The Discovery occurrence is located on the eastern edge of Schaft Creek approximately 60 kilometres upstream from the confluence with the Stikine River.

The showing occurs along the eastern margin of the Middle Jurassic Yehiniko pluton which lies in the middle of the north trending Jurassic-Triassic Hickman batholith. The pluton consists of a distinctive tan to orange weathering, salmon pink, hornblende- biotite granite to quartz monzonite. It is medium to coarse grained and often contains magnetite. Mineralization occurs within the pluton very near its eastern margin where it intrudes Upper Triassic volcanic and sedimentary rocks of the Stuhini Group. These rocks consist mainly of andesitic tuffs, flows and breccias and lesser epiclastic rocks. These rocks are highly fractured but not strongly deformed although bedding attitudes are variable. Although the contact zone is highly fractured and altered, the relationship is clearly intrusive. Narrow apophyses extend from the main body of the pluton. Younger, possibly Eocene or younger mafic and felsic dykes are also common in the area.

Mineralization consists of porphyry-style stockworks and disseminations of chalcopyrite and pyrite, often associated with quartz veinlets in highly fractured and chlorite altered quartz monzonite to granite. The surrounding volcanic rocks contain small amounts of chalcopyrite and malachite. A chip sample across 13 metres of mineralization contained 0.66 per cent copper with trace amounts of gold, silver and molybdenite (Assessment Report 900).

The Discovery area is located north of the Paramount Zone and has had limited historical drilling. In 2012, four holes targeted the Discovery Zone (104G 030). A drilling highlight was the intersection of 47.0 metres grading 0.62 per cent copper, 0.59 gram per tonne gold, 2.02 grams per tonne silver and 0.006 per cent molybdenum from 509.0 metres in drill hole CF-427-2012 on the Discovery zone (Assessment Report 33938).

In 2013, Teck Resources' drill hole SCK-13-436 (17.3 to 224.3 metres) was abandoned prematurely before reaching target depth due to safety concerns and logistical limitations. Rock types intersected in this hole include volcaniclastic lapilli tuff, andesitic volcanics, and minor volcaniclastic breccia. No intrusive rocks were intersected. Intense fracturing occurs in this hole to a depth of approximately 90 metres. This fracturing is accompanied by copper oxide staining of the fracture surfaces. Below 90 metres, numerous small faults and shear zones occur. Sulphide mineralization intersected by this hole is minimal. Some vein-hosted and disseminated chalcopyrite and pyrite occurs in the upper part of this hole, to a depth of 124 metres. Below this depth, pyrite is the only sulphide mineral encountered, and the overall sulphide content diminishes downhole. Disseminated pyrite and chalcopyrite near the top of this hole is interpreted to be the likely cause. The analytical results show significant but variable concentrations of copper and low molybdenum concentrations over the majority of the core length of this drill hole. Hole 2012CF427, located approximately 400 metres northwest of 2012CF426 tested the northern portion of the chargeability anomaly associated with the Discovery Zone and intersected visible copper +/- molybdenite mineralization from a core interval of 250 metres to the end of the drill hole at 769.9 metres. The upper portion of this drill hole from 8.0 metres to 428.12 metres returned highly variable copper concentration ranging from 0.02 to 0.34 per cent copper over individual sample intervals. The chalcopyrite +/- molybdenite mineralization is open at depth.

Diamond drill hole (DDH) CF427-2012 intersected 0.625 per cent copper, 0.59 gram per tonne gold, 2.02 gram per tonne silver and 0.006 per cent molybdenum (1.01 per cent copper equivalent) over a core length of 47 m starting at a core interval of 509.00 metres; diamond drill hole (DDH) CF427-2012 intersected 0.24 per cent copper, 0.14 gram per tonne gold, 0.006 per cent molybdenum and 0.58 gram per tonne silver (0.36 per cent copper equivalent) over an interval of 336.72 metres starting at a core interval of 428.12; diamond drill hole (DDH) CF426-2012 intersected 0.16 per cent copper, 0.04 gram per tonne gold, 0.003 per cent molybdenum and 0.81 gram per tonne silver (0.21 per cent copper equivalent) over an interval of 689.11 metres starting at a core length of 76.55 metres (Assessment 33938).

Work History

In 2012, Copper Fox Metals Inc continued exploring extensions and testing geophysical anomalies at the Schaft Creek project. Four holes targeted the Discovery Zone (104G 030), and two holes targeted the Mike Zone (104G 031).

In July 2013, Teck and Copper Fox formed the Schaft Creek Joint Venture, with Teck resuming as the project operator. Subsequent to the formation of this joint venture, Teck completed a program of 9 drill holes totalling 3,453 metres in 2013 at Discovery (104G 030), Mike (104G 031) and Paramount (104G 032). During 2013 and 2014, Teck also completed regional geological mapping, relogging of historical core, geological modeling, and an airborne geophysical survey. One hole (SCK-13-431) was designed as an initial test of the Mike target area and one hole (SCK-13-436) was drilled on the Discovery zone to the northwest of Mike.

In July 2013, Teck and Copper Fox formed the Schaft Creek Joint Venture, with Teck resuming as the project operator. Subsequent to the formation of this joint venture, Teck completed a program of 9 drill holes totalling 3,453 metres in 2013 at Discovery (104G 030), Mike (104G 031), and Paramount (104G 032). During 2013 and 2014, Teck also completed regional geological mapping, relogging of historical core, geological modeling, and an airborne geophysical survey.

In 2015, Teck drill program tested a new target called LaCasse, located approximately four kilometers north of the Schaft Creek deposit area. Drilling at LaCasse consisted of a five-hole, 2634 metres program that was carried out with a helicopter-portable diamond drill.

See LaCasse (104G 190) for further details of related geology and Work History. Teck Resources reports that LaCasse and Discovery are basically one contiguous zone. Also see Schaft Creek (104G 015) for related geological and Work History details.