Nepisiguit

Zinc-Copper-Lead-Silver

The Nepisiguit deposit comprises a NI 43-101 compliant resource thought to be amenable to open-pit mining.

Nepisiguit A-Zone NI43-101 Compliant Resource
Cut-Off		Grade				Contained Base Metals			Contained
Zn Eq%	Tonnes	Zn %	Pb %	Cu %	Ag g/t	Zinc mT	Lead Mt	Copper mT	Silver oz
1.5	2,938,613	3.16	0.82	0.23	30.64	92,928	24,164	6,633	2,895,222
3.0	2,061,896	3.94	1.06	0.26	39.22	81,316	21,913	5,265	2,599,900
3.5	1,907,677	4.09	1.11	0.26	41.03	77,972	21,204	4,979	2,516,167
6.0	876,565	4.75	1.38	0.30	52.76	41,603	12,100	2,625	1,486,792

The inferred resource for the A-Zone is based upon 56 diamond drill holes by SLAM and 4 by previous operators. The deposit is open at depth and in all directions, located near-surface and thought to be amenable to open pit mining methods.

Nepisiguit DDH Collars and Gravity

The map to the left shows all 85 diamond drill holes completed by SLAM to date including 56 on the A-Zone, 11 on the B-Zone and 18 on the C-Zone. The background is a ground gravity survey with red and orange colors representing areas of elevated gravity. The map on the right is a close-up of the A-Zone showing individual drill colars on a background of gravity results. Red and pink areas represent gravity highs.

SLAM owns 100% of the Nepisiguit property, which comprises 78 claims covering 1770 hectares of favourable strata located approximately 15 km southwest of the world-class BMS No. 12 mine operated by Xstrata in Northeastern New Brunswick as shown on the maps below. SLAM geologists believe the 3M tonne deposit is potentially open-pit mineable with potential for near-term production. The property is accessible by highway and within hauling distance of Trevali's Caribou minesite. The Nepisiquit deposit is a vent-proximal, volcanogenic massive sulphide deposit situated in the Bathurst Mining Camp, a world class massive sulphide district having produced more than 134 million tonnes of ore grading 7.82 % zinc, 3.05% lead, 0.46% copper, and 91.5 g/t silver. The deposit sits along the Brunswick No.12 and Caribou mines horizon and is thought to have formed in the same marine sub-basin.

Aeromagnetics Nepisiguit – BMS No.12 Area

SLAM’s Nepisiguit property comprises 78 claims covering 1770 hectares of favourable volcanic stratigraphy. The property hosts the Nepisiguit A, B and C zones as well as the Swamp Lake copper occurance. The controlling structure is the Mud Lake synform which is well defined on aeromagnetic maps with a signature similar to that seen near BMS No. 12.

At the time of discovery in 1956, expectations were very high that Nepisiguit would produce another large mine similar to the nearby BMS No. 12. Fifty years later, after 85 holes drilled, SLAM geologists believe there is a high probability to prove up a mineable resource. The Nepisiguit A and B deposits consist of two subparallel, easterly thickening, massive sulphide lenses that strike east-northeast and dip about 80 degrees N. Drilling results indicate a continuous zone of significant mineralization over a strike length of 250 metres within Nepisiguit Zone A.

The massive sulphides at Nepisiguit A are dominated by pyrite with subordinate pyrrhotite, sphalerite, galena, and chalcopyrite. A 20 m thick sericite-chlorite-talc altered zone of tuffaceous sedimentary rocks cut by quartz-sulphide veins overlies these sulphides. Altered mineralized zones, cut by stringer sulphides suggest the presence of a feeder/stockwork zone at depth. Furthermore, sedimentary rocks indicate the development of basins, which can collect sufficient volumes of metalliferous brine to form large deposits.

Nepisiguit Zone A Selected Drilling Results
Hole	From	To	Metres	True Width	Zinc %	Lead %	Copper %	Silver g/t	Gold g/t
NP0601	80.15	82.15	2.00	1.92	5.69	2.47	0.77	117.5	0.57
NP0602	117.56	119.36	1.80	1.73	5.35	1.71	0.37	62.9	0.15
NP0603	143.97	147.82	3.85	3.74	6.49	2.04	0.16	48.4	0.20
NP0704	111.25	117.25	6.00	5.80	0.54	0.08	0.05	2.9	0.05
NP0705	154.40	155.40	1.00	0.97	6.79	0.09	0.20	13.0	0.21
NP0706	80.05	86.05	6.00	5.87	7.74	2.88	0.10	31.4	0.15
NP0707	131.36	135.51	4.15	4.07	3.72	0.59	0.23	32.9	0.25
NP0710	89.90	97.65	7.75	6.27	7.00	1.32	0.18	57.5	0.17
NP0710	89.90	93.65	3.75	3.03	10.58	2.34	0.20	91.8	0.23
NP0711	110.40	111.07	0.67	0.56	13.53	3.62	0.43	179.0	0.36
NP0711	132.23	135.91	3.68	3.09	7.53	1.66	0.12	69.0	0.15
NP0713	167.83	172.06	4.23	3.97	6.99	1.00	0.22	27.3	0.48
NP0714	84.15	86.95	2.80	2.47	5.47	1.31	0.27	58.8	0.27
NP0715	19.02	22.50	3.48	2.82	5.86	0.33	0.71	39.5	0.15
NP0715	29.48	40.70	11.22	9.08	6.09	0.81	0.21	31.3	0.09
NP0715	29.48	34.79	5.31	4.30	7.75	1.19	0.17	36.8	0.09
NP0715	53.16	59.24	6.08	4.92	3.43	1.38	0.10	39.7	0.17

Summary

Drilling results indicate the Nepisguit massive sulphide deposit is open at depth and along strike to the west. Further drilling is required. The deposit is located about 20 km from BMS No. 12 mine and smelter. A NI 43-101 resource calculation is underway.