The Pistol Bay Project is located towards the eastern end of the Rankin-Ennadai Greenstone Belt. This belt of rocks is one of the largest greenstone belts in Canada with a concentration of dates that cluster at approximately 2.69 Ga. The Rankin-Ennadai belt consists of several outliers of Archean supracrustal rocks, with a moderate degree of stratigraphic correlation, that resemble outliers of a once much larger and possibly more continuous supracrustal sequence. The Project is in the Kaminak Belt or “Kaminak Group” of the larger Rankin- Ennadai Belt. The Kaminak Group consists of differentiated volcanic rocks, volcaniclastic and siliciclastic rocks, and iron formation with voluminous debris flows including coarse conglomerates, mudstones, and siltstones (Hanmer et al., 1998a, b) plus numerous synvolcanic to late tectonic plutons ranging from diorite to granodiorite. The Archean rocks are unconformably overlain by the Paleoproterozoic, 2.45 to 2.10 Ga Hurwitz Group, a siliciclastic-carbonate sequence that covers approximately 10% of the east half of the Property.
Within the Property, a major deformation zone of regional significance referred to as the Pistol Bay Corridor, has been identified. The Pistol Bay Corridor has a minimum width of two kilometres, trends at 290°, and captures all but one of the known gold occurrences in the area. Rocks within the corridor are more deformed and altered than those outside of it. Within the corridor the Kaminak Group is transformed to schists and proto-mylonite with varying amounts of secondary quartz, carbonate, chlorite, andsericite.
The Vickers Zone host rocks are characterized by a pronounced, penetrative schistosity reaching proto-mylonite and extreme secondary sericite and carbonate alteration. Because of their fabric and secondary hydrothermal alteration, it is difficult to ascertain the host rock protolith(s), however, they are derived from a parent rock of felsic composition, and possibly part of a felsic volcanic or volcaniclastic sequence derived from rhyolite, rhyolitic pyroclastic rocks, and quartz-feldspar porphyries. The mineralized zone at Vickers is located along the contact of a diorite intrusion. The nature of the intrusion is difficult to define because there are no unaltered primary rocks. Secondary, chlorite, white mica, rutile, and carbonate are ubiquitous and in thin section, the plagioclase grains have mortar texture caused by extreme strain.
Secondary hydrothermal mineral assemblages at the various gold occurrences on the Property are dominantly quartz, with variable amounts of carbonate, sericite, chlorite, and sulphide minerals (mainly pyrite). Quartz vein arrays with gold are the exception. The quartz in the majority of the gold occurrences is in the form of silicification of the rock volume or “quartz flooding” such that the gold zones tend to be “pipe-like” or amorphous rather than planar panels and arrays of quartz veins.
The Pistol Bay Project consists of a contiguous claim block comprising 87 claims and totalling 76,803 ha acquired by virtue of option agreements and ground staking. Field operations commenced in April 2011 and five drilling campaigns were completed in the summers of 2011, 2012, 2013, 2014 and 2015.
Roscoe Postle Associates Inc. (RPA) was retained by Northquest Ltd. to prepare an independent Technical Report on the Pistol Bay Project (the Project or the Property), located in Eastern Nunavut Territory, Canada. The purpose of this report was to support the disclosure of an initial Mineral Resource Estimate for the Vickers Zone. RPA visited the property on March 23, 2016.
At the Pistol Bay Project, gold is concentrated in banded iron formation at the Bazooka and Defender occurrences, which strongly resemble either Meadowbank or Meliadine. Gold is also concentrated in banded iron formation at the Sako occurrence, as well as in siliceous schists derived from a felsic precursor rock, somewhat like the Vault Zone at Meadowbank. At the Vickers occurrence, the gold concentration is in the margin and footwall of a diorite intrusion, which is quite different from anything at Meadowbank or Meliadine, but very common worldwide in Archean rocks, including Kalgoorlie, Western Australia. At the various other gold occurrences on the Property gold is concentrated in intrusions, sheared schistose rocks, quartz-carbonate stockworks, and iron formation, all of which are well documented in all Archean gold districts worldwide. (Evans, L, et,al, March 2016, Technical Report on the Pistol Bay Project, Eastern Nunavut, Canada).
Since acquiring the initial claims, Northquest has undertaken a comprehensive exploration program consisting of geological mapping and sampling, airborne geophysical surveys, and ground geophysical surveys. A total of six targets identified by reconnaissance work have been drill tested by Northquest. Approximately 101 diamond drill holes totalling 21,800 m have been drilled by Northquest on the Pistol Bay property, including 69 drill holes and 17,240 m at the Vickers Zone. The Vickers Zone, over which 80% of all Northquest drilling has been completed, is the only target area with sufficient information to define an initial Mineral Resource. RPA has prepared an initial Mineral Resource estimate for the Vickers Zone, using block models constrained with 3D wireframes on the principal mineralized domains. Values for gold were interpolated into blocks using inverse distance squared (ID2). The Mineral Resource estimate prepared by RPA for the Vickers Zone as of March 31, 2016 is summarized in the Table below:
|Classification||Tonnes||Gold Grade (g/t)||Contained Ounces (000)
Previous work at Pistol Bay
The only notable previous work completed in the area of the property was completed by INCO in the period 1983 to 1989. INCO discovered the Harpoon, Tommy, Cooey, and Vickers gold occurrences and drilled 16 holes at the Vickers Target and another 15 shallow scout drill holes at other targets in the general area. Other companies discovered the Pistol Porphyry and Mauser Group of gold occurrences but did not conduct any sustained exploration and only a nominal amount of shallow drilling at the Mauser Target.
The Pistol Bay Project is located approximately 60 km south of Rankin Inlet and within approximately 10 km of the hamlet of Whale Cove, which has a population of approximately 350. Both Rankin Inlet and Whale Cove are serviced by daily flights from Thompson and Winnipeg as well as other local communities. Access is via an all-weather, improved gravel road from Whale Cove, which passes through the centre of the Property. A branch off this road provides access to Northquest’s Pistol Bay camp by pickup truck and all-terrain vehicles (ATV). Northquest’s camp is located at 62°20’59” N, 92°44’56”W and can accommodate 30 people.
Whale Cove’s 1,200 m airstrip is located within two kilometres of the Property’s eastern boundary. Whale Cove also has a port facility that accepts sealifts from the rail head in Churchill and Montreal during the shipping season. Whale Cove provides a minimum of services. A greater range of services is available at Rankin Inlet including temporary accommodations, fuel, and emergency medical services. Rankin Inlet has a population of 2,600.
Work Completed by Northquest Ltd.
2011 Exploration Campaign
The summer of 2011 was the first opportunity for the Company to complete exploration at Pistol Bay. A summer camp was built in the east part of the property and one drill rig was transported from Manitoba to site. An airborne magnetometer survey of the property (fixed wing, 200 metre line spacing), broad-based reconnaissance geological surveys and prospecting, and 2,514 metres of drilling in 17 drill holes were completed.
The Sako, Beretta, and Bazooka gold occurrences were discovered by surface prospecting teams. The Vickers Target in the central part of the property was known at the time, and assessment reports filed by INCO in the 1980’s indicated that they had drilled 16 holes that intersected a very interesting gold zone that was very thick and had some good grades, however, at the time, the claims covering the target were the subject of a dispute between the vendor of the original 6 optioned claims and Agnico Eagle Mines which precluded any exploration by either party.
The targets that were tested by drilling were the Pistol Porphyry, Cooey, and Sako Targets. The best results in 2011 included 2.44 grams gold per tonne over 7.0 metres at the Pistol Porphyry Target, 2.00 grams gold per tonne over 6.17 metres at the Sako Target, and 5.11 grams gold per tonne over 1.00 metre at the Cooey Target. It was determined that the priority targets for follow up drilling were the Sako Target, the newly discovered Bazooka Target, as yet undrilled, and the Vickers Target, contingent upon a successful resolution to the claim dispute. The breakdown of drilling in 2011 is set out below.
2011 drilling statistics
|Target||Number of Holes||Nimber of Metres|
2012 Exploration Campaign
In 2012, the Company focused mostly on drilling and completed 4,580 metres of diamond drilling in 22 drill holes. Follow-up drilling was completed at the Sako Target, and the initial drill holes were completed at the Bazooka Target. The best results included 15.53 metres grading 1.76 grams gold per tonne at the Sako Target, and 11.17 metres grading 2.10 grams gold per tonne at the Bazooka Target. In mid-summer 2012, the claim dispute over the land that covered the Vickers Target was settled unambiguously in favour of the vendor of the original six optioned claims and the Company moved a drill to the Vickers Target in early August. Before the onset of winter conditions, Northquest completed fourteen drill holes at the Vickers Target. The best results were in PB-12-22 which intersected 156.48 metres grading 8.23 grams gold per tonne. That drill hole had an included intersection of 101.90 metres grading 12.34 grams gold per tonne. It was obvious that additional drilling on a priority basis was required at the Vickers Target and subject to the availability of capital, and time, that additional drilling was warranted at the Sako and Bazooka Targets. The breakdown of drilling in 2012 is set out below.
2012 drilling statistics
|Target||Number of Holes||Nimber of Metres|
At the end of the drilling season in October, 2012, the Company completed a high resolution airborne magnetometer survey (helicopter-towed, 50 m line spacing), over the Pistol Bay Corridor. At the time, the property covered approximately 45 kilometres of the Pistol Bay Trend. The purpose of the survey was to provide more detailed context of the setting of the known gold occurrences and to provide the background data to search for more targets in the Pistol Bay Corridor which would be the subject of follow up in 2013. In addition, the Company staked additional claims west of the Bazooka target in order to protect more land along the Pistol Bay Trend.
In summary, at the end of the 2012 field season, the total exploration expenditures (excluding acquisition and staking costs) were $4.9 million dollars and Northquest had obtained economically interesting drilling results at three widely spaced targets (Sako, Vickers, and Bazooka), which occur over a 20 kilometre long strike length of the Pistol Bay Trend. In the opinion of management the rate of discovery and drilling success with such modest expenditures demonstrated that the concept of the Pistol Bay Trend was validated, it was highly prospective, and permissive for a district of gold deposits equal to, or better than, the Meliadine Trend.
2013 Exploration Campaign
In March 2013, the Company completed another claim staking campaign in order to acquire additional strike length of the Pistol Bay Trend. Fifty-eight claims covering 507 square kilometres were staked. In August, 2013, two additional claims covering 16.70 square kilometres were staked south of the Vickers Target. The current land package constitutes 104 claims covering an area of 861 square kilometres protecting a strike length of 90 kilometres of the Pistol Bay Trend.
In May and June 2013, the Company commissioned the construction of an all weather, all season, camp facility consisting of a permanent, framed and insulated kitchen, plus 16 Weatherhaven buildings for accommodation, offices, emergency refuge, and core handling.
The new camp facility was occupied in early July, 2013. The planned exploration work had three main goals, viz.: i) to complete an additional ten drill holes at the Vickers Target which would provide infill, test the strike length of the mineralized zone over a distance of 200 metres, and provide two additional pierce points at a vertical depth of 300 metres, ii) to complete induced polarization and resistivity surveys of the Vickers and Sako Targets and an HLEM survey at the Bazooka Target in order to determine what, if any, geophysical anomalies were caused by the gold mineralization at each target, and iii) to complete a property-wide reconnaissance geological and prospecting program with nominal traverse spacings of 500 to 1,000 metres to follow up on gold-bearing rocks discovered in 2011 and 2012, and to search for new gold zones over the entire strike length of the property. In every instance, the exploration work completed in 2013 met or exceeded the goals.
At the Vickers Target, 2,016 metres of drilling were completed in 10 drill holes. Each of the ten holes drilled at the Vickers Target intersected the mineralized zone. The best intersection was 138.39 metres grading 3.79 grams gold per tonne in PB-13-06.
2013 Drilling Statistics
|Target||Number Of Holes||Nimber of Metres|
Induced Polarization (IP) and resistivity surveys were completed on a 16.3 line-kilometre grid at the Vickers Target, and on a 21.7 line-kilometre grid at the Sako Target. Horizontal loop (HLEM) surveys were completed on a 30.6 line-kilometre grid at the Bazooka Target and on a 16.4 line-kilometre grid at the newly discovered Defender Target.
The geophysical surveys indicate that the Vickers and Sako Zones have induced polarization and resistivity responses attendant with gold-bearing drilling intersections and surface rock samples. Those surveys will provide direction for the next phase of drilling with a high degree of confidence that the mineralized zone, at each target, will be intersected. The Bazooka Target, and its environment, is associated with conductivity anomalies that are interpreted as sulphide-rich gold zones in iron formation that will provide direction for the next phase of drilling, particularly in the vicinity of PB-12-04. At the Defender Target, gold-bearing outcrop samples are associated with conductivity anomalies in the limbs and axis of a large synclinal fold. Those conductivity anomalies are considered priority drilling targets.
The reconnaissance geological and prospecting programs made several discoveries of gold-bearing rocks, both in the stratigraphy of known gold occurrences, particularly near the Vickers and Sako Targets, and elsewhere within the Pistol Bay Trend. The new gold discoveries are summarized below.
New gold targets discovered in 2013
a) Ten rock samples of boulders and outcrops containing up to 87.20 grams gold per tonne over a 300 metre strike length of an untested IP anomaly between drill holes PB-11-15 and PB-12-03.
b) Nine rock samples of boulders and outcrops containing up to 6.33 grams gold per tonne over a 200 metre strike length of an untested IP anomaly east of PB-12-02
A parallel structure 1,000 metres south of the Sako grid. Five rock samples of float and frost heave contain up to 4.90 grams gold per tonne over a strike length of 800 metres. The rock types are similar to those on the Sako grid. The frost heave is probably in situ, however, if it has been glacially transported, the source area would be at least 1 kilometre west of the Sako grid where there is an outcrop that contains 3.28 grams gold per tonne (sample 893755).
Boulder field or frost heave 1,500 metres southeast of the Vickers Target. Six rock samples contain up to 3.89 grams gold per tonne over a 2,000 metre strike length. Some boulders resemble the rocks of the Vickers Zone. The boulder field is mixed with abundant iron formation boulders and rests upon a concealed magnetic anomaly interpreted as iron formation suggesting that the boulders are frost heave and in situ. This discovery may be a new, concealed gold zone, or it may be glacially transported boulders from the Vickers Target.
Outcrops 1 to 2 kilometres west of the Vickers Target. Three rock samples contain up to 1.82 grams gold per tonne. Appears to be a western extension of the Vickers Zone.
Between Vickers and Bazooka
A cluster of 3 rock samples 6 kilometres west of the Vickers Target containing up to 3.88 grams gold per tonne. Appears to be in the same stratigraphy and structure as the Vickers and Colt Targets, interpreted as a western extension of the Vickers Target stratigraphy.
Five rock samples of sulphidized iron formation contain up to 2.13 grams gold per tonne associated with conductivity anomalies in the limbs and axis of a synclinal fold.
Between Bazooka and Mauser
A cluster of three rock samples containing up to 55.70 grams gold per tonne on a northeast trend in a variety of rock types including granite and iron formation on the west contact of a 7 kilometre diameter granitic pluton in contact with felsic volcanic rocks and iron formation.
West of Mauser
A cluster of four rock samples of quartz stockworks containing up to 4.09 grams gold per tonne in a gabbro-diorite intrusion with a prominent magnetic anomaly.
West end of property
A cluster of six rock samples containing up to 6.50 grams gold per tonne in a northeast-trending shear zone of sericitic schist and quartz-carbonate stockworks hosted in basalt, gabbro, and possibly felsic rocks or sedimentary rocks. Traced for 1.5 kilometres.
2014 Exploration Campaign
In 2014 Northquest developed an exploration plan that would focus on expanding the known strike length of the Vickers Zone. In addition, three drill holes would test IP anomalies at the Sako Target, two drill holes would test for thickened iron formation in a fold axis near PB-12-04, and a 6,527 line-kilometre, fixed wing, magnetometer survey, with 100 metre line spacing and 62.4 metre sensor height would be flown over the western half of the property. The Company completed 4,550 metres of drilling in 2014 in 18 drill holes, of which 13 drill holes (3,783 metres) were completed at the Vickers Target, 3 drill holes (470 metres) were completed at the Sako Target, and two drill holes (296 metres) were completed at the Bazooka Target.
The drilling results continued to be impressive at the Vickers Target and included an intersection of 221.74 metres grading 1.65 grams gold per tonne in PB-14-08 and the known strike length of the gold zone was doubled from 200 to 400 metres. The drilling results from the Sako target were negative and the follow up drilling at the Bazooka target indicated that the gold-bearing iron formation was not thickened in the vicinity of PB-12-04. Additional drilling is required on a priority basis at the Vickers Target and elsewhere at the Bazooka Target.
2014 Drilling Statistics
|Target||Number of Holes||Nimber of Metres|
2015 Exploration Campaign
Northquest’s strategy and objectives for the 2015 exploration campaign were to complete drilling west and east of existing drill holes at the Vickers Zone, in order to extend the known strike length of the zone. Thirty-two holes totalling 7,838.19 m were drilled at the Vickers Zone. Most of the drill holes were between Sections 91+00 W and 84+00 W. The gold zone was extended to a strike length of 700 m and it is open to the east and down dip. Seven of the 32 drill holes were scout drill holes that tested various geological targets outside of the main gold zone. In addition, two drill holes (294.50 m) were drilled at the Defender Target. There were no gold concentrations in the Defender drill holes.
At the Vickers Zone, the best drilling results from the main gold zone were in PB-15-20 that intersected 39.00 m grading 2.57 ppm Au on Section 85+50 W. In addition, gold mineralization was encountered in several drilling intersections of the Eastern Porphyry including 19.00 m grading 2.22 ppm Au in PB-15-30 on Section 85+00 W. The eastern porphyry is an intrusion of variable thickness and it appears to be thickening to the north on Sections 85+00 and 85+50 W. The upper contact is approximately horizontal hence, it appears as though drilling north of holes PB-15-34, 30, and 33 and also east of PB-15-33 will continue to provide shallow, gold bearing intersections of the eastern porphyry. The 2015 drilling reveals that the Vickers Zone and the gold zone in the newly discovered eastern porphyry remain open to the east and at depth.
Detailed mapping and channel sampling was carried out at the CZ zone in 2015. The 25 channel samples returned two consecutive samples assaying 6.26 ppm Au over 1.35 m, and 2.62 ppm Au over 0.99 m, as well as two other selected grab samples grading greater than 1.0 ppm Au in siliceous intrusive rocks.
In order to optimize and upgrade new drilling targets on the Property, Overburden Drilling Management (ODM) was engaged in 2015 to conduct pilot surveys, and if warranted, detailed geochemical surveys of the Vickers area and the Bazooka area. The pilot surveys consisted of 40 frost boil samples over and down-ice of these occurrences.
At the Vickers Zone, the pilot survey determined that there is a strong, narrow dispersal train directly down-ice from Vickers Zone that contains up to 731 gold grains per 10 kg sample and that the dispersion train is strong at least 500 m down-ice of the gold zone.
At the Bazooka gold occurrence, the pilot survey determined that the gold grain background is high (up to 40 to 50 grains per 10 kg sample) and that there is a gold dispersal train with up to 358 grains per sample passing directly over the Bazooka gold occurrence. Moreover, the gold dispersion train was also unusually strong relative to the known gold occurrence (based on information from a single outcrop and nearby drill holes) and unusually wide and continues up-ice of the Bazooka gold occurrence indicating that there was a new and larger bedrock source to northwest. In addition, the width of the gold dispersion train suggested that the bedrock source mineralization strikes northeast.
Both pilot surveys indicated that thawed frost boils were abundant and that they reflected the composition of the underlying bedrock. In fact, the Bazooka pilot study indicated that there was a bedrock source for gold in a large area up ice of the gold occurrence that had yet to be defined.
Accordingly, larger, detailed surveys consisting of 424 frost boil samples were completed in the area of the Vickers Zone and the Bazooka gold occurrence. Emphasis was made to find the source of the gold up ice of the Bazooka gold occurrence. The frost boils in each area were sampled on an approximate 500 m by 200 m spacing. The 10 kg samples were riffle tabled and the resulting gold grains counted.
While both the Vickers Zone and Bazooka deposit did have strong gold dispersion trains, an unexpected, extremely strong and well-defined gold dispersion train was delineated as sourcing from the northwest contact of a gabbro/diorite intrusion with a large granitoid intrusion 1.5 km northwest of Bazooka. A single rock sample at the contact contains 1.71 ppm Au and two samples of glacial float collected in 2013 are in the dispersion train and contain 23.40 ppm Au and 12.20 ppm Au. The newly discovered gold grain anomaly was shown to be part of a very large and systematic dispersal train - now known as the Howitzer Anomaly – which was traced three kilometres up-ice across a sheared and altered quartz diorite intrusion that closely resembles the Vickers Zone, to the contact of the quartz diorite with a sterile granitic pluton.
During July and August 2014, an aeromagnetic survey was completed by Terraquest Ltd. in the west part of the Property. A total of 6,938 line-km were flown at an average line spacing of 100 m and a magnetometer height of 62 m. The results from this survey improved the understanding the probable underlying geology. Various lithological terrains could be interpreted from the high-resolution magnetics including two large zoned intrusions, probable gabbroic intrusions, and volcanic-sedimentary-iron formation sequences.
The rocks of the Property are in the chlorite zone of greenschist facies of metamorphism. Some of the basalts near the Mauser occurrence, and the basaltic sequence north of the Property in Pistol Bay still have a glassy appearance and may be in zeolite facies of regional metamorphism.
At the Vickers Zone, a strong but narrow gold dispersion train in 210 frost boil samples is detected for up to one kilometre down ice of the gold zone and samples contain up to 731 gold grains per 10 kg sample.
2015 Drilling Statistics
|Target||Number of Holes||Nimber of Metres|
Summary of all drilling at the Pistol Bay Project
|Target||Number of Holes||Nimber of Metres|
|Total 2011 to 2015||100||13,659.06|
Mineral Occurrences of the Pistol Bay Project
The Vickers Zone is located in the northwest-trending Pistol Bay Corridor in the central part of the Property. The Vickers Zone host rocks are a sequence of quartz-sericite-carbonate schists and proto-mylonites. The schistose rocks at Vickers are locally known as “pipeline rocks” due to their pronounced, penetrative, schistosity reaching proto-mylonite, and extreme secondary sericite and carbonate alteration. The pipeline rocks define the Pistol Bay Corridor. Due to of the fabric and secondary hydrothermal alteration superimposed on the pipeline rocks, it is difficult to ascertain their protolith(s), however, they are derived from a parent rock of felsic composition, and are possibly part of a felsic volcanic or volcaniclastic sequence derived from rhyolite, rhyolitic pyroclastic rocks, and quartz-feldspar porphyries.
The mineralized zone at Vickers is along the contact of a diorite intrusion. The nature of the intrusion is difficult to define because there are no unaltered primary rocks. Secondary, chlorite, white mica, rutile, and carbonate are ubiquitous and in thin section, the plagioclase grains have mortar texture caused by extreme strain. The least altered rocks in the western part of the intrusion have retained some remnant magnetism and nominally have a relict igneous texture with plagioclase grains surrounded by a matrix of chlorite and rutile pseudomorphs presumably after clinopyroxene. In addition, there are abundant dikes and pipe-like bodies varying in composition from quartz diorite to granite.
The contact of the intrusion with the pipeline rocks trends approximately 295° and dips approximately 60° to 70° to the south. The intrusion is elliptical and approximately one kilometre in length, based on mapped contacts with the surrounding rocks, which are mature quartz arenite. On the east contact of the intrusion, the quartz arenite sequence is a mature, cross-bedded sequence of highly variable attitude caused by complex folding. Bedding of the quartz arenite sometimes dip north and away from the intrusion, i.e. the opposite dip of the intrusion and footwall contact. Bedding of the quartz arenite is commonly in the opposite direction of the schistose, planar fabric of the intrusion and footwall contact and there are no known intrusions of gabbro or diorite in the quartz arenite.
Tommy was first determined to be an area of interest in 2011 resulting from two high grade samples described in a Canico assessment report (AR082679) that returned 1.05 ppm Au and 9.80 ppm Au. Airborne magnetics also suggested that this was an iron formation/sedimentary package that was in the same stratigraphic horizon as the Cooey Target.
Prospecting, mapping, and sampling programs were carried out in 2010, 2011, 2013, and 2015. The 12 samples collected during these periods returned mostly trace gold values with only two samples returning 0.49 ppm Au and 0.50 ppm Au.
The Cooey occurrence is an outcrop of gold bearing banded iron formation with quartz stockworks and minor disseminated pyrite, pyrrhotite, and arsenopyrite all hosted in a greenish argillite/siltstone. Airborne magnetic anomalies suggest that the iron formation is folded into a complex series of disharmonic folds that are distributed in a northeasterly trend for approximately two kilometres. Seven drill holes totalling 828.60 m were completed in 2011 and 2012. The best result was 5.11 ppm Au over 1.0 m.
The Sako Target was discovered during the due diligence examination of the Property in September 2010. The target is located in the northwest-trending axis of a large geophysically inferred fold defined by iron formation which had been displaced from, or altered within, the fold nose. Two outcrops were sampled that contained 2.15 g/t Au and 1.55 g/t Au from siliceous, white, hard, deformed and altered, felsic porphyries with 1% to 3% disseminated pyrite in contact with iron formation. Other outcrops in the fold axis consist of a mixture of quartz-feldspar porphyry, quartz-sericite-carbonate schist, argillite, iron formation, and gabbro. All of the rocks in the fold axis are highly deformed and schistose.
Secondary hydrothermal alteration of the rocks to mineral assemblages rich in quartz, carbonate, chlorite, and sericite is ubiquitous in all of the rocks in the fold axis, such that, the rocks are referred to as “pipeline rocks”. This is because they are a northwest-trending shear zone (i.e. the Pistol Bay Corridor), through which there has been a massive amount of hydrothermal fluid flow attendant with deformation. Much of the stratigraphy of the Sako target consists of banded, quartz-carbonate-sericite schist and proto-mylonite, which is sometimes gold bearing where it contains more than a few percent pyrite. The most prospective rocks in this shear zone are silicified felsic porphyries and a discontinuous, tectonically dismembered iron formation which is hosted, and intruded by, felsic porphyries.
The silicified porphyries or “high silica rocks” are white, very hard, fine to medium-grained, massive and sometimes stand out topographically as rounded mounds of glacially-polished outcrops. The silicified porphyries are gold bearing wherever they contain secondary iron carbonate, fine quartz stockworks and more than approximately 1% fine grained disseminated pyrite.
The iron formation is finely laminated chert, magnetite, and argillaceous bands. It is commonly demagnetized and mineralized with quartz stockworks, secondary pyrite, hematite, carbonate, and gold. The primary stratigraphy of the shear zone appears to be a volcanic sequence of felsic pyroclastic or volcaniclastic rocks and porphyries interdigitated with argillite and iron formation and intruded by gabbro and quartz-rich porphyries. The north boundary of the shear zone is along the north side of the Sako grid, almost coincident with the road, and the south boundary of the shear zone is not known; it has a minimum width of two kilometres in the Sako Target area and it trends northwest to the Vickers Zone. Ten drill holes comprising a total of 1,562.14 metres were completed at the Sako Target in 2011, 2012, and 2014.
Pistol Bay Porphory Target
In 2011, detailed mapping and rock grab sampling was completed. Selected rock grab samples commonly contain several ppm gold. The occurrence is an albite-carbonate-pyrite breccia zone hosted in a felsic porphyry. The zone is approximately 200 m long, up to approximately 30 m wide, and trends west-northwest. In 2011, Northquest drilled six holes totalling 1,052.80 m on the target. The best intersection was 2.44 g/t Au over seven metres, however the mineralization is discontinuous and was generally less than a few hundred ppb gold.
The Beretta Target was first examined during the preliminary 2010 survey as a follow-up to two historical samples that were reported as containing 3.60 ppm Au and 4.78 ppm Au. Sampling during the initial survey returned up to 1.54 ppm Au from a sheared, carbonatized argillite.
During the following field season 10 grab samples and 24 channel samples were collected from the basalt, feldspar porphyry, and carbonatized shear zone. Three channel samples of feldspar porphyry assayed 0.85 ppm Au, 0.91 ppm Au, and 1.15 ppm Au. The carbonatized shear zone returned only background values. Gold analyses from the grab sampling were up to 1.00 ppm. Table 7-3 lists the results of the samples taken in the Beretta area.
The Kimber Target boulder field is 1,500 m southeast of the Vickers Zone. The rocks resemble the footwall sequence of the Vickers Zone somewhat, and could conceivably be glacially-transported fragments from the Vickers Zone. Conversely, the great size and angularity of the boulders is more consistent with frost heave, plus the boulder field is on a magnetic anomaly interpreted as iron formation, and there are abundant fragments of iron formation mixed with the mineralized boulders of the target. Accordingly, it is plausible that this target is a new mineralized zone parallel to, and south of, the Vickers Target. Six rock grab samples contain up to 3.89 g/t Au over a 2,000 m strike length.
The Colt occurrence is in rocks that resemble the Vickers Zone footwall sequence and is along strike 2,000 m west of the Vickers Zone. The Colt Target is interpreted as a western extension of the Vickers Zone footwall stratigraphy. Table 7-5 lists the results of samples taken from the Colt area.
This target is a cluster of three rock grab samples six kilometres west of the Vickers Zone containing up to 3.88 g/t Au. The target appears to be in the same stratigraphy and structural setting as the Vickers Zone and Colt Target.
The Bazooka Target is a 3.0 km by 2.0 km magnetic anomaly coincident with a very contorted iron formation that is almost completely concealed by moraine. In 2011, a single outcrop of iron formation was discovered in a part of the magnetic anomaly where iron formation appears to be dismembered by deformation, hydrothermal alteration, or a combination of the two. The outcrop consists of pyritic banded iron formation with quartz vein stockwork at high angle to the bedding of the iron formation. Twelve surface grab samples were collected that contained, on average, 3.84 g/t Au. Other outcrops in the anomaly are grey siltstone, which is the host rock to the iron formation, gabbro, and granite.
Four drill holes totalling 525.8 m were completed on the Bazooka Target in 2012.
The Defender Target is part of the 3.0 km by 2.0 km magnetic anomaly that contains the Bazooka Target. As at the Bazooka Target, Defender consists of a thick iron formation layer hosted by grey siltstone. The iron formation is well exposed and forms an east-plunging synform with an amplitude of 300 m. In the 1980s, Canico collected a rock sample containing 4.23 g/t Au from quartz veins in iron formation, and had drilled two holes on the north limb of the syncline. During the due diligence investigation of the project, the iron formation outcrops were noted and a sample of very highly pyritized iron formation frost heave was collected that contained 0.73 g/t Au. During the summer of 2013, several outcrops and frost heave of very highly sulphidized iron formation were discovered by Northquest on the south limb of the syncline.
Samples taken of very pyritic, sulphidized iron formation, exhibiting classical textures of secondary reduction of magnetite lamina and replacement by pyrite, were gold bearing and there are spectacular exposures of folded iron formation with pronounced fold hinge thickening.
During the 2015 field season, Overburden Drilling Management of Ottawa (ODM) was engaged to examine the possibility of using frost boil sampling to locate areas of potential gold targets beneath the extensive till-covered portions of the Property.
A pilot program of 40 frost boil samples on a nominal 200 m by 250 m grid was initiated to determine whether:
i) till is exposed sufficiently between the paleomarine beaches to permit sampling at the desiredspacing,
ii) thawed frost boils are sufficiently common to allow sampling of the otherwise permanently frozentill,
iii) the overall composition and gold content of the till adequately reflect those of the underlyingbedrock.
Since the pilot survey determined that all of the above three conditions were met, two detailed surveys were planned and carried out over the Vickers Zone and Bazooka Target areas, consisting of a total of 424 sample sites of which 210 were from the Vickers area and 214 were from the Bazooka area. The grid was nominally 200 m by 500 m.
The Howitzer occurrence has two parts, i) it consists of a sample of bedrock from the source area of a gold in till dispersion train, and two samples of gold bearing float from down ice of the source of the gold in till dispersion train, and ii) it consists of a very distinctive and very well defined gold dispersion train discovered in a 200 m by 500 m detailed frost boil till geochemical survey, in which the dispersion train is approximately one kilometre in strike length and is detectable down ice for at least three kilometres. The gold concentrations in the frost boils are up to 2,000 gold grains per 10 kg sample. The source area of the gold dispersion train consists of silicified and quartz veined diorite with disseminated stringers and grains of pyrite. These rocks closely resemble the rocks of the Vickers Zone, which has a narrow gold dispersion train traceable for at least 500 m down ice and has up to 731 gold grains within a ten kilogram sample.
The 1 x 3 kilometre dimensions of the Howitzer gold dispersal train closely match those of the train from the Blackwater gold deposit in British Columbia that was defined by ODM for Newgold Inc. The gold grains are significantly finer than those in the Blackwater, Meliadine and Rainy River trains and account for only 15 percent of the total gold detected by geochemical analysis. The balance of the gold was probably once held in pyrite grains that were dispersed together with the gold grains but subsequently degraded by post-glacial oxidation of the till. Many of the fragments in the till samples from the Howitzer gold occurrence consist of silicified dioritic rock with disseminated grains and stringers of pyrite, much like the rocks in the Vickers intrusion. The fact that the Howitzer gold dispersion train resembles the gold dispersion train of the 8.19 million ounce (reserves) Blackwater gold deposit, and that the source area resembles the rocks from the Vickers gold zone make the Howitzer gold occurrence a priority target for drilling. In the opinion of the writer, the Howitzer gold occurrence should have a higher priority for drilling than additional drilling at the Vickers gold zone because of the possibility that the Howitzer gold occurrence could turn out to be a larger deposit based on the fact that the gold dispersion train of the Howitzer gold occurrence is much larger and stronger than the gold dispersion train from the Vickers gold zone. The report by ODM on the results and interpretation of the frost boil sampling (ODM 2016) is available on the Northquest website www.northquest.biz.
This target is a cluster of three rock grab samples containing up to 55.70 g/t Au. The target is in a northeast-trending shear in a variety of rock types, including granite and iron formation, on the western contact of a seven kilometre diameter granitic pluton in contact with felsic volcanic rocks and iron formation.
The Mauser occurrence was probably discovered in the 1930s. It is a small, discontinuous, northeast-trending quartz vein array that crops out in coarse conglomerates and basalt on the southeast shore of Bannock Lake (its original namesake). Several companies over the years have re-sampled the original gold showing, however, nobody has been able to upgrade the status of the occurrence to a high priority drilling target. Samples collected by Northquest from old trenches contained up to 40.70 g/t Au, however, the veins are small and discontinuous.
The CZ occurrence is a complex intrusion of diorite to felsic feldspar porphyry with quartz stockworks. The intrusive rocks are hosted by siliciclastic sedimentary rocks and lean magnetite iron formation. The occurrence is a cluster of rock samples of quartz stockworks and shear zones containing up to 4.09 ppm Au in a gabbro-diorite intrusion and iron formation with a prominent magnetic anomaly. The rock types are somewhat like the Vickers Target. In 2015, the CZ occurrence was mapped and sampled in detail. In 2015 a channel sample of a quartz stockwork within felsic intrusive rocks contained 6.26 ppm Au over 1.35 m.
The Barrett occurrence is a zone of shearing and sericite-carbonate alteration and quartz stockworks interpreted to be at least 50 m wide and traced for 1.5 km. The host sequence is basalt and gabbro, possibly intermixed with felsic rocks. This occurrence is a cluster of six rock grab samples containing up to 6.50 g/t Au in a northeast-trending shear zone of sericitic schist and quartz-carbonate stockworks.
Location of the Pistol Bay in Nunavut, Canada
Magnetic anomaly map illustrating the Meliadine and Pistol Bay gold trends, the two trends appear to be mirror images on either side of a block of grantic gneiss
Gold occurences and geology of the Pistol Bay Project
Gold occurences and airborne magnetics (TMI) of the Pistol Bay Project
Gold occurences and airborne magnetics (Calculated Vertical Gradient) of the Pistol Bay Project