Geophysical Surveying

A considerable amount of geophysical surveying has been completed over the NAK property. The surveys included airborne EM and VLF undertaken by Noranda in the late 60s followed up with ground magnetics, IP and VLF which were undertaken over localized grids in the central part of the NAK Intrusive Complex. In 2008, a ground IP survey (lines in yellow on the RTP map) was conducted over the central and southern portions of the property. In 2010, a 502 line km helicopter ZTEM and magnetic survey was completed over 70% of the property which generated high quality data. In 2014, a second close-spaced helicopter magnetic survey was completed over the entire property and extended further to the southeast covering the Dorothy/Duke copper porphyry prospect now owned by Amarc Resources. The survey totaled 581 line km of which ~300 line km covered the NAK property.

In order to facilitate a direct comparison with the geology, inversion modelling was completed for the ZTEM and magnetic data. The reliable depth penetration for the ZTEM survey data was estimated at 1000 to 1200m and 2500-3000m for the magnetic data. The 2D ZTEM inversion clearly defines a north-north-west trending elliptical shaped resistivity high measuring 1100 x 700m and centered on the North and South copper zones. The 2DI resistivity high is also coincident with an elliptical-shaped ZTEM In-Phase 30Hz low which reflects the location of the silicic core of the younger mineralized porphyry stock. The 3D magnetic inversion delineates a small, high intensity anomaly centered on the South copper zone and coincident with a strong ZTEM resistivity high and In-Phase low.

The older diorite stock and overlying volcanics are characterized by a moderate to strong IP resistivity low flanked by a zone of high chargeability which is best developed on the eastern margin of the older intrusive complex and related to pyritic phyllic alteration. Geophysical modeling indicates the the South Copper Zone offers the best potential for higher copper grades below a depth of ~500m. Deeper drilling will focus on the coincident ZTEM resistivity and magnetic high located in the South Copper zone in the vicinity of drill holes B-5, 95-15 and 95-55. These holes intersected strong magnetite alteration with abundant bornite with a high Au:Cu ratio. A number of world class, copper-gold deposits including Grasberg, Batu Hijau, Red Chris, Southwest Oyu, Maricunga, Cascabel, and Cadia exhibit similar geological characteristics as NAK in that they are magnetite rich and have a high gold to copper ratio.

3D inversion Magnetic interpretation

2D inversion ztem interpretation