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Feature article June 15, 2018:

 

Honey Badger highly prospective for 'five element' vein discoveries of significance at high-grade Silver project, Thunder Bay, Ontario

  

  

Target commodities: Silver, Cobalt, Gold, Zinc & Lead

 

Honey Badger Exploration Inc.

(TSX-V: TUF) (US: HBEIF)

 

Share data, Capitalization, & Corporate info

 

 Shares Outstanding:  ~63 million

 Fully Diluted:  ~80M

 Recently Traded: ~CDN$0.13/share (TSX-V: TUF)

 52 Week High/Low: $0.20/ 0.04

 Current Market Capitalization: ~$8.2 million Canadian

 Corporate Website: www.honeybadgerexp.com

 

TUF.V presents exceptional risk-reward scenario, numerous exploration catalysts coming into play:

 

  • Over 5,000,000 ounces of silver were produced in the region, mostly pre-1900.

  • 1,400m drill program began this H1-2018 at prime land package with 9 historic high-grade silver mines, some operated with cut-off grades of ~1,000g/t Silver, and has not had modern exploration techniques applied.

  • 'Five element' vein discovery on first hole; assays are pending. TUF.V's geological environment is similar to the Cobalt Silver Camp.

  • Experienced management, skilled technical leadership, stable mining-friendly jurisdiction, and excellent infrastructure.

 

   

Valuation Commentary: Honey Badger Exploration Inc. (TSX-V: TUF) (US Listing: HBEIF) is a Canadian-based mining company focused on advancing its 100%-owned newly consolidated flagship Thunder Bay Silver Project in the Lakehead Region of Thunder Bay, Ontario. The inherent value of TUF.V is poised to increase over the next few months as the Company executes on its 2018 exploration program, including a 1,400m drill program this H1-2018 on a land package with 12 historic high-grade silver mines, with historical production >1.67M oz silver. The Beaver Silver Mine (on TUF.V's claims), for example, is reported to of had historic* production of ~500,000 oz silver, operated with an average grade of 0.2565% (>2,500g/t) silver, some zones graded 3.42% silver (34,200 g/t), and for the most-part has not seen modern exploration techniques applied (*historic non NI-43-101, sources: Szetu-1969 and Ingall-1889). TUF.V's skilled technical team has created a 3D model projecting the mineralized fluid pathways from the known fault breaks proximal the Beaver Silver Mine and on its first drill holes encountered a previously unknown 'Five Element' mineralized vein (see related March 28, 2018 news) -- there were multiple mineralized veins encountered with different orientations which suggests a much larger system than previously recognized. Assays are pending.

 

'Five Element', polymetallic vein groups have historically been mined in the region for silver, cobalt, nickel, lead and zinc. Important to note is the geology of Honey Badger's Thunder Bay Silver Project is similar to that found at Ontario's other silver district, the Cobalt Silver Camp, one of the most productive silver districts in the world (442 Moz silver).  The main factors influencing Honey Badger Exploration to focus on this Thunder Bay project are 1) proximity to infrastructure, 2) low cost of entry on prime ground, and 3) the highly favorable geology with potential to lead to a discovery comparable with the success of the Cobalt Silver Camp. 

 

TUF.V currently has a market cap of ~$8.2 million (~63 million shares outstanding recently trading at $0.13/share). The risk-reward characteristics for establishing a long position in TUF.V are good considering a stream of exploration related news catalysts is expected over the near-term. Airborne magnetics announced on April 5, 2018 on the Beaver Silver Property identified numerous targets that exhibit the same response as Honey Badger's new March 28, 2018 “Five-element” vein found proximal the historic Beaver Mine - corroborating >2 km new potential over fault structures.

 

 

Figure 1. (above) - Location map of TUF.V's three Thunder Bay Silver Project properties (with inset of images of historic mining structures) -  Seen are TUF.V's original 3 properties; 1) the Beaver Property, 2) Silver Mountain Property, and 3) Mink property -- totaling 66.94 sq.km (6,694 Ha). The stars denote the location of high-grade historic silver mines. The lower image seen above is from 1892 in front of the mine office in Thunder Bay, silver bars are stacked on the sidewalk (*historic predates NI43-101). Honey Badger Exploration Inc. has since added tothe surrounding land package and has >30,000 hectares.

 

One of the best places to find a great deposit is near a successful past mine:

 

The Beaver Silver Mine (on TUF.V claims) had historic production of 500,000 oz silver (operated between 1884 and 1891), average grade of 0.2565% silver (Szetu, 1969) with zones grading 3.42% silver (34,200 g/t) (Ingall, 1889), historic drilling of 1239 g/t silver over 1 m (AFRI 52A05SE0027).

 
The Silver Mountain Mines (1 km North of TUF.V claims) had historic production of 700,000 oz silver (from 1888-1903 and in 1911), silver-bearing veins traced over 1,500 m in strike length, trending east-west (Franklin et al., 1986).

  

The first silver discoveries in Ontario occurred in this region in the 1840's, with earliest discoveries nearest the shores of Lake Superior. Area operations targeted extremely high-grade silver at intersections of favourable structure, except back then there was no modern exploration and no established claim system so there was also no large-scale exploration or understanding of systems. Historic operations were developed by drifting and were never tested for other metals. Historical records show cut-off grades for mining at some operations were set at 1,000 g/t. Mining activities stopped with falling silver price in late 1890's, then with the discovery of the Cobalt Silver District in 1903 attention was diverted away from the Thunder Bay area and there has been no meaningful exploration since. Over 5,000,000 ounces of silver were produced in the region, mostly pre-1900, well before the advent of modern exploration techniques and mining practices. Honey Badger is an early mover in consolidating key ground in this historic silver camp that has strong potential for polymetallic mineralization.

 

 

Figure 2a&b. (above) - LARGE UNTAPPED POTENTIAL - Location map and regional geology - The geological history and the overall geological setting of the Thunder Bay Polymetallic Silver Project make it a prime target for the discovery of high-grade polymetallic silver, gold, zinc, lead, and cobalt mineralization. The two main vein belts in the Lakehead Region, the Mainland and Island vein group belts are the source of a numerous past-producing* high-grade silver mines in the district. ~1.1 billion years ago the mid continental rift saw the earths mantel push up and stress the crust, causing it to split -- diabase intrusions act as channel for heat transfer towards the surface, and the heat drives large hydrothermal cells which form mineralization that can be found today. Besides Silver, historic grades from the Mainland Vein group include up to 1.4% cobalt and 25% nickel (historic assay results from Geological Survey of Canada Report, 1889).

 

The group of properties held or optioned by Honey Badger covers some of the most productive veins of the Thunder Bay Silver District. The geological attributes of the area and the spatial distribution of the polymetallic silver mines, showings and occurrences over approximately 100 kilometres suggest a good potential to discover additional high- grade polymetallic silver veins in the region.

 

Fig. 3b (below) Beaver Property - Major breaks intersect.

Figure 3a (above) - Cross-sectional profile of Beaver Property showing mineralized faults. Those faults are where the fluids are going to be circulating, and where you get intersections of faults at different directions (not shown on this figure), that is where you get good high-grade mineralization.

 

Honey Badger Exploration Inc. controls >5km over one of the main breaks at the Beaver Property, so any favourable intersection along that break is favourable to high-grade silver mineralization -- it just needs to be explored, which has never been done before. The system is believed large and ripe with potential for major discovery.

 

Search of historic data yields high-grade silver results at Beaver: The following is an example of channel samples taken on the floor of the Beaver Mine and highlight the high-grade potential of the silver veins in the area:

 

Level Easting (m) Northing (m) Elevation (m) Silver (Oz/t)
5 304508.35 5354828.84 298.98 105.2
5 304513.70 5354811.76 298.92 1.14
6 304500.30 5354844.49 269.79 202.4
6 304558.43 5354758.46 270.16 60
6 304580.29 5354737.59 269.79 78
6 304479.00 5354875.12 269.65 11.36
7 304474.95 5354881.76 250.87 1.02
7 304474.95 5354881.76 250.87 1.4
7 304505.88 5354831.39 251.00 3.28
7 304529.43 5354814.35 250.81

1.26

Table 1 (above) - May,1960 (Allan Grant – Stope Survey) channel samples - taken across the exposed mineralized veins still in place at approximate 1 metre intervals and assayed for silver only.

 

The above numbers are impressive; 105.2 Oz/t = 3,272 g/t, 202.4 Oz/t = 6,295 g/t.

 

H1-2018 Exploration Plans

 

Honey Badger's three properties host large diabase sills and important regional faults. The exploration model focuses on untested faults and the deeper/lateral extension of known mineralized faults on the properties.

 

Airborne geophysics are completed, field-based short-wave infrared surveys are on-going, geochemical surveys are on-going, and there was a ~1,400m drill program recently whose results are still pending.

 

HONEY BADGER DISCOVERIES – March 2018 DRILLING

See related March 28, 2018 news "Honey Badger Discovers New “Five-Element” Vein Early in Drill Campaign, Thunder Bay Silver Project".

 

- New mineralized vein next to the Historic Beaver Mine.
 

- 2 holes intercept a quartz-amethyst-calcite vein with visible disseminated pyrite, galena, sphalerite and chalcopyrite.
 

- Vein >7 metres in length (core length) and at an angle to the known Beaver Mine Vein.

 
- Potential for larger system than initially anticipated.

 

- Current 1,500 m drill program testing structural traps where the likelihood of finding polymetallic silver mineralization is the highest.

Fig. 3c (below) Beaver Silver Mine shown with location of first two (March 2018) drill holes from TUF.V

 

 

HONEY BADGER DISCOVERIES – Recent sampling

See related April 19, 2018 news "Honey Badger Confirms High-Grade Silver (953 g/t) and Zinc (14.94%) from Grab Samples at its Thunder Bay Silver Camp".

 

Assay results from surface sampling have returned silver values of up to 953 g/t and zinc values of up to 14.94%. The results from the prospecting we conducted on our properties in early March confirm that high-grade silver mineralization extends over at least 2.5 km along the regional structure interpreted to control silver mineralization at the historical Beaver Mine.

Fig. 3d (below) Location of grab samples on Beaver claims:

 

  

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Below is expanded insight on Honey Badger Exploration Inc. and its Thunder Bay Polymetallic Silver Project.

 

     Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer

  

 

Recent news releases regarding Company accomplishments and operational developments:

  

• June 7, 2018 "Honey Badger Exploration Strategically Increases its Landholdings in Thunder Bay, Ontario".

 

• June 6, 2018 "Honey Badger Announces Closing of Final Tranche of Private Placement".

 

• May 18, 2018 "Honey Badger Announces Closing of First Tranche of Private Placement".

 

• May 14, 2018 "Honey Badger Announces Private Placement Financing".

 

• April 19, 2018 "Honey Badger Confirms High-Grade Silver (953 g/t) and Zinc (14.94%) from Grab Samples at its Thunder Bay Silver Camp".

 

• April 12, 2018 "Honey Badger Exploration Stakes Additional Ground at its Thunder Bay Polymetallic Silver Camp".

 

• April 5, 2018 "Honey Badger’s Geophysical Results Corroborate >2 km “Five-Element” Vein at its Thunder Bay Silver Project".

 

• March 28, 2018 "Honey Badger Discovers New “Five-Element” Vein Early in Drill Campaign, Thunder Bay Silver Project".

 

• March 16, 2018 "Honey Badger Exploration Initiates Drilling Program at its Thunder Bay Silver Camp".

 

• February 20, 2018 "Honey Badger Exploration Exhibiting at PDAC 2018".

 

• January 19, 2018 "Honey Badger Exploration Stakes Additional Ground at its Silver Mountain and Mink Properties".

 

• January 10, 2018 "Honey Badger Exploration Announces Exploration Grant".

 

• January 3, 2018 "Honey Badger Exploration Stakes Additional Polymetallic Silver, Gold, Zinc, Lead, and Cobalt Properties in Historic Camp".

 

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Thunder Bay Polymetallic Silver Camp Infrastructure

   

 

------ ------ ------      ------ ------ ------      ------ ------ ------

 

 

Figure 4a & b (above) Land package -- All properties have good infrastructure to facilitate exploration and development - All three properties are ideally located close to roads, power lines, infrastructure, and a skilled labour force. Access to the properties is easy; Provincial road 588 branches off Hwy 17 (coming from Thunder Bay) and goes through the properties. The Beaver Property is ~25km from Thunder Bay.

 

There is also, for the most part, no surface right owners for the core claims of the properties.

 

Net Ownership:

 

       

Beaver Silver Property: 100% ownership on 21 claims. Option to acquire 100% interest on 3 Cairngorn Mines Limited patents.

 
Mink Property: 100% ownership.

 
Silver Mountain Property: 100% ownership.

 

New addition (seen in green on image above): With this land expansion, Honey Badger has also secured an additional three historic mines: Lily of the Valley, the Federal and the Gopher mines. The Lily of the Valley Mine was developed on a vein reported to contain zones of very high-grade silver mineralization. Historically, a 5,060 pounds bulk sample taken at the Lily of the Valley Mine graded 2.98% silver (Mineral Deposit Inventory for Ontario; Deposit: MDI52A06SW00003). Little historic information exists for both the Gopher and the Federal mines.

 
 

The Beaver Silver Property

 

- Located 25 km SW of Thunder Bay

 
- 29.89 sq. km
 

- Option on 3 Cairngorm Mines Ltd. patents.
 

- 100% ownership on surrounding 21 contiguous unpatented claims.

- 5 historic mines on the property.
 

- Hosts 3rd largest individual silver mine in the district - Beaver Silver Mine (operated between 1884 and 1891):
 

Historic production of 500,000 oz silver.
Average grade of 0.2565% silver (Szetu, 1969) with zones grading 3.42% silver (34,200 g/t) (Ingall, 1889).
Historic drilling of 1239 g/t silver over 1 m (AFRI 52A05SE0027)

  

Figure 5 (right) Beaver Silver Property claims - The green claims are patented mining claims of the historic mines. The best place to find a quality deposit is next to (or under) an old one.

 

 

Figure 6 (above) Beaver Silver Property Geophysics - Results corroborate >2 km “Five-Element” vein.

 

The Silver Mountain Property

 

 

- Located 50 km SW of Thunder Bay.
 

- 16.82 sq. km
 

- 12 contiguous unpatented claims.
 

- 100% ownership.
 

- Historic drilling on property of 294.86 g/t silver over 1.62 m (Emery,1947c).
 

- < 1 km south of Silver Mountain Mines*

 

Historic production of 700,000 oz silver (from 1888-1903 and in 1911).
• Silver-bearing veins traced over 1,500 m in strike length, trending east-west (Franklin et al., 1986).

Figure 7. (right) - Silver Mountain Property claims

 

The Mink Property

 

 

- Located 70 km SW of Thunder Bayy.

 

- 20.23 sq.km
 

- 10 contiguous unpatented claims.
 

- 100% ownership.
 

- 2 historic mines - Mink Mountain and Silver
Wolverine.

 
• little known about production and grade.

 

Figure 8. (right) - Mink property claims

   

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Honey Badger Exploration Inc.'s Technical Leadership, Management, and Governance  Skip to top

The current management team and board of directors has a well rounded combination of people that each contribute expertise in disciplines necessary for a successful mining entity:

 

Quentin Yarie, P.Geo., – President and CEO

Mr. Yarie has been a director of Red Pine since 2011 and also serves as Director of MacDonald Mines Exploration Ltd., Honey Badger Exploration Inc., and NextSource Materials Inc. Mr. Yarie studied Business Administration at SIAST, Saskatchewan and has over 20 years of project management and business development experience in the mining and environmental/engineering sector.

 

Chad Gilfillan, P.Eng., CFA, – Director

Mr. Gilfillan is Senior Vice-President at Red Cloud Klondike Strike Inc., an exempt market dealer focused on providing unique and innovative financing alternatives, growth opportunities, and market exposure for select mining companies. Mr. Gilfillan is a former precious metals, energy and resource fund portfolio manager with Natcan Investment Management and a buy-side mining and energy analyst at TD Asset Management. Prior to his work in capital markets, he was employed as a consulting engineer having worked on mining projects around the globe and across the resource company cycle: from exploration to feasibility, construction and operation. Mr. Gilfillan holds a B.A.Sc. in Geological Engineering from the University of Waterloo. He is a registered Professional Engineer and a CFA charterholder.

  

Craig Scherba, P.Geo, – Director

Mr. Scherba is a professional geologist (P.Geo.) with over 20 years of mineral exploration experience both in Canada and abroad. Mr. Scherba was an integral member of the exploration team that developed Nevsun Resources’ high grade gold, copper and zinc Bisha Project in Eritrea and lead the exploration team that discovered NextSource Materials’ Molo Graphite Project in Madagascar. Mr. Scherba serves as President and CEO of NextSource Materials Inc. and is the Vice-President Exploration of MacDonald Mines Exploration Ltd and Red Pine Exploration Inc.

   

Kevin Tanas, P.Eng. – Director

Kevin is currently Principal, Metals and Mining Consulting with Wood Mackenzie, a research and consultancy business, and is focused in global mineral trade and price dynamics, fiscal strategy, and due diligence review. Previously, Kevin worked for RPMGlobal where he spent over 6 years as Principal with primary focus in technical advisory consulting for project feasibility, funding, development and operation. He also served as Vice President of Business Development, North America. Kevin has 20 years experience in mine technical study and review, financial modelling, and technology planning. Kevin’s experience encompasses all stages of the mine’s lifecycle of open pit and underground deposits. He has a strong understanding of the mining business model, operating philosophies and data management requirements for successful asset management. His operational and consulting experience spans the Americas, Africa and Australia. Kevin holds a B.Sc. in Mine Engineering from Queen’s University and is a registered Professional Engineer. He currently serves on the Board of Directors of MacDonald Mines Exploration Inc. and Honey Badger Exploration Inc.

 

Tara Gilfillan, CPA, ICD.D, – Director and Chairperson

Ms. Gilfillan is a financial executive, entrepreneur and independent board member with over 20 years of experience, outside and within the mining industry. She holds a business degree from Queens University and a Chartered Accountant designation. Tara has a strong financial and operational background. She has held the roles of Controller and CFO of mining companies, CFO, interim CEO of a global engineering consulting company as well as co-founding a successful start-up engineering company.

 

Petra Decher, CPA, CA, – CFO

Ms. Decher is a finance executive with over 15 years experience in the mining industry. She has a deep understanding of public reporting, corporate governance, and investor relations. Ms. Decher was the the Vice President, Finance and Assistant Secretary for Franco-Nevada Corporation from 2009 to 2016 and served as Director at Integra Gold. Petra is a Chartered Accountant. She completed her Bachelor of Commerce degree at Concordia University, her Diploma in Accounting at McGill University and articled at Richter Usher Vineberg (now Richter).

 

Jean-François Montreuil, Ph.D. Chief Geologist, – Chief Geologist

>8 years of experience defining base-metals, gold and uranium deposits in Canada.

 

Conrad Dix, B.Sc. – Senior Project Manager

>20 years multifaceted mineral exploration expertise Glencore-Raglan.

 

 

Note: This article is not intended to be a complete overview of Honey Badger Exploration Inc. or a complete listing of Honey Badger's projects. Mining MarketWatch urges the reader to contact the subject company and has identified the following sources for information:

 

For more information contact Honey Badger's head office at: Ph (416).364.7029

 

Company's web site: www.honeybadgerexp.com   SEDAR Filings: URL

 

 

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*Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather journalistic opinion only. Technical mining terms used by the writer may be used/expressed in simplified layman terms and should not be relied upon as appropriate for making investment decisions unless the reader contacts the company directly for independent verification. *Estimates of potential made by the mining analyst and journal(s) are non 43-101 and not from the Company.

 

     

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