SLATE BAY PROJECT
Gold mineralization in the MLGB is localized within regionally extensive, steeply dipping deformation zones consisting of anastomosing ductile and brittle-ductile shear zones. Gold is most concentrated in quartz veins of varying sizes and orientations within these deformation zones. Numerous gold showings, prospects and deposits occur wit hin a series of west-northwest trending deformation zones. Located just 1km south of the property’s southern boundary is Wesdome Gold Mines Ltd.’s Eagle River Mine, the largest gold deposit discovered in the MLGB to date. The Eagle River Mine has produced 1,050,000 ounces of gold from 3.6 million tonnes averaging 9.1 gpt Au (Michaud, 20191). Current proven and
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probable reserves for the Eagle River Mine are 1.048 million tonnes at 12.0 gpt Au for a total of 404,000 contained ounces of gold (Michaud, 20192).
Work in the area was stimulated by the discovery of the high-grade Eagle River Mine, which commenced production in 1995. However, most of the exploration work in the area of the Project claims was conducted between 2005 – 2007 and included airborne geophysical surveying, trenching, and the completion of 92 diamond drill holes, which resulted in the discovery of the Dorset Zone in 2006. Highlights from the drilling of the Dorset Zone included 47 intersections of at least 1.5 g/t Au that ranged in length from 1.0 metres to 19.1 metres. Results of this drilling were used to compile an historic resource estimate (using a 0.50 g Au/t cut-off) consisting of an indicated resource of 40,000 ounces of gold (780,000 tonnes grading 1.42 g/t Au), and an inferred resource of 180,000 ounces of gold (4,760,000 tonnes grading 1.19 g/t Au). The historic estimate was commissioned by Trelawney Resources to OreQuest Consultants Ltd and Mr. Gary Giroux of Giroux Consultants Ltd in 2007. Under 43-101 guidelines. The historic resources were reported in “Summary Geological Report on the Dorset Property, Sault Ste. Marie Mining Division Ontario for MetalCORP Limited and Trelawney Resources Inc., by G. Cavey, P.Geo and Gary Giroux P.Eng., December 12 2007. From this report G. Giroux quotes:
“The supplied database for the Dorset resource estimate consisted of gold assay data from 119 diamond drill holes. A total of 6,468 gold assays were available. Gold assays reported as 0.000 represented assays below detection and were set to a value of 0.001 g/t or 1⁄2 the detection limit. Assays not sampled in missing sample intervals were also inserted at a nominal 0.001 g/t gold grade. The resulting data base had the following statistics. Uniform down hole composites, 2 m in length were produced by “passing” the drill holes through the three-dimensional geologic solids. Composites coded “A” Zone were entirely within the “A” Zone solid while those coded “B” Zone were entirely within the “B” Zone solid. Composites outside both solid were coded Waste. In all cases the composites honored the zone boundaries with small portions at the downdip side of the solid combined with the adjoining solid if less than 1 m. In this manner a uniform support of 2 ± 1 m composites was produced. In all zones un-sampled intervals were composited and a grade of 0.001 g/t was inserted. There appears to be a correlation between gold grades (increased sulphide content) and specific gravity. As a result the specific gravity was assigned to each mineralized block based on estimated gold grades.
Blocks with estimated Au grade between 0.0 and 1.0 g/t - 2.85 Blocks with estimated Au grade between 1.0 and 3.0 g/t - 2.87 Blocks with estimated Au grade between 3.0 and 4.0 g/t - 2.91 Blocks with estimated Au grade greater than 4.0 g/t - 2.93 Blocks in Waste - 2.80