PEA REPORT – APRIL 12, 2013
- Located in the prolific Timmins Mining camp and very close geographically (20kms) to Goldcorp’s (TSX-G) Hoyle Pond mine which has produced more than 2.4 Mozs since 1985 and is still in operation.
- NI43-101 NEW resource estimate in October 2012 includes Indicated mineral resources of 1,258,400 tonnes at 4.81 g/t Au totalling 194,600 ounces of gold and Inferred mineral resources of 796,000 tonnes at 4.7 g/t Au representing 120,000 ounces. These resources are reported at a base case cut-off grade of2.75 g/t Au and individual assays have been capped at 60g/t.
- One of the lowest CAPEX in the industry, $70+ million historically invested by St. Andrew Goldfields and Sage
- Existing infrastructure in place, including underground ramp access to the 300 metre level, underground levels developed every 25 metres, power to site, surface ventilation system, water management system
- Fully permitted and ready for production in 2017.
- Clavos has a life-of-mine toll milling agreement with Black Fox – Stock Mill which is located 10 km away in Stock Township and is owned and run by McEwen Mining Inc. (TSX: MUX).
Over 2000 intersections that are above the cutoff grade are outside the resource blocks, with a potential increase in tonnage.
The Clavos mine is located within the Timmins mining camp in German, Stock and Clergue townships and is comprised of 69 patented and leased claims and 14 unpatented claims. The patents, leases and claims are 100% owned by SGX. The Clavos property comprises 2,540 hectares in total area. The deposit was mined briefly between mid 2005 until August 2006 and again until May 2007.
The geology and mineralization of the Clavos property is summarized below. Refer to the Roscoe Postle Associates Inc. report of 2012
The Clavos Property is transected in an east-west direction by a contact between mafic and ultramafic volcanic rocks of the Tisdale Group to the north, and Hoyle Assemblage clastic sedimentary rocks to the south. The contact dips, overall, very steeply to the south but locally has been interpreted from drilling to dip northerly. North of, and parallel to the contact,is the Pipestone Fault (PFZ), a major regional structural feature that also traverses the entire property. The PFZ is a major offshoot of the Destor Porcupine Break. Between the PFZ and the contact are a number of irregular and discontinuous felsic porphyry intrusive bodies. These intrusions strike and dip parallel to the stratigraphy and are the loci for much of the gold mineralization on the property.
Gold mineralization occurs in a series of quartz and quartz-carbonate veins which are interpreted from the drilling to be steeply dipping and east-west striking, roughly parallel to the PFZ. The veins, while appearing to be consistent in orientation from section to section, are observed in the drill core to occur in a wide variety of orientations. The quartz veins occur most often in the mafic and ultramafic volcanic rocks, usually in proximity to porphyry intrusives.