Generation Mining’S Survey Images the Source of Darnley BAY Anomaly
GENERATION MINING’S SURVEY IMAGES THE
SOURCE OF DARNLEY BAY ANOMALY
Toronto, Ontario – Sept 12, 2018 ‐ Generation Mining Limited (CSE:GENM, the “Company”) is pleased to
announce preliminary results from the summer Magnetotelluric (“MT”) program at its property near
Paulatuk, Northwest Territories. The program has had the dual result of imaging the deep source of the
Darnley Bay Anomaly and outlining a number of large discrete exploration targets nearer to the surface. The
Darnley Bay property hosts the strongest known land‐based gravity anomaly in the world, and is coincident
with a similar‐sized magnetic anomaly.
A total of 116 Magnetotelluric, deep searching geophysical soundings, were collected on the Darnley Bay
property, over a 40 x 50 kilometre area, and blanketing the Darnley Bay geophysical anomaly. The program
was completed by Quantec Geoscience Ltd., Toronto, with technical support provided by Stevens
Geophysics Inc., Sudbury, Ontario.
“It is very exciting to finally image the source of this famous anomaly,” remarks Mr. Stevens, “What we are
seeing at Darnley Bay are very similar geophysical characteristics to that of many of the great mineral deposit
systems around the world.”
Figure 1 shows the colour contoured residual gravity data defining the Darnley Bay anomaly, and the location
of the 116 MT soundings. The MT data was used to estimate the electrical resistivity structure of the Earth
beneath each data station. Twenty‐one of the MT soundings have been used to reconstruct the subsurface
estimate of the resistivity structure to great depths. Figure 2 shows the MT resistivity/depth section
recovered from these 21 sites. The image in Figure 2 is an estimate of the subsurface resistivity structure to
15 km depth, from the 2‐dimensional (2D) MT model along a 35 km SW‐NE profile and across the center of
the Darnley Bay gravity anomaly (Figure 1). The results of this MT program confirm that the main source of
the gravity and magnetic anomalies are coincident with a very large MT source at a 10 km to 13 km depth.
The gravity signature is consistent with the response of a spatially large, 15 km x 15 km, and thick, >4 km,
deep source body, that starts at depth of ~10 km. The magnetic signature is consistent with the presence
of a large, 16 km x 16 km, > 4 km thick source, that begins at a depth of ~13 km. The estimated region of
dense and magnetic materials, estimated from the simple ‘sill’ like model shown in Figure 2, has comparable
amplitudes and source wavelengths to the observed data. The deep MT source is coincident with both of
these signatures and has similar size and depth.
In addition, three low‐resistivity ‘pathways’ (B1, B2, B3) extend from the deep MT source A1 to the bottom
of the shallow basin structure (Figure2). The geological interpretation of the resistivity structure is that it
shows a deep seated, single, large, conductive, intrusive body possibly extending to shallower depths along
pathways B1, B2 and B3 and encountering the layered sedimentary basin rocks and the structures within it.
This is the classic signature of a magmatic mineral system, similar to deep crustal resistivity structures that
have been observed at other large scale intrusive systems (i.e. IOCG‐Olympic Dam, see Heinson, G., Didana,
Y., Soeffky, P., Thiel, S., & Wise, T. (2018). The crustal geophysical signature of a world‐class magmatic
mineral system. Scientific Reports, 8, 10608 http://doi.org/10.1038/s41598‐018‐29016‐2 ).
Of greater importance to Generation Mining are a number of strong MT anomalies within 800‐1200 metres
of surface. These may reflect mineralized sources in the overlying sedimentary basin with origins related to
the deep intrusion and connected through the pathways. Drilling is needed to confirm the nature of these
MT anomalies.
Magnetotellurics is a natural source, low environmental impact, geophysical method of imaging the earth's
subsurface by measuring at the earth’s surface natural variations of electrical and magnetic fields generated
by the passage of the magnetic and electromagnetic energy from cosmic radiation, sunspot activity and
terrestrial thunderstorm activity. The method allows for the deep imaging of the structure and composition
of the earth’s subsurface to depths greater than conventional airborne and ground geophysical exploration
surveys. Since the 1990s, MT has been successfully used to locate deep conductive mineral deposits at
depths exceeding 1500 metres in the Sudbury nickel camp; base metal deposits in South America, the
western cordillera of North America and in Precambrian Shield areas around the world. In the last 10 years,
this technique has seen a number of improvements, particularly with the development of modern 2‐D/3‐D
modelling. It is now routinely used in the oil industry to better define deep drilling targets, and to supplement
or replace seismic in areas where seismic is not permitted for environmental reasons and/or provides poor
resolution due to volcanic cover.
The property is held by Generation Mining under option from the Inuvialuit Regional Corporation, which
holds certain back‐in and other rights. The gravity anomaly on the property has been favorably compared
by the Geological Survey of Canada ("GSC") with other prominent gravity anomalies such as those at the
prolific mining camps of Noril'sk in Russia and Sudbury Basin in Ontario. It is located near Paulatuk,
Northwest Territories, on the Arctic coast. The Darnley Bay anomaly is larger and stronger than any of these
comparatives by a wide margin, measuring 100 kilometres long north to south and about 60 kilometres wide.
The GSC discovered the anomaly in 1969 and its source has never been explained before now.
Qualified Person
Kevin M. Stevens, P. Geo, is a "qualified person" for the purposes of National Instrument 43‐101 ‐ Standards
of Disclosure for Mineral Properties and the Company's Professional Consulting Geophysicist. He has
prepared or supervised the preparation of the information contained in this news release.
About Generation Mining Limited
Generation Mining Limited is a base and precious metals exploration and development company with
various property interests throughout Canada. Its primary business objective is to explore and further
develop the Davidson Molybdenum project in British Columbia and its other mineral properties, and to
continue to increase its portfolio of base and precious metal property assets through acquisitions.
For further information please contact:
Jamie Levy
President and Chief Executive Officer
(416) 640‐2934
(416) 567‐2440
Forward‐Looking Information
This release includes certain statements that may be deemed “forward‐looking statements”. All
statements in this release, other than statements of historical facts, that address future production,
reserve potential, exploration drilling, exploitation activities and events or developments that the Company
expects are forward‐looking statements. Although the Company believes the expectations expressed in
such statements are based on reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from those in the statements. There
are certain factors that could cause actual results to differ materially from those in forward‐looking
statements. These include market prices, exploitation and exploration successes, continued availability of
capital and financing, and general economic, market or business conditions. Investors are cautioned that
any such statements are not guarantees of future performance and actual results or developments may
differ materially from those projected in the forward‐looking statements. For more information on the
Company, investors are encouraged to review the Company’s public filings at www.sedar.com. The
Company disclaims any intention or obligation to update or revise any forward‐ looking statements,
whether as a result of new information, future events or otherwise, other than as required by law.
1700-80 Richmond Street West Phone: 416 567-2440
Toronto, Ontario, Canada M5H 2A4 Email: [email protected]