The Forsan property is located 45 km east of the town of Val d'Or, Quebec, Canada. It consists in 50 claims for a total property surface area of 8 km².
Following discussions with the owner, the original option agreement has been modified on October 26, 2009. In the original option agreement, Golden Share had to pay a sum of $50,000 on the second anniversary of the agreement. In the amended option agreement, Golden Share has now instead paid a sum of $12,500 and issued 312,500 common shares of Golden Share to the owner.
Following these payments and the issuance of 400,000 additional common shares, a condition from the original option agreement, Golden Share has now fulfilled all the conditions of the option and therefore owns 100 % of the Forsan property.
The rocks of the Forsan property consist in a thick volcanic sequence comprising mostly mafic agglomerates and mafic tufs. The units show an east-west strike and a northerly dip. A sub parallel porphyric intrusive with a north-eastern dip, hosting some minor, sub-concordant, granodiorite injections, transects the volcanic sequence. A 50 m wide, northeast trending, diabase dyke cuts the property in an oblique direction. The Pershing batholith contact cuts the north-eastern border of the property. Favourable structures (quartz veins, shear zones, faults) as well as competent host rocks (quartz feldspar porphyry) are present on the property.
The property is situated at the south-eastern extremity of the Abitibi greenstone belt in the Val d'Or geological formation. The Forsan property is located 6 km north-east of X-Ore's Chimo past producing mine and 10 km south-west of the X-Ore Croinor project. The property sits on the end of the prolific Cadillac break, in east-west second and third order structures, and at the intersection with strongly developed north-east lineaments in a setting similar to that of the Val d'Or area.
Golden Share exploration history
A thorough 2008 exploration program comprising systematic compilation, mechanical stripping and a first diamond drilling program outlined two new mineralized area, the Forsan Southwest Zone ("FSZ") and the Forsan East Zone ("FEZ") located respectively south-west and east of the Main mineralized zone ("FMZ").
A second drill program was executed in the spring of 2009 and consisted mainly in nine short vertical holes totalling 454 m and targeting the FEZ. An intersection of 56.86 g/t Au over 4.00 m from 42.00 to 46.00 m (including 226.00 g/t over 1.00 m) was obtained in hole GSH-09-18.
At the level of hole GSH-09-18, the FEZ is described as a 4 meter wide zone hosting 12% quartz-pyrite-tourmaline veins with individual veins up to 0.20 m thick. The zone is located at the contact between a tuffaceous unit and a felsic porphyry dyke and contains 2 to 5 % pyrite with trace chalcopyrite. Fine grained visible gold was observed in association with the higher grade section of the interval.
In the fall 2009 a 43-101 compliant resource calculation was released on the FMZ. The work was executed by InnovExplo, a Val d'Or based geological and mining consulting group, to establish a geological model for the mineralization and to confirm the presence of sufficient mineral resources to justify further exploration work by Golden Share.
Based on InnovExplo's recommendation, a cut-off grade of 2.50 g/t Au was used, which results in an Inferred Resource of 132,000 metric tonnes grading 3.52 g/t Au for a total of 15,000 ounces of gold on the FMZ. When a cut-off of 1.00 g/t Au is used, an Inferred Resource of 536,500 metric tonnes grading 2.03 g/t Au containing a total of 35,000 ounces of gold is obtained thereby validating the historical data for the FMZ.
Cut-Off Grade Metric Grade Ounces g/t Au Ton (t) g/t Au Au 1.0 536,500 2.03 34,981 1.5 322,600 2.57 26,650 2.0 203,100 3.07 20,026 2.5 132,000 3.52 14,936 3.0 85,000 3.95 10,810
*Notes: Golden Share owns 100% of the Forsan property. Mineral Resources are not Mineral Reserves having demonstrated economic viability. Results are presented undiluted and in-situ. The estimate includes 4 gold-bearing zones and covers the Forsan project area over 450 meters NW-SE, 200 meters NE-SW, and from an elevation of 0 to -225m. The cut-off grade must be re-evaluated in light of current market conditions (gold price, exchange rates and mining cost). InnovExplo is not aware of any environmental, permitting, legal, taxation, socio-political, marketing or other relevant issue that could materially affect the Mineral Resource estimate.
The geological interpretation of the mineralized zones was entirely redone by Bruno Turcotte, P.Geo., and Donald Gervais, P.Geo., using a set of sections looking towards an azimuth of N335o.
The geological model and current resource estimate demonstrate that the FMZ contains at least four (4) continuous mineralized lenses having a minimum width of 2.2 m corresponding to the necessary minimum for an open-pit operation or underground bulk mining. In order to confirm the historical data, two verification drill holes were executed by Golden Share during the spring 2009 drill campaign; they also provided material for density measurements. InnovExplo considers this estimate to be reliable, rigorous, based on quality data and in conformity to CIM standards and guidelines for reporting mineral resources and reserves.
One of the most important findings of the resource estimate on Forsan is the definition of geological continuity at N115°. This observation further reinforces the significance of the FEZ located 600 m south-east of the FMZ where an intersection of 56.86 g/t Au over 4.00 m was obtained.
The 2009 Mineral Resource Estimate was performed by Bruno Turcotte, M.Sc., P.Geo., and Donald Gervais, B.Sc., P. Geo., under the supervision of Carl Pelletier, B.Sc., P.Geo., using all available results. The work performed on the Forsan property has been executed under the supervision of Mrs. Laurence Huss, M.Sc., P. Geo., and Golden Share's Vice-President Exploration.
The full 43-101 technical Report is available on www.sedar.com.
A short 546 m follow-up diamond drilling program was executed in Q3 2010 and consisted in four holes, two holes on the Forsan Main Zone ("FMZ") for total of 330 m and two holes on the Forsan East Zone ("FEZ") for a total of 216 m.
Hole GSH-10-29 drilled to investigate the FEZ at greater depths, identified a new mineralized zone hosting 15% quartz-pyrite-tourmaline veins with individual veins up to 0.25 m thick and containing traces of pyrite and chalcopyrite. This new zone returned 3.38 g/t Au over 3.70 m from 118.00 à 121.70 m and includes 6.62 g/t Au over 1.00 m. Additional points of interest comprise :
• This new zone is located immediately below the 2009 discovery of hole GSH-09-18 which had intersected 56.86 g/t Au over 4.00 m from 42.00 to 46.00 m including 226.00 g/t over 1.00 m.
• This new zone shows similar mineralization to the 2009 high grade FEZ discovery with an array of pyrite and chalcopyrite bearing quartz-tourmaline veins.
• The new zone is part of a broader mineralized interval reporting 0.62 g/t Au over 25,70 m and showing sustained gold impregnation including a significant number of intersections above 0.50 g/t Au.
This latest finding is particularly significant in the light of the recently recognized viability of lower grade models in a high price gold environment and comes as an added bonus to the high grade mineralization already observed on the FEZ.
In December 2010, Golden Share contracted Insight Geophysics Inc. of Oakville, Ontario, to execute an Insight Section Array / Tuned Gradient Array induced polarisation and a resistivity survey over the FEZ in order to refine drill targets which now comprise both high grade gold mineralization and broad, lower grade envelopes of gold impregnation.
All of Golden Share's exploration programs are executed under the supervision of Mrs. Laurence Huss, M.Sc., P. Geo., and Golden Share's Vice-President Exploration. Laurence Huss is a Qualified Person as defined in National Instrument 43-101. Philippe Giaro, P.Geo., President and CEO of Golden Share Mining Corporation, also acts as Qualified Person for Golden Share.