The principal target on the Property is silver, lead and zinc in veins,
with a secondary target of peripheral gold- and silver-bearing veins.
Access to the Property is by gravel roads from Mayo
The Keno Hill Silver District, north-central Yukon
Approximately 45 kilometres (km) northeast of Mayo and 360 km north of Whitehorse
Plata Silver Mines Ltd. used the Keno Project properties to obtain a
listing on the Vancouver Stock Exchange, and began trading in March
1962. Plata Silver subsequently went through various name changes,
eventually becoming Silver Quest Resources Ltd. in 2005. Independence
Gold Corp. was created pursuant to a statutory plan of arrangement
completed December 23, 2011 between Silver Quest and New Gold Inc.
A historical resource estimate of 39,900 tonnes grading 548.6 g/t
silver, 6.9% lead and 10.7% zinc was made by D.D. Campbell in 1965
(Yukon Open File Report 106-D). (This is a historical resource
estimate, and was not compiled within the definitions and standards
outlined in National Instrument 43-101, and the Company cautions that
this historic estimate cannot be relied upon. The Company does not view
the historical estimate as current mineral resources. A Qualified
Person has not done sufficient work to classify the historical estimate
as current mineral resources). Campbell also reported "With present
(1965) knowledge of the ore controls it is possible to confirm a fair
tonnage of ore with a moderate amount of raising and short drilling.
Also, the potential of finding new ore bodies along strike is excellent
wherever greenstone or quartzite bands may be encountered".
The Keno Hill Silver District produced more than 217 million ounces of
silver from ore with an average grade of 1,388.6 grams per tonne (g/t)
or 40.5 ounces per ton (oz/t) silver, 5.6% lead and 3.1% zinc between
1915 and 1988 (Yukon Government's MINFILE database).
The Formo Group is the principal property in the Keno Project area, and
is comprised of 13 of the 19 mining leases that together make up the
Keno Project properties. There has been a total recorded production of
174.5 tonnes of ore from the Formo Group since 1936 (Yukon Geological
Survey MINFILE occurrence 105M 018).
A limited sampling program was completed on the Formo Group in 2008, in
order to confirm reported historic mineralization on the property.
Select rock samples from the dump at the 2700 level adit contained up to
3,025 g/t (88.2 oz/t) silver, 19.50% lead and up to 39.80% zinc (see
the Formo Group rock sampling map). The 2008 rock sampling results
confirmed the tenor of mineralization on the property.
A northeast trending vein contains lenses of galena, sphalerite and
minor tetrahedrite in carbonate gangue on the Formo Group. This vein is
emplaced along a transverse fault that crosscuts schist and greenstone
beneath the Mississippian age Keno Hill (Central) Quartzite.