Northern Ontario, Canada
The 100% owned Hemlo East property (formerly referred to as the Fearless and Python properties) consists of 84 claims (573 units) covering some 9,168 hectares that were staked by MetalCorp in 2007 and is located immediately east along the regional structural-stratigraphic trend of the 23-million-ounce Barrick Hemlo gold mine. The Hemlo East property was originally staked by Lac Minerals (since acquired by Barrick Gold) during the Hemlo Gold rush in 1981 and MetalCorp is the only company to hold the claims since that time. The Hemlo East property has excellent infrastructure with access provided by the Trans Canada Highway (Hwy 17) from which all weather roads lead into the property. The Hemlo gold mine and the Company's property are located approximately 30 km east of Marathon, Ontario.
Eastward Along Trend from Hemlo
On the northwestern part of the MetalCorp's property, immediately east of the Hemlo Mine, the overall structural and stratigraphic setting, as well as the nature of the alteration, are very similar to the Hemlo deposit. The continuous alteration zones in this generally poorly exposed area also host local gold occurrences. These have been drill-tested in part in the past, but generally to relatively shallow depths (see Longitudinal Section). MetalCorp intends to further test the mineralized and altered zones, both along trend and to depth.
The Gouda Lake Zone
Exploration work on the Hemlo East property prior to MetalCorp's staking had discovered a gold occurrence, called Gouda Lake, and base metal mineralization contained in the Heron Bay - Playter Harbour rock sequence. This same sequence of rocks underlies MetalCorp's Big Lake property located 12km southwest where the Company made a copper - zinc massive sulphide discovery in 2006.
The eastern part of the Hemlo East property hosts the Gouda Lake gold zone which is underlain by Hemlo-like rocks with the mineralization hosted by an east-west striking, 20 metre thick zone of quartz-sericite-pyrite (2-25%) schist containing 2-5% sphalerite (zinc sulphide) and trace galena (lead sulphide). Minor amounts of chalcopyrite (copper sulphide) and streaks of molybdenite (molybdenum sulphide) occur locally. Assay values have ranged from as high as 21.0 g/t gold, 648.0 g/t silver and 2.0% zinc. In 1996, Placer Dome Canada Limited, which optioned the ground from Lac Minerals, estimated an inventory of 253,000 tonnes @ 4.1 g/t Au at the Gouda Lake zone (this historically-reported estimate is not 43-101 compliant) (a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves; accordingly, Metalcorp is not treating the historical estimate as mineral resources or mineral reserves).
Work by MetalCorp
Beginning in 2009, MetalCorp began a systematic review of the Hemlo East Property, including airborne magnetic and electromagnetic surveys, and carried out a drill program on the Northwestern part of the property, near Cedar Lake. This drill campaign was intended to test the deep extension of the Egg Lake Horizon, and comprised of three holes exceeding 1200 meters in depth. All three contacted the zone, at a depth of 1000 meters or more below surface, and the best intercept provided a result of 0.85 g/t over 7 meters. This confirmed that the gold bearing horizon is indeed present along that trend. Further work may be done to further test those areas.
In mid-2010, the company made the decision to further investigate the Gouda Lake zone. The effort began with an IP (induced polarization) survey to confirm the location of the zone originally identified by Lac Minerals, and was followed up by a 3000 meter drill campaign.
The drilling effort, completed in November 2010, proved that the horizon is not only much more extensive than the original Lac Minerals reports indicated, but also had significantly greater potential for base metals than was previously shown. Highlights from the drill campaign included
- 19.7 g/t gold and 155 g/t silver over 1.2 meters in hole HEGZ 10-16
- 2.2 g/t gold and 388 g/t silver with 2% combined base metals over 0.8 meters in HEGZ 10-14
- 11..4 g/t and 253 g/t silver over 1.34 meters in HEGZ 10-20.
- 11.15 g/t and 200 g/t silver over 1.5 meters in HEGZ 10-24.
Overall, the drilling campaign indicated that the zone has at least one main trough, approximately 200 meters in width, open down plunge. The main plunge has shown considerable true width and grade.
- Hole HEGZ 10-15 grades at 2.25 g/t gold, 98.3 g/t silver and 1.36% combined base metals over 4.46 meters.
- Hole HEGZ 10-16 grades at 5.41 g/t gold and 47.13 g/t silver over 4.76 meters.
- Hole HEGZ 10-20 grades at 5.22 g/t gold, 145.3 g/t silver, and 1.03% base metals over 4.99 meters.
- Hole HEGZ 10-24 grades at 3.83 g/t gold, 90.9 g/t silver, and 0.9% base metals over 6.00 meters.
Our work shows that this system has the potential to be very extensive, as past drilling shows the trend continues 1.2 km or more to the north. Continued work is planned for 2011 to follow up our 2010 drill campaign, and follow up this exciting prospect.
In June 2012, Metalcorp sold three claims on the western end of its property to Barrick Gold Inc. for $100,000 cash and a 2% net smelter royalty.
In December 2012, Metalcorp granted an option to Cava Resources Inc. entitling Cava to earn a 50% interest in the claims east of the White River. To earn a 50% interest, Cava was required to spend $1,500,000 over two years and one month and issue 3,250,000 shares to Metalcorp. Metalcorp was the operator during the option period, earning a 10% operator's fee. On exercise of the option and vesting of 50% in Cava, Metalcorp would be granted a 2% net smelter royalty, one-half of which could be bought by Cava for $2 million. Cava spent $250,000 and issued 500,000 shares to Metalcorp. In late 2013, Cava gave notice that it was terminating the option.
© 2015 MetalCorp Inc.