Drill Results July 2011
Results for diamond drill holes BL11-49 to BL11-64 were received with all successfully intersecting the Borden Lake Gold Zone and returning significant intervals of gold ("Au") mineralization. Assay results for silver ("Ag") have also been received and indicate low, but consistent, concentrations typically ranging between 50% to 150% of gold values. Within the gold mineralized intervals, silver can return average values of up to 2.4 g/t, with individual samples assaying up to 9 g/t Ag.
The current results are from drill holes designed to test for the up-dip (shallow) and down-dip extensions of the gold zone within the previously tested strike extent of the deposit in preparation for an upcoming resource estimate calculation. The Borden Lake gold zone mineralization has been identified along approximately 1,700 metres of strike length from surface to vertical depths of up to 340 metres and contains intersections up to 200 metres wide. The continuity, consistency and extent of the mineralization is encouraging and indicates the Borden Lake Zone has excellent potential for developing into a large tonnage, low-grade gold deposit amenable to open-pit extraction. Drilling is ongoing and is focused on expanding the limits of mineralization along strike and at depth as well as infilling the current 100m-spaced drill sections. The drill program is currently on Hole BL11-94.
Significant widths of gold mineralization were returned from all holes. Highlights from the drilling are presented in the following two sections highlighting the deep and shallow drilling segments of the gold zone, respectively. Reported drill widths approximate true widths in these sections:
In order to better delineate the down-dip extension of the mineralized zone, a number of deeper holes targeting the 250 metre and 300 metre vertical depth levels are currently being drilled on 200 metre-spaced sections. The following holes represent results from drilling along the southeast portion of the gold zone:
Hole BL11-51 was drilled on Section 750m SE and represents a 50 metre infill of the original 100 metre-spaced sections. Hole BL11-51 targeted the 250 metre vertical depth level of the mineralized zone and successfully intersected the mineralized zone down to 240 metres vertical depth.
Hole BL11-53 was designed to test the 250 metre vertical depth level on Section 400m SE and successfully identified a thick zone of gold mineralization.
Hole BL11-56 was drilled on the 400m SE section and identified a thick zone of mineralization between 160 metres and 260 metres vertical depth.
Hole BL11-58 was drilled on Section 200m SE and intersected a wide zone of mineralization down to 240 metres vertical depth. The zone contained numerous high-grade zones, including a 60.7 metre interval averaging 1.5 g/t Au
Hole BL11-60 was drilled underneath Hole BL11-58 on Section 200m SE and confirmed the continuity of the thick mineralized zone to approximately 285 metres vertical depth. The zone included multiple sections of higher-grade gold, including 29 metre and 25.5 metre intervals averaging 1.3 g/t Au and 1.4 g/t Au, respectively.
Hole BL11-63 was drilled to replace Hole BL11-35 on Section 500m SE, which was drilled down dip in a dike and abandoned after 100 metres. BL11-63 successfully intersected the gold mineralization on this section and avoided the dyke.
Highlights from the deep drilling segment are presented in the following table:
As part of the current program, a number of holes were collared to test for the up-dip or near-surface expression of the gold mineralized zone for the purpose of NI 43-101 resource estimate calculation. The holes were drilled on 100 metre-spaced sections and in all cases successfully identified mineralization from surface or shallow depths, confirming the up-dip projection of the gold zone.
Hole BL11-49 was designed to test the shallow section of the mineralized zone on Section 800m South East (SE) and successfully intersected gold-bearing metasediments and pegmatites from approximately 45 metres vertical depth. Unfortunately, BL11-49 followed a diorite dyke down-dip in the later part of the hole which reduced the potential width of the intersection. Another hole is planned to test the shallow portion of the mineralized zone at this location.
Hole BL11-50 tested for the shallow expression of the mineralized zone on Section 700m SE and also intersected the diorite dyke down-dip. Another hole is planned to test the shallow portion of the mineralized zone at this location.
Hole BL11-52 successfully intersected the mineralized zone at shallow depths on Section 600m SE. Gold mineralization was identified from approximately 50 metres to 85 metres vertical depth.
Hole BL11-54 identified significant widths of higher grade gold mineralization at shallow depths on Section 500m SE. This hole was successful in confirming the near surface extension of the zone.
Hole BL11-55 tested the zone on Section 400m SE and identified two zones of mineralization at shallow depths, 25 metres and 82 metres wide, respectively, with the former beginning at surface.
Hole BL11-57 was drilled on Section 300m SE and intersected multiple mineralized zones from surface to approximately 90 metres vertical depth.
Hole BL11-59 tested the near-surface portion of the zone on Section 200m SE and successfully identified gold mineralization from surface to approximately 95 metres vertical depth.
Hole BL11-61 was drilled on Section 100m NE and identified a thick zone of gold mineralization from near-surface to a vertical depth of over 100 metres. The mineralization also contained zones of higher grade gold and silver, with individual silver assays of up to 3.2 g/t Ag.
Hole BL11-62 was drilled to test the up-dip projection of the mineralization on the original discovery section (Section 0m NW). The hole intersected a 140 metre-wide section of gold mineralization containing a 47 metre-wide interval grading 1 g/t Au and 1.7 g/t Ag.
Hole BL11-64 targeted the shallow portion of the gold zone on Section 100m NW. The hole identified gold mineralization in two zones separated by a diabase dyke.
Highlights from the shallow drilling segment are presented in the following table: