The Gossan Hill property consists of 3,679 hectares of mining claims near the town of Cranberry Portage, Manitoba. The claims are the host of a historically producing mine, as well as a shear zone that hosts gold bearing mineralization.
A diamond drill program in the winter of 2010-2011 was conducted to test the down-dip and strike extension of a zone of mineralization established by historic surface trenching. The drill program successfully extended the mineralization, encountering gold and silver mineralization in 31 of 32 holes (one hole having been abandoned). Highlights of the program included grades of 4.6 g/t gold and 15.13 g/t silver over 23.81 meters of core width. Full results are in the table below.
Through the examination of reports filed by previous operators and records of the former producing mine, as well as information collected through our own prospecting and diamond drilling, Callinex has designed an exploration program for Gossan Hill that will target more than 6 kilometers of strike length that is thought to host the same sheared diorite/volcanic contact that hosts the formerly producing mine.
Additional sampling and surveying was conducted in the summer of 2011 ahead of a 2012 drilling campaign. The company's second drill program finished in March of 2012, successfully completing another 32 diamond drill holes, and further expanding the gold bearing structure at Gossan Hill.
Reports from previous operators, accessed through records at the Manitoba Department of Energy and Mines, show that the Gurney Gold Mine's two years of production, from 1937-1939, produced a total of 25,164 ounces of gold and 71,953 ounces of silver from 90,500 tonnes of ore milled. These reports further show gold bearing diamond drill intersections wider than 20 meters. Highlights from the assessment files include diamond drill intersections grading 0.25 ounces of gold per ton over 5 meters, 0.5 ounces of gold per tonne over 1.5 meters, and 0.118 ounces of gold per tonne and 1.25 ounces of silver per tonne over 40.94 meters.
The Company cautions that work done by previous operators was conducted before the implementation of National Instrument 43-101. Quality control methods by the previous operator are unknown, and the accuracy of the information cannot and should not be relied upon.
An exploration program in 2010 established numerous widths of gold and silver mineralization in quartz veins. The drilling program will continue along strike to determine the extent of this material along the 2 kilometer shear zone.