Location and Land
The Mirado gold project is located 35 km southeast of the gold mining Town of Kirkland Lake in northeastern Ontario. The entire Mirado property encompasses 3,440 acres. The focus of the Mirado Gold Project consists of 12 contiguous patented claims, with surface and mining rights, owned 100% by Orefinders, subject to a 3% NSR with a capped buyout.
Surrounding the core patent claims, Orefinders has optioned and/or staked 23 additional contiguous claims covering approximately 5 km of prospective strike length. Two underlying agreements are in place with two separate vendors (MZ option and Ashley options) and are best described on the claim location map. Both option agreements are favourable for Orefinders and lead to 100% ownership with low work commitments and low cash payments. The 3,440 acre property land package has never been systematically evaluated as a single land package by advanced exploration techniques.
The Mirado gold project is situated within the Abitibi Gold District which has historically produced more than 200 million ounces of gold over the past century, with more than 100 million ounces of gold in current reserves. The prolific Kirkland Lake mining camp is located in eastern Ontario close to the Quebec border and has historically produced 50 million ounces of gold. Much of the historical Kirkland Lake gold production has taken place along or near a major regional geological fault structure known as the Larder Lake-Cadillac Fault (LLCF).
A regional geological map indicates the location of the Mirado property in relation to all of the major gold deposits located along or near the LLCF. Mirado property is favorably located near the top of an Achaean intermediate to felsic, fragmental calc-alkaline volcanic sequence known as the Skead Assemblage. Gold mineralization is structurally controlled and has been identified along NW-SE trending shear zones. North-South brittle structures have also been recognized on the property as being favourable for gold mineralization. A regional northwest trending fault defines the upper contact of the Skead Assemblage with ultramafic to mafic metavolcanic rocks of the McElroy Assemblage. This faulted contact is situated on the northern half of the property.
Gold on the Mirado Gold Property was first discovered in the early 1920's and later mined by underground methods to a depth of 500' in the 1940's. Since then several exploration programs, diamond drilling campaigns, and underground and open pit mining activities have taken place. Over 40,000m of drilling completed by several companies including Mirado Nickel Mines, Broulan Reef, Amax Minerals Exploration, and Golden Shield Resources Inc (Golden Shield). The previous work can be reviewed in historic reports available on the Ontario government website, which includes an environmental base line study, bulk sampling, stockpiling of open pit and underground material and metallurgical test-work programs. Dynatec Mining Ltd. was contracted by Golden Shield in 1986 for underground and open pit operations. Much of the Mirado south zone was pre-stripped and an open pit was mined to a depth of 30m. The material removed from the pit was stockpiles on the Mirado property where is remains today.
Metallurgical test-work was undertaken under the supervision of A. S. Hayden of EH Associates in 1986. Settling and filtration tests were conducted and test slurries were prepared by Lakefield Research. A study of three alternative metallurgical processes was undertaken, including (1) selective flotation with cyanidation of concentrate; (2) direct cyanidation of ore with Merrill- Crowe recovery; and (3) direct cyanidation of ore, with carbon in pulp gold recovery. Gold recoveries up to 95% were realized. In addition to amalgamation and flotation test-work metallurgical recovery studies, ore microscopy and mineralogical studies were completed, and the Bond Work Index was determined to be favorable due to the general lack of quartz veins in the Mirado gold mineralization.
In June 2013 Orefinders commissioned SRK Consulting (Canada) Inc. ("SRK") to complete a mineral resource estimate for the Mirado project which includes existing historical stockpiles. The mineral resource estimate based on the 2013 drilling program is currently being finalized and will be reported in the near future. The mineral resource estimate will combine 12,049 m (40 holes) of diamond drilling completed in 2013 by Orefinders and 19,597 m of diamond drilling completed by previous operators during the 1980's.
In addition, approximately 2.2km2 of prospective ground has been covered by ground geophysics, including deep penetrating chargeability and resistivity IP and magnetics.
Gold grades of the stockpiles were estimated by an inverse algorithm (power of three), within a wireframe defined for the extents of each of the Stockpiles. Orefinders sampled the Northern and Central Stockpiles on a regular grid of 7.5 metres and the Southern Stockpile on a regular grid of 10 metres. Orefinders surveyed the areal extents of the stockpiles using a differential GPS receiver. Due to the larger size of the Southern Stockpile, Orefinders also surveyed the thickness of this stockpile using the same equipment.
Gold grades were estimated in each stockpile separately using capped composited data. Block sizes for the Northern, Central and Southern Pile are 2.5 x 2.5 x 5 metres, 2.5 x 2.5 x 1.5 metres, and 2.5 x 2.5 x 2.5 metres, respectively. The mineral resources are reported at a cut-off grade of 2.0 grams per tonne gold, assuming a gold price of $1,400 per ounce of gold and a metallurgical recovery of 95 percent. The specific gravity was assumed at 1.5, corresponding to a swell factor of approximately 55 percent for blasted rock and a specific gravity of 2.75 of the in-situ rock. Composited data were capped at 16, 20, and 9 g/t Au for Northern Pile, Central Pile and Southern Pile, respectively. The Mineral Resource Statement for the three stockpiles is shown in Table 1.
Table 1: Mineral Resource Statement*, Stockpiles, Mirado Gold Project, Ontario, SRK Consulting (Canada) Inc., October 25, 2013
* Mineral resources are not mineral reserves and do not have a demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates. Figures are reported at a cut-off grade of 2.0 gpt gold, assuming a gold price of US$1,400 per ounce, and a metallurgical recovery of 95 percent.
|Grade Gold (gpt)
An Environmental Baseline Study (EBS) is currently underway (see news release dated September 17th, 2013), under the management of Story Environmental Inc. Surface and ground water testing/monitoring and benthic sampling has begun on the property. A weather station has also been installed on site as well as an air quality monitoring station. Story Environmental is located in Hailyburry and has completed EBS's for several projects in the Kirkland Lake area.
First Nations communication is important to Orefinders with regard to the future development of the Mirado Property.