TIX on AOTH
Richard (Rick) Mills
Ahead of the Herd
As a general rule, the most successful man in life is the man who has the best information
The Quesnel–Stikine Terrane is a large regional depositional belt extending over 1500 kilometers through the central part of the province of British Columbia, Canada. It encompasses most of the operating mines in the province as well as most of the projects at the pre-feasibility and feasibility stages of development.
Used with permission from Cariboo Rose Res TSX.V - CRB
The lion’s share of exploration dollars in the province is being spent in this geological belt. The Quesnel–Stikine Terrane has become one of BC’s most sought after exploration/developmental targets.
In the central portion of the province there are currently two types of deposits attracting the lion’s share of interest:
- Porphyry copper/gold deposits
- Sediment Hosted Vein (SHV) deposit’s
Porphyry Copper/Gold Deposits
Porphyry copper/gold targets are becoming increasingly important in the global quest to replace declining copper and gold production.
Porphyry copper deposits yield about two-thirds of the world’s copper and are therefore the world’s most important type of copper deposit.
In Canada, British Columbia enjoys the lion’s share of this type of deposit, and they contain the largest resources of copper, significant molybdenum and 50% of the gold in the province.
Porphyry copper deposits are copper orebodies which are associated with porphyritic intrusive rocks and the fluids that accompany them. Porphyry orebodies typically contain between 0.4 and 1 % copper with smaller amounts of other metals such as molybdenum, silver and gold.
There are two factors that make these kinds of deposits so attractive to the world’s major mining companies – firstly by focusing on profitability and mine life instead of solely on grade your other inputs of scale/cost can offset the lower grade and this results in almost identical gross margins between high and low grade deposits. Low grade can mean big profits for mining companies - Copper-gold porphyries can offer both size and profitability.
The second factor affecting profitability of these often immense deposits is the presence of more than one payable metal ie for gold miners using co-product (copper) accounting the cost of gold production is usually way below the industry average. So not only are the traditional miners of these scarce and often immense ore bodies in competition for them but increasingly yesterdays gold only miners are becoming interested as well. These kinds of deposits are one of the few deposit types containing gold that have both the scale and the potential for decent economics that a major gold mining company can feel comfortable going after to replace and add to their gold reserves.
Sediment Hosted Vein (SHV) deposit’s
The term Sediment Hosted Vein (SHV) deposit is used for a family of gold deposits that consist of gold in quartz and quartz-carbonate veins hosted by shale and siltstone sedimentary rocks. These deposits occur throughout the world, but are most prolific in size and number in Asia. Most are poorly known to westerners because of their location in the former Soviet Union.
All SHV deposits have characteristics in common with each other:
- Tectonic setting
- Host rocks
- Alteration style
- Metal content
- Hydrothermal fluid chemistry
- Absolute and relative timing of formation
Attractive characteristic of SHV deposits are:
- They can be gold-only systems and therefore are metallurgically simple
- SHV deposits are associated with prolific placer gold fields if conditions are right for the formation of placer deposits
- Sulfide content is low for this type of deposit
- Type of setting is specific and identifiable among sedimentary belts of the world
- SHV deposits occur in groups, usually with one large deposit associated with numerous satellite deposits
Similar deposits are among the world’s largest gold sources, including Muruntau, Uzbekistan, Kumtor, Kyrgystan, and Sukhoi Log, Siberia, and Ballarat and Bendigo in Australia. Large placer gold fields are commonly found close to such deposits, as is the case in BC’s Cariboo region.
Tiex TSX.V – TIX
Tiex has approximately 137,651 hectares of mineral tenures in BC’s Cariboo Region.
TIX’s Copper/Gold Porphyry Properties
Bullion - The property adjoins the Gold Fields, Fjordland and Cariboo Rose Woodjam JV. The southeast Au/Cu Porphyry zone located in the northern Tokomkane Batholith has attracted interest to the area. Tiex’s claims are staked along the favourable Tokomkane Batholith contact
Viewland - This property is a priority exploration project due to size, strength, and correlation with aeromagnetic features. Elevated to anomalous gold-copper-molybdenum values occur in this area. The property was staked because of an aeromagnetic anomaly and the underlying geology. The aeromagnetic anomaly was interpreted to be reflecting a syenitic intrusive which could be mineralized in similar fashion to the Mt. Polley Mine located 40 km to the west-northwest.
This area comprises a 5.0-km length MMI (Mobil Metal Ion) anomaly and magnetic high that is associated with elevated gold, silver and copper values. Tiex conducted the reconnaissance MMI soil geochemical survey to confirm the presence of several high copper soil anomalies from a historical conventional geochemical survey. The MMI soil data confirmed that a 700 x 2200 m and a 900 x 2700 m area are highly anomalous in copper. Response ratios for copper in these areas are generally above 10 times background with local highs more than 100 times background.
Horsefly Mountain - Located on Horsefly Mountain, this is an area encompassing a historical Au/Cu Alkalic porphyry showing. The company has collected 286 samples spaced 50 meters apart along several logging roads and these samples have been sent to SGS Minerals Services in Toronto, Ontario for multi-element (46) MMI analysis.
Jamboree - An MMI reconnaissance grid survey of 860 samples has revealed three anomalies which are significant in Au, Ag, Cu and Mo. An additional 378 samples have been taken between Crooked Lake and Bosk Lake and have been sent to SGS Minerals.
Megamag - A 5 km MMI anomaly and magnetic high is a lithological unit or mineralization
TIX’s Gold Projects
The Cariboo Gold Fields are second in Canada only to the Klondike in size and production. For gold, the exploration model concept is of auriferous black phyllite that has been mineralized with a myriad of small quartz veinlets, some of which are accompanied by fine gold grains and which can be processed by bulk mining methods.
Gold Creek is a 1km x 3km conventional Geochemical and MMI (Mobil Metal Ion) Gold Anomaly 8 Km from Spanish Mountain Gold’s reported gold resources of: using a 0.5 cut-off (g/t) = 102.3M Tonnes @ 0.785g/t Au for 2.6Moz. Au measured and indicated gold in a sediment hosted deposit. Results from Tiex’s sonic drill programs are comparable to results obtained in early stage exploration at Spanish Mountain.
There are active placer operations mining near surface bedrock on Tiex’s mineral claims at Likely.
Mckaygold - MMI Gold Anomaly along strike with Eureka Resources Frasergold deposit.
Kenneth David Faulkner, President and CEO. Ken has in excess of 30 years experience working in capital markets in a number of different capacities. As a broker, he worked for firms such as Burns Fry, First Commonwealth Securities and Canaccord Capital. While with First Commonwealth, he was on the development team that pioneered the structure and implementation of the junior capital pool which later became the CPC. During his tenure in the brokerage business, he financed public and private companies in diverse industries such as bio-tech, telecom, oil and gas, base and precious metal mining.
Mr. Faulkner has also worked as a consultant for various public and private companies. In this capacity he has assisted clients in many ways, to include acquiring financing, gaining analytical coverage as well as advising on property acquisition and joint venture opportunities. Mr. Faulkner’s experience in the public markets has allowed him to establish a broad network of international relationships. This network enables him to facilitate the growth of the Company at various stages of development.
Mr. Scott Jobin-Bevans Ph.D., P. Geo., Director. Scott has a B.Sc. (Hons) and M.Sc. from the University of Manitoba and a Ph.D. from the University of Western Ontario. He is the President and Director of Treasury Metals Inc. and the Director and Founding Partner of Caracle Creek International Consulting Inc. Presently he is the President of the Prospectors & Developers Association of Canada (PDAC) for a two year term that started in March 2010. Scott has worked with an impressive and long list of companies that has given him international credentials that are uncommon in his field.
Mr. Wade Black, M.B.A., Director. Wade is the president of Blackberry Fund Management, Inc., a New York-based venture capital and asset management company. He has more than 15 years of experience managing operations for broker-dealers and investment advisory firms. Wade, along with his partners, founded Scarsdale Equities LLC, an investment bank and brokerage based in New York, in 2005. Mr. Black remains a registered representative of Scarsdale Equities LLC. He is also currently a director of United Mining Group, Inc.; a TSX listed mining company with operations in northern Idaho.
Mr. Black graduated cum laude with a bachelor's degree in philosophy and economics from Columbia University in 1999, and earned a master's degree in business administration from Columbia Business School in 2005.
Mr. Stephen Wetherup B.Sc. P.Geo., of Caracle Creek International Consulting Inc. (CCIC) has assumed all geological and Q.P. duties. Mr. Wetherup will also become a member of the Advisory Committee for the Company. Caracle Creek International Consulting (CCIC) and Tiex Inc. have entered into a general consultancy agreement, whereby CCIC will act as the geological agent for all of Tiex’s properties in British Columbia. CCIC has an impressive list of international clientele that includes Anglo Platinum in South Africa and Freeport McMoran in North America and has branches in Sudbury Ont., Toronto Ont., Vancouver B.C. and Johannesburg South Africa.
Shares Outstanding: 33,323,418
Fully Diluted: 43,572,739
Current Assets: $632,280
BC Governments Mineral Exploration Tax Credit (METC)
The METC is a 30% rebate on exploration hard dollars spent in declared Pine Beetle kill areas in the province of British Columbia, Canada. The northern part of the Provinces economy has been based almost exclusively on logging but because of the recent Lodge Pole Pine Beetle infestation and the resulting destruction of a large part of the working forest the Liberal government is actively trying to diversify the northern economy and mining is hoped to play a large part in the plan’s success.
Tiex is planning further exploration on all its projects - airborne DigHem and magnetic surveys followed up with Induced Polarization surveys. The geophysical data will be used in conjunction with the large geochemical soil data set to improve drill hole targeting.
All properties are readily accessible along a well developed network of established forestry roads.
Management is seeking a strategic alliance with a major mining company(s) for the exploration and development of Tiex’s copper/gold porphyry properties. Major mining companies are increasingly looking at greenfields exploration - organic growth - to grow their companies. Existing resources are so expensive that you now get a better payoff spending your money developing new projects rather than buying existing resources.
Tiex’s precious metal projects will not be optioned, instead TIX plans to work on these projects themselves.
Tiex has a brand new management team with a sound exploration program now in place - put together and run by Caracle Creek - for their highly prospective for discovery, Quesnel–Stikine Terrane Cariboo property. Often times these turn-around situations can be the most rewarding, exciting way to invest in the junior resource sector. Today Tiex has all of the qualities I look for in a junior resource company and all of the possible advantages one can think of:
- Experienced management and geological consultants whose work will be accepted at the major mining company level at face value
- 100% owned properties, 137,651 hectares located within the prolific Quesnel Trough - excellent geology
- Close to existing operating mines - a mining friendly jurisdiction with existing infrastructure
- Communities receptive to resource extraction as a livelihood and a local trained workforce
- Reasonable mining regulations in British Columbia
- Competitive tax rates
- Some of the most modern education and telecommunications infrastructure in the world
- Low elevation terrain with moderate topography and covered by a well maintained network of roads. Year-round drilling
- Strategic location with respect to Asian markets. Two modern ports, Vancouver - Canada’s largest and the Port of Prince Rupert which is the closest of any of North America’s West Coast ports to Asia - up to 58 hours of sailing time shorter
- Inexpensive hydro electricity available - BC is the third largest generator of hydro electricity in Canada - one of the lowest power costs in North America. Natural gas is plentiful, cheap and resources are growing
- Searching for a strategic alliance with a major mining company for porphyry targets
- Tightly held, and low, outstanding number of shares
- Access to financing
Are grassroots, greenfield junior resource exploration and development companies, with great management teams, running sound geological programs and working in one of the most prospective areas on earth for major discoveries - British Columbia’s Quesnel–Stikine Terrane/Quesnel Trough - on your radar screen?
If not, maybe at least one should be.
Richard (Rick) Mills
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Richard is host of www.aheadoftheherd.com and invests in the junior resource sector. His articles have been published on over 200 websites, including: Wall Street Journal, SafeHaven, Market Oracle, USAToday, National Post, Stockhouse, Lewrockwell.com, Casey Research, 24hgold, Vancouver Sun, SilverBearCafe, Infomine, Huffington Post, Mineweb, 321Gold, Kitco, Gold-Eagle, The Gold/Energy Reports, Calgary Herald, Resource Investor and Financial Sense.
Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.
Richard Mills owns shares of Tiex Inc. TSX.V - TIX
Tiex Inc. TSX.V - TIX is an advertiser on his website aheadoftheherd.com.