Sturgeon Lake Zinc property

Zinc-rich Polymetallic

Gossan’s Sturgeon Lake Property lies within the zinc-rich polymetallic Sturgeon Lake Greenstone Belt in northwestern Ontario. It is comprised of a 14 claim block totaling 3,088 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 southeastern portion of the acquired claims, including drill core. The prior drilling intercepted favourable geological horizons containing blue-quartz-eye-rich rhyolites with hydrothermal alteration and sulphide mineralization similar to rhyolite formations hosting the nearby Sturgeon Lake and Lyon Lake deposits.

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

 


In the Fall of 2016, a geobotantical survey was conducted that provided excellent coverage in the VMS target zones and provides better definition of anomalous Zn-Au-Ag rich zones coincident with the most prospective geophysical targets. The Biogeochemical Alder Survey was conducted on 22 lines over 23.4 line kilometres. A total of 444 samples were taken with the analyses conducted by ACME Labs Vancouver. Coincident geochemical anomalies associated with the recently identified biogeochemical 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 contracted Geotech Ltd. to carry out Maxwell Modelling of geophysical targets that are coincident with the geochemical anomalies. This study has been completed and resulted in well-defined drill targets that Gossan intends to explore.

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

A GPS survey was completed in August 2017 on 11 claims and an assessment report was subsequently filed to earn one year of assessment work credits on each of these claims.

In September 2017, a comprehensive report entitled the “Sturgeon Lake East Exploration Report and Recommendations for Diamond Drilling” was completed. The Report highly recommended a diamond drilling program of 2000 meters in up to 15 drill holes to test a series of prospective drill targets defined along a corridor to the northeast of Glitter Lake, in the Sturgeon Lake VMS mining camp. The targets are defined by the coincidence of prospective geology with strong VTEM geophysical conductors and multiple geochemical indicators. Anomalous geochemistry includes the highest ranking for VMS deposits in SGH surveys, and Zn-Au-Ag (+ other metals) in an alder biogeochemical survey and an enzyme leach survey. Four distinct multi-parameter targets have been identified that warrant testing by diamond drilling.

The Report presents the results of a 2016 alder biogeochemical survey and 2017 geophysical modeling of the target areas using Maxwell EMIT modeling techniques for VTEM. The report also summarizes the results of 2010 geochemical (SGH and Enzyme Leach) and VTEM geophysical surveys carried out over the property, and summarizes the geology of the Sturgeon Lake region and Glitter Lake area as presently understood. The Report concludes with a recommendation for a winter drilling program. On February 26, 2018, Gossan announced that its Winter Drill Program to test four distinct high-priority, multi-parameter volcanogenic massive sulphide (VMS) target areas was underway.

Gossan has assembled a geological team for the winter drill program, comprised of Project Manager, Mr. Scot Halladay, P.Geo., Advisor Dr. Donald J. Robinson, P.Geo, and Dr. Hamid Mumin, P.Geo., a member of Gossan’s Board of Directors. The team provides the Company with strong technical and practical expertise in the exploration, discovery and delineation of copper-zinc volcanogenic massive sulphide deposits (VMS).

Scot Halladay, P.Geo., a highly-qualified senior exploration geologist with over 30 years of experience in grass roots to advanced exploration and mine development, is Project Manager for the Sturgeon Lake drill program. Mr. Halladay, President of Halladay Geological Consultants and Services since 1999, is a graduate of the University of Western Ontario, where he obtained an honours degree in geological science in 1985. As a former employee of Kidd Creek Mines, First Nickel Inc. and Falconbridge Limited, Scot has extensive surface exploration and underground mining expertise and was awarded a discovery bonus in several deposits, including Nickel Rim Depth, currently being delineated from underground by Glencore in the Sudbury nickel district. He has a diverse background consulting for a number of companies on multiple base and precious metal ore deposits in Canada, the United States and Greenland.

Dr. Donald J. Robinson, a Professional Geologist with over 35 years of exploration and corporate development experience, has joined Gossan as a member of its Advisory Board. As former President and CEO of a TSX-listed Company (1994 to 2016), Dr. Robinson and his exploration team received the 2015 Discovery of the Year Award from the Province of Quebec, in recognition of their work at the Eau Claire Gold Deposit. Dr. Robinson completed a doctorate degree in mineral deposits geology from the University of Western Ontario in 1982. While employed by BHP (formerly Utah Mines Ltd.) from 1977 to 1980, Don was directly involved in the discovery of the Redstone Ni-Cu Mine located near Timmins, Ontario. As project manager and geologist for Tri Origin Exploration Ltd. from 1992 to 1994, Dr. Robinson also supervised the discovery of the Lewis Ponds VMS Cu-Zn-Ag-Au deposit in New South Wales, Australia.

Dr. Hamid Mumin, P.Geo., a distinguished geologist, and professor in the Department of Geology at Brandon University is acknowledged for his expertise in VMS, gold, and iron-oxide-copper-gold (IOCG) deposit types. Dr. Mumin graduated from Geo-Engineering at the University of Toronto in 1985, where he also completed an M.A.Sc. in Economic Geology before completing his Doctorate degree and Post-Doctoral Fellowship at the University of Western Ontario in 1994, for his studies in lode gold deposits in the Ashanti and Carlin goldfields. Before joining Brandon University in 1995, Hamid worked, over 6 years, as a mine, exploration and research geologist for Noranda at the Sturgeon Lake mining camp. In addition to teaching at Brandon, Dr. Mumin continues to consult for industry, both as a Professional Engineer and Geologist, managing projects in Canada and South America. He was directly involved with several discoveries and mine developments. Dr. Mumin joined Gossan’s Board of directors in 2015.