 |
|
South Claims JV Overview | Background | History | Geology and Mineralization | Mineral Resources | Tables | 2007-09 Program | 2010 Program | QA/QC Property Overview
In April 2007, Queenston and Kirkland Lake Gold Inc. (“KL Gold”) each purchased a 50% interest in 4 key mineral claims (52.3 ha) located in the heart of the Kirkland Lake gold camp. The property, referred to as the South Claims is located in Teck Township south of and adjacent to KL Gold’s producing Macassa mine and Queenston’s Amalgamated Kirkland property. The claims are strategically located and cover the southern projection of the New South Mine Complex ("SMC") currently being explored, developed and mined on the 5300’ level of the Macassa mine. There is a 1.5% - 3% sliding scale NSR royalty on the claims payable to the original vendor.KL Gold is the operator of the joint venture.
In the early 1900’s, a 400 ft vertical shaft was sunk on the property near the Amalgamated Break. During that period, Canadian Kirkland Mines completed limited underground drifting on a series of gold-bearing veins and since that time no further exploration has been reported on the property.  North of the South Claims surface and underground exploration completed by KL Gold, on the Macassa property, discovered the ABM Zone in 2004 and the SMC in 2005. The best intersections from these zones include 0.50 ounces of gold per ton (opt) over a core length of 29 feet in hole SV04-08 and 2.30 opt over a core length of 90.4 feet in hole 50-627 respectively. It is interpreted that both the ABM and new South Zones trend onto the South Claims. As result of advanced underground exploration including diamond drilling and drifting KL Gold has now outlined a substantial high-grade gold reserve and resource on the Macassa property trending south of the Kirkland Lake Main Break. In July 2009 KL Gold announced a mineral inventory of 1.6 million ounces of gold grading 25.7 g/t and are currently mining the SMC at a rate of 100,000 oz/year. In 2007 the JV commenced exploration on the South Claims property to explore the down dip potential of the SMC. This work included underground development towards and along the northern property boundary that provided a platform for exploration drilling. As a result of two drilling campaigns the JV has outlined to date 244,000 oz of resources grading 42.2 g/t Au on the property that continues to remain open to the south east and west.
The northern portion of the South Claims is underlain by conglomerate and tuff of the Timiskaming Assemblage intruded by porphyry. The northeast-southwest tending Amalgamated Break cuts through the northern portion of the claims in the vicinity of the shaft. In the central potion of the property it is interpreted that the east-west trending 103 Break cuts the claims. This Break hosts the adjacent AK Zone on the Amalgamated Kirkland property. The southern most claim is almost entirely underlain by a portion of the Murdock Stock, a small felsic intrusion composed principally of syenite. The contact of the Timiskaming Assemblage and Murdock Stock is marked by the east-east trending Larder Lake Break. There is no recorded gold mineralization documented on the South Claims. The SMC is a relatively flat lying gold zone that is fault controlled by structures trending east-west and dipping south. The SMC is located south of the 24 million ounce, steeply south-dipping, Kirkland lake Main Break and is interpreted to be controlled by a linking structure between two major gold bearing breaks the Main Break to the north and the Larder Lake Break to the south.Unlike quartz-vein hosted gold mineralization typical along the Main Break, the SMC mineralization is characterized by a series of altered, silicified and pyritic stacked zones containing visible gold and tellurides bounded by flat lying faults. The SMC remains open to the south east and west and there is strong potential for other SMC-type deposits to be discovered south of the Main Break throughout Teck Township.
The mineral resources on the South Claims were calculated and presented by Glenn Clark and Associates in a NI 43-101 report dated July 14, 2010. Mr. Clark a Professional Engineer also prepares the reserve and resource studies for KL Gold on the Macassa property. The current mineral resources on the South Claims property were determined from two campaigns of underground drilling supervised by the geological staff of KL Gold. Table Mineral Resources
The following lists the criteria employed by KL Gold in calculating reserves and resources for the Macassa Mine and South Claims JV property:
Beginning late in 2007 the Queenston – KL Gold JV commenced an underground exploration program that was focused on exploring for the SMC on the South Claims property. During the first phase of that program the 5300’ level drift was extended southerly to the northern boundary of the JV property. From there the 5300 x-cut was driven both west and east to provided a diamond drilling platform to test the South Zone of the SMC onto the JV property. To the end of 2009 a total of 560 m of drifting and 20 underground diamond drill holes have been completed by the JV. In July 2008, Glen R. Clark and Associates Limited calculated the first NI 43-101 mineral resource on the property containing 39,100 t grading 38.1 g/t (indicated) and 66,225 t grading 42.5 g/t (inferred). As a result of the 2009 drilling this resource was upgraded on July 15, 2009 to 66,097 t grading 42.5 g/t Au (indicated) and 113,179 t grading 42.2 g/t (inferred).  For details of the 2009 diamond drilling results see news releases dated March 18, 2009 and November 24, 2009. For details on the NI 43-101 mineral resource see news release dated July 15, 2009.
In 2010 the joint venture will continue with the advanced underground exploration that will include further level work along the 5300’ x-cut and diamond drilling. Queenston filed a revised NI 43-101 on SEDAR (www.sedar.com) updating the resources and reserves on the joint venture property, see news release dated July 16, 2010.
The design of the JV’s drilling programs, Quality Assurance/Quality Control and interpretation of results is under the control of KL Gold’s geological staff including qualified persons employing a QA/QC program consistent with NI 43-101 and industry best practices. The South Claims project is supervised by KL Gold’s Chief Exploration Geologist, Stewart Carmichael P.GeoThe drill core is logged and split with half-core samples shipped to Swastika Laboratories of Swastika, Ontario and analyzed employing the appropriate gold fire assaying technique.
|
|
|||||||||
 |
