The Cape Spencer Project
The Cape Spencer Project is an exploration stage project that has a history of past-production and the potential for near-term resource growth and discovery.
The Cape Spencer Project comprises 106 claims covering more than 2,400 hectares and is located 15 kilometres east of the City of Saint John, New Brunswick.
Highlights of the Cape Spencer Project
Cape Spencer Project Mineral Resource Estimate
The Inferred Mineral Resource Estimate for the Cape Spencer Deposit is 1,720,000 tonnes at an average grade of 2.72 g/t gold for 151,000 contained ounces at cut-off grade of 0.5 g/t gold and 2.5 g/t gold in two mineralized zones; the Pit Zone and the Northeast Zone with an effective date of January 23, 2019 (Table 1). The Northeast Zone contains a conceptual underground inferred mineral resource estimate of 740,000 tonnes at an average grade of 4.07 g/t gold for 96,000 contained ounces at a cut-off grade of 2.5 g/t gold and the Pit Zone contains a conceptual open-pit inferred mineral resource estimate of 990,000 tonnes at an average grade of 1.71 g/t gold for 54,000 contained ounces at a cut-off grade of 0.5 g/t gold. A sensitivity report for the Cape Spencer Project Northeast Zone and Pit Zone is presented in Table 2.
Table 1: Cape Spencer Project Mineral Resource Estimate – Effective Date: January 23, 2018
Zone |
Cut-Off (Au g/t) |
Category |
Rounded Tonnes |
Au (g/t) |
Rounded Ounces |
Northeast |
2.5 |
Inferred |
740,000 |
4.07 |
96,000 |
Pit |
0.5 |
Inferred |
990,000 |
1.71 |
54,000 |
Total |
0.5 and 2.5 |
Inferred |
1,720,000 |
2.72 |
151,000 |
Table 2: Cape Spencer Project Sensitivity Report
Zone |
Cut-Off (Au g/t) |
Category |
Rounded Tonnes |
Au (g/t) |
Rounded Ounces |
Northeast |
1.5 |
Inferred |
1,480,000 |
2.98 |
142,000 |
2.5 |
Inferred |
740,000 |
4.07 |
96,000 |
|
3.5 |
Inferred |
400,000 |
5.04 |
64,000 |
|
Pit |
0.5 |
Inferred |
990,000 |
1.71 |
54,000 |
1.0 |
Inferred |
830,000 |
1.88 |
50,000 |
Geology and Mineralization
The Cape Spencer Project is centered along the Millican Lake Fault, a regional splay of the Caledonia and Cobequid Fault Zones. The Property is underlain by Precambrian Millican Lake granite, and Coldbrook Group volcanic and sedimentary rocks. The Precambrian stratigraphy is unconformably overlain by and in fault contact with younger Carboniferous sedimentary rocks of the Cape Spencer and Lancaster Formations.
Gold mineralization at Cape Spencer is generally hosted within Precambrian Millican Lake granite or bounding Coldbrook Group volcanic and sedimentary rocks, with mineralization and alteration focussed along strongly faulted and sheared contacts between the two lithologies. Orogenic gold mineralization is currently interpreted to have formed during Siluro-Devonian deformation and thrust faulting. A second phase of mineralization is interpreted to have formed during Carboniferous deformation along the Cobequid Fault Zone.
Alteration consists of mesothermal style pervasive and patchy illite + pyrite + quartz ± iron carbonate ± sulfide veins and stockworks with 2-5% total sulfides consisting of pyrite, galena, chalcopyrite or sphalerite, and locally show trace amounts of visible gold.
There are several gold prospects that warrant additional exploration over an 8-kilometre strike. Drill Highlights from previous exploration work from 1982 to 2004 include:
Cape Spencer Mine (Pit Zone) – Past Producing (1985-1986) Mine. Highlight assays include:
Northeast Zone - Located 400 metres northeast of the Cape Spencer Mine. Interpreted to be continuous with the Road Zone. Highlight assays include:
Road Zone – 400-metre-long zone of gold-bearing alteration zone with an average width of 20 metres. This zone is interpreted to be the along strike continuation of the Northeast Zone. Highlight assays include:
Birches Zone – 300-metre-long gold-bearing alteration zone south of the Road Zone. Highlight assays include:
Zone A – Grab samples up to 53.50, 41.10, 37.70, 20.60 and 12.90 g/t gold.
Zone C – Grab samples up to 8.92, 8.12 g/t gold and chip sample of 2.77 g/t gold over 3.0 m.
Zone D – Five occurrences of visible gold with grad samples up to 7.12 g/t gold.
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