The Big Onion Project is located 16 kilometers east of the town of Smithers, B.C. and consists of 15 contiguous mineral claims comprising a total area of 4,810 hectares.
Access to the Big Onion Project is an easy 20 minute drive from Smithers via well maintained gravel roads. A network of 4-wheel drive roads provide access to all sides of the claims and within the claim boundaries.
Copper occurrences were originally discovered on the property in the early 1900s. Between 1964 and 1998 various operators conducted diamond and percussion drilling, totaling over 134 holes (19,487 meters), on the property. Eagle Peak Resources Inc. subsequently drilled a total of 84 holes (21,523 metres) to explore the depth and extent of the mineralized zones, conducted preliminary metallurgical test work, completed magnetic and induced polarization geophysical surveys, and calculated two resource estimates. To date, 313 drill holes totalling 45,477m have been drilled on the Big Onion Property with approximately $8.2 million spent on the project since 2006.
A NI 43-101 resource report entitled Technical Report on the Big Onion Copper Molybdenum Project dated May 31, 2009 was prepared by Giroux Consultants Ltd. The following tables summarize the resource estimates provided in the report:
Big Onion Copper Equivalent Indicated Resource*
| CUEQ |
Tonnes > Cutoff |
Grade > Cutoff |
Contained |
| (%) |
(tonnes) |
Cu (%) |
Mo (%) |
CuEQ (%) |
Pounds Cu |
Pounds Mo |
| 0.15 |
156,800,000 |
0.237 |
0.0079 |
0.28 |
819,400,000 |
27,300,000 |
| 0.20 |
114,100,000 |
0.273 |
0.0087 |
0.32 |
686,800,000 |
21,900,000 |
| 0.25 |
81,000,000 |
0.308 |
0.0096 |
0.36 |
550,100,000 |
17,100,000 |
| 0.30 |
53,000,000 |
0.350 |
0.0104 |
0.41 |
409,000,000 |
12,200,000 |
| 0.35 |
33,300,000 |
0.396 |
0.0111 |
0.46 |
290,800,000 |
8,200,000 |
| 0.40 |
20,700,000 |
0.443 |
0.0119 |
0.51 |
202,200,000 |
5,400,000 |
| 0.45 |
12,800,000 |
0.494 |
0.0125 |
0.56 |
139,400,000 |
3,500,000 |
| 0.50 |
8,200,000 |
0.542 |
0.0130 |
0.61 |
98,000,000 |
2,400,000 |
| 0.55 |
5,500,000 |
0.585 |
0.0136 |
0.66 |
70,900.000 |
1,600,000 |
| 0.60^ |
3,600,000 |
0.626 |
0.0141 |
0.70 |
49,700,000 |
1,120,000 |
Big Onion Copper Equivalent Inferred Resource
| CUEQ |
Tonnes > Cutoff |
Grade > Cutoff |
Contained |
| (%) |
(tonnes) |
Cu (%) |
Mo (%) |
CuEQ (%) |
Pounds Cu |
Pounds Mo |
| 0.15 |
18,000,000 |
0.214 |
0.0050 |
0.24 |
84,900,000 |
2,000,000 |
| 0.20 |
12,000,000 |
0.243 |
0.0057 |
0.28 |
64,300,000 |
1,500,000 |
| 0.25 |
6,600,000 |
0.284 |
0.0062 |
0.32 |
41,300,000 |
900,000 |
| 0.30 |
3,100,000 |
0.339 |
0.0061 |
0.37 |
23,200,000 |
420,000 |
| 0.35 |
1,600,000 |
0.385 |
0.0063 |
0.42 |
13,600,000 |
220,000 |
| 0.40 |
670,000 |
0.452 |
0.0065 |
0.49 |
6,700,000 |
100,000 |
| 0.45 |
410,000 |
0.497 |
0.0065 |
0.53 |
4,500,000 |
60,000 |
| 0.50 |
280,000 |
0.528 |
0.0063 |
0.56 |
3,300,000 |
40,000 |
| 0.55 |
120,000 |
0.580 |
0.0064 |
0.62 |
1,500,000 |
17,000 |
| 0.60 |
380,000 |
0.601 |
0.0066 |
0.64 |
1,100,000 |
12,000 |
The resource estimate on the Big Onion project is considered historical by the Company. Blue Lagoon has not conducted sufficient technical due diligence on the Big Onion project to independently verify the resource estimate, and specifically has not conducted a comprehensive review of the drill sample data used in the estimate, or other analysis necessary to confirm the cut-off grade and other factors used in calculating the resource, including the method of calculation of the resource. Readers should not treat e the resource estimate as a current resource.
Another 20 holes totaling 4,467m was drilled post 43-101 report in 2014 for infilling purposes and to test geophysical anomalies on the Big Onion. The 43-101 has not been updated.
The Big Onion mineral deposit consists of three principal zones of copper-molybdenum mineralization known as the South, North, and Northeast Zones. These zones were established by earlier workers since spatial position and orientation of the mineralization and alteration. The zones are up to 200 meters wide and extend along strike in a north-easterly direction for approximately three kilometers and dip approximately 60° northwest.
The mineralization, consisting of pyrite, chalcopyrite, molybdenite, chalcocite, covellite and minor bornite, occurs as disseminations and in a stock-work of quartz-filled fractures. The mineralization is hosted by Late Cretaceous quartz-feldspar porphyry (QFP) and quartz-diorite porphyry (QDP) dykes and by the andesite country rock proximal to the dyke contacts. From a review of Eagle Peak Resources drilling in 2006 to 2008 (84 DDH; 21,523m) the median depth of mineralization (>= 0.20% Cu) is 130m below ground surface (blg) with a range between 6m and 396m blg.
Overall, the Big Onion resource is open along strike to the SW and, at depth. Furthermore, the Big Onion resource would benefit from further infill drilling along strike and at depth, more drilling to test geophysical already identified targets (IP) outside of the mineralized zone included in the resource model, separation statistically of mineralized intervals lumped together in the leach cap and supergene enriched zone and, further focused Geophysical techniques and applications to guide exploratory drilling.
The scientific and technical data contained here was prepared and reviewed by William Cronk, P.Geo., a qualified person as defined in NI 43-101 and a consultant to the Company.
