Searchlight Resources Inc.

Low Cost Exploration in Premiere Mining Jurisdictions

This Searchlight Resources Inc. profile is part of a paid investor education campaign.*

Overview

Searchlight Resources Inc. (TSXV:SCLT) is a resource exploration company with a growing portfolio of high-quality, advanced-stage exploration projects close to existing infrastructure in premiere North American jurisdictions. The company’s flagship property is the Bootleg Lake gold and VMS base metal project located in Saskatchewan. The province was ranked as the third best mining jurisdiction in the world and best in Canada by the Fraser Institute in 2019. Bootleg Lake is five kilometers from Flin Flon, Manitoba—home to Hudbay’s 777 underground copper-zinc-gold-silver mine which lies along the prolific Flin Flon-Snow Lake belt. With the closure of the 777 mine slated for 2021, Hudbay is exploring the region for more ore feed to supply its Flin Flon mill complex.

Searchlight’s 2018 drill campaign at Bootleg returned four meters grading 24 g/t gold and 19 meters grading 2.09 g/t gold. The company is planning to reopen 1,500 meters of underground workings at the past-producing Rio mine in 2019 as part of its effort to move the project to underground exploration and development. The company is also planning to develop and drill targets at Henning Maloney gold mine as well as VMS-style base metal targets in the Flin Flon Greenstone belt.

Searchlight’s diverse metals portfolio includes several other Saskatchewan-based projects including properties that are highly prospective for gold, cobalt, vanadium, rare element pegmatites and VMS-style base metals. In 2019, the company plans to evaluate 340,000 hectares of claims for which it has right of first refusal with focus on VMS base metal targets. Searchlight intends to trace a boulder train on the recently acquired Duddridge Lake project to determine the source of cobalt and vanadium on the property.

The company has also acquired the Kulyk Lake rare earths (REEs) project in Saskatchewan. The property has seen historical exploration for REEs and uranium. Trenching in 2010 returned 0.6 meters grading 45.1 percent total rare earth oxides (TREO) and 10.08 percent critical rare earth oxides (CREO), 0.7 meters grading 24.44 percent TREO and 5.49 percent CREO and 0.7 meters grading 19.75 percent TREO and 4.41 percent CREO.

Searchlight Resources’ Munro Warden copper-nickel-cobalt project in Ontario’s world-class Abitibi Greenstone belt. Following a detailed compilation of the existing data, Searchlight Resources Inc.is planning near-term exploration at Munro Warden which will include prospecting, geophysics and geological mapping.

Also in Ontario, 2018 exploration work on the company’s Cameron VMS nickel-copper-cobalt project returned grab samples grading 1.35 percent cobalt, 0.86 percent nickel, 0.23 percent copper and greater than 2,000 ppm bismuth. In 2019, Searchlight plans to conduct drone airborne surveys and further prospecting work on the property.

In May 2019, Searchlight Resources optioned the New York Canyon copper project in Nevada to Emgold Mining Corp. (TSXV:EMR), for C$350,000 in cash and C$500,000 in Emgold shares.

Company Highlights

  • Portfolio of properties in top-rated mining jurisdictions with near-term exploration programs.
  • Bootleg Lake project offers high-grade gold and VMS targets in the Flin Flon area as well as historical resources.
  • 2018 drill campaign at Bootleg returned excellent results including four meters grading 24 g/t gold and 19 meters grading 2.09 g/t gold.
  • 2019 plans for Bootleg include underground exploration and development at the past-producing Rio mine, developing and drilling targets at Henning Maloney gold mine as well as VMS-style base metal targets.
  • Trenching at Kulyk Lake project in 2010 returned 6 meters grading 45.1 percent total rare earth oxides (TREO) and 10.08 percent critical rare earth oxides (CREO), 0.7 meters grading 24.44 percent TREO and 5.49 percent CREO and 0.7 meters grading 19.75 percent TREO and 4.41 percent CREO.
  • Munro Warden project– historical drill data of 4.9 percent copper and 0.27 percent cobalt; grab samples up to 1.7 percent nickel, 1.77 percent copper and 0.14 percent cobalt.
  • Cameron VMS nickel-copper-cobalt project returned grab samples grading 1.35 percent cobalt, 0.86 percent nickel, 0.23 percent copper and greater than 2,000 ppm bismuth.

Flagship Property: Bootleg Lake Gold Project, Saskatchewan

The Bootleg Lake gold project hosts high-grade gold and base-metal volcanogenic massive sulfide (VMS) targets near the city of Creighton, Saskatchewan, and is located five kilometers from Flin Flon, Manitoba. Searchlight Resources holds a 51-percent interest in the 3,718-hectare property which contains three past-producing gold mines with historic estimates: the Bootleg/Rio mine, the Henning Maloney mine and the Newcor gold mine. There are also a number of additional gold and copper occurrences on the project including possibly mineralized tailings from previous production. Excellent exploration infrastructure is in place, offering the potential for lower cost exploration at Bootleg Lake.

canyon-copper-slide-6

“With multiple high-grade gold targets including historical estimates and within minutes’ drive of the mining center of Flin Flon, Manitoba, Bootleg Lake represents a high-quality prospect with low cost exploration,” said Stephen Wallace, President and CEO of Searchlight Resources.

Historical resource estimates (non NI 43-101)

historical-estimates-of-bootleg-lake-deposits

Near-term exploration targets

Management believes the Rio mine area, which remains underexplored at depth and along strike, shows the most immediate potential. A large-scale target lies in the Rio fault corridor with more than three kilometers in strike length from the Rio mine to the Henning-Maloney mine and continues west. The Newcor Corridor area hosts a VMS-related target.

Kulyk Lake REE Project, Saskatchewan

The 592.8-hectare Kulyk Lake REE project is located approximately 165 kilometers north of La Ronge, Saskatchewan and 65 kilometers south of the Key Lake mine. The property has seen historical exploration for uranium and then rare earths in 2009 and 2010 when prices spiked. Kulyk Lake also covers seven additional rare earth, uranium and thorium showings and sample locations.

In 2009, a limited number of grab and channel samples were collected and analyzed. The results returned values of 56.18 percent TREO and 12.49 percent CREO, 30.6 percent TREO and 6.82 percent CREO and 19.04 percent TREO and 4.21 percent CREO.

The sampling work was followed up the following year with trench sampling. Highlights from the program include 0.6 meters grading 45.1 percent TREO and 10.08 percent CREO, 0.7 meters grading 24.44 percent TREO and 5.49 percent CREO and 0.7 meters grading 19.75 percent TREO and 4.41 percent CREO.

Munro Warden Copper-Nickel-Cobalt Project, Ontario

The Munro Warden copper-nickel-cobalt project covers 7,171 hectares in the eastern portion of the Kidd-Munro assemblage of the prolific Abitibi Greenstone belt. The Kidd-Munro assemblage hosts a number of mineral deposits, including the Kidd Creek VMS deposit, the Dundonald and Alexo komatiitic-nickel deposits as well as numerous significant lode gold deposits and copper-zinc bearing massive sulphides. Searchlight Resources has the option to earn up to a 100-percent interest in the property.

The results of historical drilling include 4.9 percent copper and 0.27 percent cobalt, and grab samples have measured up to 1.7 percent nickel, 1.77 percent copper and 0.14 percent cobalt.

Cameron VMS Copper-Nickel-Cobalt Project, Ontario

The wholly-owned Cameron project is located in Brigstocke Township approximately 20 kilometers southwest of the town of Cobalt, Ontario and 120 kilometers north of North Bay, Ontario.

searchlight-cameron-vms-map
Map 1 – Location of shaft, pit and trenches on Cameron claims

A grab sample collected in 1987 from the historical Cameron pits was analyzed by the Ontario Geological Survey returning assay values of 2.26 percent cobalt and 1.7 g/t gold.

Prospecting and sampling in October 2018 led to the discovery of three historic shafts, four pits and seven trenches, with waste dumps near the workings. A total of 40 grab samples were collected from the area, the majority from waste dumps and outcrop exposed in shafts and pits. The results include 1.35 percent cobalt in sample R318936 and 0.63 percent cobalt, 0.864 percent nickel, 341 ppb gold and greater than 2,000 ppm bismuth in sample R318939. Searchlight plans to follow up this field work with additional prospecting and mapping during the 2019 field season, including a detailed UAV drone survey to cover the areas of known workings.

Management

Stephen Wallace, P.Geo.—President, CEO and Director

Stephen Wallace has 30 years of mineral exploration and development experience from grassroots evaluation through to mine development, and has fulfilled roles in the exploration industry from field geologist to corporate executive. Success includes the position of Senior VP, Exploration and Director of Trade Winds Ventures Inc. (TSXV: TWD) a gold exploration company, which was acquired by Detour Gold Inc. in 2012 for $84.0 million. At Trade Winds he was instrumental in advancing the Block A gold project prior to the takeover, with this project becoming Detour Gold’s planned West Detour open pit mine.

John Kerr, P.Eng. Geologist — Director 

John Kerr graduated from the University of British Columbia in 1964 with a Bachelor of Applied Science (B.A.Sc) degree in Geological Engineering. He has participated in the mining industry continuously since graduation as an exploration geologist. Successful ventures include recognition and discovery of the Santa Fe gold mine, identification of the Calvada gold mine located on the northern boundary of the New Canyon property, and discovery of the Mindora gold/silver deposit, all located in Nevada. Kerr has served as a director of numerous public companies and is currently a Director of Quaterra Resources (NYSE Amex: QMM, TSX.V: QTA) and Bravada Gold Corp (TSX-V:BVA).

Peter Clausi BA, JD — Director

Peter Clausi is an experienced lawyer, investment banker, shareholder rights activist and public company executive. He began in the mining industry in 1983 working in a zinc smelter in Timmins, Ontario to pay for post-secondary education. He has managed the defence of complex class action litigation, raised capital through traditional and innovative methods, and helped other companies migrate into new non-mining industries. Clausi is financially literate and quite familiar with the application of IFRS in the mining industry. He is currently the President of Getchell Gold Corp. (gold and copper in Nevada), CEO of GTA Resources and Mining Inc. (gold mainly in Hemlo, in transition to a non-mining industry), CEO of CBLT Inc. (cobalt, gold and copper across Canada), independent director at Buccaneer Gold Corp. (silica in Ontario) and independent director and audit committee member at Camrova Resources (minority interest in producing copper and cobalt mine in Mexico).

Brian Crawford—Chief Financial Officer

Brian Crawford, CPA, CA, has over 30 years of experience as a senior financial executive of private and public corporations. A former partner in a national firm of chartered professional accountants, Mr. Crawford is currently the CFO, Corporate Secretary and a Director of several Reporting Issuers.

Peter Dueck B.Sc, MBA, P.Geo—Director 

Peter Dueck has been involved in the resource exploration industry since 2001, working with a variety of gold, copper, zinc and uranium companies. Until early 2018, he held the position of Chief Geophysicist for Hudbay Minerals Inc. in Flin Flon, Manitoba. At present Mr. Dueck is the President of Pioneer Aerial Surveys Ltd a wholly owned subsidiary of Global UAV Technologies, Ltd., which is provides a full spectrum of Unmanned Aerial Vehicle “UAV”-based services and products. He was a founder of Aerial Imaging Resources, Inc. (AIR), a UAV-based geophysical survey company acquired by Global UAV in 2018. Dueck holds a B.Sc. in Geophysics from the University of Saskatchewan as well as an MBA from the University of Wales.


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