- Current NI 43-101 gold resource of 1,182,000 ounces inferred confirmed with deposit open at depth;
- Located in Wawa, Ontario, an area of significant historical and current exploration (since 1890’s) and production (1902 to 1991);
- Proven mineable deposit on property which has seven past producing mines with historic production of over 120,000 ounces
- Current active exploration of its 4,921 hectares in Wawa, Ontario in well known gold bearing structures;
- Established regional infrastructure including proximity to Trans Canada Highway, regional airport, rail transportation, high voltage power lines, natural gas, and water sources;
- Management with a proven record of success in exploration and development of resource assets.
The Surluga property has been extensively drilled over the years with the primary objective of a large tonnage, low grade mineralization, near surface or open pitable resource. The property has significant potential for a high grade discovery underground in vein mineralization over large sections of the property. Very little exploration has been done on the higher grade vein deposits and their potential, possible or existing extensions. Management has compiled an extensive exploration program designed to identify and target those highly enriched deeper vein deposits with the intention of exploring by following the vein deposits and more importantly, to potentially find the source of the gold deposits. Such a discovery would immediately place the company into the exclusive club of owning a large scale world class gold deposit.
The mineral claims currently owned by the company is currently comprised of 172 patented and leased claims (2,345 hectares, 3.5km by 7.5km approx.) located 2km East of Wawa, Ontario in McMurray Township. These are considered superior mineral claims in Canada due to the fact that they do not have an expiration date and minimum expenditures are not required to keep these claims in good standing. Patented claims are owned in perpetuity and leased claims are for a total of 99 years.
Historically, there has been over $30 million spent on the property to date. The majority of the expenditures have been on exploration. It has been substantially proven by historic and current exploration programs that a mineable deposit exists in an open pit high, tonnage, low grade scenario. Management believes the former exploration emphasis on open pit, low grade high tonnage exploration did not properly unlock the true mineral potential of the property as there may be a greater resource with significantly higher grades at depth. It is management’s intention to commence an exploration program which will target the deeper mineral rich gold bearing vein deposits which are believed to have substantial occurrences consistently throughout the entire length of the property. Not only are we confident in the existence of increased mineable ore from deeper drilling, we are also very confident that higher grades will be associated greater volume of ore making it a much more economically mineable project. Management has now also acquired an extensive database of historic drilling, development and production information which was not available to previous operators of the project. In addition, and primarily due to advancement in technology, management has been able to obtain more detailed information about the deeper trending gold bearing structures which has further served to focus and streamline our targeted deep drilling exploration program resulting in greater efficiencies and economies from our proposed exploration program.
The property until recently hosted significant mine infrastructure assets including a shaft, mill, steel head frame, shaft house, sinking hoist and support buildings all of which were situated on site. The previous operators had made a decision to abandon their gold mining pursuits in order to return to their core business operations and as a result dismantled and sold their mining assets. Some of these mining infrastructure related items are no longer on the property but given their age and the long period of inactivity, these would have required significant refurbishment and upgrades to bring current which would have likely approximated the cost of new modern facilities. Management does not feel that the absence of these assets have in any way impaired the value proposition presented here. On the other hand, fortunately, management recognized an opportunity to acquire a significant former producer with a known resource which likely to be increased with limited exploration drilling and some developmental drilling. The acquisition of these near term production assets will significantly enhance the value of the company.
The property also contains a licensed tailings disposal facility. Licensed tailings facilities are rare with the exception of the senior producers who have invested significant amounts of money over their years of production to become and remain compliant with strict Canadian tailings disposal regulations. This facility has sufficient enough capacity to accommodate large scale mining of the resources currently on the property. As a licensed facility, we know that that it has met the strict conditions of the federal government with respect to disposal of waste material from gold mining and it is also a testament to the rigorous environmental safeguards currently observed during our exploration program on the project.