Bonanza Mining Corporation Shag Property Seismic Survey Outlines Correlating Seismic Anomalies with the Three High Priority 3D IP Chargeability Targets Previously Defined on its Shag Property in Southeastern B.C.
Bonanza Mining Corporation
Suite 2201 – 8 Smithe Mews
Vancouver, B.C.
V6B 0A5
Trading Symbol: TSX-V: BNZ Telephone: 604-619-0225
Fax: 604-980-6264
Email: [email protected]
Bonanza Mining Corporation Shag Property Seismic Survey Outlines Correlating Seismic Anomalies with the
Three High Priority 3D IP Chargeability Targets Previously Defined on its Shag Property in Southeastern B.C.
February 1, 2022 – Vancouver, British Columbia: Bonanza Mining Corporation (“Bonanza”) (TSX-V: BNZ) is
pleased to repo rt that the Shag property seismic survey report has been received from Panther Geoscience Ltd. The
seismic survey was conducted in October 2021 by Calgary-based Eagle Canada Seismic Services ULC and consisted
of one seismic line 7 km long that was run along the Albert river forest service road (AFSR) across the northern part of
the Shag property and passing through the 3D IP survey grid (see Bonanza’s January 24, 2022 news release).
On the Shag property only the uppermost beds of the prospective Cat hedral formation are exposed in the Albert river
valley where the IP and seismic surveys were conducted and it does not outcrop elsewhere on the property. T he main
purpose of the seismic survey was to locate the top and the base of the Cathedral formation and potential zinc -lead
mineralized targets in the blind, subsurface Cathedral formation for drill testing in 2022.
The seismic data set acquired is the 2D type and extends for approximately 7 km along the AFSR centred near the
mouth of Shag creek and imaged the underlying bedrock to a depth of approximately 4 ,000 metres (m). Importantly it
achieved the goal of successfully showing strong reflectors at the top and base of the Cathedral formation indicating it
is about 600 m thick and thinning westward . Three seismic anomalies were also outlined in the Cathedral formation,
two of which correlate with high chargeability 3D IP anomalies.
The seismic data acquired consisted of two major equipment components, the recording a pparatus and the energy
source. The recording apparatus consisted of a single component (P -wave) geophone linked to a solid -state data
storage module and a lithium -ion battery . These wireless systems were planted immediately adjacent to the road at
regularly pre-determined 10 m intervals. The energy source used is referred to as a Vibr oseis (Vibe) and is the global
standard for reflection seismology. The Vibe is a large wheeled vehicle with a large centralized baseplate that contacts
the ground surface. This baseplate is driven up and d own with an approximate 20 tonne force precisely controlled by
hydraulics matching a pre-determined digital output signal.
Vibes provide distinct advantages over a multitude of other seismic sources that include minimal environmental
impact, flexibility, rapid deployment, statistical noise attenuation, drastically cheaper cost per source point and
geographic tunability.
Interpretation of the high quality seismic imaging data yielded considerable insight into the subsurface geology of the
Shag property. Impressively the seismic survey effectively imaged the major components of a multi -cycle middle
Cambrian reef environment and the Cathedral formation in particular shows an excellent sequence of eastward
migrating reef building from the Chancellor formation shale basin on the western side of the Shag property.
The basinal Chancellor shale units to the west are characterized by a very thick sequence of relatively thin parallel
reflectors. Moving eastward within the Cathedral formation a near vertical boundary is encountered that terminates the
sequence of parallel reflectors and transitions to a more massive character with few of the long -lived coherent
reflectors. This boundary is considered fo re reef and to the east of the fore reef are at least three maj or reef bui lding
cycles that are all characterized by very high reflectivity strengths and dome -shaped morphology. Greater reflector
strength suggests improved dolomitization and possibly associated lead-zinc mineralization. The reef crests are
encased wit hin a mass of incoherent low energy reflectors that are considered back reef deposits that migrated
eastward with sea transgression.
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The three interpreted reef crests, named anomalies A1, A2 and B1, are considered to be primary locales for lead-zinc
deposition and they all lie within th e Cathedral formation between 240 m and 530 m below the ground surface and
considered to be high priority drill targets.
The A1 anomaly is 460 m wide and lies at a depth between 280 m and 530 m below surface, the A2 anomaly is 905 m
wide and lies at a depth between 240 m to 480 m below surface and the B1 anomaly is 190 m wide and lies at a depth
between 340 m and 400 m below surface.
Associated with the three reef crests anomalies are structural “drop down” elements that occur from the base to the top
of the Cathedral formation with some subtle expression at surface. At the base of thes e “drop down” elements there is
evidence of what could be dissolution features characterized by circular regions with a lack of reflectors. It is
hypothesized that these drop down events faulted the geology and may have produced conduits for mineral rich f luids
to access the previously dolomitized reef crests.
Panther Geoscience Ltd additionally imported the Shag property 3D IP survey chargeability data in to the seismic
section via georeferenced maps and scale matched chargeability sections. Although the physical properties that were
compared were completely different, the exercise offered a unique opportunity to independently validate the results
with each other.
This comparison showed there are correlating anomalies found in the IP and seismic datasets that are positioned at
similar geographic and depth coordinates. Specifically seismic anomalies A1 and B1 correlate well with the Southwest
and Central high chargeability IP anomalies. The largest seismic anomaly A2 cannot be correlated to any IP anomaly
because it lies east of the geographic area of the IP survey grid that needs to be extended further east.
The coincident seismic and high chargeability IP anomalies are very significant, high priority road accessibl e drill
targets that Bonanza intends to drill test later this year and in respect of which Bonanza last November submitted a
Notice of Work application to conduct the drill program to the BC government.
The Shag property is situated in the Rocky Mountains of southeastern British Columbia approximately 24 km due east
of Radium Hot Springs and 35 km northeast of the town of Canal Flats and can be readily accessed by good logging
roads from both of those towns.
The Shag property has twenty separate lead, zinc and silver strataform MVT style mineral occurrences hosted within
three separate horizons in mid dle Cambrian age dolostone formations along a carbonate platform to shale basin
transgressive-regressive reef complex margin.
The style of lead -zinc mineralization on the Sha g property and its geological basin margin setting are similar to the
Pine Point district MVT lead-zinc mineralization that is also within a transgressive/regressive barrier reef complex
along a shale basin margin. At Pine Point numerous deposits were formed in Devonian age carbonate rocks above a
basement fault named the Great Slave Shear Zone.
There are three zinc-lead mineralized transgressive – regressive carbonate horizons known on the Shag property which
occur in the Eldon and Waterfowl formations which are well exposed on the property higher in the stratigraphic
section than the Cathedral formation . The Cathedral formation hosts the past producing Monar ch and Kicking Horse
mines ~100 km along-strike near F ield, British Columbia and is the most prospective middle Cambrian formation in
the district.
Qualified Person
Technical information in this news release has been approved by Christopher Graf, P. Eng., the Vice -President
Exploration, as well as a Director of Bonanza and a Qualified Person for the purposes of National Instrument 43-101.
For further information, please contact:
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Bonanza Mining Corporation
Suite 2201 – 8 Smithe Mews
Vancouver, B.C. V6B 0A5
Attention: Alfredo De Lucrezia, President,
CEO and Director
Tel: (604) 619-0225
Email: [email protected]
Cautionary Statements
This press release contains "forward-looking information" within the meaning of applicable securities laws . Readers
are cautioned to not place undue reliance on forward -looking information. Actual results and developments may
differ materially from those contemplated by these statements. The statements in this press release are made as of the
date of this press release. Bonanza undertakes no obligation to update forward-looking information, except as
required by securities laws.
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TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release