The Croteau Est property consists of drill ready targets including the known Croteau Est showing and the new Patrick and Dede gold showings. These showings are located within highly deformed and altered (ankeritized, sericitized, quartz veined and pyritized) basalt. Grab samples collected from these showings returned values of up to 15 g/t Au. These showings occur within major east-west structures south of the Faribault Fault which may be associated with the Gwillim Mine located 8.0 km to the east. The Croteau Est gold property ties onto the Gwillim Mine property.
Northern Superior Resources Inc. (Northern Superior) signed a formal option agreement with GL Services Inc. and Marc Bouchard of Chapais (the Optionors), Quebec on August 24th, 2011 to earn a 100% interest in the Croteau Est property, west-central Quebec.
To acquire 100% of this property, Northern Superior must meet the following obligations:
- spending an aggregate of $1.7 million on exploration of the property over four years: $200,000 in year 1; $300,000 in year 2; $400,000 in year 3; and $800,000 in year 4;
- making cash payments to the Optionors totaling $350,000: $35,000 upon signing the Letter of Intent (completed); $35,000 by the end of year 1; $40,000 by the end of year 2; $80,000 by the end of year 3; and $160,000 by the end of year 4;
- issue to the Optionors $280,000 worth of common shares of the Company: $40,000 at the end of year 2; $80,000 by the end of year 3; and $160,000 by the end of year 4. The number of common shares issuable shall be based on the market price of the Company’s shares at the time of issuance.
Northern Superior retains the right to accelerate any of the obligations.
Upon exercise of the option, the Optionors shall retain a 1% NSR on any commercial production with Northern Superior having the right to buyback 0.5% of the NSR for $1.5 million, at any time. The parties have agreed that any further claims that are staked within 1.5 km of the property will form part of the option and any production therefrom shall be subject to the NSR.
THE PROPERTY
The Croteau Est property is located 30 km northeast of Chapais and is easily accessible by a forest access road, 25 km north off the paved highway to Oujé- Bougoumou (located between Chapais and Chibougamau). The property currently consists of 104 claims covering an area of approximately 3,700 hectares.
GEOLOGY
Overburden stripping has exposed a previously unrecognized mineralized zone within the Croteau shear zone. Although the project is at a very early stage of development, it is believed that the Croteau Fault is part of a wide (approximately 2.0 km) deformation corridor of staked and en echelon shear and alteration zones that includes the well-known Faribault Fault. The Faribault deformation corridor within which the property occurs contains several shear zones cross-cutting the “Membre de Bruneau.” The “Member de Bruneau” consists of a series of basalt flows, massive to pillowed with inter flow breccia’s and tuff. The main shear zone that is currently being explored (Croteau Fault) is several hundred meters wide and characterized by a strong foliation / schist and intense alteration consisting of ankeritization, sericitization, and silicification.
EXPLORATION TO DATE
Since signing the option agreement (August 24th, 2011 to September 21st, 2011), 32 trenches have been excavated through overburden exposing several altered and mineralized shear zones. Over 1,200 bedrock channel samples have been collected from these shear zones. On October 12th, 2011, Northern Superior disseminated a press release summarizing channel sample assay results from four trenches excavated through overburden over one of these zones associated with the Dede showing. Of particular importance, a channel sample returned a gold assay of 92.57 g/t over 1m from Trench-3 (see Figure 1, Photograph 1). The assay is associated with reported visible gold observed in a quartz vein within a strongly carbonate altered zone with pyrite (see press release, September 21st, 2011). This assay is part of a wider shear zone within Trench-3, referred to as the Marco zone, which has a weighted average channel sample assay of 12.8 g/t gold over 7.9 m. The Marco zone was originally identified within Trench-1 with a reported channel sample gold assay of 3.23 g/t gold over 12.3m (see press release September 21st, 2011). Trench-1 is located 80 meters east of Trench-3.
Figure 1. Trenches 1,2,3 and 4 within the location of the Marco and Dede shear zones.
Photograph 1. Visible gold from “fly rock” (tip of finger), Trench # 3, Marco Zone.
Running parallel to, and 16m south of the Marco zone within Trench-3 is a second shear zone with a channel sample gold assay of 2.5 g/t gold over 5.05m. This zone is referred to the Dede zone and was also identified in Trench-1 (see press release September 21st, 2011). Within Trench-1, the reported Dede zone channel sample returned an assay of 2.11 g/t gold over 11.0m.
The Marco and Dede zones are located within the Croteau Est deformation and alteration corridor. This corridor is approximately 600m wide and strikes west-northwest to east-southeast. The strike of the Croteau Est deformation and alteration corridor extends beyond the four trenches hosting the Dede and Marco mineralized zones.
In Trench-04, 80 metres west of Trench-01, the Dede zone is represented by highly anomalous gold values over several metres (0.31 g/t gold over 6.30m) indicating the fertility and continuity of the Dede zone westward. Similarly, the Marco mineralized zone is projected to cross Trench-4 within a ~12 m section of this trench. Unfortunately, this section was not channel sampled due to a thick overburden cover that could not be excavated down to bedrock.
In Trench-02, 150 metres to the east of Trench-03, only the Marco zone was intersected as Trench-3 does not extend far enough south to intersect the projected east-southeast extension of the Dede Zone. The Marco Zone returned highly anomalous gold values over several metres (0.19 g/t gold over 5.65m).
Northern Superior initiated a diamond drill program over the property this fall (see press release, December 5, 2011). The Company intends to complete as many as eight diamond drill holes by the end of December. These holes are part of a planned 25 hole, 5,000 m diamond drill program that Northern Superior intends to complete by the end of the second quarter 2012. Diamond drill targets are focused on and within the area of the 120 m wide Croteau-Marco deformation and alteration corridor within which the Company reported visible gold in Trench -03 and where a gold assay of 92.57 g/t over 1m was reported (see press release, October 12, 2011).
Thus far (as of December 18, 2011), the Company has completed 6 diamond drill holes and reported intersecting visible gold at four intervals within two of six drill holes completed. Visible gold was intersected at three different locations within drill hole CRO11-05, collared 10.0 m east and 125 m south of the gold bearing zones that were reported previously in Trench- 01 (Dede Zone 3.23 g/t Gold over 12.3 m and Marco Zone 2.11 g/t Gold over 11.0 m- averaging equivalent of 1.9 g/t gold over 33.8 m, see press release September 21st, 2011). Visible gold was intersected within three milky white quartz veins: the first between 173.90 to 175.0 m (1.1 m intersection), the second between 182.6 and 188.5 m (5.9 m intersection) and the third within a centimeter vein at 240.15 m (all widths are not true widths, see Photograph 2 for an example of the visible gold observed).
Photograph 2. Visible gold (circled) observed in drill hole CR011-05 at 184.9 m.
Visible gold was also intersected at 28.4 m and was observed along the margin of a 3 cm wide quartz vein within drill hole CRO11-06. This drill hole was collared 50 m west of CRO11-05 (see Photograph 3).
Photograph 3. Visible gold (circled) observed in drill hole CR011-06 at 28.4 m.
OUTLOOK
- Continue mapping and compile geochemical data from the remaining 28 trenches (weather permitting, 4th quarter);
- Complete a high resolution, low elevation, tightly spaced airborne geophysical survey (4th quarter);
- Identify diamond drill targets (4th quarter); and
- Plan and execute a diamond drill program for the fourth quarter 2011, first quarter 2012 (see press release, December 5th, 2011).