Sugar Zone Exploration

Mineralization has been identified in two new areas, locally known as the Flat Lake and TNT Zones, located at the north end of the Sugar Zone property approximately 18 km northeast and 12 km north, respectively, from the Sugar Zone Mine site. Combined, the Flat Lake and TNT Zones represent a previously unknown altered and mineralized horizon with anomalous gold and base metal values which occur along a strike length in excess of 10 km.

At Flat Lake, the “West Lake Showings” have several mineralized outcrops consisting of altered mafic and minor ultramafic volcanics which are interbedded with mineralized iron formation and cut by several altered feldspar porphry and gabbro dykes/sills. Many of the outcrops host several narrow (<10-15 cm) mineralized quartz veins.  Anomalous gold values up to 110 ppb were obtained from limited rock sampling conducted in the area indicating gold mineralization is present within the altered-mineralized rocks in the Flat Lake area. ICP results are pending for this area.

At the TNT Zone three altered-mineralized showings were identified along a 4.0 km anomalous trend.  Based on airborne EM-magnetics this anomaly appears to consist of two separate but parallel EM-magnetic horizons. The TNT showing consists of highly altered mafic volcanics with strong silica flooding and quartz veining. Up to 30% sulphides are present which consist of pyrite, pyrrhotite, lessor chalcopyrite, molybdenum and sphalerite.  Showing “A” consists of altered mafic volcanics and altered feldspar porphyries which look similar to the rock types encountered in the Flat Lake area, in particular, the strong muscovite-sericite alteration, up to 10-20% quartz stringers and 1-3% pyrite-pyrrhotite (py-po).  “Showing B” consists of sheared and altered mafic volcanics with 10% quartz veining and 1-2% py-po. The “TNT Showing” and “A Showing” are coincident with EM and magnetic anomalies while “Showing B” is associated with a magnetic low which may suggest the presence of an altered-mineralized zone where there has been magnetite destruction.  Showings “A” and “B” are located 1.0 km and 1.8 km northeast of the TNT Showing, respectively.

Anomalous gold values ranging from 16 ppb to 40 ppb to a high of 253 ppb (Showing B) have been obtained from rock sampling.  In addition, at the TNT showing, rock samples show strong zinc values up to 0.79%, copper values up to 0.69% as well as molybdenum similar to the Hemlo area.  ICP results are pending for the Showing A and B areas, however, similar base metals values are expected as similar altered-mineralized rocks types were discovered in each of the three areas.

To date, four holes totaling approximately 1,100 metres have been drilled, to a depth of around 200 to 411 metres per hole.

Drill hole TNT-19-02 tested a 40 ppb Au value in rock as well at two weak and one strong VLF conductors. The hole was drilled to 411 meters and is dominated by massive to pillowed mafic volcanics with interbedded sulphide-facies iron formation which are periodically cut by narrow intervals of feldspar porphyry, quartz-feldspar porphyry and gabbro dykes/sills. A 4.0 m and 5.7 m wide sulphide-facies iron formation was intersected and is believed to be the source of the strong VLF anomaly detected on surface. The iron formation intervals noted above were sent for analysis. No significant gold values were returned from these intervals.

The Company is reviewing its exploration strategy for the Flat Lake and TNT Zones and will provide further information when available.