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The Great Burnt Copper deposit is a 100% owned volcanogenic massive sulphide (VMS) deposit in central Newfoundland’s highly prospective, base-metal-rich greenstone belt, consisting of 4 prospective zones. The Great Burnt Zone holds a copper deposit with an Indicated Resource of 381,300 tonnes at 2.68% Cu with an Inferred Resource of 663,100 tonnes at 2.10% Cu* and open at depth. The South Pond A and B Zones contain both Gold and Copper identified by previous drilling and The End Zone is highly prospective for copper.
The property covers a total of 4,065 hectares and is located in south central Newfoundland, 75 km SW of the city of Grand Falls-Windsor and 56 km northwest of the town of St. Alban. The Southern portion of the property, which includes the Great Burnt Copper Deposit, is accessed by road that is maintained by Newfoundland Hydro, from St. Alban’s. Access to the northern part of the property is by trails suitable for all terrain vehicles, helicopter or float plane. The property has access to power via a 230-kV transmission line that runs from Baie d’Espoir north to Grand Falls-Windsor and passes within 30 kilometers east of the property.
Ideally located within the Central Plateau of NL, this area is host to several past producing mines such as the Teck Resources Limited, Duck Pond Cu-Zn Mine 40 km to the northwest and the past-producing Buchan’s Cu-Zn-Pb-Ag-Au Deposit located 70 kms northwest.
Copper mineralization at the Great Burnt Copper Property occurs within metavolcanic metasedimentary rocks that include reworked tuffs, volcaniclastics and clastic sediments associated with mafic volcanics that are interpreted to have formed in a back-arc basin. This type of sedimentary dominated VMS mineralization has historically been classified as a “Besshi-type VMS” or more recently as mafic-siliciclastic type or mafic-pelitic type VMS.
Similarities between the mineralization at Great Burnt Copper and the Rambler VMS deposits located in the Baie Verte Peninsula, NL have been noted. Both deposits have elevated gold grades and are spatially associated with ophiolite complexes.
The Great Burnt Copper Deposit is a stratabound, tabular body of pyrrhotite-chalcopyrite mineralization within an interfingering mafic volcanic-metasedimentary contact. The mineralization strikes 010o- 020o and dips steeply 65°- 80° southeast, with a 30° plunge to the south. The mineralization has a plunge length of approximately 600 m and pinches and swells from 2 to over 13 m in width along the plunge axis. It has an average vertical extent of about 120 metres with a horizontal (plan) length of 210 metres.
The North Stringer Zone is located approximately 200 m northeast of the Great Burnt Copper Deposit. The North Stringer Zone consists of 3-20% disseminated and stringer pyrrhotite ± chalcopyrite in chloritized mafic volcanic flows, tuffs and graphitic argillites. The Zone has been delineated along a strike length of 335 m and to a depth of 50 m vertically and is interpreted as the possible stringer footwall zone to the Great Burnt Copper Deposit.
The South Pond Copper Deposit is located 10 kilometres north of Great Burnt Copper Deposit and has been delineated over a more than 900 m northeasterly strike length, is up to 15 m wide and dips at 60o west to a maximum vertical depth of 150 m. The mineralization consists of disseminated to semi-massive pyrrhotite (up to 40%) with 1 to 2 percent disseminated blebs of chalcopyrite, minor pyrite and rare local arsenopyrite in variably silicified, sheared and locally brecciated mafic volcanic flows and tuffs. The rocks are moderately chloritized with pervasive carbonate alteration in the form of concordant calcite veinlets or fine-grained disseminations. The South Pond Copper Deposit does contain significant gold values, many > 1g/t Au.
In 1948, the Anglo Newfoundland Development Company and the Buchans Mining Company Ltd. were granted exploration rights in a large area in central Newfoundland. In 1950, Buchans mapped the Great Burnt Lake and Pipestone Pond areas. Discovery and tracing of boulders hosting chalcopyrite and pyrrhotite led to trenching and the discovery of copper at the South Pond Copper Prospect (now called the South Pond Copper Deposit), near the South shore of South Pond in 1951.
Starting in August 1951, Buchans drilled a series of eleven drill holes for a total of 1,760 m into the South Pond Copper Prospect. The first hole, CL-1, intersected 1.3 metres @ 4.2% copper and all 11 holes intersected dissemination’s and veinlets of pyrrhotite and chalcopyrite. However, by 1953, drilling stopped, having outlined copper values along a 910 m strike length to a depth of 150 m.
In 1957, Aerophysics of Canada Ltd. conducted an airborne electromagnetic survey over the Buchans properties. This included the Great Burnt Lake Property and covered 143 line miles (230.1 km). The survey outlined 70 anomalies, which were later investigated by ground EM and geochemical surveys in 1958. Buchans continued exploration, conducting a ground EM survey and collecting 4,500 reconnaissance B-horizon soil samples over both the airborne and ground EM anomalies and within the package of rocks along strike from the South Pond Deposit.
In 1959 the concession agreement was renewed, but over a smaller area and included 70 square miles in the South Pond, Sitdown Pond and Great Burnt Lake areas. In 1960 Buchans was dissolved with the remaining operations consolidated as the American Smelting and Refining Company, Buchans Unit (“ASARCO”). A 20 hole drill program was completed on a mineralized zone located 200 metres north of the Great Burnt Copper Deposit that was later named the North Stringer Zone by Noranda. A new extended concession agreement was signed in 1964, but further reduced in size to 24 square miles (about 62 km2).
Exploration resumed in 1965, with reconnaissance stream sediment and soil surveys over a 52 km2 area around the South Pond Deposit. One anomalous zone east of Great Burnt Lake was followed up with more detailed geochemical surveys in 1966 and a new copper-bearing outcrop was discovered. The outcrop was drilled in the fall with a portable drill resulting in GB-1 that intersected 1.68 metres of 4.8% copper. During the summer of 1967 a diamond drilling program outlined the Great Burnt Copper Deposit.A 25-year mining lease was applied for and became effective Dec 31, 1967, covering both the South Pond and Great Burnt Lake Deposits. It was held equally by Price (Newfoundland) Pulp and Paper Company Ltd. (the successor to Anglo NL) and ASARCO. By December 1969, the companies outlined an historical reserve at the Great Burnt Copper Deposit.
By September 1971, ASARCO had completed 133 holes for 66,750 feet (20,345 metres) of mainly EX-sized core at the Great Burnt Copper Deposit. In 1976, Anglo NL relinquished its entire mineral claim to Price Brothers & Company Limited, a subsidiary of Abitibi Paper Company Ltd. and the mining lease was subsequently jointly owned by Abitibi-Price (Mineral Resources Division) and ASARCO. Abitibi-Price resumed limited drilling on the property in 1979.
During 1984-1985 Abitibi-Price analyzed some 3,000 archived soil sample pulps from the 1960’s for gold, which returned numerous anomalies in a 2.5 kilometre-long continuous region south of the South Pond Deposit. Gold values up to 3,327 ppb were obtained and this area was named the South Pond Gold Prospect. During this time the re-analysis of drill core pulps from the South Pond Deposit also yielded anomalous gold values up to 5,333 ppb. Soil and drill core pulps from the Great Burnt Lake Deposit were also analyzed for gold but returned insignificant results (Desnoyers, 1987, 1991).
In 1985, BP Resources Canada Ltd. (“BP”) purchased the Great Burnt Mining leases from Abitibi-Price and ASARCO. Exploration activity during 1986 was focused on the South Pond area and included relogging and sampling of archived drill core, analysis of an additional 1,185 archived soil samples for gold and 30 elements (ICP analysis) from alternate grid lines, line cutting (36.6 line kilometres), VLF-EM and magnetic surveys, outcrop sampling and geological mapping. A selection of archived soil sample and drill core pulps from the Great Burnt Lake
In 1987, BP (with joint venture partner Exador Resources) initiated a drilling program to test gold in soil anomalies. Drill hole GB-87-08 intersected a 29 m section assaying 1.04 g/t gold which included a 5.5 m section of 2.21 g/t gold. The gold reportedly occurred within a distinct magnetic horizon which extended south from the South Pond Deposit and bordered the western margin of the soil anomaly. Drill intersections show the gold zone varying in thickness from 12 to 25 m, dipping steeply west and having a minimum strike length of 3 km, including the South Pond Deposit.
In 1989 BP continued drilling to test coincident VLF-EM and magnetic anomalies, following the gold-mineralized horizon to the south. By the end of 1989, 4,200 metres of drilling had been completed and the gold mineralized zone had been traced over 1.4 kilometres along strike. Mineralization consisted of 10-40% pyrrhotite and 1-2% chalcopyrite in a variably silicified and locally brecciated mafic volcanic rocks.
In February 1993, Noranda acquired the Great Burnt Lake properties as part of the purchase of the Newfoundland mineral holdings of BP. In 1994, Noranda focussed on identifying deeper drill targets adjacent to known mineralization. A 2 hole drill program was completed and intersected a “zone of light erratic copper mineralization” located about 200 m northeast of the Great Burnt Copper Deposit. This zone was previously drilled by ASARCO in the 1960’s and Noranda named it the North Stringer Zone, which showed that the better grade zones appear to plunge gently towards the south. Hole GBL95-2 contained up to 10-15% combined pyrrhotite-chalcopyrite over 10-40 cm intervals and the best assay returned 2.56% copper over 60 cm.
In 1999, Celtic acquired the Property from Noranda and between 2001 and 2008, Celtic completed three diamond drilling programs totalling 6,367 metres in 34 drill holes throughout the propertyand conducted geological mapping and geophysics surveys, including an Aerodat helicopter magnetic and EM survey in 2007. Celtic carried the property until spruce ridge acquired it in November of 2015.
In 2016, Spruce ridge announced the discovery at Great Burnt from their inaugural drilling campaign hitting a near surface hit of 7.5 meters at 9.45% copper, including 3 meters of 19.3% copper at vertical depth of approximately 43 meters or less. The drilling campaign was aimed at twinning historic holes, however the grades were found to be 2x higher than what was contained in the resource estimate.
In 2018, a diamond drill program was completed on the Great Burnt Property (Mining Lease 211 and License 6683M). The drill program, consisting of 10 holes for 1,438 metres, was designed to i) follow up on 2016 drilling on the Great Burnt deposit that yielded the highest grade intercepts on the deposit at the time, which included 19.3% Cu over 3.0 meters from GB-16-08. Two of the holes were drilled to test for continuity of t he North Stringer Zone at various levels along strike and up -dip, based on re-interpretation of geological and geophysical data, and 2 holes were drilled to test f or both shallow and deep continuity of the Main Stringer Zone intersected in 2008 drilling.
In 2020, Spruce ridge set out to do an infill drilling campaign of 22 holes which yielded impressive grades of 27.2 metres averaging 8.02% Cu, including 7.75 metres of 16.88% Cu, which in turn included 2.0 metres of 21.25% Cu in hole GB20-05 and in hole GB20-20, intercepts of 22.75 metres of 6.89% Cu, 0.79% Zn and 0.05 g/t Au, including 12.55 metres of 10.59% Cu, 1.27% Zn and 0.07 g/t Au, which in turn included 1.50 metres of 18.15% Cu, 1.98% Zn and 0.04 g/t Au. These holes were first reported in December of 2020 as they were sent in on a rush basis due to the highly mineralized cores seen below.
These high-grade intercepts confirm that historical drilling of the Great Burnt deposit in the 1960’s understated the copper grades due to poor core recovery in the sulphide zone. Furthermore, the 1960s-vintage drill holes were not assayed for zinc, and only recent drill holes have been tested. Unfortunately, there are insufficient recent drill holes to estimate an overall zinc grade distribution. But as we can see in hole GB20-20, that zinc runs in the system and will require more follow up assaying.
In early 2021 Spruce Ridge reported the remaining 20 drill holes from the 3,114m drill program designed to test a 500m meter strike up to a depth of 250m. All holes hit mineralization in the main zone with the exception of hole GB20-08, which is believed to have been drilled under the point of interest. Additionally, during this drill campaign they were able to determine that the Main Zone dips steeply to the east, and plunges to the south at about 30 degrees which will help guide future drilling campaings.
Hole GB20-02 which was drilled as a step out from a historical intercept that is now believed to be in what they are calling “the Stringer Zone” which is a separate zone that lies between 12 and 20 metres east of the Main Zone. It is typically narrower than the Main Zone, and it is discontinuous, as only 12 of the 22 drill holes in the 2020 program intersected it. The Stringer Zone intersections typically had copper values lower than the Main Zone, but did feature more anomalous gold values, with a single gold assay of 0.88 grams per tonne (g/t) in hole GB20-15.
The average copper grades in the table below were calculated using an across-the-zone cutoff of 0.9% Cu, without regard to thickness of the zone. True widths were estimated from cross sections. The last column in the table shows average zinc grades which exceeded 1% Zn, and average gold grades greater than 0.15 g/t Au. Silver is a minor component of the Great Burnt Main and Stringer Zones. The highest single silver assay was 16.7 g/t Ag over 1 metre in GB20-13.
| Drill Hole Number | From (m) | To (m) | Core Length (m) and percent Cu | True Width (estimated) | Other Analyses (Au > 0.15 g/t, Zn >1%) |
| 2020 GREAT BURNT MAIN ZONE DRILL INTERSECTIONS | |||||
| GB20-01B | 212.60 | 227.40 | 14.8 m @ 2.68% Cu | 9.31 m | |
| GB20-03 | 219.80 | 220.30 | Narrow, low-grade | ||
| GB20-04 | 10.00 | 30.50 | 20.5 m @ 1.98% Cu | 14.24 m | |
| GB20-05 | 161.90 | 189.10 | 27.2 m @ 8.06% Cu | 15.21 m | |
| includes | 171.85 | 179.60 | 7.75 m @ 16.88% Cu | 4.33 m | |
| GB20-06 | 180.40 | 185.20 | 4.8 m @ 5.02% Cu | 3.21 m | |
| includes | 182.30 | 185.20 | 2.9 m @ 7.26% Cu | 1.94 m | |
| GB20-07 | 125.00 | 129.40 | 4.4 m @ 5.13% Cu | 2.83 m | |
| GB20-09 | 36.00 | 48.00 | 12.0 m @ 2.19% Cu | 9.19 m | |
| GB20-10 | 35.75 | 43.70 | 7.95 m @ 7.33% Cu | 4.56 m | |
| includes | 38.45 | 43.70 | 5.25 m @ 9.52% Cu | 3.01 m | |
| GB20-11 | 161.40 | 168.45 | 7.05 m @ 2.79% Cu | 3.94 m | |
| includes | 165.55 | 168.45 | 2.9 m @ 5.22% Cu | 1.62 m | 0.24 g/t Au, 1.28% Zn |
| GB20-12 | 138.00 | 146.60 | 8.6 m @ 2.73% Cu | 5.05 m | |
| GB20-13 | 139.85 | 143.55 | 3.7 m @ 6.98% Cu | 1.68 m | 0.19 g/t Au, 1.11% Zn |
| GB20-14 | 91.50 | 102.60 | 11.1 m @ 2.41% Cu | 7.43 m | |
| includes | 95.40 | 101.60 | 6.2 m @ 3.46% Cu | 4.15 m | |
| GB20-15 | 116.30 | 120.00 | 3.7 m @ 3.6% Cu | 2.17 m | 1.02% Zn |
| GB20-16 | 71.40 | 78.50 | 7.1 m @ 1.49% Cu | 3.01 m | |
| includes | 76.80 | 78.50 | 1.7 m @ 2.58% Cu | 0.72 m | |
| GB20-17 | 110.20 | 117.60 | 7.4 m @ 4.71% Cu | 4.24 m | |
| includes | 110.20 | 111.80 | 1.6 m @ 12.95% Cu | 0.92 m | |
| GB20-18 | 85.90 | 90.00 | 4.1 m @ 2.79% Cu | 2.35 m | |
| GB20-19 | 143.50 | 144.10 | narrow, edge of zone? | ||
| GB20-20 | 64.20 | 86.95 | 22.75 m @ 6.89% Cu | 13.37 m | |
| includes | 73.40 | 85.95 | 12.55 m @ 10.59% Cu | 7.38 m | 1.27% Zn |
| includes | 84.45 | 85.95 | 1.5 m @ 18.15% Cu | 0.88 m | 1.98% Zn |
| GB20-21 | 116.40 | 121.00 | 4.6 m @ 3.56% Cu | 3.52 m | 1.16% Zn |
| GB20-22 | 30.45 | 35.50 | 5.05 m @ 5.57% Cu | 3.63 m | |
| includes | 33.40 | 36.50 | 3.1 m @ 8.36% Cu | 2.23 m | |
| 2020 GREAT BURNT STRINGER ZONE DRILL INTERSECTIONS | |||||
| GB20-02 | 223.00 | 226.00 | 3.0 m @ 0.19% Cu | 0.52 m | 0.28 g/t Au |
| GB20-08 | 103.45 | 104.45 | 1.0 m @ 1.23% Cu | 0.51 m | 0.35 g/t Au |
| GB20-09 | 17.00 | 20.00 | 3.0 m @ 2.45% Cu | 2.32 m | |
| GB20-10 | 12.90 | 14.60 | 1.7 m @ 4.28% Cu | 0.98 m | |
| GB20-12 | 87.20 | 87.70 | 0.5 m @ 1.21% Cu | 0.29 m | |
| GB20-13 | 129.85 | 130.80 | 0.95 m @ 2.14% Cu | 0.43 m | |
| GB20-15 | 93.60 | 94.85 | 1.25 m @ 5.55% Cu | 0.73 m | 0.53 g/t Au |
| GB20-15 | 108.40 | 110.10 | 1.7 m @ 1.42% Cu | 1.01 m | |
| GB20-16 | 40.65 | 43.75 | 3.1 m @ 2.35% Cu | 1.31 m | |
| GB20-17 | 55.00 | 55.70 | 0.7 m @ 4.84% Cu | 0.39 m | |
| GB20-19 | 110.20 | 111.80 | 1.6 m @ 2.09% Cu | 0.49 m | |
| GB20-21 | 96.40 | 100.90 | 4.5 m @ 1.26% Cu | 3.45 m | |
Mineral Resource Estimates
In July, Spruce ridge added these results to an updated Mineral Resource which was done by P&E Mining Consultants Inc. and will be used in a Preliminary Economic Assessment (PEA), expected to be completed this year.
The most prominent change is the increase in copper grades of the Main Zone, from 2.66% Cu to 3.21% Cu in the Indicated classification, with a smaller decrease from 2.41% Cu to 2.35% Cu in the Inferred classification. There was a matching increase in the contained copper content from 32.3 (Indicated) plus 30.4 (Inferred) million pounds (Mlbs) to 47.2 (Indicated) plus 25.0 (Inferred) Mlbs. The 2020 drill program comprised only infill drill holes; hence there was only a very minor increase in tonnage of the Great Burnt Main Zone; however, approximately one-fifth of the Inferred tonnage has moved to the Indicated classification.
Table 1 shows the current (2021) Mineral Resource Estimate of the Great Burnt Property including the Main Zone and the South Pond “A” Copper-Gold Zone. Table 2 compares the 2021 and 2019 estimates for the Great Burnt Main Zone only (no new drilling was done on the South Pond Zones).
| TABLE 1: Great Burnt Underground Mineral Resource Estimate at 0.90% CuEq Cut-Off | |||||||
| Classification | Tonnes (k) | Cu% | Aug/t | CuEq% | CuMlbs | Aukoz | CuEq Mlbs |
| Great Burnt Main Zone | |||||||
| Indicated | 667 | 3.21 | Nil | 3.21 | 47.2 | Nil | 47.2 |
| Inferred | 482 | 2.35 | Nil | 2.35 | 25.0 | Nil | 25.0 |
| South Pond “A” Deposit | |||||||
| Indicated | 214 | 1.26 | 1.21 | 2.10 | 6.0 | 8.3 | 9.9 |
| Inferred | 145 | 1.07 | 1.02 | 1.78 | 3.4 | 4.8 | 5.7 |
| Total | |||||||
| Indicated | 881 | 2.74 | 0.29 | 2.94 | 53.2 | 8.3 | 57.1 |
| Inferred | 627 | 2.05 | 0.24 | 2.22 | 28.4 | 4.8 | 30.7 |
| TABLE 2: Great Burnt Main Zone only – 2019 and 2021 Mineral Resource Estimates | |||
| Classification | Tonnes (k) | Cu (%) | Cu Mlbs |
| 2021 Mineral Resource Estimate | |||
| Indicated | 667 | 3.21 | 47.2 |
| Inferred | 482 | 2.35 | 25.0 |
| 2019 Mineral Resource Estimate | |||
| Indicated | 550 | 2.66 | 32.3 |
| Inferred | 572 | 2.41 | 30.4 |
| Percent change 2021 over 2019 | |||
| Indicated | +21% | +21% | +46% |
| Inferred | -16% | -2% | -18% |
Additional Opportunities
Immediately after the resource estimate came out, the company decided make a 9-kilometre access trail from the Great Burnt Main Zone to the South Pond “A” Copper-Gold Zone and the South Pond “B” Gold Zone where additional drilling is now taking place on the South Pond “B” Gold Zone, which does not yet have a Mineral Resource Estimate due to the wide spacing between historical drill holes.
Historic drill results include, 27.25 metres averaging 1.06 grams of gold per tonne (g/t Au) in hole GB87-08, 4.33 metres of 4.43 g/t Au in GB87-12 and 17.13 metres of 1.11 g/t Au in GB89-06.
In Sptember, the company acquired 767 claims totaling 19,175 hectares which are contiguous to the current Great Burnt Copper-Gold Property. With this new addition, Spruce Ridge’s land position has increased to 26,000 hectares of highly prospective ground. These newly acquired claims give spruce Ridge the chance to expand their gold focus to include a larger area of prospective ground that has seen little or no historical exploration. The magnetic interpretation indicates that the new claims may include deep crustal structures like the Appleton Fault and GRUB line and Spruce is hopeful that they will hit similar type mineralization as the aforementioned Faults. After the an airborne magnetic and EM survey are performed the company intends to send in a crew to do a detailed ground truthing campaign.
In our opinion, Spruce Ridge has a very good asset in the Great Burnt Copper Project, especially given that copper is showing great strength as a commodity and Newfoundland as a whole is a hotbed of exploration activity right now. With major discoveries coming to the forefront on the rock, The Great Burnt Copper Deposit is definitely one that should be getting more attention. In addition to this project the company holds considerable positions in Canada Nickel and Noble Mineral Exploration from their 2019 spin out of the Nickel Sulphide deposit they drilled in Timmins in 2018/19. They also acquired several producing oil wells and are currently generating revenue from the operation while the price of oil is surging. Currently, the company is trading for the value of their holdings and not getting any credit for this fantastic asset, but as the market turns in favor of battery metals and gold continues to shine in Newfoundland, We are certain that this offers investors a unique opportunity to capitalize on what is clearly an undervalued company with fantastic assets.
SOURCES OF INFORMATION
This report is based, in part, on internal company technical reports, maps and technical correspondence, published government reports, press releases and public information as listed in the References section at the conclusion of this report. Several sections from reports authored by other consultants have been directly quoted or summarized in this report, and are so indicated where appropriate.
2018, 43-101 TECHNICAL REPORT AND RESOURCE ESTIMATE ON THE GREAT BURNT COPPER PROPERTY, CENTRAL NEWFOUNDLAND FOR SPRUCE RIDGE RESOURCES LTD.
sources.com/docs/Spruce Ridge PP – JUNE 2016 CW – June 17 2016.pdf
http://spruceridgeresources.com/great-burnt.php
Geophysical maps of the property can be found @ http://spruceridgeresources.com/great-burnt.php
