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D.D.H. GEOMANAGEMENT LTD.
52J02NE9292 52J02SE86 BECKINGTON LAKE
REPORT010
ON
STURGEON LAKE GOLD PROJECT
PATRICIA MINING DIVISION
THUNDER BAY DISTRICT
ONTARIO
(N.T.S. 52-J-2)
For
COASTORO RESOURCES LTD,
Suite 1275 - 555 Burrard Street
Vancouver, B.C,
V7X 1J6
By
A.D. DRUMMOND, PH.D., P. Eng.
Geological Engineer
May 17, 198*
422 - 470 Granvillc Street, Vancouver, B.C. Canada V6C 1V5 * Telephone (604) 681-4413
52JJI2NE9292 S2M2SE86 BECKINGTON LAKE
TABLE OF CONTENTS
010C
Page
Summary l
Introduction 2
Location and Access 2
Property and Title 3
Historical Development - Northern Sturgeon Lake 6
Previous Work 12
(1) Dawson Location 12
(2) La Riviere Location l*
General Geology 1 5
Coastoro Exploration Program - Winter 1983 - 1984 16
(1) Type of Work Done 16
(a) Access 16
(b) Diamond Drilling 17
(c) Linecutting, EM-16 and Ground Magnetometer Survey 17
(2) Results of Program 19
(a) Drilling 19
(b) Geophysical Anomalies 23
Compilation of Historical Data to Results of Program 23
Conclusions on Exploration Potential 26
Recommendations 28
Estimated Cost of Proposed Program 30
Statement of Costs 31
References 32
ILLUSTRATIONS
Figure 1: Location Map
Figure 2: Sturgeon Lake Gold Area
Figure 3: Claim Map
Figure b ; H istorical Data
Figure 5: Drill Hole Locations
Figure 6: Section Through 84-1 and 84-2
Figure 7j Section Through 84-3 and 84-4
Figure 8: Location of Geophysical Anomalies
Figure 9: Longitudinal Section in Plane of Structure Three
SUMMARY
The Sturgeon Lake gold property of Coastoro Resources Ltd. consists of 9 patented
and 28 unpatented mineral claims and is situated on the eastern shore of the North
Arm of Sturgeon Lake, some 8 miles south of the village of Savant Lake.
Coastoro Resources Ltd. has completed its initital winter exploration program
essentially between mid-February to April 2, 198(f. The program entailed 2.110 feet of
N.Q. diamond drilling principally on patented claims with V.L.F. and ground magnetometer surveys being conducted on the eastern unpatented claims.
Results of the program has indicated that:
(a) The visible gold-molybdenite assocation occurs in siliceous tuffaceous rocks
similar to those noted in the Hemlo camp;
(b) There are three (3) structures in the Dawson Zone which heretofore was
considered to be only one;
(c) The Dawson Zone at its northern limit of known data indicates grades in the
order of 0.68 o.p.t. gold over 5.0' in structure 3 (other structures are as yet undefined);
(d) The Dawson structures are open in three directions and have never been tested
to the north of the shaft area (distance from shaft to northern claim boundary is
about 3,500 feet);
(e) The La Riviere Zone (1/4 mile east of and parallel to the Dawson Zone) requires
an exploration program;
(f) The Couture Lake Zone of coincident quartz veining and V.L.F.-magnetic
anomaly requires further work.
A two phase program of further work is recommened which program is estimated at
S550,000.00 with Phase I $275,000.00 and Phase II $275,000.00, respectively.
- 2 -
INTRODUCTION
Coastoro Resources Ltd. completed its underwriting on October 11, 1983 and
undertook an exploration program during the winter of 1983-1984. This report outlines
the work done and the results obtained during the period until break-up of 1984. The
exploration potential of the property is reviewed in light of the work done and a
program of further work is recommended.
LOCATION AND ACCESS
The Sturgeon Lake gold project of Coastoro Resources Ltd. lies on the eastern shore of
the north arm of Sturgeon Lake {see Figures l and 2) and is about eight (8) miles south
of the Savant Lake Station on the main line of the Canadian National Railway. AccessI 7
to Savant Lake from the Trans Canada Highway 401 is via paved provincial highway
599 from Ignace.
PROPERTY AND TITLE
Coastoro Resources Ltd. has acquired an option on the following patented and
unpatented mineral claims (see Figure 3):
(a) Patented Claims (9)
No. 1047 - 1048 inclusive (2)
No. 1052 - 1055 inclusive (4)
No. 1807 - 1809 inclusive (3)
s jfforffnf L.
SAVANT LAKE
LDCATION\PRO PL'RT Y
S tar g ton Lett
MATTAGA Ml-ABITIBIN l f la 9 fi
DISC OVERY
THUNDER BAYKEY MAP
SCALE t t INCH t 20 MILES
t": tO~\ o
FIGURE l COASTORO RESOURCES LTD.
LOCATION OF THE STURGEON LAKE GOLD PROPERTY
CAHAOOt ftU. LID. \ XXTA. IHJUA- MS.
FIGURE 2
COASTORO RESOURCES LTD.
STURGEON LAKE GOLD AREA
FIGURE 3
COASTORO RESOURCES LTD.
CLAIM MAP
Scale: l"
-6-
(b) Unpatented Claims (28)
No. Pa 53*092 to Pa 53*099 inclusive (3)
No. Pa 53*102 to Pa 53*107 inclusive (6)
No. Pa 6266798(1)
No. Pa 605605 (1)
No. Pa 605595 to Pa 605596 inclusive (2)
No. Pa 67597* to Pa 675988 inclusive (15)
HISTORICAL DEVELOPMENT - NORTHERN STURGEON LAKE
The Coastoro Resources Ltd. claim group contains two known zones namely the
Dawson and the La Riviere. The following history has been excerpted from Seraphim
(1983) (see Figure *).
"Early records report the first prospecting around Sturgeon Lake with the discovery of
gold on the shore of the southwest bay in 1898 by a prospector named Peter King.
Rich discoveries on the Dawson and White locations on E.G. 157, and B.C. 697 S. pt.,
with samples showing much visible gold were made by W.H. Cobb of Ignace Ontario.
This led prospectors to the northeast end of Sturgeon Lake and by 1901, the 3ack Lake Mine, later known as the St. Anthony Mine, 2-1/2 miles south of the Dawson, began
operating and a number of prospects were partially developed.
Stamp mills were installed on four properties, including the Dawson, where the
Sturgeon Lake Mining Company installed a 10-stamp mill in 1901 and 1902.
Recoveries of gold and silver were only 30 percent and under. With practical
production grinds limited to 100 mesh sizing, tests in 1900 showed that even
cyanidation treatment could not improve these recoveries except by concentration and
roasting of the associated sulphides of iron, copper, lead and zinc. Old records show
that at least 225 tons were treated, from an open cut on BG. 157, with gold recovery averaging 0.8* ounce gold per ton, with tailings averaging 0.211 to 0.250 ounce per
ton.
..trnxf IV ! " l fo-V^tLfeT l "/li -x- —iMwtr 11 X,/ ^4.—* Ji . { .t——f ^*^ (y-
FIGURE 4
LOCATION OF
HISTORICAL
DATA
-8-
Between 1902 and 1908, the St. Anthony Mine, according to Ontario Department of Mines reports, produced gold and silver valued at Sl81,350 from 36,181 tons of ore milled. Little was done on the Dawson, White and adjoining locations until 1911, when 3.R. Rutherford and H.D. Symmes, of Niagara Falls and Porcupine, Ontario, carried out surface exploration.
St. Anthony Gold Mines Ltd. was incorporated in 1921. By 1934, diamond drilling and underground development led to the installation of a 200-ton per day mill. From 1934 to 1941, gold and silver production totalled $l,983,942 from 294,888 tons milled. In 1935 from 10,012 tons of old mill tailings were treated, averaging 0.17 ounce gold per ton. Recovery by finer grinding than feasible in 1908, followed by cyanidation reached 97 percent by 1939.
Following examination by various geologists and engineers, Dawson- White Gold Mines Limited was incorporated in 1936. Colin A. Campbell, M. E., of Toronto, examined the property and recommended diamond drilling and underground exploration. During 1936 and 1937 a 3-compartment vertical shaft was sunk on B.G. 157 to 223-foot depth, with lateral work at the 100- and 200-foot levels totalling 395 feet of drifts and crosscuts. In 1937, twenty-nine core holes, totalling 6,100 feet, were drilled.
Toward the end of 1937, Dawson-White Gold Mines Limited encountered financial difficulties and the plant equipment and property were sold to pay the debts. World War II prevented raising further capital, property titles passed to estates of deceased holders and Pomac Mines Limited were unable to acquire title to the original locations until 1964.
Recent developments in the area are outlined below in dippings from the Northern Mine which give results of drill programs on the Steep Rock Mines Ltd. and Aubet Resources Ltd. (St. Anthony Gold Mine) properties.
Steep Rock finds zone extension but weakening trend at gold bet
While Sleep Rock Iron Mines is about two-thirds of the way through the present diamond drilling pro gram at its Sturgeon Like gold prospect, Che company is in no hurry lo reveal assay results. "We think it would be wrong lo issue results piecemeal," Laurence J. Lamb, chairman and president, told share holders m (he annual meeting this week.
It will probably be a month or so before the results will be made public, he says.
Geophysical surveys have been completed over most oJ the North western Ontario property, and drill- ing has been in progress since February. To date. 14 holes total
ling 5,200 ft. have been completed, and there are seven more holes planned. The object of the drilling has been to delineate the known gold-bearing zone and to investigate oiher targets identified by the geo physical work.
As previously reported (N.M.. Jan. 13). limited drilling done late last year confirmed a strong gold-bearing vein system for a minimum strike length of 200 fi., open at strike and lo depth Three out of five hole* drilled in the 1982 program inter- seeled the vein system. Hole No. 3 cut 10.9 f t. of 0.23 oi. gold; hole No. 4 yielded 29.7 ft. of 0.41 oz. cut grade (1.36 oz. uncut); and hole
Sec Page 2
FROM:
THE NORTHERN MINER
Vol. 69, no. 6
April 14, 1983
Steep RockFrom Page 1
No. 5 returned 6.9 ft. averaging 038 oz. cut (1.8 oz. uncut).
lo the known gold-bearing tone, mineralization has been traced 500 ft. to the east of the previously reported drill holes, although Mr. Lamb advise* that "auriferous vein- ing b not strong in this area." And whereas drilling below the pre viously reported intersections has confirmed some downward exten- skm, this is accompanied by a weak ening of the vein systems. Further drilling is necessary to rrtnMiih the extent of this downward continuity and to delineate the westent limits of the zone.
May kar* new SMMMr. Lamb also reports that drill
ing of geophysical anomalies beneath King Bay al Sturgeon lake has disclosed the presence of other auriferous quartz vein systems. But until assays from this drilling are in, the significance of this mineraliza tion remains an unknown quantity.
In addition to drilling, the present work program includes completion and interpretation of geophysical surveys, geological mapping and other surface exploration to form the basis for longer range investiga tions of the full potential of the property.
There will be an extended explo ration program through the cummer, Mr. Lamb tells The Northern Miner. Spending on the property will likely run to 5350.000-5400,000 this year, he says.
Since early 1983, the company has increased the size of its holding from 113 to 142 contiguous patented and unpatented claims through staking and optioning. Also, another group of claims has been acquired within Tive miles to the northeast.
Now that iron is no longer a domi nant feature in its affairs, the com pany has obtained shareholders' approval for a change in name lo St**p Rock RooaroM late.
Initial results in
Aubet plans to do further drillingAubet Resources has completed
a S-hole, 4.487-ft diamond drilling program on its St Anthony gold mine property in the Sturgeon Lake- Savant Lake area of Northwestern Ontario.
Drill holes SA S3-! arid SA 83-2 were drilled for 407 and 416 ft, respectively, to lest for the exten sion of the No. l vein system between the 150- and 500-ft. levels. .These holes were spotted 270-and 70 ft., respectively, north of the No. l shaft. Hole SA 83-1 cut 1.7 ft. of material grading 0.43 oz. gold per ton. whi!: the other hole failed to encounter gold values of any economic significance.
The remaining three boles, sited south of the shaft, were drilled l .106, 1,248 and l .308 ft, respectively, lo probe for the downdip extension of the previously mined No. l vein sys tem below the 750-ft levet-AD three, holes intersected this system 'over core lengths from 50 to 100 ft. Hole S A 83-4 encountered no significant gold values in the No. 1-vein system. Hole SA 83-3 intersected two fe*t grading 0.37 oz. and a further 2. i ft. of 0.14 oz. grade. The final hole. SA 83-3, intersected 3.8 ft. grading 0.088 oz. in the No. l vein system.
The best grade mineralization encountered in this drilling program occurred in the No. 2 veto system, where hole SA 83-4 cut 5J rt assay
ing 0.5 oz. per ton. This system yielded 3.1 ft. of 0.056 oz. in S A 83-5, but failed to come up with interesting values' in S A 83-3. A minor zone grading O.I 6 oz. over 1.3 ft. was intersect; J to the west of the No. 2 vein system in hole SA 83-4.
The company says drilling of the No. l vein system below the 750-ft. level has confirmed its presence beneath the old mine workings. However, ore grade material over minable widths was not encoun tered in the three holes which tested this vein at depth. A review of the data is under way, with a view to future drilling.
Aubet is encouraged by the good intersection obtained in bole SA 83-4 in the No. 2 vein system and intends to further explore the sys tem's ore-making potential.
Plans are being drawn up for renewed drilling, which b expected lo take place in conjunction with a planned ***i'"^* Tvtlvatiofl programscheduled lor May.
FROM:
THE NORTHERN MINER Vol. 69, no. 4 31 March 1983
THE NORTHERN MINER September 8, 1983 19
Aubet encouraged by St Anthony resultsAubel Resources Inc. has re* grading about 0.20 oz7gold per ton
ported encouraging results from a10-hole drill program* on Its St. Anthony mine property in the Stur-;on Lake area of Northwestern
Ontario.The company says the most
significant gold intersections from the program were obtained in hole No. SA81-4, which returned 5.3 ft. at 0.50 oi. gold per ton. from 612,1 ft. to 617.4 ft; hole SAW-5, which returned 17.8 ft. at 0.197 co. from 665. l ft. to 682.9 ft.; and hole SA83-8, 15 ft. at 036 oz. from 622 ft. to 637 ft.
Seven of the 10 holes tested the No. 2 vein system, located about 400 ft. to the west of and running nearly parallel to, the No. l vein, from which about 294,888 tons of ore
were mined over t length ol about 11XXX) ft. and to a depth of 750 ft before the St Anthony mine was closed down In 1941
In a recent report to the company, consultant t. W. Gill says the No. 2 vein system has "the potential of hosting a substantial tonnage of ore grade mineralization." He recom mends a drilling program of at least 20 holes for a total of lljOOO ft to further evaluete the system.
A new mineralized tone was iden tified in drill holes SA83-7,8 and 9. Most significant intersection in the new zone, which lies between the No. l vein systems, was 0.170 oz. gold over 8.1 ft between 116J ft and 124.4 ft., in hole SA834. Further drilling is recommended.
- 12 -
PREVIOUS WORK
The following data is a compilation from reports as listed below:
1. Ledoux k Co., "Assays", December 22, 1900.2. Wm. Small, B.A.S., "Dawson Mine", May 4, 1902.3. J.F. Williams, M.E., "English River Gold Mine", October 23, 190S.it. J .R. Rutherford, "Dawson Mine", September 16, 1911.5. 3.R. Rutherford, "Symmes Patented Claims", February 18, 1921.6. 3.R. Rutherford, "Jerry La Rivieres 12 Acres", October 2, 1911.7. Unnamed, "Extracts from Data", November 23, 1937.8. Julius M. Cohen, M.E., "Symmes Property", August 23, 1935.9. G. Allan MacPherson, M.E., "Dawson-White Gold Mines Ltd.", August 10, 1938.10. A.S. Bayne A Co., "Pomac Mines Ltd.", February 15, 1964.11. A.S. Bayne Se. Co., "Pomac Mines Ltd.", February 9, 1972.12. Colin A. Campbell, M.E., "Pomac Mines Ltd.", February 11, 1966.13. W.W. Beaton, P. Eng., "St. Anthony Gold Mines", July 3, 1980 (this is adjoining
property).14. G.M. Hogg A Assoc. "St. Anthony Mine", September 22, 1981.15. M.W. Rennick, P. Eng., "Geophysical Surveys", June l, 1981.16. L.3. Cunningham, B.Sc., P. Eng., "Sturgeon Lake Area", 1982.
(1) Dawson Location (Shaft No. l and No. 2)
Previous exploration work outside the original Dawson location, has been limited to sporadic prospecting, some shallow surface pits and trenches, with samples and assays taken only for gold. No core drilling had been done except on the Dawson location in 1937 where 29 shallow holes, to an average depth of 225 feet at 45 to 60-degree dips, were drilled across sections 50 to 100 feet apart along 1,600 feet of strike length southwest of the original discovery on B.G. 157 at trench by Shaft No. l (see Figure 4). The values were generally low, but No. l hole (exact location undefined) cut 5 feet assaying 3.00 ounce gold per ton at 70-foot depth. The core logs indicate the holes cut a silicified zone of interbanded altered and sheared volcanics from a few inches to 20 feet wide, with alternating bands of granitic, feldspathic and dioritic rocks and narrow
- 13-
quartz veins. Only occasional occurrence of sulphide mineralization is recorded sn the logs which, together with reference to the surface outcrops, indicates the west- bearing drill holes were spotted too far west to cross cut the east margin of the volcanic-granite contact - according to Bayne (1972).
The contract between the intrusive and metavolcanics appears to dip from 60 degrees to 70 degrees to the east. There is also a system of cross-fractures running across the N. 20 deg. E. strike of the contact shear, whcih have also been filled, in places by gold-bearing quartz veins.
The sulphide minerals found associated with the gold-silver values on the various showings are chalcopyrite, galena, sphalerite, pyrrhotite, pyrite. Pyrolusite, the oxide of manganese was also reported by Moore (1911).
Numerous quartz veins, striking northeasterly, have been found outcropping along the contact shear zone, and various geologists and engineers have reported free gold occurrences in most of them. In many instances, high assays of samples were obtained where no free gold was visible in the sample. Sampling by various engineers has checked out very well. For instance, 3. H. Rutherford sampled the bottom of the open cut on B.C. 157, in 1911 and reported average assays, from 12 channel samples over an average width of 3,7 feet of 1.35 ounces per ton in gold over the 60-foot length. Colin A. Campbell, M. E., checked this sampling in 1936 and averaged 1.39 ounces of gold per ton over an average of 3.6 feet over the same length. Six sets of samples, from various outcrops along a distance of 2,600 feet southward fiom the Open Cut on B.C. 157, taken by various engineers, yielded assays of from Si 0.50 per ton (0.3 o.p.t. Au) across 4.8 feet to S46.20 (1.32 o.p.t. Au) across 1.9 feet, (gold @ S357oz). Most of the work to date has been concentrated on the contact zone on Claim B.C. 157. It is understood that visible free gold was excluded from all the samples assayed.
According to a summary report dateci October 27, 1950, by Colin A. Campbell, M.E., and the late G. R. McLaren, M. E., the ore encountered in 1937, by the foregoing small amount of underground work was as follows:
"On the 100-foot level north, an ore shoot was picked up 25 feet long and 44 inches wide in which sampling showed uncut values of $11.80 per ton (0.34 o.p.t. Au) and cut values of Sl0.38 per ton (SlSfaz. gold) (0.30 o.p.t. Au).
On the 100-foot drift south, an ore shoot has been shown with a present length of 51 feet with the south face still in ore. This shoot has a width of W inches with an uncut value of $13.60 (0.39 o.p.t. Au) and a cut value of S8.40 per ton (0.2* o.p.t. Au).
Twenty feet north of the crosscut on the 100-foot level in barren ground in the drift, a raise 28 feet high was driven. After the first round, values were encountered which gave an average width of 52 inches with an uncut value of $18.00 (0.51 o.p.t. Au) and a cut value of $12.30 (0.35 o.p.t. Au) for the total height of the raise.
On the 20-foot level south, the last three faces gave assays:
W - S3.50 (0.10 o.p.t. Au)32" - 6.65 (0.19o.p.t. Au)18" - 1.75 (0.05 o.p.t. Au)
Back sampling gave $5.75 and S2.45. The north face ran $2.iO across 25 inches and $4.55 across 18 inches. These might be the beginning of an ore shoot on either side".
In June and July 1965, Colin A. Campbell, P. Eng., directed resampling for gold and silver in the open cut on the original Dawson discovery. Samples were cut across the bottom at intervals for 75 feet of length. Assays averaged 1.18 oz./ton gold and 0.94 oz./ton silver across an average width of 3.6 feet.
(2) La Riviere (White and Symmes) Location
About 1/4 miles east of the "Dawson" vein (see Figure 4), various engineers have reported on several rich gold showings which appear to be in a sheared carbonate- sericite schisted zone, entirely within the Keewatin volcanics. This zone extends from near the southeast corner of B.C. 155, on a northeasterly strike to at least the middle of location H.W. 697, a length of about 4,400 feet. Dr. W.G. Miller (1903) reported on the original discovery on the "White", or "La Riviere" location, (S. Part of H.W. 697), in the Report of the Bureau of Mines (Ontario) in 1903, in which he described the occurrence of "a large angular piece of vein matter, weighing from 15 to 20 tons, which lay on the surface of the swamp apparently quite isloated from rocks in place. To the southward, a couple of hundred yards or so, a quartz vein was seen in place. If this vein is continuous under the surface, and its strike does not change, it must pass almost directly under, the now broken-up mass of quartz just described."
- 15 -
During the 1911 period, 3.R. Rutherford examined, stripped, mapped and described a total of 14 showings, extending on a S.20 deg. W. strike for 2,000 feet southwest of the discovery described above and for 2,400 feet N. 20 deg. E., along the same general strike, or a total of about 4,400 feet of strike. About 2,400 feet farther north along strike, C.H. Miles mapped several more showings on Location H.W. 705 {T.B. 6978). Of the 14 showings described by Rutherford, widths were exposed up to 15 feet. All the showings were commonly quartz veins and stringers injected into the schistosity of the volcanic rocks and mineralized with sulphides, mainly chalcopyrite, pyrite and pyrrhotite. Visible free gold was observed in place in both the schist and the quartz on 6 of the showings. All showings are in low-lying outcrops at the edge of low ground covered by swamp and overburden. Their location and general attitude indicate a major zone of shearing possibly several hundred feed wide, running along a general strike of N. 10 deg. E. to N. 20 deg. E. throughout the length of Locations H.W. 696, 697 and 705, a distance of about 9,400 feet.
Aside from Rutherford's exploratory work, limited to stripping and a minor rock pitting in 1911, there appears to have been minimal development of this zone. In 1965, Colin A. Campbell sampled a trench on the La Riviere (H.W. 697, S. Pt.) which assayed 0.12 o.p.t. Au across 4.3 feet.
GENERAL GEOLOGY
The most recent geological map of the subject area is that of N.F. Trowell (1983) Ontario Geological Survey Report 221 and 227 (see Figure 2). Ancient Keewatin igneous volcanic greenstone and sediments underlying a band 8 to 16 miles wide at the southwest end of Sturgeon Lake, with the general strike a few degrees north of east for about 24 miles to the south end cf the North Arm, where the strike swings to about N. 20 deg. E. to the end cf the Northeast Bay for 10 miles, then swinging to N. 20 deg. W. These rocks are highly metamorphased by later igneous intrusives and are subdivided only into two main groups: basic metavolcarics and metasediments, variously including massive Java, pillow lava, tuff, agglomerate and amphibolite, and derived schists and gneisses; acid metavolcanics and metasediments including rhyolite and dacite tuff, agglomerate and flows.
- 16 -
East of the North Arm, and underlying most of the Coastoro property, the volcanics are mapped as basic metavolanics and metasediments, but E.S. Moore in his report, Ont. Bureau Mines, 1911, Vol. XX Pt. l, p. 137, identified, "with certainty", a few patches of greywacke at the St. Anthony Mine, arkose at the Dawson Mine" (B.C. 157) and dolomite in HW 705 just north of the Dawson.
Northwest and southeast of the volcanics and sediments are large masses of later igneous granitic intrusive rocks, mostly undifferentiated being of various age and lithology. The mass contacting the volcanics, near the sore of the North Arm of Sturgeon Lake is grouped into "granite, granodiorite, quartz monzonite and diorite, pegmatite, quartz-porphyry, quartz-feldspar porphyry and feldspar porphyry"
COASTORO EXPLORATION PROGRAM - WINTER 1983 - 1984
(1) Type of Work Done
(a) Access
After completion of the 1983 underwriting, Coastoro Resources Ltd. started a winter road location survey in November, 1983. An access road was started, but due to equipment failure and early heavy snow, the program was deferred until after freeze up.
During the period mid-February to mid-March, a winter road was completed following the old telegraph line along the east shore of the north arm of SturgeonLake. A camp area was established at the Dawson shaft area. A winter trail
\was constructed for l mile south and from that trail, a branch was constructed to give access to the La Riviere location.
- 17 -
(b) Diamond Drilling
During March 17 to April 12, 198*, an N.Q. diamond drill program was conducted from the shaft area to the south primarily to investigate the previously drilled section from which the original records are missing.
The following holes were drilled: (see Figure 5)
Hole No. Angle84-184-284-384-484-584-684-784-884-9
84-1084-1184-1284-1384-14TOTAL
-450-610-450-620-450-450-450-450-450-450-450-450-450-450
FOOTAGE
Bearing2700270028002800283028002900280028002800280028002700117 0
Length170'170'158'148'146'100'100'100'100'166'136'116'300'200'
2,110'
DatesMar. 17 - 19, 1984 Shaft areaMar. 19 - 20, 1984 Shaft areaMar. 20 - 21, 1984 Shaft areaMar. 21-22, 1984 Shaft areaMar. 23 - 24 - 500' S. of ShaftMar. 24 - 24 - 550' S. of ShaftMar. 25 - 25 - 600' S. of ShaftMar. 25 - 26 - 650' S. of ShaftMar. 26-27 - 700' S. of ShaftMar. 27 - 28 - 970' S. of ShaftMar. 28 - 28 - 1050' S. of ShaftMar. 29 - 29 - 1350' S. of ShaftMar. 30 - 31 - 4250' S. of ShaftApr. 1 - 2 - La Riviere area
(Drilling was contracted to D.W. Coates Enterprises Ltd., 2560 A Simpson Road, Richmond, B.C. Holes 84-1 to 11 were drilled on patented claim B.C. 157; Hole 84-12 on patented claim B.C. 156, Hole 84-13 was drilled on unpatented claim Pa 605605 (an assessment hole) and Hole 84-1 was drilled on H.W. 697.
(c) LinecuttinR, EM-16 and Ground Magentometer Surveys
On the eastern unpatented claim group comprising Pa 675975 to Pa 675988 inclusive, a total of 15.5 miles of lin* were cut and chained. A north-south baseline was established with cross lines at 400-foot intervals. During the linecutting a fraction was noted and consequently staked.
- 19 -
Instruments used were (a) Ronka EM-16 and (b) McPhar MF-100 Fluxgate magnetometer.
(2) Results of Program
(a) Drilling
Drilling in the Dawson Shaft area indicated that there are three (3) mineralized structures rather than one (1) as illustrated in Figure 6. More importantly was the hitherto unrecognized association of gold and molybdenite in sheared siliceous tuffaceous rocks and associated quartz veining. This association is common in the Hemlo gold camp.
Assays in 84-1 and 84-2 are as follows:
HOLE 84-1
Sample No.
Structure 1
090552 090553
Structure 2
090554
Structure 3
090555090556
090557
090559090558
Interval Intercept
18.0 - 21.0 -
68.0 -
104.0 -106.25 -
108.5 -
110.0 -115.0 -
21.0 23.0
73.0
106.25108.5
110.0
115.0118.0
3.0 2.0
5.0
2.252.25
1.50
5.03.0
Au o.p.t. Remarks
0. 0.
0.
0.0.
0.
0.0.
043 10.037 Au 027 J 5.;*
008 Shear
007769 visible gold
* MoS2
072
006050
l 0.49 Au'' 3.75r
0.17 Au11.75'
-
COASTORO RESOURCES LTD.
DAWSON SHAFT LOCATIONWEST
Mine Dump Material
EAST
x \ TRENCH\ \ 20' S. of Section \ \ 1.37/3.65
0.037/5.0
^
^J
?̂c*^
C- fi
VX yX\\C
y' \A
0.008/5. q/ A
x̂ r 7
\\
0.49/3.75 visible gold and molybdenite
visible gold andmolybdenite0.26/4.5
0.17/11.75
0.017/4.0
84-2 170' -
FIGURE 6 SECTION THROUGH 84-1 AND 84-2
LEGENDv ^ metavolcanic
rock+ ^ Intrusive
dioritic rock0.49/3.75 = 0.49
o.p.t. gold over 3.75 ft.
Scale: l" - 20'
- 21 -
HOLE 84-2
Sample No.
Structure l
Structure 2
090561090562
Interval
Not assayed.
74.0 - 77.25 77.25 - 78.5
Intercept Au o.p.t. Remarks
3.25' 0.028 1.25' 0.875 visible gold l MoS2 -1" Au
Structure 3
090563 118.0 - 122.0 4.0 0.017
From the above, structures 2 and 3 both carry visible gold and associated molybdenite in sheared tuffaceous rocks.
Holes 84-3 and 84-4 drilled just south of the shaft indicated only two structures (No. 2 and 3) and both indicated the presence of molybdenite but gold values were low (up to 0.05 o.p.t. Au) (Figure 7).
A similar appearing horizon was noted in Holes 84-5, -6, -7, -8, -9, -11 and -12. It is not known which structure was intersected, but molybdenite was locally associated with very low gold values. Hole 84-5 is about 500 feet south of the shaft while Hole 84-12 is 1,350 feet south of the shaft. The structure or structures appear to parallel the intrusive contact for a long strike length with the gold tenor increasing to the north.
Hole 84-13, an assessment hole interesected a sequence of flows with minor mafic tuff horizons.
Hole 84-14 attempted blindly to test the area of the rich float reported in 1911 on claim H.W. 697. Quartz boulders were noted in the overburden but the hole did not locate the gold-bearing shear. Once the snow is gone, the relationship of the hole to the historic float location should be defined as the northeasterly zone of reported mineralized schist with visible gold must pass through the general area of the La Riviere claim. The hole was drilled to the east into the foliation. Future holes should be drilled to the west across the foliation.
COASTORO RESOURCES LTD.
DAWSON SHAFT LOCATION
WEST EAST
Mine Dump Hal
\ \ TRENCHN N 35' N. of Section \ \ 1.37/3.65V'
0.003/7.5
molybdenite 0.002/9.0
molybdenite 0.05/4.5
0.003/1.75 0.002/6.25
*
0.048/6.5
84-4 148* -
LEGEND
v s metavolcanic rock
•f s Intrusivedioritic rock
1.37/3.65 - 1.37 o.p.t. gold over 3.65 ft.
Scale: l" ** 2 0'
FIGURE 7 SECTION THROUGH 84-3 AND 84-4
-23-
(b) Geophysical Anomalies
On the eastern group of unpatented claims several conductive zones have been identified which require further investigation (see Figure 8).
Zones 3 and 3A is a conductive zone on the flank of a magnetic expression (mafic metavolcanic rock?) in which shearing has been noted on the shore of Couture Lake at Line 45N, 7E. A 3-foot wide quartz-pyrite vein is exposed at Line M N , 8 E. where is strikes N IQO E and dips 7QQ West(?). This zone has yet to be geologically mapped.
COMPILATION OF HISTORICAL DATA TO RESULTS OF PROGRAM
Compiling the historical record of the underground with the results of Holes 84-1 through 84-4 illustrated in the longitudinal section of structure 3 (Figure 9). The following observations may be made. Hole 84-1 intersects above the 100-foot level and is consistent with both the raise and surface trench assays and widths, that is:
Location Grade o.p.t. Au Width Structure 384-1 0.49 3.75Raise 6 to 28' 0.51 4.25'N. Drift 25'Length 0.34 3.7'Surface trench60'length 1.37 3.65'75'length 1.18 3.6'
Holes 84-3 and 84-4 intersect structure 3 above and below the South drift respectively. Hole 84-3 gave 0.05 o.p.t. Au over 4.5' and 84-4 gave 0.048 o.p.t. Au over 6.5' while the southerly 51 feet of the South drift is reported to be 0.39 o.p.t. Au over 3.3 feet. Spatially there can be no mistake that structure 3 was intersected. The large difference may relate to the presence of coars gold such that the larger underground samples(?) are more representative. The gold particle size distribution has not yet been determined.
FIGURE 8
COASTORO RESOURCES LTD.
STURGEON LAKE GOLD PROPERTY
LOCATION OF GEOPHYSICAL ANOMALIES
CLAIM BOUNDARY IS OUTLINED
SCALE: 1:50,000
l"
SOUTH SURFACE
NORTH
l__,
INCLINEDSHAFT,NO DATA(IN STRUCTURE OR CLOSE TO IT - CAVED)
TRENCH60' 1. x 3.65' w. O 1.37^0.p.t. goldor? 5 ' 1. x 3.6' w. @ l.lPjo.p.t. gold
RAISE
04-3 0.05 o.p.t. Au/4.5 1G
SHOOT REPORTED51' 1.x 3.3' w. @ 0.39 o.R.t. Au
From 6 to 28' in raise, re ported width of -3.25' , grade 0.51 o.p.t. gold.
O - 6' No data.
84-1 0.49 o.p.t. Au/o 3- 75 '
SHOOT REPORTED IN NORTH DRIFT 25' 1. x 3.7' w. g 0.34 o.p.t.
gold {EXACT LOCATION UNKNOWN)
DRIFT - 100 LEVEL l NO DATA N. DRIFT - 100 LEVELO :
84-4 0.048 o.p.t. Au/6.5' X-CUT
FIGURE 9 COASTORO RESOURCES LTD.STURGEON LAKE GOLD PROPERTYLONGITUDINAL SECTION IN THE PLANE OF STRUCTURE 3
O84-4 0.017 o.p.t. Au
over 4.0'
Scale: l' = 20', l"-- 2-0* ,
- 26 -
The width of the structure may be wider than the 3.3 feet reported. For example, in 3^-1, 11.75 feet averaged 0.17 o.p.t. Au within which 3.75 feet averaged 0.^9 o.p.t. Au.
The assay results from the diamond drilling and old assays from the shaft suggest that a gradient exists with the values in gold and structural widths increasing in a northerly direction. The possibility of a northerly rake to shoots may also exist. Considering the geological map of Trowell (1983) on which is shown the curvature of the greenstone belt around the intrusive under the North Arm of Sturgeon Lake, it can be observed that a number of old gold showings lie within east-west axial plane{s) along the zone of maximum curvature. This observation when coupled with the apparent increase in grade and width (?) of structure 3 to the north leads to significant exploration potential being located not to the south of the Dawson Shaft but to the north in an as yet undrilled virgin area. Evaluation of all three structures north of the Dawson Shaft should be undertaken during the next stage of exploration.
CONCLUSIONS ON EXPLORATION POTENTIAL
Sturgeon Lake gold property of Coastoro Resources Ltd. covers at least two and possibly three gold-bearing molybdenite associated tuffaceous sheared zones hosted by metavolanic rocks in the intruded contact margin of a large intrusive mass beneath the North Arm of Sturgeon Lake. The tuffaceous horizons have only been partially defined over a strike length of about 1,^00 feet to the south of the Shaft area and still open while there has been nothing done to trace the zone north of the shaft area where the gold values are the highest. Geological mapping, geophysical work and drilling is required to investigate the northerly trace of the gold-molybdenite bearing zones. This definition is necessary in light of the apparent similarity to the Hemlo gold camp in mineralogy, rock type and its long strike length. The northerly extension from the Shaft area is particularly significant as gold occurrences were noted 3,500 feet to the north in the direction of maximum curvature as it bends around a gentle bulge in the diorite intrusive.
- 27 -
Old trenches indicated good values of gold which when translated to a minimum five
foot mining width have economic potential. All old trenches should be cleaned out and
resampled to confirm the high assays and to check the actual widths. For example,
the 20-foot deep trench west of the shaft reportedly gave an average of many channel
samples of 1.37 o.p.t. gold over a width of 3.65 feet along a length of 60 feet while
another investigator gave 1.18 o.p.t. gold over a width of 3.3 feet along a length of 75
feet. This resampling work was not completed by Coastoro Resources Ltd. prior to its
preliminary drill program because the underwriting approvals were obtained late in
1983.
Preliminary drilling along the gold-bearing trend has not been sufficient to define
which of the three (3) structures identified in the Dawson Shaft area has been
intersection in the current series of short westerly drilled holes. Further surface
trenching and geophysical techniques should be undertaken to follow Structures 2 and
particularly structure 3. Drilling would follow. This can be seen in the Section on
which 8^-1 and 8^-2 are plotted (Figure 6) and illustrated in Table form below.
INTERPRETATION FROM NORTHERN MOST DRILL SECTION
(Holes 84-1 and 8^-2)
Structure l
Structure 2
Structure 3
Incomplete data, width 5.0'. Needs further evaluation.
Width t*. 5 to 5.0 1 . Gold indicators 0.26 opt Au over 4.5 feet. Gradient increasing with depth. Association of gold and molybdenite needs further evaluation.
Incomplete data. Width up to 11.72'. Highest assays indication 1.37 opt Au over 3.65' or 1.00 opt Au over 5.0' and 0.^9 opt Au over 3.75' or 0.37 opt Au over 5.0' to give a weighted average of Ci.685 opt Au over 5.0' minimum mining width between surface and a dip length of 85.0'.
Mineral Inventory - assume S.G. - 1 2.5, projected length 50' on either side of section.
5.0 x 85.0 x 100.0 ^ 3^00 short tons12.5
(c) 0.685 opt Au (see above)
Needs further evaluation to north and to depth.
- 28 -
Two areas which require additional work are (a) the La Riviere N 200 E trend and (b) the VLF-magnetic anomaly on Couture Lake.
(a) La Riviere Zone
Access was made to this area about l ib m ile east and parallel to the Dawson structures. Hole 8^-1^ attempted to test the ground beiow or in proximity to the location of the reported "rich float". Once the snow is gone, the relationship of the drill hole location to the "rock float" location should be investigated. The La Riviere Zone has reported been traced for many thousands of feet along a N 20O E trend. This structure is reportedly a mineralized schist or sheared schist with visible gold but only minimal effort has been expended on this zone and its potential could be significant.
(b) Couture Lake Zone
Of the several anomalous VLF-magnetometer areas, the coincidence of the anomally with quartz veining in a shear zone needs to be investigated as again the trend appears to be N 20O E.
RECOMMENDATIONS
In light of the exploration potential based on current data, the following program is recommended:
1. Geologically map the entire property with particular emphasis on the Dawson, La
Riviere and Couture Lake Zones.
2. Renew the old trenches and resample to confirm previous sample results.
3. Conduct detailed geophysical surveys starting from known mineralization to define and, if possible, separate structures in the Dawson, La Riviere and Couture Lake Zones.
- 29 -
^. Drill the 3,500 foot untested section of the Dawson Zone north of the shaft area.
5. Drill the La Riviere and Couture Lake Zones when they have been sufficiently defined to give a suitable drill target.
6. Upgrade the winter road to allow summer access.
7. Establish a field camp at the shaft site.
- 30 -
ESTIMATED COST OF PROPOSED PROGRAM
Phase I
1. Upgrade access road and establish the camp area S 50,000.002. Geological mapping
l man x 45 days x $300/day 18,000.00 l man x 45 days x SlOO/day
3. Truck rental, boat rental, fuel and camp costs 10,000.00 it. Drilling
(a) Dawson ZoneInitial 20 holes x 200' (9 $30/ft 120,000.00
(b) La Riviere5 holes x 100'@ 5307ft 15,000.00
(c) Couture Lake5 holes x 100'(c) S307ft 15,000.00
5. Drill access cost 10,000.006. Geophysical surveys 8,000.007. Assaying 4, OOP. 00
Sub-Total S 250,000.00 Contingency (l096) 25,000.00
TOTAL PHASE I S 275,000.00
Phase H
Additional drilling dependent upon favourable results $ 275,000.00
TOTAL PHASE l AND II $ 550,000.00
Respectfully submitted,
A.D. Drummond, Ph.D., P. Eng. D.D.H. GEOMANAGEMENT LTD.
- 31 -
STATEMENT OF COSTS
The following unaudited statement outlines the total moneys that have been expended toward the acquistion and exploration of the Sturgeon Lake gold property by Coastoro Resources Ltd. to May 15, 1984.
Expenditures (^) ItemIssue 35000 shares
(3 .40 eaProperty costs Consulting and wagesTelephone, office supply
legalTransportation and
accommodation
Field/camp supplies Surface rights Bulldozer Drilling
April l, 1982 April l, 1983 April l, 1984 Mar. 31. 1983 Mar. 31. 1984 May 15, 1984 Total
S51,875
3,200
iy
--
35 000
-
-
14,000
85,770
29 , 760
3,344
10,184
841-
9,379
56,331
S 14,000
137,645
830 33,790
131 3,475
184 10,368
111 952
35,000
9,379
14,295
90,075 200,230 15,551 315,235
- 32 -
REFERENCES
Seraphim, R.H. (1983) Report on Sturgeon Lake Property, Patricia Mining Division, Thunder Bay District, Ontario: Professional Engineers Report for Coastoro Resources Ltd., dated March 31, 1983.
Trowell, N.F. (1983) Geology of the Sturgeon Lake Area, Districts of Thunder Bay and Kenora: Ontario Geological Survey, Report No. 221.
(1983) Geology of the Squaw Lake - Sturgeon Lake Area, District of Thunder Bay: Ontario Geological Survey, Report No. 227.
D.D.H. GEOMANAGEMENT LTD.
52J8I2NE9292 S2J02SE86 BECKINGTON LAKE
COASTORO RESOURCES LTD.
020
Sturgeon Lake Gold Project, Patricia Mining Division, Thunder BaV. District, Ontario
(NTS 52-J-2)
Diamond drill logs84-1 to 84-14 inclusive.
422 - 470 Granvillc Street, Vancouver, B.C. Canada V6C 1V5 * Telephone (604) 681-4413
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COASTORO RESOURCES LTD.Project N o. N.T.S,
Sheet No. / i/ 2. HO'* No.
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Dep.
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Completed ASSAYS
Footage Rec'y Rock Tvpe/Alteretion rtphic Loj Minerili tat ion/Structure Sulfide*
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COAETORO RESOURCES LTD.Project No. N.T.S.
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Sheet No. jj /7 7. Hole No.
Core Sue
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Dtp. Depth Deariog Completed ASSAYS
Footage Rec'y RockType/Allerntlon Graphic Log Mineral! tstion/Structure SuKidei
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COASTORO RESOURCES LTD.Property——
Project No. N.T.S.
Sheet No.
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Project No. N.T.S.
Sheet No.
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COASTORO RESOURCES LTD.Property-
Project No. N.T.S.
Sheet No.
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No.
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Beckinatcn Lake Are
5O 007'3O
y V s rrJiz *39*2 s ^j^z^**j
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' "92OI , 7Z04411Iy20447 ; 61|98B^ ~— ^-— J, ̂ Jl - - ~ - 1 -
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Squaw Lake Area
52J02N69292 52J02SE86 BECKINGTON LAKE 900
FOR ADDITIONAL
INFORMATION
SEE MAPS:
OK183 - Z- c -
L..... TIY.1S ^oSMlTTAL CofvlSiS-re^ &F VARIOUS
SOME OF
Tf4iS FILE. THE CULLE^ MATERIAL HA'b
;
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CAM BE
(N
ow (5et\s"(cal Sufv/e ^? 5c.e. Tersv-k) Fi l
H. W. 705
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1 ^ f /—schist ond qti stringers
A ^/—-schist -qti stringers - abundant sulfide
T. B. 6981
" s chist -qtz - pans v.g (0.01
Pit - schist, qtz stringers , py, v.g
**Ochtfl, sulfide,^
schist, quartz
• Cu
schist, qtz stringers, v g \
DRILL HOLE LOCATIONS
FIGURE 5
CQASTORO RESOURCES LTD.
.^schist, qrz, v.g.
py - pyrt
pyrr - pytrhotfe^e
1.23/3.5^- Assay o.p.t. Au/Feet width
STURGEON LAKE
GOLD PROPERTY
ONTARIO
v.g. - VISIBLE GOLD
chpy - CHALCOPYRITE
gal - GALENA
sphol - SPHALERITE
52J32NE9292 52J02SE8S BECKINGTON LAKE 200
