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On December 18, 2020, District Metals Corp. sold an 80% interest in the Company’s Bakar high grade copper property (Bakar Property) to Sherpa II Holdings Corp. (TSX-V: SHRP) for a $50,000 cash payment, 1,000,000 common shares of SHRP, and $200,000 in work commitments.  The original property vendor (Longford Capital Corp.) retains a 2% NSR on one of the eight mineral claims that comprises the Bakar Property, and this NSR may be repurchased in its entirety for $6.5M. District Metals staked additional adjacent mineral claims along trend in 2019 that increased the size of the Bakar Property from 1,349 hectares (ha) to 15,687 ha.

The Bakar Property is located on Northern Vancouver Island with excellent access and infrastructure. The Bakar Property is adjacent west from the active logging village of Holberg, and 40 km west from the full-service town of Port Hardy. The area covered by the Bakar Property is within a copper-rich geological domain that hosts the past producing Island Copper Mine, the Hushamu Deposit, and the Red Dog Deposit. The Island Copper Mine was operated by BHP from 1971 to 1995, and produced 345 million metric tonnes of ore with average grades of 0.41% copper, 0.017% molybdenum, 0.19 g/t gold and 1.4 g/t silver.*

*Perelló, J., Fleming, J.A., O’Kane, K.P., Burt, P.D., Clarke, G.A., Himes, M.D., and Reeves, A.T., (1995): Porphyry Copper-Gold-Molybdenum Deposits in the Island Copper Cluster, Northern Vancouver Island, British Columbia, Porphyry Deposits of the Northwest Cordillera of North America, CIM Special Volume 46, pp. 214-238.

Figure 1: Location Map

Figure 1: Location Map

Figure 2: Property Map

Figure 2: Property Map

The geological setting (i.e. within the sub-aerial Karmutsen volcanic and sedimentary sequence) and copper-silver mineralogy assemblages and styles observed at the Bakar Property make the primary exploration target redbed copper-silver deposits.  Notable redbed copper-silver projects include the Keweenaw and Porcupine districts of Michigan, the Kennecott deposit in Alaska, the Sustut deposit in British Columbia, and the 47 zone deposit in the Northwest Territories.

Compilation work done as part of the due diligence process on the Bakar Property showed prospective geological, geophysical, and geochemical features that include:

  • a major structural suture that runs NW-SE through the property;
  • magnetic high features adjacent to an extensive NW-SE magnetic low corridor that shows a significant flexure on the property;
  • NW-SE trending copper in stream sediment anomalies; and
  • copper in till anomalies that also trend NW-SE. 

Figure 3: Compilation Map

Figure 3: Compilation Map

Historical Work

Publicly accessible BC mineral assessment reports and the annual BC mining reports describe the following historical work within the original Bakar Property mineral claim with much of the work completed at the Millington Showing:

  • 1918 to 1930: prospecting, stripping, trenching, tunneling and shallow diamond drill holes (314 m in two holes) sub-parallel to mineralization. During this period the mine inspector reported selected outcrop grab samples ranging from 1.2 to 21.0% Cu and 0.2 to 2.0 oz/t Ag;
  • 1962 to 1969: road construction, induced polarization survey, airborne magnetic survey, surface stripping, trenching and shallow diamond drilling (1704 m in 30 holes);
  • 1963: the induced polarization survey located strong NW-SE striking chargeability anomalies for 1.8 km that remain open on either end.  These anomalies are at depths of greater than 100 m and were interpreted to be due to large volumes of mineralization, and that has been left completely untested by drilling;
  • 1970 to Present: No exploration work of substance was completed during this period, which consisted of sporadic repetitive prospecting and rock sampling of the known prospect.  

The property visit located four adits and seven cuts at the Millington Showing.  No detailed data on the historical drill results has been found to date, but it appears from available information and field observations that drilling was targeted incorrectly.

Figure 4: Crackjack Creek Area (Millington Showing) in 1929

Figure 4: Crackjack Creek Area (Millington Showing) in 1929

Further review of BC mineral assessment reports showed the area around William Lake with encouraging geochemical results for redbed copper-silver type mineralization. Assay results were highlighted by an outcrop sample with 1.38% Cu and 24.2 g/t Ag, float samples with 0.54 to 0.86% Cu, stream sediment samples up to 163 ppm Cu, and a 1.0 x 1.5 km area of anomalous copper in soils (BC Mineral Assessment Report #21371).

Figure 5: William Lake Area in 1991

Figure 5: William Lake Area in 1991

Recent Exploration Work

In December 2018, a due diligence property visit was conducted, and seven outcrop chip samples were recovered from the Bakar Property, which returned assays ranging from 0.01 to 38.9% Cu, and <0.1 to 221.0 g/t Ag from the Millington Showing.  Four of these samples were recovered perpendicular to 0.5 to 1.0 m wide semi-massive sulphide (+/- native copper) lenses and veins.  Disseminated, stringer, and fracture-hosted sulphide mineralization (chalcocite, bornite, and chalcopyrite) was observed to emanate from the high grade copper-silver lenses and veins hosted within a stratabound volcanic sequence showing an apparent thickness of over 30 m, and a NW-SE strike length of over 200 m.

Table 1: Bakar Outcrop Chip Sample Assay Results

Sample Number

Easting (m) NAD83

Northing (m) NAD83

Sample Interval (m)

Cu (wt%)

Ag (g/t)

Sample Description







Quartz carbonate veining within an altered tuff with prevalent malachite staining.  







Possible fault breccia of oxidized medium grained basalt with intensive limonite staining







Intense shearing and extensive limonite alteration present in a fine grained basalt with highly oxidized sulphides.







Strongly mineralized and oxidized sheared basalt with tarnished sulphides including bornite, chalcocite, chalcopyrite and native copper.







Moderately mineralized and oxidized sheared basalt with tarnished sulphides including bornite, chalcocite and malachite







Strongly mineralized and oxidized sheared basalt with tarnished sulphides including bornite, chalcocite, chalcopyrite and malachite







Moderately mineralized and oxidized sheared basalt with tarnished sulphides including bornite, chalcocite, chalcopyrite and native copper.

In May 2019, the Company engaged Geotech Ltd. to conduct an airborne Versatile Time Domain Electromagnetic (VTEM) Plus survey on the Bakar Property (including a large portion of the newly acquired mineral claims). The VTEM Plus survey was flown over the Bakar Property to identify structures and conductors related to potential copper-silver redbed-type deposits.

The primary target morphology of a redbed-type deposit is expected to be tabular and likely conformable to the host strata that is flat lying to gently NE or SW dipping. A secondary target morphology is structurally controlled (potentially cross-cutting stratigraphy) with veins, breccias and disseminated mineralized zones.  Based on target morphology, conductivity, and structure, Condor Consulting identified three Target Zones that warrant further work and drill testing.

Figure 6: VTEM Target Zones

Figure 6: VTEM Target Zones

Interpretation of the VTEM Plus survey data did not show a clear bedrock conductor associated with the area of the Millington showing, which is likely due to the steepness of the terrain, and proximity to a nearby powerline.  An induced polarization (IP) survey completed in 1963 over Millington showed a 1.98 km long chargeability anomaly that is open to the SE and NW.  The application of a modern 3D IP survey over Millington to define the chargeability targets in three dimensions is currently being assessed before drill targeting.

A detailed geological mapping and geochemical sampling program was completed in June 2019.  High grade copper-silver mineralization was encountered through channel sampling at the Millington Prospect on the Bakar Property across substantial lengths and widths as follows:

  • Channel BK19-C04 returned 10.0 m at 4.92% Cu and 27.7 g/t Ag along the strike of a mineralized stratabound horizon.  Copper-silver mineralization remains open to the northwest and southeast where channel sampling terminated early due to thick overburden.
  • Channel BK19-C05 returned 19.75 m at 0.90% Cu and 4.6 g/t Ag perpendicular to the strike of mineralization.  A higher grade sub-interval of 5.69% Cu and 30.3 g/t Ag is open to the northeast, and shows a minimum high grade mineralized thickness of 2.75 m for channel sample BK19-C04.
  • Channel BK19-C03 returned 18.0 m at 0.63% Cu and 3.9 g/t Ag perpendicular to the strike of mineralization.  A higher grade sub-interval of 3.62% Cu and 22.4 g/t Ag shows a minimum high grade mineralized thickness of 3.0 m for channel sample BK19-C04.

Soil sampling revealed three copper in soils anomalies (>75 ppm Cu) above the outcropping mineralization at Millington, which could indicate the presence of additional mineralized stratabound horizons.  Numerous copper in soil anomalies (>75 ppm Cu) are situated between the approximate 200 m strike length that separates both of the mineralized outcrop localities, which strongly supports continuity of the high grade mineralized stratabound horizon that is open to the northwest and southeast.  These anomalous results are a positive indicator that a broad copper in soil footprint surrounding the high grade copper mineralization is distinguishable through soil sampling.

Orientation stream sediment sampling was conducted on Crackerjack Creek, which runs through outcropping high grade copper-silver mineralization associated with Millington.  Stream sediment samples along Crackerjack Creek returned up to 217 ppm Cu.

Stream sediment results were encouraging and showed several drainages with elevated copper values from 200 to 369 ppm Cu that warrant follow up. Crackerjack Creek runs through Millington which hosts the majority of visual mineralization, however three other drainages returned four samples with anomalous copper values (>200 ppm Cu).  The Company believes these results to be extremely encouraging as the distances from the Crackjack Creek drainage to these other drainages is 1 to 2 km, in under-explored areas.

Data from the geological mapping and geochemical sampling program is being integrated with the regional, historical, and final VTEM data to determine the next steps, and prioritize drill targets.

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