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Location
The CUD claim is located 7 km from the gold mining community of Bissett, Manitoba where San Gold Resources Corporation (TSX-V: SGR) is operating two mines and a mill. The property is bounded on its south border by claims held by San Gold Resources and on which is located their #3 gold zone.
The community of Bissett Manitoba is located roughly 3 hours drive northeast, by an all season provincial highway from Manitoba’s capital city of Winnipeg.
History
On June 26, 2008 the Company announced an option agreement to acquire of all of the Optionor’s right, title and interest (the “Interest”) in and to a certain mineral claim located in the Province of Manitoba and referred to as the Cud3 Claim. Pursuant to the terms and conditions set forth in the Property Option Agreement, the Company will pay $5,000 and issue an aggregate of 200,000 common shares in the capital stock of the Company to the Optionor upon TSX approval. The Property is subject to a 2% Net Smelter Royalty, one-half of which (1%), can be purchased by the Company for $500,000. The Company is interested in the claim for its potential to host similar mineralization to San Gold’s nearby #2 and #3 gold zones. Prospecting in the region around the claims dates back to the early part of the last century when the first gold was discovered in the belt. Exploration greatly increased with a major drill program undertaken by San Gold on claims that bound the property’s southern claim boundary.
Of significance, in 2005 San Gold drilled 16 diamond drill hole between 40 m and 180 m of the CUD claim boundary. The holes were drilled in a south-southwest direction in order to intersect a north-northeast plunging zone of gold mineralization. The CUD Claim appears to cover the down plunge extent of this mineralized zone and the very close proximity of the San Gold drill holes which includes intercept highlights of up to 19.5’ assaying 0.51 ounce per tonne gold, 21’ assaying 0.21 ounce per tonne gold and 8.9’ assaying 0.33 ounce per tonne gold.
Geology of the CUD Property
The area is underlain by greywacke, argillite and cherty rocks of the Edmunds Lake Formation (Weber, 1971). Locally, the rocks that have been intensely silicified form an erosion resistant ridge in the bed of the Wanipigow River. Fragmental textures and <1 cm thick, discontinuous quartz veins are present on the ridge.
The major feature of the region, the Wannipigow Fault has been traced to extend from the Rice Lake Belt, through the Red Lake Gold Camp to the Pickel Lake Gold Camp in Ontario. This major structural break has been mapped to pass through the property.
Exploration Activity
In May 2011 line cutters began establishing a grid over the property ahead of prospecting, geophysical and geochemical surveys that are planned for completion during the summer field season. In June 2011, line cutting was completed and a surface magnetometer survey was performed over the claim. Several historical prospecting trenches were discovered during the course of the magnetometer survey.
Activities Contemplated in the Future
An Induced Polarization (IP) geophysical program was completed in July 2011. Subsequent mapping and sampling of prospecting trenches and rock outcrops is expected to be completed. Ultimately, this work will be used to identify and prioritize specific targets for drill testing later in the year. The Company is investigating potential partners for the project.