Sturgeon Lake Zinc property

Zinc-rich Polymetallic

Gossan has acquired a new property in the zinc-rich polymetallic Sturgeon Lake Greenstone Belt in northwestern Ontario comprised of 15 claims totaling 3,344 hectares. The property is directly along strike and to the east of 6 Volcanogenic Massive Sulfide (VMS) deposits that were mined between 1970 and 1991. Approximately 18.7 million tonnes of ore was mined from these VMS deposits with typical grades of 8.0% zinc, 1.1% copper, 0.8% lead, 120 gpt silver and 0.5 gpt gold.

In November 2015, the Company staked three claims and on July 28, 2016, acquired an additional 12 claims from Excalibur Resources Ltd., along with a significant amount of exploration data. Recent work now in the possession of Gossan includes: a VTEM electromagnetic geophysical survey by Geotech Ltd.; an Enzyme Leach geochem survey and a Soil Gas Hydrocarbon geochem survey, both processed by Actlabs; and the results of a limited drill program on the eastern portion of the acquired claims, including drill core.

Gossan acquired the property to explore what it believes are the most prospective untested targets in the historic Sturgeon Lake Camp. They are located on the west end of the new property and are along strike and closest to the historic Sturgeon Lake and Lyon Lake cluster of ore deposits. Management believes this property has the potential to host significant Zinc-rich VMS polymetallic deposits. The current rise in zinc prices, supported by the abundance of copper and silver in the Sturgeon Lake Camp justify a significant exploration program

The most notable former mines in the camp produced from high-grade zinc-copper-silver ores with associated lead and gold. These properties are currently held by Glencore and First Quantum Minerals. The grades and tonnages of these former producers are provided in the table below.

Historical Production from Mineral Deposits of the Sturgeon Lake Mining Camp 1970-1991

 

Gossan has received results of a Geobotanical Survey conducted at its Sturgeon Lake Zn-Cu-Au-Ag VMS Property during the Fall of 2016. This Survey provides increased resolution and better definition of metal anomalies over high priority VMS polymetallic drill targets that were previously identified in a VTEM geophysical survey, a soil geochemical survey and a SGH (Soil Gas Hydrocarbon) Survey.

This new detailed geobotantical survey provides excellent coverage in the target zones and provides better definition of anomalous Zn-Au-Ag rich zones coincident with the most prospective geophysical targets. The Geobotanical Alder Survey was conducted on 22 lines over 23.4 line kilometres. A total of 444 samples were taken with the analyses conducted by Actlabs. Coincident geochemical anomalies associated with the recently identified geobotanical Zn-Au-Ag anomalies include the highest possible ranking for VMS mineralization by SGH surveys, and zinc and copper metal anomalies from enzyme leach soil surveys. The target areas are hosted in part within blue quartz-crystal rhyolites with hydrothermal alteration and sulfide mineralization similar to the rhyolites that host the nearby deposits. We are highly encouraged by the coincident anomalies, presence of sulfide mineralization, favourable stratigraphy with evidence of strong alteration, and the close proximity on trend with a series of past producing mines. The coincident geochemical and geophysical anomalies will form the basis for a proposed drill program. In further preparation for diamond drilling, Gossan has contracted Geotech Ltd. to carry out Maxwell Modelling of geophysical targets that are coincident with the geochemical anomalies.

The untested geophysical targets on Gossan’s property were the highest priority targets from a 2010 VTEM survey conducted by Geotech Ltd.

Gossan continues to review the new information, along with the significant amount of exploration data and drill core that was recently acquired to determine the next steps in the investigation of the Sturgeon Lake Property.

Gossan sought and has been permitted for a drill program with up to 20 drill pad locations.