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Mas Gold Corp. to acquire a 100% interest in the former producing Contact Lake Gold Mine – La Ronge Greenstone Belt, Saskatchewan

MAS Gold Corp. (“MAS Gold” or the “Company”) (TSXV: MAS) has entered into an agreement…

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This article was originally published by Resource World

MAS Gold Corp. (“MAS Gold” or the “Company”) (TSXV: MAS) has entered into an agreement (the “Agreement”) with the Government of Saskatchewan (the “Province”) to acquire a 100% interest in approximately 463 hectares (the “Contact Lake Property”), including the former producing Contact Lake Gold Mine operated from 1994 to 1997 by Cameco Corporation in the highly prospective La Ronge Greenstone Belt of Saskatchewan.

“We are very pleased to be able to announce this acquisition and wish to thank the Saskatchewan Government for working so diligently with us to complete it.” stated CEO Jim Engdahl. “We are very excited to begin working with the voluminal and detailed historical data MAS has available to identify both new resources and the areas that are reported as not mined. We believe the opportunities to be tremendous given the underground infrastructure in place and the significant amount of data we have available to begin developing a new model that will guide a new round of exploration drilling on this brownfields site.” Mr Engdahl added, “The Contact Lake mine site is located within 10km of MAS Gold’s North Lake Deposit and is an important new addition in our “hub and spoke” mining concept.”

The Agreement was made pursuant to the Saskatchewan Reclaimed Industrial Sites Act (“RISA”). The Contact Lake Property is located approximately 57 kilometres north of the town of La Ronge on Provincial Highway 102 and 6 kilometres east of the highway (see Figure 1). Upon completion of the transaction, MAS Gold will hold mineral rights to roughly 34,306 hectares (84,771 acres) spread along the full trend of the La Ronge Gold Belt.

Figure 1: Contact Lake Property Location Map

The Contact Lake Property

The Contact Lake gold deposit (or Bakus Gold Zone) was first identified by Saskatchewan Mining Development Corporation (SMDC; later Cameco Corporation) exploration field crews in 1984 as part of its Preview Lake Exploration Program that also resulted in the discovery of the nearby Point and Preview SW gold deposits. Operations were conducted from December 1994 to May 1998; decommissioning was completed by December 1998 when the mine was put on care a maintenance. Final site closure was declared in March 2008.

In January 1999, after the termination operations, Cameco Corporation undertook a full internal review (or audit) of the “…start up, operation, overall finances and decommissioning of the Contact Lake mine” (1999; Leniuk, G., B. Bharadwaj, G. Alderman & R. Wyka: Cameco Corporation Contact Lake Operation, Final Report, January, 1999). The Final Report provides complete historical production and recovery values for the entire operation, plus results from the processing of “waste materials” from the final clean-up of both the mill and mine operations (the latter sent to G.D. Resources in Sparks, Nevada; see Table 1).

Significant underground development remains at the site of the Contact Lake Mine that could be reconditioned, including a 6.0 metre (m) x 4.0 m ramp to a depth of roughly 340 m and 6 main levels and various sub-levels. Level 5244 was driven 230 m to the east-northeast along the structure of the zone to access historically defined resource blocks that were not mined. Gold recovery over the life of the mine was reported to be 95%, utilizing gravity and cyanide leach plus carbon-in-pulp processes run at a throughput rate of 715 to 925 tonnes per 24-hour day.

Exploration Plans for the Contact Lake Property

MAS Gold has a significant non-digital data base for the Contact Lake gold deposit and upon the closing of the acquisition it will immediately begin digitizing the data to enable preliminary modelling that will help guide new exploration and confirmation drilling along the trend of the Bakus gold zone. Surface drilling may be designed to both twin historical holes and provide confirmation of historically defined potential resources as well as test the extensions of the zone to the east and to depth.

Numerous historical resource estimates were undertaken on the deposit, both leading up to the production decision being made and during mining. Although estimates of grade were continually refined through the production, reducing from a historical 1993 estimate (Cominco Engineering Services Limited, 1993) of 8.01 g Au/t to the final calculated 6.16 g Au/t, potential exists for the identification of unmined, historically defined resources.

The CESL historical resource estimate outlined seven potential historical resource blocks that were reported in the Cameco Corporation 1999 Final Report as “Not Mined”. Upon closing of the transaction, these are immediate targets for MAS Gold to investigate with winter 2022 surface drilling program. In addition, geological reports identified wider zones of lower grade material in the deposit hangingwall that MAS Gold intends to investigate and model, if the acquisition is consummated.

Details of the Transfer Agreement

Under the Agreement, the Province agrees to transfer the Contact Lake Property to MAS Gold provided MAS Gold: (i) meets the conditions prescribed in The Reclaimed Industrial Sites Regulations (the “RISA Regulations”); (ii) agrees to accept responsibility for the Contact Lake Property in accordance with the RISA Regulations; (iii) provides evidence satisfactory to the Province that the Company has sufficient resources to cover the anticipated future monitoring and maintenance costs for the Contact Lake Property; and (iv) provides financial assurance in the form and amount acceptable to the Province. MAS Gold has, or is on the process of satisfying these requirements, and expects all of the requirements will be fulfilled by December 31, 2021, following which the Province is to transfer a permit issued pursuant to The Mineral Tenure Registry Regulations covering the Contact Lake Property and granting MAS Gold rights to explore or prospect on the Contact Lake Property.

Under the Agreement, MAS Gold will be responsible for monitoring and maintenance of the Contact Lake Property going forward, including all remediation and reclamation costs, arising out of, connected with or incidental to the Contact Lake Property.

The Province accepted the Contact Lake Property into the Institutional Control Program (the “ICP”) pursuant to RISA and has monitored and maintained the Contact Lake Property in accordance with the monitoring and maintenance requirements typical to the ICP.  The ICP is a formal regulatory process for the long-term monitoring and maintenance of industrial sites when mining or milling activities have ended, remediation has been conducted, and the sites are ready to be transferred to provincial responsibility.

Qualified Person (QP)

The scientific and technical information contained in this news release has been prepared, reviewed, verified and approved by David Tupper, P.Geo. (British Columbia), MAS Gold’s VP Exploration and a Qualified Person within the context of Canadian Securities Administrators’ National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About MAS Gold Corp.

MAS Gold is a Canadian mineral exploration company focused on exploration projects in the prospective La Ronge Greenstone Belt of Saskatchewan. In the belt, MAS Gold operates the Greywacke, North Lake and Point advanced gold projects, each hosting drill-intercepted zones of gold mineralization. MAS Gold’s NI 43-101 Technical Report of June 1, 2016 concerning the Greywacke deposit is available on SEDAR and on MAS Gold’s website: www.masgoldcorp.com .

On Behalf of the Board of Directors of MAS Gold Corp. 

Jim Engdahl
CEO & Director

t: 306-986-5722
c: 306-262-4964

MAS Gold Corp. Suite 420 – 789 West Pender Street, Vancouver, British Columbia, Canada, V6C 1H2, www.masgoldcorp.com

For more information, please contact: Lubica Keighery, VP IR and Business Development

t: 604-685-8592 c: 778-889-5476 e. lubica@masgoldcorp.com

Caution Regarding Forward Looking Information and Statements

This news release includes certain forward-looking statements or information that could cause actual results to differ materially from MAS Gold’s plans or expectations. All statements other than statements of historical fact included in this release, including, without limitation, completion of the transfer of the Contact Lake Property to MAS Gold, planned exploration and development programs, statements regarding metallurgical results and outcomes, any updated technical report, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events, level of activity, performance or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks relating to failure of the Company to satisfy the requirement in the Agreement, a breach of the Agreement by the Province, the actual results of current and future exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, cost overruns, that MAS Gold may lose or abandon its property interests or may fail to receive necessary licences and permits, availability of capital and financing and general economic, market or business conditions. The forward-looking statements included in this news release are made as of the date hereof and MAS Gold disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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Aldoro Resources covering all bases with rubidium, lithium, nickel, copper, gold and more in rock chip samples

Special Report: Aldoro Resources is covering all bases across its diverse prospects in WA, posting high-grade rock chip assays for … Read More
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Aldoro Resources is covering all bases across its diverse prospects in WA, posting high-grade rock chip assays for a suite of metals including gold, copper, nickel, lithium and rubidium.

Junior explorer Aldoro (ASX:ARN), is using grassroots exploration techniques to improve the surface geochemical knowledge of its tenements across the Wyemandoo pegmatite, Narndee Igneous Complex, and Quandong Well target, collecting 20 rock chip samples.

Evidence of mineralisation across pegmatite, magmatic nickel-copper gossan and VMHS gold-copper targets was uncovered at all three targets.

Samples from the Wyemandoo pegmatite returned top grades of 0.80% rubidium and 0.81% lithium.

A high-grade rubidium-lithium lepidolite pegmatite sample from Wyemandoo. Pic: Aldoro Resources

The results are exciting after Aldoro recently identified world-class rubidium potential of its nearby Niobe project, and warrant drilling investigation.

At Narndee, top results from samples included up to 0.37% nickel, 0.15% copper, 0.09% cobalt, 27ppb palladium and 22ppb gold.

That included two samples taken from gossans within a couple of kilometres of the VC1 target, where Aldoro struck magmatic sulphides in the first drilling undertaken at Narndee in a decade.

Aldoro Resources
Gossan 2, exposed in a historical exploration pit 1000m SSW of the significant VC1 drill hole. Pic: Aldoro Resources

Meanwhile, sampling at Quandong Well returned best results of 1.93g/t gold and 0.45% copper.

BHP subsidiary Dampier Mining explored Quandong Well in the 1970s, drilling 31 holes for 1731m that are yet to be compiled and validated by Aldoro.

The old timers reported significant copper, zinc, and gold results in oxide phases close to the surface, grading into a sulphide assemblage of pyrrhotite and chalcopyrite at depth.

Next steps

The rock sampling program was an important step for Aldoro, which noted the surface geochemical dataset is inadequate over most of its tenement package.

Initial results have enabled the company to develop an industry-standard database as a launchpad to future exploration success at Wyemandoo, Narndee and Quandong Well.

Aldoro plans to complete systematic rock chip and soils sampling programs and detailed mapping over the Wyemandoo pegmatite swarm.

This will identify the most prospective zones for drill targeting and locate pegmatite strike extensions and occurrences under soil cover.

The company said field reconnaissance and field mapping will continue to locate and assess all prospective areas of the tenement package for LCT pegmatites, nickel gossans, and copper-gold gossans.

 


 

 

This article was developed in collaboration with Aldoro Resources, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Aldoro Resources covering all bases with rubidium, lithium, nickel, copper, gold and more in rock chip samples appeared first on Stockhead.

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Cannindah up 21pc on gigantic copper hit

Special Report: First assays from an ongoing drilling program at the historic Mt Cannindah copper-gold-silver project in central Queensland are … Read…

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First assays from an ongoing drilling program at the historic Mt Cannindah copper-gold-silver project in central Queensland are in – and they look very good.

The recent increase in copper prices has underlined the significant value of Cannindah Resources’ (ASX:CAE) brownfields ‘Mt Cannindah’ copper-gold-silver project, which boasts an existing JORC resource of 5.5 million tonnes @ 0.93% copper and significant exploration upside.

The company is currently undertaking a 1,450m drilling program to explore both new and existing areas.

Mt Cannindah project: location of identified resources & known targets.

 

Success has come quickly, with the top portion of hole two hitting 117m at 1.01% copper, 0.39g/t gold and 28g/t silver from 34m to 151m.

Assays are pending for the subsequent 180m interval from 150m to 330m. This bottom portion “contains visual primary copper mineralisation, many metres of which looks similar in tenor to the 34m-151m interval”, the company says.

Coming next – hole 3 (21CAEDD003) — completed for 762.2m vs the planned 250m — has also encountered significant copper, the company says. The exciting visuals of the core has driven the significant increase in meterage.

The hole was drilled to the drill rig’s capacity and ended in copper-rich sulphidic breccia.

It is now the deepest hole drilled within the Mt Cannindah mine area, the company says.

“Copper assays are awaited, [but] preliminary tests from visual estimates of chalcopyrite, and PXRF analyses of sludge samples to date, all indicate significant copper values should be returned over large sections of at least the first 500m or so of hole 21CAEDD003,” Cannindah says.

Results received to date underpin potential extension of the current 5.5Mt JORC resource, with the supergene zones offering further grade upside upon incorporation.

“Although assays are needed to confirm the significance of the discovery, CAE are highly encouraged that this strategy has been successful and a major extension to the known Cu-Au-Ag resources at Mt Cannindah mine will likely follow from the drilling of hole 21CAEDD003,” the company says.

“This goal has eluded the major mining houses that have previously explored Mt Cannindah.”

New diamond drilling is yet to occur on other targets such as Cannindah East, where the explorer is also expecting encouraging results. Cannindah East has a non JORC gold resource of 245,000t grading 2.8g/t.

The $77m market cap stock is up 383% year-to-date.

 

Cannindah Resources share price today:


This article was developed in collaboration with Fresh Equities, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

 

The post Cannindah up 21pc on gigantic copper hit appeared first on Stockhead.

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Devil in the detail for HWK gold explorer spinoff Diablo

It is unusual for an exploration company to come along with assets as advanced as those with which Hawkstone Mining … Read More
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It is unusual for an exploration company to come along with assets as advanced as those with which Hawkstone Mining spin-off Diablo Resources plans to list.

Diablo (to be ASX:DBO) will join the ASX boards in the coming weeks with a suite of three highly prospective US-based gold and copper projects – all of which are drill ready and proximate to projects of significance in their region.

The projects were formerly on the Hawkstone books, but that company has turned its full focus to lithium in Arizona (it’s literally on the cusp of changing its name to Arizona Lithium), leaving the highly prospective suite of assets to be spun into Diablo.

“I think our shareholders understand that the Big Sandy lithium project is such a large project, with lithium in Arizona ideally located, and it’s a big potential resource,” Hawkstone MD Paul Lloyd, who will also become Diablo chairman, told Stockhead.

“When we brought these gold projects into Hawkstone they were dwarfed by Big Sandy, and therefore we don’t think they ever got the market valuation that was warranted.

“We’ve done a lot of work on the projects to get them to the point where they are drlll-ready, and we think they’ll create a lot more value for shareholders in a separate entity.”

Diablo’s assets include the Devil’s Canyon gold project on the world-famous Carlin Trend in Nevada, the Western Desert gold-copper project 50km west of the Long Canyon gold mine in Utah, and the Lone Pine historical high-grade gold project 8km east of the 3-million-ounce Beartrack mine currently being explored by TSX-listed Revival Gold in Idaho.

Diablo’s exploration projects. Pic: Supplied.

Spicy project trio

Diablo’s name suggests heat, and the early signs suggest there’s plenty in the ground at each of its exploration projects.

At Devil’s Canyon, rock samples have returned astounding assays as high as 191.5 grams per tonne gold, 524g/t silver and 16.05% copper.

Samples from Western Desert have come in at 6.9g/t gold, 1495g/t silver and 5.09% copper, while historic drilling at Lone Pine returned assays including 1.2m at 17g/t gold and 1.9m at 12.9g/t gold with mineralisation open in all directions.

Lloyd isn’t planning on wasting any time in getting Diablo’s exploration efforts going, expecting to have approvals in place for drilling on at least one of the projects around the time of listing.

“It’s more than likely we’ll be able to commence drilling at Western Desert in Utah, which is very close to Long Canyon and a project where we’ve recorded some terrific surface numbers,” he said.

“The gravity of the work we’ve already done there to date and the other technical work we’ve completed really gives us a lot of upside and there’s potential for great early-stage results from drilling.”

Diablo
Priority targets at Western Desert. A1 and A3 rated as priority. Pic: Supplied.

Located in the prolific Carlin Trend, where almost 200 million ounces of gold have been produced over the years, Devil’s Canyon is likely to be the Diablo flagship.

Lloyd said he had long aspired to working with a project in the region, and will have the chance to do so with Diablo.

“There’s been some really impressive rock chip samples come out of there already, and it sits only 20km west of Kinross Gold Corporation’s in-production Bald Mountain mine,” he said.

“Devil’s Canyon has similar geology to that deposit. We’d love to get in there and have four or five holes completed before the weather changes.

“In this area, you’re hunting for elephants, and those rock chip samples give us an indication that there’s something serious there. We’re really looking forward to drilling it.”

Diablo
Devil’s Canyon is over the border from Western Desert in Nevada. Pic: Supplied.

Minimal modern-day exploration has been carried out at Lone Pine, where 18 shallow holes were drilled in the 1990s at the King Solomon prospect.

The project includes a high-grade zone mined prior to 1907, where maiden drilling in 2020 returned significant high-grade results.

Drone magnetics are planned for Lone Pine in Q3 2021.

Diablo
The Lone Pine project in Idaho. Pic: supplied.

Experience on the ground

Floated by the same team behind the IPOs of BPM Minerals (ASX:BPM) and Pantera Minerals (ASX:PFE), there are some familiar names at management level for Diablo.

Experienced gold geologist Lyle Thorne, who was previously exploration manager for NTM Gold prior to its Dacian merger, will join as CEO, while Barnaby Egerton-Warburton and Greg Smith will serve as non-executive directors.

On the ground, the company is drawing on expertise of Harrison Land Services – a Utah based consulting firm which has proved itself to have significant knowledge of the western US.

“These projects, being in Utah, Idaho and Nevada, are all fairly close to their base at Moab,” Lloyd said.

“The team is headed up by Gavin Harrison, who has more than 20 years’ experience with rigs and staking ground, and who helped us acquire these projects to begin with. He’s invaluable.”

When it lists, Diablo will do so with 74.5 million shares on issue and a market capitalisation of $14.9 million, with $6.5 million cash on listing before costs.

“I expect we’ll look really good in the first six months because we’ll have such great newsflow,” Lloyd said.

“Any exploration success should effect the share price significantly.”

Diablo is expected to list on the ASX on October 12, 2021.

At Stockhead, we tell it like it is. While Hawkstone is a Stockhead advertiser, it did not sponsor this article.

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