La Ronge Gold Corp. has announced the signing of an option agreement to acquire a 100% interest in 24 mineral claims totalling 12,419 hectares (30,688 acres) from a private Saskatchewan-based company.
Over five years and upon confirming 1,000,000 ounces of gold in an NI-43-101-inferred category, the Company will pay $310,000 in cash and spend $2.5 million on the claims and will issue 3.8 million shares to the vendor for the optioned claims.
Contiguous to the optioned claims, the Company has staked an additional 14 claims covering 34,098 hectares. Including the optioned claims and independently-staked claims, the entire land package is comprised of 41 claims covering 52,932 hectares (130,795 acres). The Property is located in a prolific gold belt in Northern Saskatchewan, where Claude Resources (Seabee Mine) and Golden Band Resources operate multiple gold mines. Please see the location map of the projects available on the Company's website at: http://larongegold.ca/projects/ProjectsLocation22.pdf
Historical Drilling and Resources:
The Company is planning an aggressive exploration program on its 52,932 hectare prospective ground in the La Ronge Gold Belt. The primary focus of this program will be to bring the historical resources of the Preview SW and Twin Deposits up to a NI 43-101 standard. Most of the drill core from the Preview SW deposit has been re-boxed and re-labelled, and is available for re-sampling. Confirmatory diamond drilling on the Preview SW will commence this winter, followed by diamond drilling on the Twin deposit. Other regional surveys to be carried out over the next year include airborne geophysics, till sampling, stripping, and trenching.
Geology and Mineralization:
Preview (formerly known as P.A.P. SW) is underlain by early Proterozoic metavolcanic rocks of the Central Metavolcanic Belt intruded by diorite to ultramafic sills probably related to adjacent Contact Lake intrusion. The metavolcanic rocks vary from felsic to mafic composition and contain a significant volcaniclastic component.
Structurally controlled mesothermal lode gold is found in quartz veins on the margins of sheared dioritic-gabbroic sills and is associated with sulphides i.e., Arsenopyrite +/- Pyrite +/- Pyrrhotite +/- Chalcopyrite. The zone of diorite-gabbro sills extends for 5200 m in a northeast-southwest direction across the property and reaches approximately 200 m in width. Several sub-parallel northeast-trending zones, totalling 150 m in width, make up the Preview SW deposit. Four structural zones (K, L, M, and R) make up the deposit. The zones bifurcate and merge. The en echelon 1 to 10 m-wide structures are persistent at depth and often merge in that direction too.
Please refer to the location map for details of Preview SW, A, B, and C zones on the Company's website at:
Examples of better intersections are:
The deposit's historical resources are contained within a number of discrete zones varying from 70 m to 288 m in length, an average of 16 m in width, and a maximum of 180 m in depth.
Previous exploration programs were conducted over the area when the Saskatchewan Mining Development Corporation (SMDC and later Cameco) acquired the property in 1978 and continued with partners until 1989.
The Cameco-operated joint venture prioritized the Preview SW area and tested it with close-spaced drilling. The joint venture reported in 1989 that the Preview SW geological reserves were 493,690 tonnes at 12.34 g/t Au.
Two styles of mineralization exist on the Preview property: structurally controlled mesothermal lode gold and stratabound epithermal mineralization hosted in a lean iron formation.
The lode gold mineralization is associated with brittle-ductile and ductile deformation zones within mainly greenschist facies metamorphosed diorite-gabbros. The host rock and mineralization are Paleoproterozoic in age.
Additional zones of gold mineralization (the Preview A, B and C zones) have been partially defined with drill holes along strike from the Preview SW deposit suggesting there is considerable room for expansion.
WEDGE LAKE PROJECT:
Geology and Mineralization:
Wedge Lake-Twin deposit is stratabound and possibly strataform in an iron formation quartz clast breccia unit. The deposit was outlined in 38 diamond-drill holes collared on 25 m centres along a 450 m strike length to a depth of 175 m, with average zone width ranging from 2.4 m to 4.6 m. The deposit remains open along all directions.
Gold mineralization in the Twin zone is associated with a mixed sulphide/oxide facies iron formation breccia. Two bands of iron formation have been mapped for a strike length of 3900 m, with numerous gold and copper occurrences associated with the iron formation and high grade quartz veins, including five mineralized zones that have been discovered to date on the property. The Twin zone remains open to depth and along strike and has been drilled to a depth of 175 m vertical. The Wedge Property location map is available on the Company's website at: http://larongegold.ca/projects/wedgelake/TwinLocation.pdf
Significant zones of gold and gold-plus-copper mineralization have been discovered and drilled along strike of the Twin Zone. Please refer to the Wedge Property location map to know more about these zones.
"We are very pleased with the quality of the historic exploration work conducted by previous companies on these deposits, especially the Preview SW," commented the Company's President Rasool Mohammad. "Our acquisition of these historic ounces will certainly add to the shareholders' value. La Ronge Gold has clearly positioned itself to be one of the major land position-holders in the gold belt covering 52,932 hectares (130,795 acres) of prospective ground."