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The Company’s 3,388 hectare property has five known gold bearing zones hosted in an Archean granodiorite adjacent to the Yellowknife greenstone belt that boasts over 12 million ounces of gold production from the nearby Giant and Con mines. Historic work on the Up Town Gold property, done primarily in the 1960’s, focused on the narrow quartz filled shears and associated quartz veins while largely ignoring the larger zones of hydrothermally altered host granodiorite. The shear zones, associated fractures and quartz veins vary from millimeter widths to well over 3.0 meters and they commonly are surrounded by a broader alteration halo. The alteration consists of silicification and sericitization with hematite alteration present as well. Mineralization is exposed at surface with exposures of tens of meters common with many stretching for hundreds of meters.

Until recently, gold exploration has focused primarily on the volcano-sedimentary greenstone belts, seeking structurally controlled mesothermal lode-gold deposits while the adjacent granitoid rocks have been largely ignored as hosts for gold mineralization. A growing number of significant bulk minable lode-gold deposits have been found in Archean granitic rocks and there is a growing awareness that they constitute a separate deposit class – referred to as Granitoid Hosted Lode Gold deposits.

Several of the gold bearing zones on the Up Town Gold property had historical estimates completed in the 1960’s with over 2,500 meters of diamond drilling completed. In many of the historic assessment reports there is mention of hydrothermally altered host rock but no systematic sampling was ever conducted on these altered zones.

Phase Two exploration work, completed in late 2012, entailed channel sampling the Fox South Zone, J Zone and C Zone utilizing rock saws to representatively sample the glacially smoothed bedrock. The channel sampling is oriented across the strike length of a number of significantly mineralized shears and into altered granodiorite country rock where possible with 152 channel samples collected.

A number of shear zones not examined in previous work were prospected in the course of this program. The discovery of additional shear zones 140 meters to the south of the known gold and silver mineralized Fox South Zone has now extended that zone to over 475 meters. Additionally, two 500 meter extensions of several of the gold mineralized C Zone shear zones were discovered and sampled. 

A small man portable drill was successfully utilized to test the strike length of the J3 zone, grading 7.99 g/t gold and 35.56 g/t silver in earlier sampling. Two shallow holes of 10 and 19 meters depth that were spaced 35 meters apart along strike, bracketed the gold and silver mineralization discovered in Phase One.   

Phase One work, completed in May 2012, consisted of reconnaissance prospecting and sampling over the core of the 3,388-hectare property. Gold mineralization, often with significant silver mineralization, was found over three kilometers of strike in the Rod, Fox South, J7 and C areas of bedrock exposure.

Mr. Regan Chernish, Company President, reported: “With 22 of the 91 samples taken at Up Town returning gold grades between 1.30 g/t gold to 113.5 g/t gold and silver locally in excess of 100 g/t, there clearly appears to be vast potential at Up Town to begin building larger zones. Proposed focused and low-cost surface work will endeavor to connect the different areas of mineralization that were sampled in the extensive multi-kilometer footprint of related mineralized areas. The extreme ease of access to this project, abundant bedrock exposure, favorable logistics, and location within an area that has geologically been endowed to have already produced 12 million ounces of gold mark this project as an excellent opportunity for further discovery with low cost and low risk exploration profile. We are pleased with these early results, and look forward to advance the project as quickly as possible.”

The Rod Area, located on the southwest end of Baker Lake, returned an average gold grade of 22.79 g/t in 15 surface samples. Four of the samples also returned silver assays of greater than 100 g/t with the remaining 11 samples averaging 10.21 g/t silver. The samples came from outcropping shears adjacent to the main zone as well as previously trenched material. Previously trenched material was sampled due to the main Rod shear zone being flooded at the time of the program. The Rod showing remains open in all directions and strikes into nearby Baker Lake to the north.

The Fox South Area, located on the east side of the claim group near the historical Giant mine, returned an average gold grade of 3.06 g/t and 1.52 g/t silver in nine samples of outcrop and historically trenched material. The shears observed ranged in size from one-half meter to three meters in width. This zone strikes for over 250 meters and remains open in all directions.

The J7 Area, part of the larger J Group of showings is found north of Baker Lake, and returned 7.99 g/t gold and 35.56 g/t silver in continuous chip samples over 2.1 meters. This zone remains open along strike. Significant grab samples collected 385 meters to the east in Trench 1 included 3.25, 3.34 and 15.55 g/t gold and 4.80, 3.50, 9.10 g/t silver respectively. The Number 1 vein was sampled with a grab sample and 0.50 meter chip and returned 1.79 g/t and 5.49 g/t gold and 4.10 g/t and 1.40 g/t silver respectively. 

Within the C Group Area, situated between the Rod and the Fox South Areas, the C11 shear returned 5.88 g/t gold and 0.98 g/t silver over 0.67 meters. The sample was collected at the north end of the shear before it also strikes into Baker Lake.  The only sample collected on a section of the C4 shear graded 1.30 g/t gold and 3.0 g/t silver over 0.4 meters within the larger meter scale shear.

The exploration program successfully demonstrated the extensive gold and silver mineralization on the Up Town Gold property, with the exploration program focused on collecting at least one sample from a number of the laterally extensive shear zones examined. Many of the sampled shear zones strike on surface for hundreds of meters before typically disappearing under cover. Approximately half of the known shear zones on the claim block remain to be examined and sampled in future work programs.

Due diligence work conducted by Company personnel in December 2011 located many of the historical areas of trenching. Shovelling of snow allowed for limited exposure of the located Rod and J Group trenches with thirteen rock samples collected from silicified shear and vein material as well as altered wall rock. Nine grab samples were taken at various trenches in the Rod zone and four samples were taken from a trench in the J Group zone. The Rod samples returned an average of 11.2 g/t gold with two of the grab samples returning high grade gold grades of 49.6 g/t and 30.0 g/t. The J Group samples averaged 0.13 g/t gold with trace silver in the limited sampling. The assays show high grade zones occur within broader halos of lower grade mineralization and are consistent with the Granitoid Hosted Lode Gold deposit exploration model.

Tell Project
Up Town Gold
Meridian Gold Silver

Assay Summary