Drill Results September 2011
Additional results have been received for the ongoing drilling program at Borden Lake. Holes BL11-78 to BL11-84 successfully intersected the Borden Lake Gold Zone and returned significant intervals of gold mineralization, including a high-grade zone avaraging 10.9 g/t Au over 6.6 metres, including a one metre interval grading 57 g/t Au.
Drill holes BL11-78 to BL11-84 were designed to test the Borden Lake gold
horizon between depths of 150 metres and 250 metres (vertical) along the strike extension of the gold zone and within the previously delineated mineralized body. All holes successfully intersected the Borden Lake gold zone, with drill holes BL11-78 and BL11-80 confirming the strike of the mineralized body 100 metres to the Northwest of previously announced results, before being lost due to problems encountered at depth, while the in-fill holes, BL11-79 and -81 to -84, continue to confirm the mineralized zone at 50 metre spacing.
The gold zone has now 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. A recently reported NI 43-101 Initial Resource Estimate for the Borden Lake gold zone estimated an Indicated Resource of 11,607,000 tonnes averaging 0.8 g/t gold for 305,000 ounces of gold and an additional Inferred Resource of 169,322,000 tonnes averaging 0.69 g/t gold for 3,755,000 ounces of gold. The Resource Estimate was calculated using holes BL11-01 to BL11-77. The drill program is currently on Hole BL11-115 and the gold zone remains open in all directions.
Highlights from the drilling are presented in the following table. Reported drill widths in the tables approximate true widths in these sections. Within the gold mineralized intervals reported here, silver returns average values of up to 1.1 g/t, with individual samples assaying up to 7.1 g/t Ag.
Holes BL11-78 and -80 were collared on Section 800m NW to test the northwest extension of the Borden Lake Zone. Both holes encountered problems and could not be completed, however, the holes entered the mineralized horizon before being lost. Hole BL11-80 intersected a high-grade zone at 180 metres depth averaging 10.9 g/t Au over 6.6 metres, which included a one metre sample grading 57 g/t Au. Owing to these encouraging results, additional holes are planned to generate a complete section of the mineralized zone in this area.
Hole BL11-79 was collared on Section 450m SE and entered an unexpected zone of mineralization in the hanging-wall granite averaging 2.3 g/t Au over 17.7 metres, including a 3.7 metre interval grading 9.2 g/t Au. This high-grade section may correlate with one of three satellite zones, identified in the recently completed resource study, that were not included in the NI 43-101 Resource Estimate. More drilling is required to better delineate the satellite zones for inclusion in future resource estimates.
Holes BL11-81 and -82 were drilled on Section 350m SE as 50 metre infill drilling to previous sections. The holes identified gold mineralization between 94 and 203 metres vertical depth and included an almost 130 metre intersection averaging 0.8 g/t Au, including 38 metres of 1.8 g/t Au.
Hole BL11-83 was drilled on infill-section 250m SE and intersected a 113 metre-wide zone of mineralization which included over 40 metres grading 0.9 g/t Au.
Hole BL11-84 was collared on Section 750m NW as part of the infill drilling, and intersected a thick zone of gold mineralization to 163 metres vertical depth.