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Point Rousse Project
Location
The Point Rousse Project is located within the Baie Verte Mining District, on the Point Rousse/Ming’s Bight Peninsula, approximately 6 km northeast of the Town of Baie Verte, in north central Newfoundland and Labrador.
Geology and Mineralization
The Point Rousse Project covers an area of over 54 km2 and has significant access, mining, milling and tailings infrastructure. Point Rousse covers three prospective gold trends including the Scrape Trend, the Goldenville Trend and the Deer Cove Trend. These trends have approximately 20 km of cumulative strike length and include three deposits and numerous prospects and showings all located within 8 km of the Pine Cove Mine and Mill. The gold deposits at Point Rousse are orogenic gold deposits and are associated with the Scrape Thrust – a secondary fault associated with the larger-scale Baie Verte – Brompton Fault. Locally, gold mineralization is intimately associated with disseminated and massive pyrite within the host rock, indicating that iron rich rocks are an important precursor to mineralization. Iron and titanium rich lithologies in proximity to the Scrape Thrust are typical host rocks. Alteration within mafic volcanic and gabbroic rocks can be is characterized by albitization and carbonatization.
Stog’er Tight Deposit
The Stog’er Tight area is host to several gold prospects including the; Stog’er Tight Deposit and its east and west extensions, the Gabbro, Gabbro East, Gabbro West, South and Cliff zones. The geological setting of the Stog’er Tight project is characterized by volcaniclastic, sedimentary and intrusive rocks, which form part of the cover sequence of Snooks Arm Group.
The gold within the Stog’er Tight deposit occurs as fine grained micro veinlets and disseminated blebs within the coarse pyrite aggregates. Visible gold was observed as rare very delicate flakes localized within weathered-out pyrite cubes and in narrow quartz veins. Generally, higher grades are associated with coarse mottled pyrite.
An NI 43-101 mineral resource estimate was completed by Signal Gold in 2021:
| Gold Cut-off (gpt) | Category | Tonnes | Gold Grade (gpt) | Gold Troy Ounces |
| 0.59 | Indicated | 642,000 | 3.02 | 62,300 |
| 0.59 | Inferred | 53,000 | 5.63 | 9,600 |
1. Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
2. Open pit Mineral Resources are reported at a CoG of 0.59 g/t gold that is based on a gold price of
3. CAD$2,000/oz (approximately US$1,550/oz) and a gold processing recovery factor of 87%.
4. Assays were capped on the basis of the three domain types flat, steep, and background (14-4).
5. SG was applied on a lithological basis after calculating weighted averages based on lithological groups.
6. Mineral Resource effective date September 1, 2021.
7. All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.
8. Reported from within a mineralization envelope accounting for mineral continuity.
Note: This Resource estimate is considered historical in nature as it was completed by Signal Gold in 2022. A qualified person has not done sufficient work to classify the Resource Estimate as a current mineral resource. Therefore, the Company is not treating the Resource Estimate as a current mineral resource. Additional exploration work is required to verify the historical Resource Estimate including surveying, diamond drilling, assaying, core logging, modeling of the mineralized zones and open pit optimization analyses.
Pine Cove Mine
The Pine Cove open pit gold mine produced 140,000 oz gold between 2009 to 2021 with an average grade of 2.0 gpt Au. Recent analysis shows that the gold mineralization extends well below the former open pit mine. Sampling of existing drill core returned 1.37 gpt Au / 107.8m, including 2.5 gpt Au / 40.8 m indicating the potential for a broad gold zone at depth.
Mineralization is associated with a broad alteration envelope characterized by zones of very fine grained calcite and chlorite. Pyrite is part of the alteration assemblage and intimately associated with gold mineralization with pyrite occurring marginal to the quartz veins, disseminated within wall rock fragments incorporated in the veins.
Deer Cove Project
Gold
The Deer Cove trend is located in the northern part of the Point Rousse Project and defined by the alignment of numerous gold occurrences with a significant structure referred to as the Deer Cove thrust fault, extending for at least 3 km. The Deer Cove trend includes a suite of 16 showings and prospects, as well as the Deer Cove Main Zone, a narrow vein style gold deposit. Mineralization is generally hosted within the mafic volcanic hanging wall of the thrust fault within the Betts Cove complex. Mineralization at the Deer Cove project is associated with two styles of quartz veining: quartz breccia veins at the Main Zone; and shear parallel, quartz breccia veins at several sites within the cover sequences rocks parallel to and above the Deer Cove thrust. The zone has been traced by trenching and diamond drilling over a 500 m strike length but is still open to the north and down-dip.
Talc
In the late 1980s Noranda Exploration identified a high grade talc zone adjacent to the Deer Cove gold zone. The ultramafic rocks immediately south of and adjacent to the Deer Cove thrust fault are extensively altered to variable mixtures of talc, talc-carbonate, talc-magnesite, serpentinite and listwaenite. The Deer Cove talc deposit occurs in extensively altered ultramafic rocks beneath the footwall of the Deer Cove thrust fault, directly below a 20 m to 30 m thick zone of carbonate-talc-fuchsite-quartz vein +/- gold mineralization. This talc-carbonate and talc-carbonate-magnesite zone is fairly extensive and covers a zone over 1.2 km long and from 200 m to over 500 m wide. The majority of this zone has not been sampled so final dimensions are presently unknown. Early stage metallurgical test work completed by Noranda produced excellent results for a talc product that would be suitable for paint, plastics, sealants and caulking.
Exploration