Chieftain Metals (TSX: CFB) and the Tulsequah Gold-Silver-Zinc-Copper-Lead Project in British Columbia. Feature by Greg Klein of ResourceClips.com.

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Tulsequah Revived
Chieftain plans 2014 BC polymetallic production
~ By Greg Klein - October 24 2011
Progress is now rapid at Chieftain Metals’ TSX:CFB Tulsequah polymetallic project, 510,000 ounces gold and 18.63 million ounces silver. The inferred category shows
located 100 kilometres south of Atlin, BC, and 65 kilometres northeast of Juneau, 22.7 million pounds copper, 22.4 million pounds lead, 121 million pounds zinc,
Alaska. “We have pretty much all the major permits, licences and authorizations to 57,000 ounces gold and 2.53 million ounces silver.
move forward,” says Jamie Frawley, Chieftain’s Director of Corporate Communica-
tions. “We can start construction any day now.” That estimate doesn’t include the Big Bull Deposit, another 1950s Cominco opera-
tion. “There’s about 20 kilometres of strike between those two past-producing mines,
Gold-silver-zinc-copper-lead production is slated to begin in 2014. This will be the and there’s a very good indication that deposits exist between there,” Frawley says.
culmination of a long struggle. Plunging metal prices in 1957 shut down Cominco’s “It’s early days right now, but we feel very confident that there’s good exploration
northern BC polymetallic operation after six years of operation. Resuscitation potential.”
attempts by Redcorp Ventures a half-century later were dogged by local and environ-
mental opposition. As a result, the company gave up on a plan to build a 160-kilome- The company awaits results on field magnetics and helicopter-borne Vertical Time-
tre road to Atlin. An alternate plan, to ship concentrate by barge to Juneau, also faced domain Electromagnetic surveys conducted last spring on the 14,220-hectare prop-
resistance. Environment Canada ordered the company to build a water treatment erty encompassing both deposits. This year Chieftain drilled approximately 15,000
plant to clean up toxins left flowing since 1957. metres at Big Bull and another 15,000 at Tulsequah.
June 28 results from Big Bull include
2 grams per tonne gold, 167.1 g/t silver, 0.41% copper, 2.15% lead and 4.19% zinc
over 9.5 metres
4.07 g/t gold, 81.37 g/t silver, 0.94% copper, 1.15% lead and 6.38% zinc over 2.3
metres
3.4 g/t gold, 274 g/t silver, 0.19% copper, 8.25% lead and 19.8% zinc over 0.7
metres
0.73 g/t gold, 23.69 g/t silver, 0.12% copper, 1.06% lead and 3.33% zinc over 10.7
metres
(including 1.1 g/t gold, 46.87 g/t silver, 0.41% copper, 1.68% lead and 5.91% zinc
over 1.6 metres)
October 5 results from the Tulsequah Deposit include
Finances faltered during 2007. Mine construction did begin, but the 2008 Christmas
shutdown became a permanent layoff. Redcorp went into receivership in 2009. 4.51 g/t gold, 133.13 g/t silver and 1.16% copper over 24.4 metres
3.07 g/t gold, 100.52 g/t silver and 1.47% copper over 18.7 metres
Christmas 2010, however, was kinder. Just three days earlier, Chieftain, a new com- 2.43 g/t gold, 54.43 g/t silver and 0.71% copper over 10.1 metres
pany announced a $17.5-million IPO, quickly raising the amount to over $20 million. 2.13 g/t gold, 72.85 g/t silver and 1.33% copper over 9.2 metres
Tulsequah, a property Chieftain bought out of bankruptcy the previous September, 3.45 g/t gold, 120.48 g/t silver and 1.3% copper over 3.9 metres
was its raison d’être.
Additional 2011 results are forthcoming.
Chieftain brought together President/CEO/Director Victor Wyprysky, an investment
banker focused on exploration and mining, and Executive VP Terrance Chandler, A feasibility study began in September and will be published around March 2012,
Redcorp’s former President/CEO. They put together a seasoned team of financiers, Frawley reports. That’s one of the ways Chieftain hopes to raise the PEA’s $277-mil-
geologists and engineers and added Phil Fontaine, formerly Chief of Canada’s As- lion NAV to $413 million. That 67% enhancement would come from upgraded
sembly of First Nations, to their board. resources, improved metallurgy and run-of-river hydro (the PEA considered diesel-
generated electricity).
Tulsequah will bring big changes to a remote area of northwest BC that lacks power
and is accessible only by boat, barge or light plane. At press time, Chieftain had 12 million shares trading at $3.70 for a $44.5 million
market cap.
An interim water treatment plant should see completion next month, a key step before
construction begins in spring 2012. One permit remains—the road to Atlin, which “Right now Chieftain is trading at roughly 20% NAV,” Frawley adds. “Once we start
would allow truckers to haul concentrate to the ice-free port at Skagway, Alaska, hitting some of our key milestones, once we finish out the year and start next year,
“
approximately eight hours from Tulsequah. Frawley sounds confident the road will we expect a lot of movement. I think we’re undervalued right now, and we’re a great
be approved, although the exact route is still under negotiation. The mine is on the investment opportunity.”
property of the Taku River Tlingit First Nation group. “We’re working very closely with
them to ensure both sides are happy and making mutual decisions,” Frawley says.
There’s about 20 kilometres of strike between
The ultimate goal is an underground mine below the Cominco workings. Last June’s
PEA forecast an initial $310.1-million CAPEX with a $277-million pre-tax NPV and those two past-producing mines, and there’s a
a 25% IRR. Polymetallic projections came to 2,000 tonnes per day over a 9-year very good indication that deposits exist between
lifespan for 69,400 gold-equivalent ounces annually. The CAPEX includes $65 million
for the all-weather road. there. It’s early days right now, but we feel very
confident that there’s good exploration potential
The PEA was based on a November 2010 resource with an indicated estimate of
188.9 million pounds copper, 163.6 million pounds lead, 856.7 million pounds zinc, – James Hamilton
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