Rice Lake Gold Belt, Manitoba - Lesavage North  Gold

Goal

The goal of our exploration on the property is the discovery large high grade gold deposit like those found at neighboring Red Lake. This is because the area geology is suited to the formation of such a deposit. The Company has already identified 4 large areas to be explored this summer, following a month of field activity and an initial diamond drilling program. The summer program now underway is a “boots on the ground” program which includes drilling, surface geophysics of mineralized zones and prospecting of new exploration targets identified in the historic data for the property.  Geology of the Johnston Property

The Johnston property covers a sequence of metabasalt, felsic fragmental epiclastic and/or pyroclastic rocks, oxide to silicate facies iron formation that is interlayered with arkosic wacke and garnetiferous mudstone, medium grained gabbro to leucogabbro (Jeep gabbro) and tonalite to granodiorite.

Lithological units on the Johnston property generally strike east-west and dip steeply to the north. The area is crosscut by numerous east-west trending, steeply north dipping shears. The shear fabric is pervasive throughout the area.

On the Johnston grid, in the area along baseline 7+25S, the bedrock consists of strongly sheared metabasalt, that locally contains silicate facies iron formation, and epiclastic rocks. Medium grained gabbro in the area contains discrete shear zones, but otherwise lacks a strong shear fabric.

Autumn 2005 Exploration Program

146 soil samples were collected for Enzyme Leach analyses during September 2005. All samples were referenced to UTM coordinates using a Garmin GPS as well as the cut lines on the established Johnston Grid. Samples were analyzed at Activation Laboratories in Ancaster, Ontario.

The soil sampling program was conducted primarily in the area 100 m north and south of the 7+25S baseline, from 48+00E to 61+00E, with minor sample collection elsewhere. The analytical data indicates a gold anomalous zone between lines 51+00E and 53+00E that correlates well with the zone of brown carbonate.

A drilling program consisting of five drill holes totaling 732 m was conducted during October 2005. Four holes were drilled in the area of the 7+25S baseline between 51+35E and 54+00E to test the brown carbonate zone. These drill holes intersected sheared epiclastic rocks, brown carbonate, sheared mafic rock (metabasalt) and gabbro. The brown carbonate zone contains numerous chloritic, pyritic, ± graphite zones. Drill hole L-05-05 (collared at 1+25S, 49+00E) intersected diorite and altered diorite.

Drill holes L-05-01 to L-05-04 tested a weak to moderate VLF conductor at the margin of the carbonate alteration zone whereas drill hole L-05-05 tested a strong VLF conductor in a small depression adjacent to sheared gabbro. Summary drill logs are presented below and detailed drill logs are presented in Appendix 2.

75 samples of core were split from drill holes L-05-01 through L-05-04. Samples were analyzed at TSL Laboratories in Saskatoon, Saskatchewan. Assay results are presented in Appendix 3.
 

Table 3: Summary of Johnston Grid Autumn 2005 Drilling Program

Results

The distribution of gold and arsenic in soil samples are shown in Figures 4 and 6. These plots show a discrete Enzyme Leach gold anomaly overlying parts of the brown weathered carbonate zone. Drill holes L-05-01 and L-05-02 intersected up to 12.86 g/t Au directly below or adjacent to this anomaly (Figure 4)

The drill program intersected zones of disseminated to well mineralized pyrite at the northern and southern margins of the brown carbonate zone. Assays of the pyritic zone indicate that the carbonate alteration zone is gold-bearing with assays values up to >12 g/t and gold is associated with arsenic in many of the samples from drill cores L-05-01 to L-05-04.

Drill hole L-05-05 intersected chloritic alteration, but did not intersect any evidence of either carbonate alteration, pyritization or quartz veins. These results are in agreement with the Enzyme Leach results that did not detect any gold in the soils overlying the shear zone. The strong VLF anomaly is considered to be the result of water filled zones in the shear.

Conclusions and Recommendations

This program has discovered a new zone of high grade mineralization on the Johnston property with drill intersections of 12.86 Au g/t over 1 m.

The Enzyme Leach program was successful in outlining gold mineralization and indicates that zones with strong geophysical responses should not be drilled without coincident geochemical anomalies. Geochemical surveys will be carried out on other portions of the property that are covered by swamp and overburden. Additional samples of carbonate alteration zone will be analyzed for trace elements to determine the prevalence of gold outside the areas with visible pyrite mineralization.

A follow-up drill program will be conducted on the Limestone Hills area of the Johnston property.

References

Gaboury, D. and Weber W., 1984: The Wallace Lake project. In: Manitoba Energy and Mines, Report of Field Activities, p. 85.

Gaboury, D. and Weber W., 1984: Wallace Lake West. Manitoba Energy and Mines, Preliminary Map 1984 R-1.

McRitchie, W.D., 1971a: The petrology and environment of the acidic plutonic rocks of the Wanipigow–Winnipeg Rivers region, southeastern Manitoba. In: Geology and Geophysics of the Rice Lake Region Southeastern Manitoba, McRitchie, W.D. and Weber, W. (eds.), pp.7-61.

McRitchie, W.D., 1971b: Geology of the Wallace Lake–Siderock Lake area: a reappraisal. In: Geology and Geophysics of the Rice Lake Region Southeastern Manitoba, McRitchie, W.D. and Weber, W. (eds.), pp.107-125.

Theyer, P., 1983: Geology of gold environments in Bissett/Wallace Lake portion of the Rice Lake greenstone belt. In: Manitoba Energy and Mines, Report of Field Activities, pp. 101-106.

Theyer, P., 1991: Mineral Deposits and Occurrences in the Aikens Lake Area, NTS 52M/3.Manitoba Energy and Mines, Geological Services, 108pp.