Adjacent and Deposits in the District

Current Producers

Goldcorp’s Red Lake Gold Mine is located ~5 km north east of the Dome Property (Figure shown below). The Red Lake Mine consists of the Red Lake and Campbell Complexes and is Canada’s largest gold mine (www.goldcorp.com). In 2009, the mine produced 623,000 ounces of Au. It is one of the world’s richest gold mines and lowest cost producer (www.goldcorp.com).

The mineralization is hosted by an ultramafic unit within the Balmer assemblage. The rocks in the mine area are strongly altered (carbonate, biotite, silica, Fe-carbonates, quartz-sericite, biotite-tourmaline). The ore body is a wedge-shaped zone bounded by faults (www.goldcorp.com).


Map showing adjacent properties (claims and dispositions).

Past Producers

A list of past producers in the Red Lake area is provided in Table 15-1 and two past producers, the Hasaga and Howey mines, are described briefly below.

Past producers (data from http://www.mndm.gov.on.ca/mines/ogs/ims/pub/digcat/mdi_e.asp)

NAME COMMODITY PRIMARY SECONDARY  
Madsen -No. 8 Zone Au   past producing mine without reserves Baird
Young Mines Ltd. Au Ag  past producing mine without reserves Balmer
Gold Eagle Mine Au Ag  past producing mine without reserves Dome
McKenzie Mine Au Ag, W past producing mine without reserves Dome
Red Lake Gold Shore Au Ag  past producing mine without reserves Dome
McMarmac Mine Au Ag  past producing mine without reserves Dome
Howey Au Ag  past producing mine without reserves Heyson

McKenzie Red Lake Gold
Mine - North & West Mine Zone

Au Ag  past producing mine without reserves Dome

Madsen Red Lake Gold Mines - Ore zones 1 to 7

Au, Ag   past producing mine with reserves Baird
Starratt-Olsen Mine Au Ag past producing mine with reserves Baird
No. 1 Vein Au   past producing mine with reserves Baird
Hasaga Au   past producing mine with reserves Heyson
Buffalo Red Lake Au Co, Zn past producing mine with reserves Heyson
Wilmar Mine Au Ag past producing mine with reserves Dome
Cochenour Willans Mine Au Ag past producing mine with reserves Dome
Annco Mine Au Ag past producing mine with reserves Dome

Hasaga Gold Mine
The Hasaga gold mine operated between 1938 and 1952 and produced 219,320 ounces of gold (1,515,282 tons at 0.14 oz/ton Au). Remaining metal reserves stand at 247,998 tons @ 0.176 oz/ton Au. The gold is hosted within altered sections of a quartz porphyry dike which cut the quartz diorite intrusion (Howey Diorite).

Howey Gold Mine
The Howey gold mine operated between 1930 and 1941 and produced 421,324 ounces of gold (4,319,331 tons at 0.0817 oz/ton Au); no known reserves remain. As with the Hasaga Mine, gold is hosted within sections of quartz porphyry dike that cut the Howey Diorite, containing gold-bearing quartz veins and stringers that are confined to tensional or complimentary shearing directions along the walls of the dike.

Adjacent Claims

The holders of the claims adjacent to the Dome Property are listed below

Holders of claims adjacent to the Dome Property.

CLAIM OWNER
1244534 Perry English
1056833 Skyharbour Resources/MPH Venture Corp. 1056832 Skyharbour Resources/MPH Venture Corp.
1244518 Perry English
1244600 Grandview Gold Inc.
1244576 Grandview Gold Inc.
1234239 Goldcorp

Skyharbour Resources
Skyharbour Resources Ltd. (Skyharbour) hold five properties in the Red Lake area including the Heyson property south of the Dome Property. Skyharbour completed a diamond drilling program on the Heyson property in 2004 and delineated a hematite-epidote alteration zone under a “gold in till” anomaly (www.skyharbourltd.com). Skyharbour’s joint venture partner on the Heyson Property is MPH Venture Corp.

Grandview Gold Inc.
Grandview Gold Inc. (“Grandview”) holds several claims north of the Dome Property. No recent exploration was reported on the claims adjacent to the Dome Property (www.grandviewgold.com)

Conclusions and Recommendations

The Dome Property is located in one of the most productive mining camps in Ontario. Two gold occurrences are reported from the claim group. Gold typically occurs in the vicinity of the unconformity between Balmer assemblage and Confederation assemblage. The proximity of the Property to the Chukuni River deformation zone and the occurrences and discretionary occurrences on the Property give this Property good potential for a shear zone related gold deposit. The historic exploration on the Property, including trenching and drilling, suggests that further exploration on the Property is warranted. In particular, the IP survey completed in 2007 delineated anomalies and suggested diamond drilling targets. Although the final results of the 2010 IP survey were not available at the time of writing this report, preliminary pseudo sections indicate several areas of low resistivity in the survey area.

A significant amount of historic exploration has been completed on the claims on Red Lake in the northern part of the Dome Property. The results of this exploration indicate that there is potential in this area which should be tested with modern exploration techniques.
Harris et al. (2006) produced gold prospectivity maps of the Red Lake district and concluded that “a region of moderate prospectivity coincides with the northern Howey diorite stock” and is “worthy of further exploration follow up”.

CCIC concluded that the Dome Property is of merit as an early-stage exploration project and that the exploration program outlined in this Report is warranted

To review the entire NI 43-101 report please follow the link below:

August 2010              NI 43-101                    PDF    
Elisabeth Ronacher, Ph.D., P.Geo.   Caracle Creek International Consulting Inc. (CCIC)