Bug Lake Gold Trend

The Bug Lake Gold Trend is centered around what is interpreted to be an early and frequently re-activated north-south striking, steeply to moderately east-dipping fault zone. To date drilling has traced the Bug Lake Trend for 1,200 metres along strike and it remains open to the south toward the Sunday Lake Deformation Zone. Drilling has intersected the favourable fault environment and gold mineralization to a vertical depth of over 400 metres and the system remains open to depth. Gold mineralization occurs in several discrete zones which collectively span widths of 30 to over 120 metres centered around the Bug Lake fault system.

The Bug Lake fault system is cored by a fine-grained, quartz porphyry unit. This porphyry is flanked by zones of strong brecciation, intense silica flooding and sericite alteration. Gold mineralization, typically in association with fine-grained pyrite, occurs through the silica flooded alteration zones surrounding the porphyry and in sub-parallel structure and vein zones developed in the hanging wall and footwall to the Bug Lake Fault system.

High-grade gold mineralization (> 5 g/t gold) is associated within zones of increased pyrite mineralization, quartz veining and visible gold mineralization within the most intensely altered and deformed portions of the Trend. Broad lower grade halos typically surrounding the higher grade gold mineralization over metres to tens of metres. Bonanza grade intersections are commonl throughout the Bug Lake system which has over the last two years produced some of the highest grade x thickness assay results ever recorded within the northern portion of the Abitibi.

Within the shallow parts of the system four principal zones of high-grade gold mineralization are recognized – from east to west, the Hanging Wall (HW), Upper Bug Lake (UBL), Lower Bug Lake (LBL) and Footwall (FW) Zones. As their names imply the UBL and LBL flank the upper (hanging wall) and lower margins of the Bug Lake Porphyry. These two zones typically exhibit the broadest zones of gold mineralization. The HW Zone, and several sub-parallel secondary zones, occur in mafic volcanic rocks 20-50 metres east of the core of the Bug Lake Fault. It tends to be the narrowest of the primary zones but commonly exhibits +30 g/t gold assays. The richest of the primary zones is the FW Zone which occurs in a quartz-gabbro host unit approximately 50 metres into the footwall of the Bug Lake Fault system. In general, the zone exhibits steep dips above 200 vertical metres and variable but generally south-plunging geometries.

In the third dimension, the Bug Lake Gold Trend exhibits a somewhat unusual “steep-flat-steep” geometry. The Trend exhibits steep dips of 85 to 90 degrees to the east between the bedrock surface and roughly 200 metre vertical depth. As the fault reaches below 300 metres vertical depth it again steepens and at deeper levels begins to exhibit slightly over-turned or west dipping geometry.

An initial resource estimate for the Bug Lake Trend remains pending. As at July 2015 detailed delineation drilling had been completed for the first of several panels (measuring roughly 300 x 200 metres) comprising the shallow portion of the Bug Lake Trend. This panel is located immediately north of a fault which offsets the northern and southern portions of the Trend by approximately 75 metres and tested the zone between the bedrock surface and approximately 200 metres vertical depth (the upper steep). Additional delineation and expansion drilling is on-going.

Drilling in the Bug Lake area has identified over a dozen additional zones of gold mineralization, commonly associated with quartz or quartz-carbonate veining proximal to the contacts with other felsic intrusive units within the local stratigraphy. The orientation of these features is variable and in most cases they are wide open in all directions for follow-up.