The PG-101 Gold Property is located in Holloway and Marriott Townships in the Larder Lake Mining Division, District of Cochrane, Province of Ontario. The property consist of 170 mining claims totalling 2386.8 hectares. The eastern side the property is bisected by highway 101.
HISTORY AND GEOLOGICAL BACKGROUND:
The PG 101 Property is adjacent to the eastern boundary of St. Andrew Goldfield’s former producing Holt Mine Property and only a few kilometers east of their Holloway Mine property. Historic production (1988-2004) from the Holt (McDermott) Mine totals 8.18 millions tons at a grade of 0.162 opt Au1 (7.42 million tonnes @ 5.6 gpt Au). Measured and indicated resources reported in 2006 for the Holt Mine are 2.99 million tonnes at a grade of 7.3 gpt Au2. Production at the Holloway Mine to 2004 is reported as 4.73 million tons at a grade of 0.166 opt Au1 (4.29 million tons @ 5.7gpt Au). Measured and indicated resources reported in 2006 for the Holloway Mine are 1.04 million tonnes at a grade of 7.8 gpt Au2. Several other smaller deposits in the Harker-Holloway gold camp and in the vicinity of the PG 101 Property include the Buffonta, Mattawasaga and East zone deposits.
The PG 101 Property is underlain by the same succession of mafic volcanic flows, breccias, and tuffs that host the known gold deposits of the area. These volcanic rocks are cut by ENE trending faults that splay from the belt Destor-Porcupine fault zone (“DPFZ”). The DPFZ is a major deformation zone that crosses along the north boundary of the PG 101 claims in Marriott Township. Proximity to the DPFZ, the Kirkland-Larder lake Break and other similar regional faults are characteristic of significant gold deposits of the Eastern Abitibi greenstone.
A historic work report indicates that an Induced Polarization (IP) geophysical survey completed in 1988 on the PG 101 Property detected 11 anomalies. One of the anomalies was large and occurred at the western boundary extending and expanding eastward onto the claims. Historic reports also suggest the possibility that this anomaly was a possible extension of the Holt McDermott orebody onto the PG 101 property.
The Company holds a 50% interest in the project.