The Onaman Project Area, the MacDonald Lake block and the Hopkins patents consists of 2008 hectares. Access to the area is via secondary roads from Beardmore, Ontario, some 75 km to the southwest of the project area.
The metavolcanics underlying the project area are part of the Wabigoon greenstone belt and consist of extensive mafic flows, pyroclastics, and minor felsic units. Iron formation, cherts and probably komatiites form part of the sequence. The base of the sequence is marked by probable subvolcanic felsic intrusions. The metavolcanic belt is isoclinally folded about steep northeast trending, west-plunging axes, with a synclinal axis centered on the Onaman River.
The predominant lithology consists of alternating uniform pillow basalts, massive flows and ash tuffs of similar composition. Feldspar phenocrysts may occur in massive flows and in pillow basalts. Predominant ash tuffs are massive to poorly bedded, with bedding planes defined by thin carbonate beds. Carbonation of pillows, flows and tuffs is common. Mineralization occurs as 1) massive (1-2 m thick) and disseminated pyrrhotite (po)-chalcopyrite (cp) within 2-6 metre thick carbonate-silica exhalite horizons displaying colloform banded texture, 2) thin po-cp beds (mm scale) within calcareous ash tuffs and 3) pyrrhotite with variable chalcopyrite, calcite and quartz that occurs in pillow selvages.
Numerous high grade Cu-Au and Pb-Zn-Ag-Au showings are known on the property. The main work on Pb-Zn-Ag-Au mineralization was carried out by Headway Coulee Mines in the 1950s. Lynx-Dejour found Cu-Au mineralization in 1972-1975. The most significant mineralization is the Lynx Cu - Ag- Au deposit (compliant resource of 1.936 million tonnes at 1.44% Cu, 39.6 g/t Ag and 0.58g/t Au), the Headway Pb-Zn-Ag Zones and the Cane Au and Cu zones.
The Lynx Cu-Ag-Au deposit comprises an inferred compliant resource of 1,936,000 tonnes at an average grade of 1.45% Cu, 39.1 g Ag/T and 0.58 g Au/T and contains 61.3 million pounds of copper, 2.24 million troy ounces of silver and 33,000 troy ounces of gold. These resources are reported at a cut-off grade of 0.5% copper. Lersch-Grossman Pit Optimization techniques were utilized to evaluate the near surface potential of a resource that could be amenable to mining by open pit methods. The results indicate the potential for one pit located in the Lynx North area. Using cut-off grade sensitivity scenarios of 1% Cu and 0.5% Cu, conceptual geologic resources ranging from 485,000 tonnes at 2.1% Cu, 45.3 g Ag/T and 0.70 g Au/T to 845,000 tonnes at 1.55% Cu, 34.6 g Ag/T and 0.51 g Au/T. The Lynx compliant resource and the open conceptual geological resources related to the pit optimization were reported in an SGX PR dated March 31, 2009.
The 1011 line kilometre airborne ZTEM-magnetic survey has identified a zone of conductivity, associated with a magnetic anomaly, 500 metres east of the Lynx deposit. Inversions of the ZTEM data indicate that the top of the conductive source may be within 100 m of surface, and the conductive source lies at about 500 m below surface. In 2008, Sage drilled a ground EM conductor approximately 400 metres east of the main Lynx deposit. Copper silver and gold mineralisation intersected in three holes to a depth of 115 metres, including S08-01 with 0.04% Cu, 1.26 g/T Au and 8 g/T Ag over 0.7 metres, S08-06 with 1.8% Cu, 3.41 g/T Au and 73 g/T Ag over 0.44 metres and S08-04 with 1.32 % Cu, 0.21 g/T Au and 17 g/T Ag over 2.4 metres. ( SGX Press release of May 28m 2008).