m) were drilled by Tudor Gold in 2016 and 2017, with 27 holes (7550 m) completed by others in 2007 and 2009. Drill holes are generally spaced 50 to 100 meters apart. The exploration target potential was derived by modelling zones of gold-bearing porphyry style veining and alteration, including quartz-sericite-pyrite and potassic alteration, within a surrounding propylitic „halo“, on vertical cross sections and long sections through the Copper Belle zone. The ranges are based on drill results that define the approximate length, thickness, depth and grade of the Copper Belle zone.
The proposed development activities for Seabridge’s KSM Project call for a combined 23 km tunnel for slurry delivery to the processing plant site located at the upper reaches of the Tiegen Creek Valley (“Mitchell Treaty Tunnel (MTT)”) and a 14 km gravel road that would allow material to be trucked to the paved Cassiar highway (Highway 37). In addition, road access to Mitchell Creek itself would be provided by a 34 km continuation of the Eskay Creek Mine access road. Approximately, 12.2 km of the proposed MTT will pass through the Treaty Creek property. In 2011, a magnetotelluric survey contracted by Seabridge was completed along the trace of the proposed MTT and the survey identified additional targets on the Treaty Creek Property.
Tudor Gold’s 60% owned 650 hectare Electrum property is located directly between the past producing Silbak Premier mine some 25 Km south and Pretium Resource’s Brucejack deposit (production slated for 2017) some 20 Km to the north. A well-developed 40 km road directly links the property to the bulk tonnage shipping terminals in Stewart. Electrical power lines come within 18 km of the property and can be continued along the existing haul road. The past producing Big Missouri mine is also located 14 down the haul road from the Electrum Property.
Mineralization on the Electrum property is controlled by two major fault lines that locally produces bonanza type gold grades along with broader stockworked zones within a complex geological model. Like the nearby Brucejack deposit, gold and silver mineralization occurs as coarse electrum in several generations of quartz-carbonate veins and vein breccias hosted within a deformed island arc-related sequence. The intermediate to low sulphidation mineralization is present in most of the veins with pyrite, sphalerite, galena and chalcopyrite. Precious metal mineralization is found in surface with lengths near several tens of meters to over a hundred meters, pinching and swelling along strike. Drilling has encountered gold-silver mineralization at depths greater than 200 metres from surface. The Electrum property hosts the historic East Gold mine where intermittent small-scale production between 1939 and 1965, produced 3,816 oz of gold and 2,442 oz of silver from 45 tons of hand selected ore (BC Minsitry of Mines Assessment Report 30206a).
Between 2006 and 2007 a total of 66 diamond drill holes comprising 15,369 meters was completed (American Creek Resources Ltd. Press Release June 6, 2007, December 11, 2007 and March 16, 2008, BC Ministry of Mines Assessment Report 30206a). Multiple targets were tested and values range from no significant values to 29.9 grams gold and 10.2 grams silver per tonne over 2 meters.
Targeting High-Grade Gold
Tudor is currently evaluating the potential for outlining a high-grade zone of mineralization similar to the Premier and Brucejack projects. The Electrum property has potential for high-grade gold-silver mineralization in epithermal breccia-vein systems that consistently follow a 120-130 strike direction.
These types of results have been confirmed in drilling where epithermal breccia veins were intercepted like the drill intercept og 440.78g/t Au over 0.52 meters (EL06-18), or high silver values such as 583 g/t Ag and 2.44 g/t Au over 0.30 meters;(EL07-09); EL07-12 (420g/t Ag and 4.88g/t Au over 0.91 meters); EL07-18 (374g/t Ag and 7.00g/t Au over 0.65 meters) and EL07-09 (384 g/t Ag and 2.49 g/t Au over 0.70 meters).
About the project
The Crown project covers approximately 18,300 hectares, located directly to the south of the world-class KSM gold-copper deposits and the new Valley of the Kings gold mine. The project area covers the southerly extension of the favourable geology that hosts the deposits to the north. Running southerly, down the middle of the Crown property, is the “Kyba Red-Line”, which is a recognized geologic feature to which many of the major deposits in the region are spatially related. There are a number of known mineral occurrences at the Crown project, some that have had minor production from high grade Au-Ag veins, but to date there has been little modern exploration or drilling done to test the extent of these zones.
On the southwest part of the property several mineralized quartz veins occur in a shear zone that cuts andesitic tuff, siltstone and local intrusive rocks at the Doc showing. The veins contain 5 to 10 percent sulphide minerals with associated precious metals. Sampling in 1985 revealed that 170 metres of the main vein averaged 15.43 g/t gold and 59.6 g/t silver across an average width of 2.3 metres. In 1987, underground development, drilling and trenching was undertaken on seven veins, which led to calculation of a small mineral inventory averaging 9.26 g/t Au and 44.9 g/t Ag. In 1988, additional diamond drilling and underground development established potential for approximately 90,000 tonnes grading 8.8 g/t Au in the two main Doc veins. No further work, other than a prospecting program has been done in the showing area since that time. The Globe showing, about 2 km to the southeast of Doc, contains similar veins ranging from one to 16 meters in width. In 1889 at Globe, 45 tonnes of vein material were mined from four short adits, but never shipped. Four or 5 other gold-bearing quartz vein showings are known within 2 to 5 km of the Doc veins, however, little work has been done on these veins.
In the central part of the Crown claim block, the Orion showing consists of a stockwork zone of quartz-pyrite-arsenopyrite veinlets and sulphide fracture fillings. Veinlets are generally 1 to 10 centimetres wide with coarse pyrite and patchy arsenopyrite. The arsenopyrite typically comprises 2 to 4 %, and locally up to 20 %, of the narrow sulfide stringers. Host rocks are felsic volcanics and carbonaceous sedimentary rocks, underlain by andesitic agglomerate and tuff, with nearby small syenite stocks. The largest, most intensely fractured zone is at least 15 metres wide within the more extensive stockwork area that is exposed over a length of about 40 m. Trenching of the stockwork zone in 1994 returned 2.54 g/t Au, 1.36 % As across 13 m of brecciated rhyolite. The Tribe showing, located 1 km north of Orion, is within a sequence of chert, andesite agglomerate and tuff intruded by small syenite stocks. Areas of strong sericitic alteration contain quartz-carbonate veins and stockworks that locally carry pyrite, pyrrhotite, arsenopyrite, sphalerite, and galena. The best gold assay was from samples of a 13 by 30 metre stockwork zone, reported as 12.5 g/t Au and 3.1 g/t Ag over 0.4 m.
The Fairweather Zone, in the southeastern part of the claim block, is underlain by dacitic to andesitic volcanics and fine-grained sedimentary rocks intruded by feldspar porphyry bodies. Trenches have exposed mineralization consisting of quartz-calcite veins with galena, sphalerite, tetrahedrite, chalcopyrite, and pyrite carrying gold and significant amounts of silver. En echelon veins, up to 60 cm wide, occur within northeast-trending shears surrounded by zones of ankerite alteration. A pyritized structure between 5 and 15 metres in width, with a 125 m strike length was sampled, yielding a weighted average of 4.04 g/t Au over a 7.15 m width. A 2.0 m trench channel sample from a tetrahedrite-rich shear returned over 2000 g/t Ag.
In the eastern part of the project area, the Delta occurrence and other nearby showings are hosted by Middle Jurassic siltstone and intermediate volcaniclastics, with nearby small Eocene feldspar porphyry intrusions. Broad zones of strongly gossanous ankerite-sericite alteration contain cm-scale quartz-sulphide veins, up to 10 cm wide and dipping generally to the northwest, that have returned up to 13.7 g/t Au with significant Ag, Cu, Pb, Sb and Zn values. Historic soil sampling has defined an extensive area, about 500 m in diameter, of anomalous Au, As, Pb, Sb and Zn at the Delta Northeast zone. The source of this large anomaly has yet to be defined, but the geological environment is favourable for Eskay Creek-style mineralization, similar to fine-grained stratiform Pb, Zn, Ag-rich mineralization found in siltstone at the 4-J showing, located about 4 km south of the project.
Tudor Gold Corp.’s wholly owned 1,298 hectare Eskay North project lies approximately 2 km north of the Main past producing Eskay Creek mine portal. The Eskay North project lies in the centre of the Iskut- Sulphurets gold camp in the Unuk River valley. The exploration target is known as the contact unit, which is an areally restricted basal member of rhyolite-mudstone breccia (the „transition zone“) that grades into a widespread upper member of carbonaceous mudstone. The entire contact unit ranges from less than 1 to more than 60 metres thick. The upper member is carbonaceous, pyritic and locally tuffaceous, laminated black mudstone. The contact unit can be correlated with the unnamed lower member of the Lower-Middle Jurassic Salmon River Formation (Hazelton Group). It is the host to most of the mineralization in the 21 zone on the Eskay Creek Mine property (21A and 21B deposits) (Exploration in British Columbia 1989). As traced by diamond drilling the entire 21 zone extends 1400 metres along strike, 250 metres downdip and is from 5 to 45 metres thick. It is open to the northeast and downdip. Mineralization in the contact unit is dominantly comprised of sphalerite, tetrahedrite and possibly boulangerite with varying amounts of galena and chalcopyrite. Alteration minerals are again chlorite, muscovite, quartz and calcite. Mineralized textures vary from crudely banded massive sulphides to thick and thin sulphide bands intercalated with mudstone. From start up in 1995 to its closure in March 2008, the Eskay Creek Mine property has produced more than 100 tonnes of gold and 5000 tonnes of silver (>3m ounces of gold grading 48.4g/t Au and >160m ounces of silver grading 2,221g/t Ag – BC Ministry of Mines Minfile 104B008).
There are no known resources or reserves on the Eskay North Project. In addition, the presence of gold deposits on properties adjacent to or in close proximity to the Eskay North property is not necessarily indicative of the gold mineralization on the Eskay North property.