Nov 2 2010
Z-Gold Exploration Inc. (TSX VENTURE:ZGG) has announced the acquisition of one claim contiguous to its Abitibi Gold Property in Munro Twp, Ontario, in the Larder Lake mining district, Province of Ontario.
The property is located in the famous Timmins-Porcupine mining camp within proximity to past and existing producers.
The Abitibi Gold Extension III Property (AEP) consists of one mining claim located in the Munro Township in the Timmins-Porcupine Mining Camp. The property is located 20.9 air Kilometres from the town of Matheson. The property is easily accessible via Highway 101 and in the North, thru bush road through the property itself.
Z-Gold will acquire an additional claim known as the Abitibi Gold Extension III in the Munro Township. To acquire a 100 % interest in the property, the Company will pay CDN $5,000 and issue 50,000 common shares at the signature of the agreement. The Optionor has retained a 2% NSR in the property. This agreement is subject to regulatory approvals.
Gold exploration activity in the general Munro Township Region has accelerated as the result of exploration successes in neighbouring townships and along the regional strike to the east. In Hislop Township, Apollo Gold is currently mining their Black Fox deposit. The current proven and probable reserves are 6,460,000 tonnes grading 6.4 grams gold per tonne.
The gold zones in Hislop (immediate vicinity; South West of Munro Twp) and Guibord Townships (immediate vicinity; South of Munro Twp) are associated with the regional Destor-Porcupine Fault Zone and / or associated splay faults that trend through the region to the south of and generally parallel to the Pipestone Fault Zone. Further to the east in the Harker & Holloway Townships Area (20 km to the East of Munro Township) where the Pipestone Fault Zone joints with the Destor-Porcupine Fault Zone there are two gold mines which belong to St. Andrews Goldfields.
Two old mines, Holt McDermott and Harker-Holloway that are now owned by St. Andrew Goldfields have historic production (1988-2004) totaling 8.18 millions tons at a grade of 0.162 opt Au (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 Au. Production at the Holloway Mine to 2004 is reported as 4.73 million tons at a grade of 0.166 opt Au(4.29 million tonnes @ 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 Au.
The Abitibi Greenstone Belt is well known to have hosted a large number of world class gold mines both large and small. Current and past producers in the area include the Croesus Mine (1.5 km to the South West of the Abitibi Gold Property (AGP)), St. Andrews Goldfields (20 km to the East of the AEP), Apollo Gold (10 km to the South West of the AGP), and the Harker Holloway Gold Mine (20 km to the East of the AEP).
The Destor-Porcupine fault zone (DPFZ) extends 200 km from Timmins, Ontario, to Destor, Quebec. The DPFZ is part of Abitibi Greenstone belt, known as the largest and most prolific Archean greenstone belt in the world. In Timmins, mines are characterized by richly mineralized and extremely deep deposits with relatively short strike lengths but large down-plunge extensions. They have plunge lengths of up 2 km and most remain open at depth.
Mines in the Timmins-Porcupine camp have produced over 70 millions ounces of gold (Timmins Resident Geologist Annual Report 2010, MNDM Website). Recent discoveries have added another 20 millions ounces of mineable reserves : Goldcorps Hoyle Pond complex, as well as the Lakeshore's Timmins West mine, and their Thornloe discovery bodes well for the Timmins mining camp.
Detailed prospecting has been conducted on the property since 1984. Said exploration has included the re-evaluation of a number of previously known gold-bearing quartz vein zones; and has resulted in the discovery of additional associated gold zones as well as previously undiscovered gold-bearing areas. A number of these auriferous zones have been tested by old pits and shallow prospect shafts. More recent exploration during the period 1984-94 has included stripping/trenching/sampling; geophysical surveys; and follow-up, limited diamond drilling.
This gold-bearing vein in places contains abundant blebs and coarse needles (laths) of arsenopyrite. Subsequent examinations have shown that visible gold (spectacular in places) is present in both the flat-lying vein and in thin, cross-cutting quartz stringers within the highly altered (carbonatized) basaltic wall rocks. The higher-grade gold values appear to be associated with zones of abundant arsenopyrite present in both the quartz veins and the adjacent wallrocks. Accessory minerals also present in the quartz veins are minor chalcopyrite, sphalerite and fuchsite.
Source: Z-Gold Exploration Inc.