U6 Savant Gold Property, Sioux Lookout, Ontario
Property Location and Ownership
The U6 Savant gold property is located in Conant Township, approximately 13 kilometres north of Savant Lake and 50 km east of the town of Sioux Lookout in Northwestern Ontario. The property lies about 15 km east of Hwy 599 and is now directly accessible via a new logging road constructed in 2005.
The U6 Savant property is comprised of 2 claims covering 1280 acres owned outright by Teck Cominco Limited. Avalon earn a 100% undivided interest in the property by incurring $500,000 in expenditures on the property by December 31, 2008. Expenditures to date total approximately $200,000. After vesting, Teck Cominco would retain a 2% NSR royalty interest and certain back-in rights to re-acquire up to a 70% interest in the property first by funding 2.5 times Avalon’s expenditures to earn a 51% interest, then by completing a feasibility study on the property at its sole cost to earn an additional 14% interest and finally by arranging the Company’s share of production financing to earn an incremental 5% interest.
Project Background
The U6 Savant property is underlain predominantly by felsic to intermediate volcanic and intrusive rocks and was originally explored for copper-zinc-silver volcanogenic massive sulphide mineralization. Airborne geophysical surveys identified an EM conductor on the property and follow-up work by several companies in the mid 1970’s tested it for Cu-Zn massive sulphides, with eight drill holes being drilled in 1975. The drilling identified a broad shear zone containing up to 15% disseminated and stringer pyrite, pyrrhotite and chalcopyrite, accompanied by strong sericitization, chloritization and silicification, but no Cu-Zn-Ag massive sulphides. The core was not initially assayed for gold.
Re-sampling of the core in 1984 (specifically for gold) identified widespread anomalous gold values associated with the disseminated sulphides in the shear zone. Highlights include values of 0.65 g/t Au over 36.0 metres (including 1.2m @ 6.8g/t Au), 0.43 g/t Au over 52.4m and 0.5 g/t Au over 32.2m (including 0.52m @ 10.2 g/t Au). Six holes tested the north side of the shear zone and one tested the south side, but no holes tested the central core of the zone. The zone is estimated to be in the order of 100 metres wide and has been traced for 350 metres along an east-west strike, where it remains open.
2005-06 Work Programs
In 2005, Avalon carried out a preliminary work program involving a compilation of previous work, prospecting, sampling and geological mapping to prioritize targets for drilling in 2006. The results of the program confirmed the presence of an intrusion-related gold system and some of the structural controls on gold mineralization were determined. Highlights from the channel sampling in 2005 include values of 2.72 g/t gold over 0.9 metres and 3.15 g/t gold over 1.0 metres.
A Phase 1 diamond drilling program was carried out on the property in the fall of 2006, to test gold targets identified in 2005. A total of 978 metres were drilled in six holes as summarized below and illustrated on the accompanying location map. Zones of disseminated sulphide mineralization, similar to those which have produced significant gold values in previous work were intersected in all six holes.
The best assay results included values of 4.63 g/t Au over 1.89 metres, including 10.67 g/t Au over 0.49 metres and 3.7 g/t Au over 3.3 metres, including 9.6 g/t Au over 0.6 metres. These intersections appear to correlate along a northeast trend that is open for expansion. The expenditures allowed the Company to maintain its option with Teck Cominco Limited in good standing for another year. Follow-up work is recommended by the Company’s consultants but a budget has not yet been established.
|
Hole ID |
Easting |
Northing |
Elevation |
Dip |
Azimuth |
Depth |
|
SL06-01 |
672018 |
5582603 |
422 |
-48 |
180 |
135 |
|
SL06-02 |
671926 |
5582696 |
425 |
-56 |
180 |
171 |
|
SL06-03 |
671909 |
5582534 |
428 |
-50 |
180 |
183 |
|
SL06-04 |
672095 |
5582691 |
419 |
-57 |
180 |
171 |
|
SL06-05 |
671629 |
5582468 |
419 |
-50 |
180 |
198 |
|
SL06-06 |
672030 |
5582532 |
419 |
-55 |
180 |
120 |
|
Borehole Number |
From |
To |
Length |
Au (g/t) |
Description |
|
SL06-01 |
13.20 |
16.30 |
3.10 |
1.92 |
Biotite-rich section with 0.5-1% Py and local Cpy |
|
SL06-01
Incl. |
80.81
80.81 |
82.70
81.30 |
1.89
0.49 |
4.63
10.67 |
Biotite-rich section with a folded quartz-sulphides vein |
|
SL06-02 |
12.90 |
13.50 |
0.60 |
1.20 |
Fault zone with 4% Py |
|
SL06-02 |
166.41 |
167.70 |
1.29 |
1.48 |
Strongly foliated rock with 5% of Py-Po-Cpy stringers |
|
SL06-04 |
122.70 |
123.30 |
0.60 |
1.17 |
Small quartz-carbonate vein with Po-Cpy |
|
SL06-04
Incl. |
147.40
148.90 |
150.70
149.50 |
3.30
0.60 |
3.70
9.60 |
Brecciated porphyry dyke with biotite and traces to 2% Py, Po |
|
SL06-04 |
157.30 |
157.90 |
0.60 |
3.09 |
Brecciated porphyry dyke with 1% Py |
|
SL06-06 |
42.80 |
44.10 |
1.30 |
2.90 |
Zone with 1-3% Py-Cpy stringers |
|
SL06-06 |
53.10 |
54.00 |
0.90 |
1.44 |
Small quartz vein with tr Py |
