Gold Mineralization

Gold mineralization on the N2 property is located within the broad, regional scale Casa Berardi Deformation Zone which transects the property trending east-southeast. Throughout a roughly 1000 metre wide corridor the rocks within the deformation zone are variably faulted/sheared with the most intense shearing typically observed along lithology contacts and within sedimentary units where pre-existing "slip planes" have tended to focus strain. This high strain zones have also frequently served as conduits for hyrothermal fluids and, as permitted by local conditions, as the loci for gold deposition.

Minnova and Cyprus identified two types of gold mineralization on the N2 property. The "RJ" type mineralization is associated with silicified, often graphitic shear zones within either the volcanic or sedimentary units on the property. "A zone" type gold mineralization occurs in association with semi-concordant zones of pyrite and arsenopyrite within basalt units that are close to contacts with sedimentary rocks. Observations to date suggest that RJ type targets are somewhat higher grade and form relative narrow, quartz-rich steeply plunging and dipping zones of mineralization -- classic "Abitibi-style" gold mineralization.

The A Zone is a laterally extensive zone of mineralization which has been intersected for over 1,000 metres across the N2 property. Mineralized intervals can reach 10's of metres with higher grade sub-sections often appearing to be located proximal to structures cross-cutting this predominantly east-southeast trend of the zone. These structural intersections give rise to the potential for moderate to steeply plunging high-grade sub-zones which have seen limited evaluation on the property.

The South, RJ East and East Zones have seen very limited testing with the RJ East Zone locally exhibiting bonanza gold grades over narrow intervals.

Drilling by Aginco Eagle in 2008 led to the discovery of a third style of gold mineralization. This style of mineralization is associated with lenses or horizons of semi-massive pyrite within felsic volcanic rocks in the RJ Zone hanging wall. Agnico interpreted these zones as having affinity to certain other volcanic hosted massive sulphide related gold deposits in the region, those in the Joutel camp, which if accurate, opens the potential for the discovery of this very attractive style of mineralization on the property.