Geological Controls In Geostatistical Ore Reserve Estimation Of A Skarn Deposit - The Mactung Case Study ? Introduction

The Macmillan Pass tungsten property (MacTung) is the largest known copper-tungsten, calcic, exoskarn deposit in the Western Hemisphere. Located on the border between the Yukon and Northwest Territories in northwestern Canada, the deposit crops out on Mt. Allen within the Selwyn Mountain Range. It was discovered in 1962 by a subsidiary of AMAX Inc. and has since been explored by 16,300 meters of surface and underground diamond drilling and by 800 meters of underground development. Geologic reserves are in excess of 30 million tons, grading slightly less than 1.0% WO3. Scheelite (CaWO3 ) is the main mineral of economic interest. Accessible by road, the property is not in production. Previously estimated reserves at MacTung have been unable to fully utilize all the geological controls on mineralization. In the past three years, however, an intensive program has been underway to improve our understanding of the deposit and to use the resulting information in a more precise way. This paper will discuss the key aspects of the geology as they specifically relate to reserve estimation and will demonstrate how these controls are being used in a geostatistical model of the deposit.