Rice Lake Gold Belt, Manitoba - Lesavage North  Gold

The Lesavage property covers highly prospective geology in the Rice Lake Gold Belt. Several key geologic controls to the formation of gold deposits are known to occur on the property including a major shear zone, Balmer Formation equivalent rock (The Balmer Formation hosts the giant gold deposits of the Red Lake Belt 80 km to the east) and gold mineralization hosted in rocks having undergone the same type of alteration as is associated with gold deposits in Red Lake and elsewhere on the Canadian Shield. Our geologists’ has been successful in recognizing several areas with the geologic ingredients for the formation of gold deposits on the property through field work and analysis of previous exploration data. Our first drill program resulted in the discovery of a new gold zone and drilling will continue on this wide open target during the summer of 2006. The ongoing field work is establishing additional target areas for drill testing indicating the potential for multiple deposits on the property.   

Target

The identification through drilling of potentially economic gold deposits similar in size and grade to those found in the neighboring Red Lake Gold Camp and in other important gold mining camps on the Canadian Shield.  

Location

The Johnston Property, located in southeastern Manitoba, Canada, consists of 2313 Ha and is located approximately 25 kilometres east of the town site of Bissett, Manitoba (Figure 1). It is accessed by an all weather gravel road, PR 304, which intersects the southern part of this property. The town of Bissett has an operating gold mine and mill. The property is a 3 hour drive from the provincial capital of Winnipeg Manitoba.

History

The Rice Lake Belt is an established gold camp with over 1.7 million ounces gold produced. The Rice Lake Greenstone Belt is the most important gold-producing region of Manitoba. The San Antonio mine and mill are recently reopened. It is our belief, based on historical records and recent high-grade gold discoveries that the area is under explored and, highly prospective for new gold deposits and economic gold mines.

The area has been under claim by various owners since the early days of exploration in the Rice Lake Gold Belt in the 1920’s. The present claim group has been under the control of Steve Lesavage since the mid-1970’s who has conducted various geophysical and geochemical surveys over different parts of the property inn addition to a number of shallow drill holes. This work was successful in discovery a number of new gold occurrences scattered through out the property generally in association with Iron Formations.  

The Company has completed one exploration program on the property today. The program which took place in the fall of 2005 resulted in the discovery of the Red Hill gold zone. Drilling highlights include 12.7 grams per tonne gold over 1 meter and numerous intercepts ranging from 3 g/t Au to 0.5 g/t Au throughout a 75 m wide mineralized zone of undetermined length and depth extent.

Current Exploration Activity

The next phase of exploration is now underway and is testing the extent of the new gold zone using a multi-disciplined strategy of field geological mapping, soil geochemical sampling and deep penetrating ground based geophysical surveying to track the gold mineralization along strike and to depth. In addition several new areas of interest have been discovered in the historic data base and following completion of the ground geophysical program this spring.

The geophysical program completed in May 2006 shows the mineralized zone extends up to 800m in length and identifies several other targets of interest 1000meters ( 3270 ft) in the strike direction of the Red Hill gold discovery. These new targets are the focus of exploration through June 2006 with drilling ongoing through late June-July 2006.  

Geological Setting

The Rice Lake Greenstone Belt produced approximately two million ounces of gold.  More than 200 gold occurrences have been documented in the Belt. These occurrences occur in volcanic, sedimentary and intrusive rocks. Gold mineralization is present in both the older rocks in the northern part of the Belt and the younger rocks in the southern part of the belt. Most of the past production has been obtained from the San Antonio Mine and other gold deposits that occur in a restricted stratigraphic interval dominated by epiclastic volcanic rocks, basalt flows and layered gabbroic sills of the Bidou Lake Subgroup in the southern part of the Belt.

Limited production has been obtained from vein deposits in the northern part of the Belt where the older rocks are considered to be the equivalent of the Balmer series of rocks that host gold mineralization at Red Lake. These rocks, which underlie most of the Johnston property, include mafic volcanic rocks, sedimentary rocks and banded sulphide and oxide iron formation.

The Wanipigow Fault (WF) a regional shear, cuts through the property and extends eastwards to the Red Lake and Pickle Lake gold camps. Major crustal breaks such as the WF are found in all major gold camps of the Canadian Shield.