 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|||||||||||
Chester Township, ONTARIO
The Chester gold property in Chester Township, Ontario, is situated some 121 kilometres south-southwest of Timmins, and 162 kilometres north-northwest of Sudbury. The Chester project is composed of eleven patented, contiguous mining claims, and since January 1997 the company has acquired eighteen unpatented mining claims. Considerable exploration work has been done on the Chester Township property to date, consisting of mapping, geophysics, drilling, trenching, shaft sinking and assaying which has yielded significant results, requiring further exploration efforts.
A qualifying technical report (not National Instrument 43-101 compliant) was written for the property in June, 2002 (see Sedar filing Nov. 27, 2002) which identified an indicated mineral resource of 220,000 tons grading 0.354 oz/t gold and an inferred mineral resource of 725,000 tons grading 0.16 oz/t gold on the C-Prime gold deposit. Two additional drilling campaigns on the property, one in 2004 and one in 2005, continued to deepen and expand the C-Prime gold deposit. Also, a geophysical campaign of down hole Induced Polarization (IP) has produced drill ready targets at depth below the known gold mineralization.
Preliminary results from the Phase 1 drilling carried out in July 2004, showed gold values in every hole. Phase 1 drilling consisted of six holes totaling 5,120 feet targeting the historic C-Prime gold deposit. Certain gold intersections were expanded and include gold intersections such as 28.13 grams per tonne across 10 feet and 3.92 grams per tonne across 45 feet.
The gold values are related to single and multiple quartz veins containing free gold, chalcopyrite, pyrite, tellurides, molybdenum, galena and specularite. The gold mineralization also extends into the adjacent wallrock for variable distances associated with disseminated sulfide mineralization. Host rocks include both trondhjemites and diorites cut by regional east-west and northwest-trending shear systems. The C-Prime deposit lies at the intersection of two shear systems and dips southward at 47 ¼. Previous drilling defined the deposit for 900 feet along strike and down-dip for 400 feet. Phase 1 drilling had extended the C-Prime Deposit for another 200 feet down-dip, where it remains open. Additional sampling of the Phase 1 drill core extended the identified gold intersections to their full width. This included mineralization which continued well into the surrounding wall rock. These assay results provided the basis for the Phase 2 drilling program.
Phase 2 drilling on the C-Prime deposit was completed at the end of the first quarter, 2005. A total of 1,295 metres (4,247 ft.) was cored over five drill holes. Four of these holes were drilled immediately east along strike from the Phase 1 drilling and resulted in extending the C-Prime zone approximately 53 metres (175 ft) down dip. Host rocks were similar to previous drilling on the C-Prime zone, that is, trondhjemites and minor dorites which show varying degrees of alteration typically expressed as sericitization and silicification. Shearing is present throughout. Also, noteworthy is that sulphide mineralization, generally comprising pyrite, pyrrhotite, and minor chalcopyrite, is disseminated through the drill core from trace amounts to 3 percent.
En echelon quartz and quartz-carbonate veining with widths varying from centimeter to metre scale is present thoughout the core. Mineralization noted was pyrite, pyrrhotite, chalcopyrite, molybdenum, and iron oxides.
The fifth hole on the Phase 2 drilling was completed on the western end of the C Zone approximately 122 metres (400 ft.) west of the old mine shaft. Lithologies intersected here were an alternating sequence of granodiorites, trondhjemites, gabbros, and ultramafics. Disseminated sulphides, typically pyrite, pyrrhotite, and chalcopyrite, are present throughout the drill core which range in concentrations from trace to 3 percent. Shearing of the rocks occurs throughout the core as does quartz and quartz-carbonate veining. These veins tend to carry pyrite, pyrrhotite, chalcopyrite, molybdenum, and hematite mineralization.
Drill assays results extended the C-Prime deposit approximately 42 metres (138 ft.) down dip. The best gold intersections included 16.65 grams per tonne over 1.05 metres, which included visible gold, 12.45 grams per tonne over 1.2 metres, 8.4 grams per tonne over 0.8 metres, 9.22 grams per tonne over 0.5 metres, and 34.18 grams per tonne over 0.3 metres.
Phase 2 drilling on the C-Prime deposit has confirmed the continuity of gold mineralization from the Phase 1 drilling in 2004 and has extended this to a total down dip depth of approximately 225 metres (738 ft.), where it remains open.
During the month of September, 2005, a down hole IP survey was completed on the Chester Property. Results from the survey, obtained in early October, defined two parallel zones (anomalies) of high conductivity approximately 260 ft. (80 m) apart occurring down-dip and parallel to the east-northeast trending C Zone. These targets will be a high priority focus for future diamond drill testing follow-up.
Metallum Resources Inc. has signed an Option and Joint Venture Agreement with a private company for an option to earn in and joint venture the Chester Property. The private company will undertake a strategy to go public and become listed on the TSX Venture Exchange. Metallum will acquire from this new issuer shares having a value of $100,000 as well as 50% of the shares issued each year by the public company on each anniversary date of the agreement. The option to earn in requires that the public company spend a total of $2,250,000 on exploration over the span of four years to earn a 46.25% interest in the Chester Property. Therefore, Metallum's shareholders will have the benefits of not only another company spending its money on exploration on the property and thereby avoiding share dilution of Metallum's shares through additional financings, but shareholders of Metallum will have a direct investment in a new public company.
Property map illustrating the location of the C-Prime gold deposit
Surface plan map illustrating the C-Zone and drill hole locations from 2004 and 2005
Plan map illustrating the location of the Ôdown hole Induced Polarization (IP)' survey
completed during the summer of 2005 and the surface projection of the resulting strong
anomalies at depth
Aerial view of the C-Prime deposit under Three Ducks Lake (looking northeast)
Drill mobilization onto the ice by helicopter, winter 2005
Visible gold in drill core, March 2005
