The Corporation determined that it was best to explore the property initially using shallow and intermediate depth Induced Polarization ("IP") geophysical surveys, followed by diamond drilling of selected targets identified.
The first geophysical study was done on the south-eastern, land based claims of the Dome property, the only accessible property at the time, in the summer of 2010. After the addition of the adjacent McManus patents later in 2010, a comprehensive geophysical study of the combined properties was performed in the winter of 2011. These resulted in the identification of a number of promising targets.
In the summer/autumn of 2011, the Corporation conducted a diamond drilling program on the land based claims of the combined properties which produced encouraging results, particularly on the McManus patents. These were followed up by a winter drilling program on the lake based claims which focused first on the Dome property at the projected intersection of two deformation zones, and then on an area of interest on the McManus patents. The results are even more encouraging.
The Corporation believes that it has discovered a new mineralized zone running parallel to the main trend defined by three historic Goldcorp mines, and approximately four kilometers south of it.
Drilling on the McManus patents has traced a hydrothermally-altered mineral system of iron carbonate and sulphides over a strike length of 1200m, a width of 440m and a depth of 400m. Pathfinder minerals such as gold, pyrite, arsenopyrite and chalcopyrite along with quartz-carbonate veining are noted throughout this system.
Drilling on the strike extension of the Chukuni sulphides offered encouraging results that may extend the length to 2.5km based on the March 2012 drill hole SD12-09 which intersected 0.342 g/t Au over 3.0m, 1300m to the west of drill hole SM 12-11, previously the most westerly drill hole.
This previously unidentified gold-bearing sulphidized "plumbing system"/mineralized zone is in the Chukuni Trend that runs roughly parallel to and approximately 4km south of the main mine trend projected from the three historic Goldcorp mines westward to the Cochenour Mine where Goldcorp is constructing a 5km drift for an underground haulage tram at the 5400 foot level.
The system includes a gold system of narrow, high-grade veins (23.5g/t Au/ over 0.7m in hole SM 11-07) and broad lower grade gold zones (0.43 g/t Au over 6.2m in hole SM11-03).
2011 Summer/Autumn Diamond Drilling Program
Exploration of the south-eastern block of claims, which abut the Chukuni River deformation zone, began in June 2010 with a high resolution DC resistivity and Induced Polarization (IP) surface survey on the south-eastern block of the Property in June and July 2010. The survey used the Earthprobe technology and included 7 north-south lines, 4 east-west lines, 2 SW to NE lines and 2 short lines from NW to SE. The electrode separation used was 4.4 m. and the survey data covered a total of 14.7 line kilometres. The objective of the survey was to identify deeper (up to 250 m) drill targets within the south-eastern block of the Dome Property.
Following interpretation of the data pseudo-sections, with the help of 2D inversion, a total of 23 targets were compiled and prioritized. All targets were assigned a confidence ranking of I, II and III according to their signal strength, inversion sensitivity analysis, and inversion predicted data. Of the targets, 5 were classified as I, 13 were classified as II, and 5 were classified as III. The criteria for target selection are resistivity low and chargeability high due to the disseminated sulphide association of the regional gold bearing formations.
Drilling of these targets was deferred pending the results of the geophysical program described next.
The ongoing exploration opportunities can be discerned from the previous map. The property is just outside the Town of Red Lake and approximately five kilometers south-west of Goldcorp's producing mines. The lake covered claims remain one of the unexplored potentials in the region. Two deformation zones, the Howey Bay-Flat Rock deformation zone (now commonly referred to as the Madsen-Goldcorp (NE) Trend) and the Chukuni River WNW Trend, are projected to flow through and intersect in part on the property. The map also shows (in red) two intersecting faults. Readers are cautioned that these projections are based upon the extrapolation of broad, regional geological information and the depicted deformations may not actually exist. Essentially all of the gold discovered in the Red Lake camp and other major camps in northern Canada are intimately associated with deformation zones. More particularly, gold is known to occur in dilatant zones caused by intersections of deformation zones, individual faults, and folds.
In February, 2011, Abitibi Geophysics of Val D'Or, Quebec, was engaged to conduct a geophysical survey using their state of the art IPower 3D technology and a ground magnetic survey of the whole property, i.e. including the south-eastern block of claims which was surveyed to a shallower depth last summer. IPower 3D technology was expected to provide information to a depth of approximately 500 metres. Field work started in March 2011 on the frozen lake at the western side and was completed within a month. A report of the results was received in June.
In June the Corporation received an audio-visual presentation by Mr. Gordon Yule, P.Geo., the project's consulting geologist who conducted a reconnaissance geological field assessment of the land-based claims of the Dome and McManus properties, and a preliminary presentation by Abitibi Geophysics, which conducted both a walking magnetic survey and an Induced Polarization ("IP") study of the combined Red Lake properties. The work identified a number of coincident geophysical and geological "targets" characterized by high chargeability, magnetic contrast, and observed alteration, sulphide mineralization and structures with similar characteristics of the Red Lake gold mineralization systems.
Based upon these findings and the existing data the Corporation planned and executed a summer/fall drilling program on the land based claims. The work consisted of the drilling of 15 angled diamond drill holes for a total of 4895 meters. A total of 3144 select samples were submitted to Accurassay Laboratories of Thunder Bay, Ontario for high precision gold assay and ICP geochemical analyses.
The Corporation is encouraged by the exploration on the McManus patented mining claims has identifying the occurrence of quartz veining, sulphide minerals and anomalous gold values within a structured zone, which, in combination, is indicative of a previously unreported mineralizing system. Although the Corporation and its technical team have not yet synthesized and interpreted all of the data and the dimensions of the zone have yet to be determined, the mineralization zone appears to extend more than 400 metres in width and 1 kilometer in length running from the east on the McManus patented mining claims to the west into the lake under the McManus licenses of occupation.
The following information with respect to the assays for gold is provided.
McManus Patents: The McManus drilling was concentrated on a west northwesterly trending structural zone containing variable quartz veining, iron carbonate alteration with locally abundant pyrite and accessory pyrrhotite, chalcopyrite and arsenopyrite. This zone is within and sub-parallel to the Chukuni River Deformation Zone defined by the Ontario Geological Survey in the early 1980's and referenced in Gold '86 - Proceedings The McManus structural zone includes several chargeability anomalies interpreted to be due to the sulfide content and one previously known gold showing. Ten angled core holes explored the zone with 2200 samples taken of any observed sulphides, carbonate and/or quartz vein mineralization, and 273 quality control and assurance (QA/QC) samples were submitted for analysis. All of the gold analyses have been received. Of the results, 52 samples had gold quantities above an arbitrary 0.1 g/t gold with a maximum value of 12.99 g/t gold over a 0.4 m sample interval.
Dome land Claims: Drilling on the southeastern (land) part of the Dome Claim group focused on a number of geophysical anomalies identified by last winter's geophysics program. The land claims include two previously known gold showings. Five angled core holes tested five of the geophysical anomalies and included one of the known gold showings. A total of 587 samples were taken of any observed sulphides, carbonate and/or quartz vein mineralization, and 84 QA/QC samples were submitted for analysis. Of the results, 3 samples had gold quantities above an arbitrary 0.1 g/t gold with a maximum value of 0.232 g/t gold over a 1.0m sample interval.
The drill program followed accepted mineral industry practices. All drill core was delivered to the secure core handling facility in Red Lake, where it was geologically logged, photographed, and geologically marked for sampling by the QP. Samples were then cut in half by diamond-bladed core saw, bagged, tagged and shipped to Thunder Bay for fire assay-atomic absorption analysis, and by ICP geochemical analysis. The drill core and samples were kept secure by the drill contractor, the company field crews, the bonded carrier and analytical facility following established chain-of-custody protocols. Quality control checks were completed by the blind and random insertion of two certified reference standards and a blank standard into the sample stream by the on-site QP. In addition, the analytical laboratory maintains their own internal QA/QC program. The remaining half core is being stored on the property, and sample material secured in Thunder Bay.
The Corporation also received the results of 34 element ICP analyses on all 3144 samples from its previously reported summer drilling program (106,896 data points). The analyses were completed by Accurassay Laboratories of Thunder Bay, Ontario.
Considerable evaluation work will be required to properly assess the importance or usefulness of this data but preliminary examination reveals a number of apparently anomalous values that may represent important correlations between several trace elements, notably arsenic and copper with sulfide mineralization. Direct correlations with gold mineralization appear weak but, given the complex nature of the mineralization, may prove important as the evaluation work progresses. The Corporation expects to be synthesizing this and all other data on an ongoing basis and will provide updates as the work progresses.
2012 Winter Diamond Drilling Program
Despite unseasonably mild winter conditions, the Company was able to complete 2000m of its planned winter core drilling program on its contiguous Dome and McManus claim groups. This work consisted of two holes (2X400m) on the Dome claims and two holes (2X600m) on the McManus Patents.
The intent of the Dome drilling was to position the projected intersection of two geological structures interpreted to host potential gold systems within the Red Lake Gold camp. These structures are inferred from projections of the basic geologic framework adjacent to and under Red Lake that had been developed from government mapping and Company reconnaissance mapping. Drilling on the McManus Patents was intended to test the northwest extension of the newly discovered McManus/Chukuni Mineralized Zone (Press Release dated November 14, 2011).
The two Dome holes, drilled 1.6 km west of the McManus Gold system, confirmed the projection of contacts between the Howey Diorite on the south, a relatively thin (+/- 350 m) middle unit of iron-carbonate altered volcano-sedimentary rocks and an assemblage of mafic volcanic rocks on the north. Drilling has penetrated and positioned these contacts. The Corporation believes that this structural contact zone may represent part of the northeast trending Flat Lake/Madsen/Goldcorp deformation zone proposed by the Ontario Geological Survey in the 1980's. Hole SD12-09 returned 0.34 g/t gold over a 3m core interval at 175m down-hole (146m vertical).
The two holes on the McManus Patents were step-out holes drilled 150m and 300m west of the 2011 drilling on the westerly projection of the northwest trending McManus/Chukuni Mineralized Zone beneath Red Lake. These holes confirmed the continuation of the Zone and the presence of low grade gold mineralization, but did not encounter significant precious metal mineralization. Hole SM12-12, 300m west, intersected 0.288 g/t gold over 9.0m between 399.0-408.0m down-hole, a vertical depth of 297.5m. Assay intervals generally appear sub-vertical. True widths can be estimated at 0.6 X sample interval width.
A total of six diamond drill holes comprised of 2,121m were collared from four ice pads on Red Lake. Two holes were aborted due to lake bottom overburden conditions.
Geochemical results have been received and will be incorporated into the extensive database evolving from the Company's work program. These data will be studied over the next few months as part of the planning for the next phase of drilling that, subject to available financing, is expected to be carried out over the summer of 2012. The summer program will be planned to extend and define the McManus/Chukuni mineralized zone and to continue the exploration of the rest of the large, highly prospective, land holding.