Metal Mountain Resources Inc.

The Dome Mountain Mine is located approximately 38 kilometres due east of the Town of Smithers in northwest British Columbia, Canada. The property consists of 42 contiguous mineral claims and one mining lease comprising a total area of over 11,000 hectares. The claims are road accessible from Smithers by 64 kilometres of mostly gravel all-weather roads.

The Town of Smithers, with a regional population of approximately 15,000, is a major centre for resource industries operating in northwest British Columbia. It is located approximately 400 kilometres from deep water ocean ports in Prince Rupert, Kitimat and Stewart, has an airport with daily service to Vancouver, and has access to the CN rail-line. Several exploration companies and diamond drill contractors have offices in the town. Smithers has readily available, skilled mine and construction labour as well as connections to electric power and natural gas.
Metal Mountain acquired mineral tenures that cover the past-producing Dome Mountain Mine with the intention of reopening the mine and exploring for additional gold-silver resources. Since acquiring the property, Metal Mountain has completed 9,631 metres of in-fill and exploration drilling, a NI 43-101 resource estimate, and a NI 43-101 prefeasibility study in addition to baseline environmental and engineering studies.

In June of 2011, Metal Mountain sold its interest in the Dome Mountain Mine to its subsidiary Gavin Mines Inc. Metal Mountain owns 63% of Gavin Mines Inc.

Dome Mountain Mine Permits

In August 2010, Mines Act Permit M-237 and Environmental Management Act Permit 104869 were issued, in the name of Gavin Mines Inc. Gavin Mines Inc. named to honour the late Gavin Tattersall, former President, CEO and Senior Founder of Metal Mountain which is the operating company for the Dome Mountain Mine.

The Company is currently (January 2013) preparing an application to amend our existing Mines Act and Environmental Management Act permits to include on site milling and tailings disposal. The application will be submitted to the Provincial Government of British Columbia early in 2013.

Infrastructure Construction & Underground Development (2010-2012)

As of January 2013, seventy-five percent of the underground development required to achieve full-scale production at the Dome Mountain Mine has been completed. The following summarizes the infrastructure and underground development completed to date (to view pictures see photo gallery):

dome property map

dome claim map
  • 24 by 60 foot mine dry/office building
  • Electrocoagulation water treatment plant
  • Water and sewer for all surface facilities
  • 100 by 70 foot building for ore crushing and load-out
  • Extensive pipelines system designed to direct mine water to the sediment control pond and to recycle water to the mine for drilling
  • A 40 by 54 foot mechanics shop
  • Electrical work into the mine
  • Fuel storage and distribution system
  • Major earthwork projects completed include:
    • Sediment control pond
    • Load-out building site and the access road
    • Turnaround for the highway trucks at the ore load-out and the pull-outs on the Chapman and Michelle Bay Forest Service Roads
  • Underground development completed includes:
    • Installation of compressed air, water and ventilation services into the mine
    • Two underground portals rebuilt
    • Stabilization of a major fault
    • Construction safety bays
    • Installation of underground ventilation fan
    • Sump to collect and recycle mine water
    • Advanced underground workings to the entrance of the first cut and fill stope on the 1290 level
    • Commenced mining and ore stockpiling (approx. 6000 tonnes)
    • Commenced work on the vent raise from the 1290 to the 1370 level, a key component of the ventilation system

    Onsite Ore Processing
    property inventory map Management has determined that the most feasible means of processing the ore from the Dome Mountain Mine is to build an on site mill. The Company is in an excellent position to resume mining activities at the Dome Mountain Mine as the underground development work required to achieve full-scale production has been 75% completed. Resumption of mining activities are anticipated to commence two months before the completion of the on site mill.

    We are working diligently toward obtaining funding to construct facilities for on site concentrating of the gold-silver ore from the Dome Mountain Mine. The Company is in discussions with private and institutional sources that have expressed interest in financing the project.

    Historical Exploration, Development and Production

    The Dome Mountain area has a long history of exploration that resulted in the discovery of numerous gold bearing quartz-sulphide veins. Gold mineralization was first located on the property in the late 1800s and considerable surface and underground work was done in 1923-24. Resumption of exploration in the 1980s led to the discovery of the Boulder Vein system in 1985.

    Underground mining was initiated in August 1991 by Timmins Nickel Inc. and its joint venture partner, Habsburg Resources Inc. and ceased in May 1993. During this period 43,900 tonnes at an average grade of 12.0 grams per tonne gold were reportedly mined from shrinkage stopes accessed from trackless drift developments on the 1290 and 1370 levels. The ore was shipped off-site to either the Equity Silver mill near Houston, BC or to the Westmin Premier mill near Stewart, BC for toll milling.

    Exploration (2008-2009)

    Prior to Metal Mountain&3039;s acquisition of the Dome Mountain Mine, Eagle Peak Resources Inc. conducted the following exploration and development on the property from 2008-2009:

    • In 2008, Eagle Peak Resources Inc. conducted soil geochemistry, 3D induced polarization and magnetic surveys over the Boulder Vein system and its projected extension to the east. These surveys were designed as an orientation of the geochemical and geophysical signatures related to the known veins and structures as an aid to further exploration.
    • Between July 28 and September 24, 2009, Eagle Peak Resources Inc. conducted a drill program of 46 HQ holes totaling 5,705 metres. Most of the drilling was conducted on the Boulder Vein system to in-fill the existing drill pattern and to confirm the results from the pre-2009 drilling.
    • Exploration drilling of coincident soil geochemistry and 3D induced polarization anomalies by Eagle Peak Resources Inc. in 2009 intersected a quartz vein that assayed 19.07 grams per tonne gold over the 0.6 metre interval from 49.4 to 50.0 (Drill hole DM09-046). This intersection is located approximately 400 metres northeast of the 1290 portal and may represent the discovery of a new vein.
    • In addition to diamond drilling, Eagle Peak Resources Inc. conducted considerable underground sampling. The vein exposures in the stopes accessed from the 1290 level were washed, mapped and chip sampled. Samples were taken from the quartzcarbonate-sulphide veins and the surrounding wall rock alteration at right angles to the vein. A total of 193 chip samples were collected for analysis.

    property inventory map

    property inventory map

    property inventory map
    Exploration 2010

    Metal Mountain conducted a small diamond drill program (10 holes) in February 2010. 2 holes (DM-10-055 and DM-10-056) were planned as condemnation drilling in the area of a proposed tailings pond, approximately 1300m northeast of 1290m (Lower) Portal. The other 8 holes (DM-10-047 to DM-10-054) were exploration holes, designed to test for the extension of the Boulder Footwall Vein structure found in Dome Mountain Mine. For more information on the 2010 drilling, see the Dome March 15, 2010 news release.

    Results from exploration drilling indicate a 400-metre horizontal extension of the Boulder Footwall Vein from mine workings, over a vertical extent of 140 metres. High gold assays indicate the grade potential within the vein structure. Additional drilling is recommended to follow up on these results. For more information on the 2010 drilling, including assay results, see the April 13, 2010 news release.

    Exploration Potential
    property inventory map Management of the Company believes there is considerable opportunity to increase the mineral resources of the Dome Mountain Mine through additional infill drilling on the Boulder Vein system and further exploration drilling.

    In addition to the Boulder Vein system, the project is host to the Cabin, Elk, Forks, 9800, Free Gold, Ptarmigan, Eagle, Gem, Raven, Hawk, Chance, Hoopes, Jane and Pioneer Veins. The Cabin Vein is interpreted as the westward extenion of the Boulder Vein. The other veins mentioned are separate from the Boulder Vein system.

    The veins occur in a roughly northwest-southeast 12 km trend from southeast of Dome Mountain to Mt. McKendrick. This trend may reflect the presence of a deep-seated structure. Based on the results of exploration to date and on the deposit model, there is significant potential to develop mineral resources on the Forks, Elk, Free Gold and 9800 Veins and to discover new veins.