BHP releases interests in Iliamna to TNR

BHP Billiton has completed an ownership transfer of the Iliamna property in Southwest Alaska to TNR Gold Corp. and Geocom Resources Inc. in early September. Two weeks later, TNR incorporated a new subsidiary in Alaska, Bristol Explorations Co., Inc., which has taken over TNR's properties in Alaska, including the Iliamna and Shotgun projects.

Bristol will focus on developing and exploring TNR's Alaska ventures, TNR said in a Sept. 17 statement. The new entity, working with Geocom, has completed a $75,000 geochemical sampling program on Iliamna and results are pending.

"This survey is deep looking and designed to be used in conjunction with existing geophysics for drill targeting," TNR said in a Sept. 17 statement.

In explaining the creation of Bristol Explorations, TNR said it believes this new corporate structure will allow it to deliver enhanced shareholder value and focus on mineral exploration in Argentina and other areas of interest in South America, while allowing the junior to participate in future developments in Alaska through its interest in Bristol, especially given recent interest in the Iliamna region.

"We rolled out the sub, making it more of an Alaska entity separate from our other operations, so that we can get financing," said TNR President Gary Schellenberg.

While TNR hopes to bring Geocom's interests in Iliamna under the Bristol Explorations umbrella in a deal currently being negotiated, "nothing has been signed yet," Schellenberg told Mining News Sept. 24.

He said Bristol Explorations will operate out of TNR's Vancouver office for the time being, but it will have an Alaska address. The entity will continue to work through a consultant in Alaska.

"We're in the very, very early stage of our planning," he added.

Juniors take over Iliamna

The transfer of BHP Billiton's 30 percent undivided interests in Iliamna has given TNR and Geocom 100 percent legal title to the copper-gold porphyry property. Iliamna covers 412 square kilometers, or about 101,800 acres of land, which is divided into two claim blocks, the D and H claims, about 60 miles, or 100 kilometers, southwest of the huge Pebble deposit.

Pebble, which is being developed by a partnership between Northern Dynasty Minerals Ltd. and Anglo American plc, is one of the world's largest known porphyry deposits. It contains an indicated mineral resource of 31 million ounces of gold and 18.8 billion pounds of copper as well as a significant quantity of molybdenum.

Initial target definition at Pebble occurred in areas covered by glacial overburden and/or tertiary volcanic rocks, as is the case at the Iliamna Project. In 2000, Rio Algom carried out several phased exploration programs, including an airborne magnetic survey, reconnaissance geology, and IP/Resistivity surveys. These surveys led to the successful identification of several geophysical anomalies, including the Iliamna property. The airborne magnetic survey successfully outlined three regional anomalies: the Pebble intrusive complex, the Nushagak anomaly, and the Kvichak anomaly, which includes the Iliamna property.

Following the regional geophysical programs, site-specific IP/Resistivity Surveys targeted and successfully located several anomalies that are similar in size and characteristics to the Donlin Creek and Pebble deposits that include the Iliamna Project. Subsequent drilling encountered copper-gold mineralization in an intrusive setting at Iliamna's H Claims.

Search for new drill targets

Exploration performed since 2002 has earned Geocom a 51 percent interest in the Iliamna Project's D claims block and a 75 percent interest in the H claim block that together comprise the Iliamna project. Vancouver, B.C.-based TNR and Geocom of Bellingham, Wash., have agreed to combine each company's respective interest in the Iliamna Project with BHP's interest in order to consolidate ownership and facilitate future exploration and development activities.

The companies Sept. 2 said they conducted the district-level geochemical sampling program to enhance drill results achieved in the 2003, 2004, and 2006 drill campaigns and to identify new drill targets in conjunction with available magnetic, resistivity, and chargeability data. The companies are using geochemical survey techniques that have proven successful at delineation of copper-gold anomalies elsewhere in Alaska and at the Pebble deposit.

A total of 1,883.1 meters of drilling has been completed between 2003 and 2006. Some holes intercepted low-grade altered intrusive consistent with that which would be found near the periphery of a mineralized system.

TNR and Geocom hope the additional work at Iliamna will attract interest from mining industry majors.

TNR is a base and precious metals exploration company focused on identifying new prospective projects as well as fostering work on its large portfolio of 17 properties in Argentina and Alaska. The company said its focus over the next 12 months will be on exploration and development of three projects in Argentina as well as the Iliamna and Shotgun projects in Alaska.

TNR also said the Aug. 26 wide margin of defeat by Alaska voters of a citizen-backed initiative intended to strengthen the minimum standards for mining activities near salmon-bearing streams gives the junior and other exploration and mining companies renewed confidence in ongoing developments of world class deposits in Alaska.

Geocom is active in Alaska, Argentina, Nevada, and Chile with a focus on development of projects that are or will be of interest to mid-size or major producers with the goal to form joint ventures on such projects.