Mineralization

The gold mineralization is directly associated with quartz veins and the principal showing is the Forsan mineralized occurrence which is hosted by the contact between a mafic agglomerate unit and the porphyric intrusive in the vicinity of the diabase dyke. The gold mineralization is hosted by sub horizontal quartz-carbonate-tourmaline veins injected in weakness planes corresponding to two conjugate fracture systems. The thickness of the auriferous veins varies from 0.1 to 3.0 m. Native gold and tellurides are associated with pyrite, pyrrhotite and chalcopyrite. A total of eight mineralized zones have been recognized.

The property has been the object of sufficient work to establish an historical resource estimate that stands at 282,605 metric tonnes at a grade of 4.42 g/t Au. This estimate dates from 1988, prior to the introduction of National Instrument 43-101, and should therefore be treated as historical data. Tonnage values were calculated based on the new drilling results (Perron and Morin, 1988). The estimated total tonnage was 393,869 metric tons with a grade of 4.91 g/t Au. This total was subdivided into 149,923 metric tons of Probable Reserves, 132,861 metric tons of Possible Reserves, and 111,264 metric tons of Potential Reserves .

Beyond the principal showing, the Forsan mineralized occurrence, the Forsan property is also host to several types of mineral occurrences, gold being the dominant metal. A horizon of epigenetic-type massive sulfides has been observed at the contact between agglomerate and a felsic tuff in the southern part of the property. The principal mineral deposits of the area are the past-producing Chimo mine and the Croinor deposit.