The Mirado-Kirkland Lake property (Mirado) is located 35 km southeast of the gold mining town of Kirkland Lake in northeastern Ontario. The Mirado property was optioned from Micon Gold Inc. and consists of 12 patented claims located in McElroy and Catharine Townships. Both the surface and mining rights are owned outright by Micon Gold Inc. Orefinders has an option agreement in place which provides a fast track to 100% ownership, including a capped purchase price for the entire NSR.
The MZ property consists of an additional ten contiguous staked mining claims surrounding the Mirado property. This property was optioned from two local prospectors who are active in the Kirkland Lake region. The MZ claims cover an additional 45 (forty-five) units of land in Catharine and McElroy Townships. The claim map above indicates the location of the Mirado and MZ properties.
The Mirado Kirkland Lake gold property is located in 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 world class gold deposits located along or near the LLCF. World class gold-rich volcanogenic massive sulphide (VMS) deposits located along or near the LLCF are also presented on the map, including the Horne Mine and deposits of the Doyon Bousquet-Laronde gold mining camps. These mines are located immediately east of the Ontario-Quebec border. The Horne Mine was a world class polymetallic ore deposit that produced more than 10 million ounces of gold and 2.5 billion pounds of copper. To date, the gold rich Doyon Bousquet-Laronde VMS deposits have produced over 22 million ounces of gold. Polymetallic mineralization present at the Mirado project shares similarities in age and styles of mineralization with the Doyon Bousquest-Laronde deposits.
Gold mineralization at the Mirado is favorably developed near the top of an intermediate to felsic, fragmental calc-alkaline volcanic sequence known as the Skead Assemblage, which is age dated at 2701 Ma (+/- 2 Ma). A major northwest trending fault defines the upper contact of the Skead Assemblage with ultramafic to mafic metavolcanic rocks of the McElroy Assemblage , which is age dated at 2705 Ma (+3/-2). This faulted contact is situated on the northern half of the property.
During the period from 1930 till 1987, the Mirado property has been subject to several exploration programs, several diamond drilling campaigns, and underground and open pit mining activity. 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. A summary of this work can be reviewed at the following website:
This historical report included detailed plans for a proposed open pit to be developed during the winter of 1987.
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 93% 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.
Environmental base line studies were conducted at the Mirado deposit in 1986 by The Environmental Applications Group Limited in 1986. This study examined the surrounding fish and wildlife habitat, surrounding watersheds, land-use, land-ownership, forestry and mining activities, environmental and surficial geology and tailings disposal. A base line water sampling program was also completed. The conclusion from the 1986 study was that there were no red flags identified.
In early 1987, Dynatec stripped the open pit area known as "The South Zone." Preliminary work indicated that an overall stripping ratio of 3:1 was economic, and that pit faces could be safely excavated to a 70 degree angle. Approximately 82,000 cubic yards of overburden was removed from the pit area and a custom milling agreement was obtained for milling the Mirado mineralizaiton at a rate of 600 tons per day. No records from the 1987 mine production or milling are available. Later that year Golden Shield fell victim to the stock market crash of 1987. The property was subsequently returned to Mirado Nickel Mines, and remained idle until present.
In total, approximately $10 million in exploration and underground development has been completed at the Mirado property during the period from 1940-1987. As a result of the extensive amount of historical work completed during this period, the Mirado property is considered to be at the advanced stage of exploration. All of the surface and underground diamond drill-holes were previously surveyed by a professional land surveyor and this allowed Orefinders to relocate all of the historical surface and underground drill holes with the use of a differential GPS instrument.
Orefinders was the first company to take over 40,000m of historical surface and underground diamond drill hole data, detailed surface and underground geological mapping and sampling data and build a 3D model of the deposit utilizing GEMcom software (GEMS). The 3D model was then integrated with a recent, deep penetrating IP survey that was conducted over the deposit during the spring of 2012. The geophysics survey tested the Mirado deposit to a depth more than 300m deeper than any of the previous drilling and underground workings.
The Mirado property will be systematically tested by diamond drilling over the next year to determine if a substantial resource can be identified.
Click to enlarge Property Geology and Drill Hole Map
The Mirado property does not currently have any mineral resource or reserve estimates. All historic reported drill intersections are non-43-101 compliant, since all of the drill core is no longer available for re-assaying for conducting industry standard QA\QC. The drill logs and historical assays are only being used internally as a guide to planning the 2012-2013 diamond drill program, and results will be reported as they become available.
A cost-effective, systematic integrated geophysical / geological / geochemical exploration program will be followed up by interpretation and drilling of selected targets by Orefinders.
Mirado Property - Terms of Option Agreement to Earn 100% Interest
- Cash Payments
- $25,000 on signing
- $50,000 on or before 1st anniversary
- $75,000 on or before 2nd anniversary
- Work Commitments
- $300,000 expenditure before 1st anniversary
- $500,000 expenditure before 2nd anniversary
- $1,200,000 expenditure before 3rd anniversary
- Terms for 100% Buyout of 3% NSR
- 3% NSR of which 1% can be purchased for a total payment of $1,000,000
- 2nd percent purchase for $2,000,000
- 3rd percent purchase for $3,000,000