Gold in sediments associated with 9 km long Larose shear
ONTARIO - SHEBANDOWAN AREA
Golden Share considers that the southern part of Northwestern Ontario is increasingly being recognized as an emerging gold province. In the Fort Frances area, Rainy River has so far defined over 5 M oz Au in Indicated and Inferred Resources on their Rainy River Project. In the Atikokan area, Osisko Mining Corporation acquired Brett Resources Inc. following the discovery of the 10.52 M oz Au Hammond Reef deposit.
The Shebandowan greenstone belt lies at the eastern end of this prolific province and is the object of intensifying exploration. Foundation Resources Inc. released a 43-101 compliant resource estimate for its East Coldstream deposit in September 2011 which is estimated to contain 763,276 ounces of gold in the Inferred category and 96,400 ounces of gold in the Indicated category at a 0.40 g/t Au cut-off grade (30,533,000 MT @ 0.78 g/t Au in Inferred Resources and 3,516,700 MT @ 0.85 g/t Au in Indicated Resources). In July 2010, Moss Lake Gold Mines Ltd. provided an upgraded NI 43-101 resource estimate for its + 1 M oz Au Moss Lake deposit.
The Larose property is located 100 km west of the city of Thunder Bay, Ontario, Canada. It consists in 18 claims covering a total area of 34.2 km².
In December 2011, Golden Share entered into an option agreement with Viking Gold Exploration Inc. ("Viking") to acquire a 50% interest in the Larose gold property over three years by meeting the following conditions:
• By issuing Viking a total of 200,000 Golden Share shares; 100,000 shares upon signature and 100,000 shares on the first anniversary date;
• By incurring a total of $500,000 in exploration expenditures; $200,000 the first year, $150,000 in the second and $150,000 in the third year.
Following the acquisition of a 50% interest by Golden Share, a joint venture (JV) will be formed between Viking and Golden Share to further develop the property. A 3.5% NSR is payable to previous owners, 1.5% of which can be bought back for the sum of $500,000 per each 0.5% increment, or $1,500,000 for the 1.5% NSR.
Viking acquired Larose from Freewest Resources Canada Inc. ("Freewest"), now Cliffs Chromite Ontario Inc., in 2012. Viking is a technically focused exploration company with Dr. John Hansuld and Mr. Mackenzie Watson holding key positions, respectively Chairman and Strategic Advisor.
Larose is situated in the western portion of the Shebandowan belt, approximately 40 km west of Golden Share's Shebandowan project. The property is mostly underlain by metasedimentary rocks of the Quetico sub-province, mainly greywacke and argillite, which have been intruded by various plutonic rocks with the most prominent of these in the area being the Moss Lake and Obadinaw syenite stocks. Gold mineralization is associated with the Larose shear zone ("LSZ"), a major northeast trending shear up to 25 m wide, that can be identified across the entire property over 9 km and which has so far been systematically traced through surface exposures over 4 km.
The LSZ hosts quartz veins, stockworks and sulphide disseminations in altered greywacke which show very high gold grades locally. Previous operator Freewest reported grades up to 371.9 g/t Au from surface rock sampling on the P1 trench. Freewest executed surface programs comprising prospecting, mapping, surface geophysics and trenching from 2003 to 2004. Limited diamond drilling showed gold mineralization to be persistent at depth with intercepts such as 8.74 g/t Au over 2 m and 1.95 g/t Au over 5 m.
The main historical milestones for the Larose property's past exploration history can be summarized as follows:
• 1999 - Noranda Exploration conducts till sampling in the area and gets anomalous gold results near Larose.
• 2003 - R. Kwiatkowski samples rusty schist yielding very anomalous gold grades and recorded as the original discovery of the Larose showing. In the same year an option agreement is signed with Freewest Resources Canada Inc..
• 2003 - Freewest Resources Canada Inc. conducts prospecting, line cutting, geochemical soil sampling, ground geophysics (magnetic and induced polarization) and trenching.
• 2003/2004 - Freewest Resources Canada Inc. executes two short diamond drilling programs totaling 2,742 m on selected targets of the LSZ while continuing to explore the property by direct or indirect methods.
The sedimentary rock package and the association of the gold with syenitic type intrusives are very reminiscent of the Malartic and Timmins mining camps.
Golden Share exploration history
Golden Share executed a fall 2011 campaign comprising geological reconnaissance, outcrop sampling, channel sampling, line cutting and a ground magnetometer survey. Highlights for this recent campaign are provided by channel sampling on the P1 trench located within the central part of the LSZ and which yielded 45.93 g/t Au over 3.1 m and 54.21 g/t Au over 1.4 m. The mineralization is hosted in sheared, very fine grained metasediments showing local sericitization, silicification and carbonatization and quartz veinlets containing up to 20% sphalerite, 10% pyrite and 2% galena.
The 2012 summer surface exploration focused mainly on the 2011 freshly cut grid that covers the southern, yet unexplored, 4 km strike length of the Larose Shear Zone ("LSZ"). Simultaneously, the reminder of the property was also explored and two new shear zones parallel to the LSZ were identified yielding results up to 2.24 g/t Au. Additionally, SRK Consulting (Canada) Inc. performed structural geology investigations of stripped outcrops and available drill core on the property.
Viking and Golden Share have agreed to modify their original agreement. Golden Share will notably not be required to incur exploration expenditures of $150,000 in the second year of the option as originally agreed, though it will be required to keep the claims in good standing and any expenditures incurred will be applied against its $500,000 total work commitment. Golden Share has issued its second tranche of 100,000 common shares to Viking and has agreed to pay in June 2013, 50% of the $10,000 advance royalty payment due. The option agreement has been extended by one additional year under these revised terms.
In July 2013, Golden Share performed a ground survey to locate and record all property claim posts in anticipation of Ontario's new upcoming map claim management system.
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.