Kiyuk Lake Gold Property

Overview

The Kiyuk Gold Property consist of 51 mineral claims and three mineral leases encompassing over 46,000 hectares. It is located in the Kivalliq Region of Nunavut in northern Canada and has year-round accessibility to the 35-person base camp.

Kiyuk offers a compelling district-scale exploration opportunity to discover a new Canadian gold mining camp. To date gold showings have been reported across a 13-kilometer strike length that remains open in all directions.

Significant past exploration, beginning with Newmont Mining in 2008 and most recently Cache Exploration in 2017, has resulted in over 13,000 metres of drilling and delineation of four mineralized zones, including the high-grade, near surface Rusty zone, as well as five additional high priority target areas that have yet to be drill tested and numerous additional prospects.

Kiyuk Lake Property Location

Property Geology

Kiyuk Lake is situated in southwestern Nunavut within the Hearne Domain of the Western Churchill Province. The Western Churchill Province is bounded to the west and east by the Taltson-Thelon and Trans-Hudson orogenic zones respectively. The Hearne Domain is composed of mainly deformed Archean gneisses, and granitic, tonalitic, and supracrustal rocks, and unconformably overlying Proterozoic supracrustal rocks and granitic intrusions. Deformation during the Trans-Hudson orogeny is believed to have resulted in the infolding of these Archean and Proterozoic packages (Aspler et al., 2002).

The predominantly sedimentary rocks of Hurwitz and Kiyuk groups comprise the Poorfish-Windy Belt. The Hurwitz Group, a 8.5 km thick succession of continental siliciclastic and marine carbonate rocks, covers the Archean basement across the Hearn Domain and is preserved as erosional remnants across much of the southern Hearne Domain (Aspler et al., 2002). The Kiyuk Group is made up of a fining upward succession of conglomerate, sandstone and intraformational breccia now thought to represent a continental rift package from the late stage opening of the Manikewan Ocean (Aspler et al., 2002a). This group unconformably overlies the rocks of the Hurwitz Group in the Kiyuk and Ennadai Lake areas and appears to be absent the more northern parts of the Hearne Domain.

Mineralization

Gold mineralization at Kiyuk Lake is most similar to reduced intrusion related gold (RIRG) or iron-oxide-copper-gold (IOCG) deposit models. Mineralization is associated with pyrrhotite, pyrite, arsenopyrite, and magnetite (+/- hematite). The mineralizing event is accompanied by sodic and calcic alteration which occurs as veins and breccia of albite-carbonate-actinolite-quartz ± scapolite ± tourmaline. In areas of intense alteration the host rock is bleached and lack primary textures. Au element associations include As, Bi, Te, W, Ag, Co, Ni and sporadically U.

Figure 1: Kiyuk Lake Rock Chip Prospecting Samples (1992-2013).

Kiyuk Lake Property Rock Samples

Figure 2: Airborne magnetic data plan map and location of Au prospects at Kiyuk Lake.

Kiyuk Lake Property Rock Samples

Rusty Zone

The Rusty Zone was initially discovered by prospecting which identified a 2x3m outcrop of brecciated cross bedded sandstone with a matrix of magnetite (& pyrrhotite), albite, actinolite, and calcite. Visible in outcrop, the intense brecciation of the host rock leaves albitized host rock fragments floating in an infill of albite-actinolite-dolomite-calcite-quartz.

Rock samples from the initial Rusty discovery outcrops/subcrop returned with values of up to 9.27 g/t Au. Additional rock grab samples retrieved in 2012, 230 meters south of the original discovery, returned values of up to 6.48 g/t Au. Mineralization in surface samples and drill core is predominantly pyrrhotite +/-magnetite with arsenopyrite and pyrite in brecciated and altered sandstone. Highlighted drill results from the most recent 2017 core drill program are highlighted in the table below:

Hole ID

From (m)

To (m)

Length (m)

Gold (g/t)

KI17-004

188

310

122

1.82

Incl.

192

194

2

3.52

Incl.

216

220

4

3.54

Incl.

225

240

15

3.34

Incl.

279

288

9

3.20

Incl.

294

309.68

15.68

3.03

Incl.

32

42

10

2.60

Incl.

32

36

4

9.90

KI17-002

58

96

38

1.16

Incl.

68

76

8

3.98

KI17-002

150

154

4

1.20

Incl.

152

154

2

4.17

KI17-001

108

116

8

26.48

Incl.

110

112

2

92.76

KI17-001

132

138

6

5.70


Additional highlights from previous historic drilling at the Rusty zone also include:

  • 52.4 m at 3.27 g/t Au from surface
  • 35.9 m at 4.95 g/t Au from 134.1 m
  • 61.5 m at 3.3 g/t Au from 159 m
  • 24.1 m at 3.40 g/t Au from 34.0 m

Gold Point Zone / East Gold Point Prospect

The Gold Point Zone comprises a series of locally derived mineralized boulder fields of altered polymictic conglomerate that occur over a 500 m long trend. Historic rock sampling prior to 2012 returned maximum Au assay from this showing of 24.69 g/t. A single boulder 1.35 km to the SW grades 1.33 g/t and is along strike of the mineralized ‘horizon’. To the NE ~ 600 m mineralized boulders grading up to 2.36 g/t have been found. This area is the East Gold Point zone.

Mineralized rocks include polymictic conglomerate with magnetite-bioite-quartz-albite matrix, clasts of granite-siltstone-greywacke and hematite altered rock dominated by late hydrothermal feldspar and pyrite. The conglomerate rocks contain clasts of siltstone, ironstone, chert, phyllite, granite, and quartz vein hosted in a matrix of quartz, albite, biotite, and magnetite. The main alteration minerals associated with the gold mineralization are albite and quartz with minor actinolite and tourmaline. Zones of gold mineralization are intensely bleached and have no magnetite (magnetite destructive alteration). Highlighted drill results from the most recent 2017 core drill program are highlighted in the table below:

HOLE ID

FROM (M)

TO (M)

LENGTH (M)

GOLD (G/T)

KI17-005

35

99

64

1.46

incl.

37

51

14

3.12

incl.

57

63

6

3.292

incl.

95

97

2

3.13

KI17-005

248

258

10

6.5104


Additional highlights from previous historic drilling at the Gold Point zone also included:

  • 63.6 m at 2.84 g/t Au from 148 m
  • 12 m at 2.4 g/t Au from 120 m
  • 12 m at 3.9 g/t Au from 163.5 m

Cobalt Zone

The original showing at Cobalt was defined by a 4 x 8m outcrop of sulphide bearing siltstone and oligo-monomictic conglomerate. This rock type is easily weathered and transported down-ice resulting in a mineralized trend of boulders extending southwest from mineralization intersected in drill hole CS11-002 (21.3m @ 2.15 g/t Au). Mineralization intersected in drill holes from 2011 suggests a 250 m strike length.

A northeast trending string of lakes is thought to represent a fault or lithological boundary between the siltstone-conglomerate units to the northwest and the carbonate rich units to the southeast. This boundary is also identified in the ground magnetics as a sharp break between the outcrop area (magnetic high) and the limestones (magnetic low).

Alteration and mineralization can be identified in the outcrop showing. Pervasive albitization is identified along with actinolite-albite veining and late sulphide (pyrrhotite) albite-calcite veining. Other minerals include pyrite, cobaltite, chalcopyrite and arsenopyrite with later erythrite along fractures. Historic sampling returned values up to 15.5 g/t Au from the Cobalt showing area. Rock sampling in 2012 returned with values from below detection limit to 2.21 g/t Au.

A large concentration of gold bearing conglomerate boulders exist approximately 420 metres south of the original Cobalt showing area. It is likely that these represent glacially transported boulders but the distance of transport is unknown. In 2013 these boulders were targeted, in the up-ice direction, by one drill hole which failed to intersect significant gold grades. This area had been targeted with three prior drill holes by Newmont and by Prosperity with all holes suffering cave-in problems forcing abandonment.


Amundsen Zone

The Amundsen Zone is located 850 m south of the Cobalt Zone. Historic rock sampling discovered a mineralized boulder train, with samples up to 15.2 g/t Au. The one drill hole completed in this zone was completed in 2012, and was directed at the up-ice limit of the boulder train. It intersected 42m of 0.97 g/t Au including 12 metres at 2.3 g/t Au from 170m depth. Host rocks are clastic and could be from a volcanic or sedimentary protolith. Clasts are bleached white-pink and the matrix is typically dark green and composed of mainly secondary actinolite. The dominant sulphide is pyrrhotite and magnetite is disseminated in the matrix. Some samples are more massive with no visible clasts and contain stockwork actinolite-chlorite veins.


Rasmussen Prospect

The Rasmussen showing is the westernmost showing identified on the Property to date. This showing was identified during prospecting in 2012 and is defined by gold mineralization in frost heaved conglomerate boulders which are interpreted to have undergone minimal transport. Gold values from boulders at the Rasmussen showing range from 0.1 to 6.9 g/t. The dominant sulphide mineral is pyrrhotite with lesser arsenopyrite. Alteration commonly seen in the zone is albite-actinolite-carbonate. The Rasmussen showing occurs proximal to a major lithologic contact with interbedded siltstone and limestone. The showing occurs west of a low lying marsh that appears to separate the two lithologies suggesting a major structure could define the boundary between these two units. Two core holes were drilled her in spring 2013 and returned 0.5 g/t Au over 2 m.

South Snake Prospect

The South Snake showing is located 4 km South of the Rusty Zone at the south end of Snake Lake. The showing is defined by two 3m long boulders containing strong actinolite alteration and abundant pyrrhotite. The host rock is a clastic rock which has been bleached and brecciated with a carbonate actinolite rich matrix. Sulphides are concentrated in the breccia matrix but are also disseminated in the host rock. Grab rock samples up to 12 g/t Au were discovered prior to 2012 work. The source area for these boulders has not been identified by follow up work and the majority of surrounding rock is largely unaltered.

North Snake Prospect

The North Snake showing is defined by boulders with gold values up to 32 g/t. Two drill holes drilled at North Snake during the spring 2012 program failed to intersect significant mineralization. An additional two holes were drilled in 2013 intersecting hydrothermal breccias hosted in mudstone and siltstone. One interval returned 6m of 1.3 g/t Au in brecciated and quartz-carbonate-actinolite-biotite-magnetite altered mudstone with abundant pyrrhotite in the infill. Prospecting and mapping in 2012 identified a 200m long trend of mineralized boulders (1.0 to 3.84 g/t Au) “up-ice” of the drill holes suggesting the bedrock source is further to the north. Some of these mineralized samples were a pyrrhotite- and actinolite-rich rock very similar to that intersected at the top of Rusty drill hole KI12-003. Additional rock and till sampling along this boulder trend is required in order to define a justifiable drill target.

Heart Pond Prospect

The Heart Pond Showing is defined by several large boulders over a 90 x 100m area with gold grades up to 5.3 g/t. The host rock is described as pyrrhotite, pyrite, and arsenopyrite-bearing albite-actinolite-carbonate altered conglomerate. There is no obvious support from the magnetics or till sampling and as such this is thought to be a low priority drill target.

Airstrip Prospect

The Airstrip showing is defined by s 12 x 12 m outcrop that was originally found during prospecting in 1992. Historic rock sampling revealed mineralized samples up to 15.0 g/t Au. The host rock is described as a highly albitized and locally brecciated Tavani siltstone and conglomerate ( or felsic volcaniclastic) with massive pale white fine to medium grained albitite, to brecciated rock with albitized clasts floating in actinolite bearing matrix with slight foliation (Turner, 2011). The mineralized outcrop defining the airstrip showing was drilled by Newmont in 2008 but failed to intersect significant gold values.
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