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Without question, a truly remarkable Canadian exploration story over the past 2 years has been the development of Doubleview Capital’s (DBV, TSX-V) Hat Project, a growing Gold-rich Copper porphyry discovery in northwest B.C.’s emerging world class Sheslay district – the province’s “#1 greenfield district” according to the Association For Mineral Exploration British Columbia.

Last week marked the beginning of yet another exciting new chapter in this drama-filled story that will most certainly once again command the attention of investors in the weeks and months ahead.  Importantly, each round of drilling at the Hat has returned higher grades and better overall results, leading to an increasingly robust geological model for a corridor covering at least 12 sq. km.

After a just-completed comprehensive review of historical and recent Hat data by Doubleview’s technical team, and the early success from current drilling on the adjoining Grizzly Property, there are even more reasons to believe that the Lisle Zone (half a km wide and 1 km long as defined by 16 drill holes) is merely part of a much larger system at this 65 sq. km project.  In addition, BMR research also shows that the overlooked northern part of the property, featuring a magnetic high with low resistivity in andesitic rock of the Stuhini assemblage, also has to be considered favorable for potential new discoveries given the growing understanding of the regional geology.  That gives the Hat even more “blue sky”.

Returning To The Hat

Last Wednesday, Doubleview delivered an early Christmas gift to shareholders with various pieces of news including the critical fact that it’s gearing up to return to the Hat and commence a fresh round of drilling that will start with the completion of hole H-25, a 1 km step-out from the Lisle Zone.  That infamous hole, of course, was halted by Tahltan protestors in early July while the drill was turning in a zone of Gold-Copper porphyry mineralization at a depth of 270 m.  Unbelievably, H-25 was a potential new summer drilling discovery that was interrupted despite Doubleview’s multi-year drill permit and the fact that the entire property falls within the critical 2011 Atlin Taku Land Use Plan as an area specifically set aside for exploration and potential resource development.

The July blockade, as we’ve detailed in numerous BMR reports, served to put a huge stamp of value on the Hat.  It was a political “power-play” on the part of Tahltan leader Chad Day who attempted to use the drilling success of the Hat, and the potential of this massive district, as leverage against the provincial government to fast-track broader negotiations over a new and expanded Shared Decision Making Agreement (SDMA) between the Tahltan and the province.  Day’s strategy backfired in several ways, including how it embarrassed and angered some B.C. government officials.

A 2011 government-produced video (see link below) featuring Premier Christy Clark reappeared soon after the Hat incident, showing the Premier heralding “certainty” for investors from the Land Use Plan that took several years to negotiate.  The Plan, now fully implemented, was co-managed by First Nations (Taku River Tlingits) and the B.C. government, making it quite unique, and involved many stakeholders (the Tahltan, however, elected not to participate).

Claim “overlaps” are not unusual in B.C., even over existing mines.  The Tahltan and Taku share a long history in the Sheslay district, and there was even a book written about a bloody battle that was once fought in this area between the two First Nations.  The district also has an extensive history of exploration, and the Tahltan were involved in the building of the Golden Bear mine access road that connects with the past producing high-grade Gold mine immediately to the west.

Hat Highlights From Last Week’s News

Much was obviously going on behind the scenes from July’s blockade through to last week’s long-awaited update from Doubleview which included the following:

• In a draft response to Doubleview’s injunction application against the “individuals” involved in the July blockade, these individuals stated, “There has been nothing in the way of (Doubleview) returning to the property to continue its program“;
• The Hat is getting “direct attention” from some unnamed major international mining companies, attention that included site visits earlier this year;
• A just-concluded comprehensive review of historic and recent data has “significantly expanded” target areas at the Hat (the Hat “Corridor” was last reported to be approximately 3 km x 4 km);
• Doubleview has hired Jo Harris and Associates, a leading community relations consulting group that has guided clients through the approval process for 13 major mines in British Columbia.

A Second Major Discovery On The Way?

Almost exactly 2 years ago, DBV President and CEO Farshad Shirvani pulled off one of the most dramatic moments in Canadian exploration in recent years when he returned to the Hat Property for the drilling of a series of holes during extremely challenging overall market conditions.  He actually mortgaged his house to carry out this drilling, and the bold move paid off big-time as it resulted in an important new discovery and sparked a district staking rush beginning in late January, 2014.  Within just a few months, Doubleview experienced a 10-fold increase in its stock price and the Sheslay region was instantly recognized as one of Canada’s premier exploration districts.

Keep in mind, the Hat Property had never been drilled until the spring of 2013.  Shirvani’s perseverance through challenging market conditions, and other obstacles such as July’s blockade, has been impressive to say the least – an unusual spirit of determination that often leads to huge success.

It’s hard to imagine that more discoveries aren’t on the way, given the prolific nature of this property and the region.

The Hat is proving to be a dynamic porphyry complex that has not been limited in any direction.  The last reported drill hole, H-23 in the Lisle Zone, returned 332 m grading 0.25 g/t Au and 0.29% Cu from 68 m to 400 m, with higher-grade sections within that long interval (more results pending from deeper down).  A plethora of encouraging geological, geophysical and geochemical data suggest the Lisle Zone could be just the “tip of the iceberg”, part of a much bigger system that connects with the Hoey showing to the south and with targets well to the north and northwest along a structural corridor of intermediate andesitic volcanic and intrusive rocks.  Sulfide mineralization is associated with intense calc-potassic alteration and veins within multiple crosscutting stocks and dykes of augite-hornblende diorite intrusions.

While no NI-43–101 resource estimate has yet to be carried out at the Hat, some back-of-the-envelope calculations for the Lisle Zone, combined with the potential of the other areas, are lighting up the imaginations of many.  Defining a high-grade starter area will be key, and success elsewhere in the district will only serve to add further value to Doubleview.

Doubleview’s Lisle Zone discovery in January 2014 breathed fresh life into the junior resource sector.  We expect history to repeat itself due to this company’s perseverance and a mountain of evidence stacking up over a growing corridor. 

Premier Clark Heralding The Land Use Deal

Signed government agreements are very valuable documents.  A government video explaining and promoting an agreement can be priceless, as you’ll see.

Every investor in B.C.’s junior resource sector should view this short but informative 2-minute video (click on link below) publicly released by the government in the summer of 2011.  The facts speak for themselves.

Note:  Jon holds a share position in DBV.