Orefinders Resources Inc. is focused on gold exploration in Canada's richest gold mining camps, with promising gold projects strategically located in the Kirkland Lake and Red Lake gold districts. Both of these major gold districts have an established track record for the discovery and development of world-class gold deposits in mining-friendly jurisdictions. The Derlak Red Lake Property is strategically located in the prolific Red Lake Greenstone Belt (RLGB) approximately 5 kilometers southwest of the Town of Red Lake and 1.6 kilometers northeast of the past producing Madsen Mine (~2.4 million oz Au) along a major unconformity known as the "Madsen Trend". The Property is accessible year round by paved highway and gravel roads. A major power line is present along the eastern claims on the property.
The Red Lake Greenstone Belt has produced over 25 million ounces of gold since the 1930s (Lichtblau et al., 2010). The Property is tied onto the past producing Madsen Mine which is currently owned by Claude Resources Inc. and contains several gold zones previously mined underground from 1938 to 1974 and 1997 to 1999. Total past production from Claude's Madsen Mine is approximately 8.7M tons at 0.289 ounces of gold for approximately 2.4M ounces of gold.
The Derlak Red Lake Property consists of eleven contiguous patented mining claims. Orefinders has the ability to earn 100% ownership by way of low annual cash payments and modest exploration expenditures over three years. The Derlak Red Lake claims are situated immediately northeast of the past producing Madsen Mine, owned by Claude Resources Inc. The Orefinders Derlak property is bounded to the north by the Newman-Madsen claim block, currently held by Sabina Gold and Silver Corp.
Exploration on the Orefinders Derlak Red Lake property dates back to the 1930s. The first significant work on the Property, by Derlak Red Lake Gold Mines Ltd. included the drilling of nine holes in 1936 and 1937, geophysics and surface trenching. There were additional diamond drill programs and mapping carried out in 1944 (seven holes), drilling in 1967 (eleven holes), drilling in 1982 (six holes) and in 1998 (four holes). All diamond drilling campaigns focused on the near surface mineralization along the Madsen trend at shallow depths of less than 150 m vertical depth.
Several drill holes were successful in identifying low grade gold mineralization within the Austin and McVeigh Tuff horizons at shallow depths (<30 meters below surface). The Austin Tuff and McVeigh Tuff horizons are the host rock for gold mineralization at the adjacent Madsen Mine property southwest of the Derlak claims. The two favourable Tuff Horizons extend northeast along strike from the Madsen Mine property onto the Derlak Red Lake Property and represent the primary target at depth for Orefinders. Deep penetrating geophysics surveys will test the favourable tuff horizons at depths beyond all previous drilling in areas of known gold mineralization on the Orefinders property.
Derlak Red Lake Property remains largely untested and has the potential for discovery of economic mineralisation near-surface and at depth, along the Madsen Trend for a strike length of up to 1200m across the property.
The Derlak Red Lake Property is underlain by the Balmer and Confederation assemblages. The north-western part of the property is underlain by the Balmer assemblage, primarily tholeiitic and komatiitic mafic and ultramafic volcanic rocks based on past mapping. The Balmer assemblage rocks form the structural footwall to the angular unconformity (and associated ore zones) marking the contact between this assemblage and the younger Confederation assemblage.
The unconformity on the adjacent Madsen Mine property strikes about 030º and dips at about 65º to the southeast. Intrusive rocks including peridotite, pyroxenite and gabbro are documented on the neighbouring Madsen Mine property in the Balmer assemblage and also in mapping by Selco, Placer Dome and others on the Derlak Red Lake Property. On the south-eastern part of the Property rocks from the Confederation assemblage consist of felsic to lapilli tuffs, porphyritic lapilli tuffs, crystal tuffs and variations of these. Diorite-granodiorite dykes that appear to be relatively fresh and unstrained cut both assemblages.
A cost-effective, systematic integrated geophysical / geological/ geochemical exploration program will be followed up by interpretation and drilling of selected targets by Orefinders.
Derlak Red Lake Property - Terms of Option Agreement to Earn 100% Interest
Derlak Red Lake
- Cash Payments
- $10,000 on signing
- $20,000 on or before 1st anniversary
- $30,000 on or before 2nd anniversary
- Work Commitments
- $200,000 expenditure before 1st anniversary
- $300,000 expenditure before 2nd anniversary
- $500,000 expenditure before 3rd anniversary
- Terms of 3% NSR
- 3% NSR of which 1% can be purchased for a total payment of $1,000,000
- 2% NSR retained by Vendor