BALLARD LAKE PROPERTY, ONTARIO
On February 6, 2015, the Company signed an agreement to acquire a 100% interest, subject to a 2% retained royalty, in the Ballard Lake diamond and gold property located approximately 50 kilometres northeast of Wawa, Ontario for consideration of 400,000 common shares of the Company.
The Ballard Lake property originally consisted of four unpatented mining claims located in Echum and Dolson Townships within the Michipicoten Greenstone Belt, Sault Ste. Marie Mining Division. In October and November 2016, the Company staked an additional 64 claim blocks to increase the property’s size to approximately 160 square kilometres (~15,970 hectares). In February 2017, the Company staked an additional 1,257 units to increase the property's size to 361 square kilometres (~36,155 hectares).
Additional staking was required to cover areas of anomalous kimberlite indicator minerals in till amongst Keating Magnetic Correlation Coefficient anomalies identified by the Geological Survey of Canada when compiling regional magnetics in the area. A Keating Coefficient highlights a magnetic response that resembles a modelled kimberlite pipe.
The Property is road accessible and covers the Ballard Lake Shear Zone (“BLSZ”) and the main Ballard Lake Showing. The BLSZ may tap into deep crustal and mantle structures that could act as conduits for hydrothermal fluids and gold. The BLSZ and adjacent granodiorite/volcanic contact is a large surface structure, with ample room for significant mineralization. The Company has 12 kilometres of the Ballard Lake granodiorite-volcanic contact on its claims.
The Company’s Ballard Lake property now includes two historical diamond-bearing kimberlite occurrences: GC1 (16 diamonds from 93.1 kg), and Fletch (6 diamonds from 51.48 kg). Diamond results were reported by Chalice Diamond Corp. (“Chalice”) in February 2008.
Chalice completed an exploration program in the Ballard Lake area that included regional kimberlite indicator mineral sampling, prospecting, modern airborne geophysical surveys, and ground geophysical surveys. No drilling was reported.
The Ballard Lake property lies in the Wawa supracrustal belt of the Superior Craton, which is currently being explored by major and junior exploration companies for both gold and diamonds.
The BLSZ has been exposed for over one km and reportedly returned gold assays from grab samples as high as 17.6 g/t Au from historic trenches. Past work by previous operators (Noranda Mines in 1980 and Anglo Porcupine Gold Exploration Ltd. in 1988) have established the presence of gold mineralization at least intermittently along the BLSZ as well as numerous other gold and base metal occurrences from surface sampling within the property boundary. The main Ballard Lake Showing has been described as a sulphide bearing quartz vein that is commonly 30-40 centimetres wide with grab samples ranging from trace to over 4.4 oz/t Au and 12.0 oz/t Ag.
A 1998 Ontario Prospectors Assistance Program (“OPAP”) program on the Ballard Lake Property was comprised of prospecting, line cutting and an Induced Polarization geophysical survey. The 1998 program identified the shear zone as well as several geophysical target areas (strong chargeability anomalies) that were covered by overburden. Drilling was recommended but was not carried out at that time.
BALLARD LAKE FURTHER DRILLING PLANNED
As outlined in the Company’s news release dated November 10, 2016, the Company has established potential for deep crustal or mantle tapping conduits on the Ballard Lake property, which is indicated by alkali ultramafic dikes and kimberlites on the property. The Company staked many exploration targets in the immediate area, and has increased the area of the Ballard Lake Property to 361 square kilometres (~36,155 hectares) as announced on March 2, 2017.
The Company’s Ballard Lake property includes two historical diamond-bearing kimberlite occurrences: GC1 (16 diamonds from 93.1 kg), and Fletch (6 diamonds from 51.48 kg). Diamond results were reported by Chalice Diamond Corp. in February 2008.
The Company has commenced regional compilation and will apply for an exploration permit on the new claims with objective to drill test known diamond bearing kimberlites and other potential kimberlite targets. It is anticipated that the permit will be secured in 60 days.
Kevin Kivi, P.Geo., has extensive experience in the exploration for gold and diamonds in Canada. He is the Qualified Person for the Company’s Norwalk and Ballard Lake properties and approves the technical content of the above text.
For complete property disclosures and Quality Control on the Ballard Lake property, please see the Company’s news releases.
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. We seek safe harbour.