DLP Resources Resumes Drilling at NZOU Critical Metals Project in British Columbia

DLP Resources (TSXV:DLP)  has announced the continuation of drilling at its NZOU critical metals project in southeastern British Columbia, Canada. The company is targeting a Sullivan-type zinc-lead-silver deposit in the area.

Ian Gendall, President and CEO of DLP commented in a press release: “We are very excited to be continuing the drilling of NZ23-01 to target a potential critical metals Sullivan-type zinc system on the NZOU property. Previous drilling in 2020, 2021, 2022 and 2023 has continued to vector us from the southwest to the northeastern end of this extensive 5000m MT geophysical trend.”

On June 18, 2024, DLP resumed drilling on hole NZ23-01, which was initially started in 2023. The drill hole, collared in Middle Aldridge siltstones, reached a depth of 1330 meters at the top of the Sullivan horizon in July 2023 before operations were halted due to permit restrictions.

The company reports that alteration observed in the hole included locally intense zones of albitization, associated with garnets, chlorite, and epidote. A strongly chloritized and sericitized section was noted from 449.0m to 480m. Minor pyrrhotite and pyrite occurrences were observed throughout the hole, with traces of sphalerite noted locally.

At 1317.0m, the drill intersected what the company refers to as “Sullivan time,” with sediments containing disseminated pyrrhotite and thin pyrrhotite layers parallel to bedding. Some weakly disseminated sphalerite associated with the pyrrhotite was also observed.

DLP Resources is aiming to drill an additional 300 meters, potentially reaching a total depth of approximately 1650 meters. This extension is intended to identify the true thickness of the Sullivan horizon and confirm any development of economic zinc-lead-silver mineralization.

The company’s exploration is guided by magnetotelluric (MT) geophysical anomalies that extend over an area of 5000m x 500m to the northeast of a previous drill hole, DD21-02. These conductive zones are believed to be associated with pyrrhotite related to the extension of the Sullivan Horizon.

DLP Resources states that both geophysical and geological data support the potential for a significant mineralized Sullivan-type zinc-lead-silver system approximately 3.7km northeast of DD21-02. A strong conductive anomaly extends from approximately 700m to beyond the targeted depth of 1500m to 1700m on the current drill section.

The company draws comparisons to the historic Sullivan mine, located approximately 52km north of the NZOU drilling site. The Sullivan mine, which operated for 92 years, reportedly produced 160 million tons of ore containing 8 million tons of lead, 7 million tons of zinc, and 285 million ounces of silver.

In addition to the drilling news, DLP Resources announced the granting of 230,000 stock options and 100,000 restricted share units (RSUs) to a founder and three contractors. The options are exercisable for 5 years at prices of $0.36 and $0.465. The RSUs will vest one year from the date of grant.

Highlights from the results are as follows:

• In 2020, DLP extended the original PAN18-01 hole, renamed PAN18-01-Ex, drilled by Teck from 1425m to 1711m and intersected the Sullivan horizon with weak zinc mineralization and good chlorite and sericite alteration.
• In 2021, drill hole DD21-02 was drilled on the chargeability anomaly approximately 1.2 km to the NE of PAN18-01-EX. Hole DD21-02 like PAN18-01-EX, was drilled on the PJX’s DD property and intersected an extensive thickness (168m) of fragmentals, part of the Sullivan Horizon, from 1705m with abundant pyrrhotite with hydrothermal alteration of secondary biotite and sericite + chlorite visible throughout. Finely laminated Sullivan horizon siltstone/argillite was intersected at the base of the fragmentals from 1861.24m to top of Lower Aldridge banded siltstones at 1873.31m. A 7.6m interval of the Sullivan siltstones/argillites with fine grained disseminated sphalerite (zinc-iron sulphide) and wispy bands of pyrrhotite (iron-sulphide) was observed from 1861.24m to 1873.31m. Within this section there was a 2.92m interval with 0.16% Zn and 0.06% Pb from 1861.26m to 1864.18m. The highest values in this interval were 0.27% Zn, 0.11% Pb and 2.5ppm Ag (see DLP Press Release of November 9, 2021).
• In 2022, DLP drilled MD22-01 on the Moby Dick property and hit a major fault at around 1200m. A re-drill off a downhole wedge placed at 1150m also had to be abandoned at 1305m due to poor drilling conditions. The hole ended in Middle Aldridge sediments with weak pyrrhotite mineralization and intense sericite alteration with trace tourmaline within the fault zone.

​​​​​​​​​​​​​​​​The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.