On January 15, 2009, the Company signed an option and joint venture agreement with Matamec Explorations Inc. (“Matamec”) to explore for all commodities on the Wachigabau property in the Desmaraisville area of west-central Québec, with a particular focus on gold and base metals. The Wachigabau property defined in this agreement includes Northern Superior’s L’Espérance property and other claims which belonged to both parties.
Under the terms of the Agreement, Northern Superior can earn 50% of all mineral rights on the Wachigabau project property by paying to Matamec $25,000 cash and issuing 100,000 shares and 100,000 share purchase warrants (this was completed in March, 2009). The Company has also committed to spending $500,000 (the timing of which is at the discretion of Northern Superior) over three years.
Northern Superior has met the requirements to earn its 50% interest, and thus has formed a 50-50 Joint Venture for all commodities on the property (both the Company and Matamec will have 50/50 interest on all metal and mineral rights, including diamonds). IAMGOLD retains certain back-in rights on some of the claims through agreements with Matamec.
The signing of this agreement has provided an opportunity to explore for gold and other commodities within an established gold exploration and mining and milling camp. The Wachigabau property is underlain by structures and geology associated with gold mineralization at the Bachelor Lake gold mine, located 10 kilometers to the southwest, and also overlies geology and structures associated with the Lac Shortt gold deposit 4.5 kilometers to the northeast. By entering into this agreement, the Company expands its opportunity for success on the property beyond diamonds and into other commodities.
The Property
The property is located 15 km northeast of the hamlet of Desmaraisville, 125 km northeast of the town of Lebel-sur-Quévillon and 225 km northeast of the city of Val-d’Or, Québec. Access to the property is possible by a series of old logging roads extending east from highway 113 and an abandoned rail bed that crosses the north side of the property. The property can also be accessed by boat from Lac Wachigabau and Opawica. The Wachigabau property is strategically located between the Lac Shortt gold mine to the northeast and the Coniagas zinc, lead and silver mine and the Bachelor Lake gold mine and mill complex to the southwest. These mines are all associated with the Lake Opawica-Gwillim fault system. The property currently consists of 359 claims covering an area of 14,578 hectares.
Wachigabau Exploration History
Pre-2009
- Signed option agreement with Matamec to explore for diamonds (only) on the property (2005).
- Intersected narrow kimberlite dykes during drill programs completed between 2005- 2008.
- Intersected massive to semi-massive pyrite and pyrrhotite in a cherty to graphitic metasedimentary schist in one of these holes, returning an interval of 4.21 g Au/ t over 0.43m.
2009
- Re-negotiated Matamac agreement, Company now earns-in on all commodities.
- Completed due diligence, recognized:
- Reported lode gold mineralization associated with quartz veining, values in drill hole intersections up to 5.39 g Au/ t over 2.4m , 10.3 g Au/ t over 0.3m and 10.1 g Au/ t 1.0 m;
- Reported quartz veins of up to 6” returning grab sample assay values of 138 oz Au/t and 450.5 oz Ag/ t and channel samples returning assay values of 3.52 oz Au/ t over 36” from historical stripping and trenching from northeast part of property;
- Remobilization of Cu-Au along continuous fracture systems, up to 2.62% Cu, 14 g Ag/ t and 3.14 g Au/ t over a 3.25 m drill hole intersection;
- Potential for volcanogenic Cu-Zn massive sulphide mineralization.
- Located reported gold showings and key drill collar locations during reconnaissance exploration programs completed during the second and fourth quarters of 2009.
- Completed ground geophysical program.
2010
- Completed drilling (4 holes, approximately 800 meters) and ground geophysics (approximately 57 line kilometers) to test an area of the property for gold mineralization.
- Drilling intersected the predicted extension of a number of gold-bearing structures reported from historical diamond drilling (see press release April 22, 2010).
- The Company has received and is currently assessing its ground geophysical data acquired during the first quarter.
- Formalized the joint venture partnership with Matamec Explorations Inc.
- Updated the 43-101 report.
2011
- Completed drill pads and drill roads to all drill targets planned for the fourth quarter, 2011.
- Initiated a six to eight hole, 2,000 m diamond drill program
Outlook
- Execute and complete a diamond drill program, fourth quarter 2011.
Location of the Wachigabau Gold property, west-central Quebec.
Click map to see larger version in PDF (1MB)
Location of ground geophysical grids, for induced polarization and magnetic surveys, spring, 2010 (see press release February 25th, 2010).
Click map to see larger version (268kb)