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The Mallery Lake gold project is located ~130 km Southwest of Baker Lake in Nunavut and is well situated to take advantage of the developing infrastructure associated with mining projects such as Areva's Kiggavik Uranium deposit and Agnico Eagle's Meadowbank gold deposit.
History
The Mallery Lake Gold prospect was discovered by Phelps Dodge in 1996 with an initial discovery sample of 1 g/t Au over 10 metres. Subsequently, Phelps Dodge merged with Freeport McMoran and their original mineral claims were allowed to lapse.
The Mallery Stockwork consists of a network of quartz veins up to 20 metres wide hosted within rhyolite. Four areas with gold mineralized exposure have been mapped intermittently over more than 700 by 500 metres suggesting the possibility for several east-west trending zones. Coincident geophysical and geochemical soil anomalies demonstrate the potential for continuity within covered areas lacking outcrop.
2010 Exploration
The 2010 exploration program returned numerous high grade samples, one of which contained 54.2 g/T Au and 272 g/T Ag. Rock samples collected over sizeable intervals of the volcanic rock hosting the veins have also yielded gold mineralization. Of particular interest is a composite grab sample yielding 2.19 g/T Au over 8 metres, and chip samples of volcanic rocks with minor quartz vein material returning 1.45 g/T Au over 3 metres and 0.92 g/T Au over 2 metres. Recognizing that gold mineralization occurs in the host rock as well as the quartz veins increases the potential for wider zones of mineralization.
2011 Drill Program
In 2011 a small drill program was completed on the project. Five holes totalling 750 metres were drilled with all holes intersecting mineralization. These drill results are very encouraging as they highlight typical grades, widths and mineralogy encountered during early exploration stages of epithermal gold deposits.
2011 Mallery Drill Results
| Hole |
From |
To |
Interval |
Gold g/T |
| ML-11-01 |
12 |
19 |
7 |
2.1 |
| ML-11-01 |
including |
|
3 |
4.6 |
| ML-11-01 |
108 |
109 |
1 |
1.4 |
| |
|
|
|
|
| ML-11-02 |
80 |
82 |
2 |
1.8 |
| ML-11-02 |
including |
|
1.2 |
3.0 |
| ML-11-02 |
89 |
92 |
3 |
1.9 |
| ML-11-02 |
including |
|
1 |
5.5 |
| ML-11-02 |
106.7 |
113.78 |
7.1 |
2.0 |
| ML-11-02 |
including |
|
1.9 |
6.2 |
| ML-11-02 |
160.26 |
163 |
2.7 |
1.1 |
| ML-11-02 |
170 |
191 |
21 |
1.0 |
| ML-11-02 |
including |
|
4 |
3.4 |
| ML-11-02 |
222 |
224 |
2 |
1.5 |
| |
|
|
|
|
| ML-11-04 |
27 |
40 |
13 |
1.2 |
| ML-11-04 |
including |
|
4 |
2.9 |
| |
|
|
|
|
| ML-11-05 |
60 |
69 |
9 |
1.6 |
| ML-11-05 |
including |
|
5.65 |
2.3 |
| ML-11-05 |
including |
|
5.65 |
2.3 |
*Ml-11-03 sampling incomplete but intersected zones with up to 2.18 g/t gold
Sampling is incomplete for Ml-11-03.
*Ml-11-05 includes 11.7g/t silver |
Based on these drill results, it is anticipated that drilling has tested the upper parts of the system. Additional drilling is recommended to continue testing along the prospect and to test further at depth.
Detailed Descriptions of Drill Target Areas
The Mallery project comprises gold and silver bearing quartz veins. Mallery is exposed in four areas; the Central (Stockwork and Tundra zones), Eastern (Vein 17) and Western zone. The surrounding area is thinly covered by overburden therefore mineralization remains open in all directions. Initial results from the 2010 sampling program have outlined drill target areas in all four zones. A fifth zone has been identified by geophysics; this southern zone is also a candidate for drill testing.
At the Stockwork zone, gold and silver bearing quartz veins occur over an exposed area of 150 by 200 metres before going under overburden. Historical values range from under 1 g/T Au to 5.55 g/T Au. Sampling in 2010 has identified new quartz veins on the west side of the zone one of which, a 0.15 metre vein, assayed 33.7 g/T Au and 27.3 g/T Ag. This is of particular interest as it may indicate increased gold and silver content westward from this showing.
Rock samples from the Eastern Zone (Vein 17) highlight an area with high gold and silver assays up to 54.2 g/T Au and 272 g/T Ag. In addition, several discrete areas with gold bearing quartz angular boulders occur intermittently over 30 metres. The Eastern Zone is 250 metres east of the North Central Zone.
Rock samples from the Western Zone yield high gold and silver values up to 8.6 g/T Au and 6.7 g/T Ag from a 2.9 metre wide quartz vein. A second vein assayed 2.91 g/T Au and 10.7 g/T Ag. The second vein is of note as it appears to contain gold and silver at a ratio of 1:4 as observed at the Eastern Zone which is currently the highest priority drill target on the property. The Western zone is located 300 metres southwest of the Central Zone and 700 metres west of the Eastern Zone.
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