Property Description and Location
The Lac Pelletier property is located in Rouyn and Beauchastel townships, southwest of the town of Rouyn-Noranda, Province of Québec. The approximate geographic centre of the studied area is 5341500 N latitude and 644500 E longitude. The property consists of 35 contiguous mining titles covering a total surface area of 722.6 hectares, including two mining concessions and a special permit covering part of the former Stadacona mine. The property covers most of Lac Pelletier and has extension South and East of the lake. Thundermin Resources Inc. (“Thundermin”) is the registered holder of the claims and mining concessions that comprise the Lac Pelletier Property. Alexis holds an option to acquire a 100% undivided interest in the Lac Pelletier gold property, in consideration of a cash payment of $75,000 and the issue of 100,000 shares upon exercise. Alexis has satisfied its expenditure commitments of $1,000,000 prior to the September 1, 2007, and an additional $500,000 by September 1, 2008. The property is subject to a 2.5% net smelter royalty (NSR) payable to Thundermin, and a 1% NSR payable to Falconbridge Limited.
Accessibility, Climate, Local Resources, Infrastructure and Physiography
The Lac Pelletier project is located about 8 kilometres south-east of Rouyn-Noranda. The project area is accessible via a gravel road of 1.2 kilometres. The access to the property is also possible from the North via a Provincial Highway 391 and the Hull range. The nearest settlement is the village of Granada, located 2.5 kilometres to the south. All activities at Lac Pelletier are conducted with an appreciation to the proximity of the site to local residences.
The Lac Pelletier project is in the same region as the Lac Herbin project. Accordingly, please see the description (under the website “Project’ section) of the climate, local resources, infrastructure and physiography of the Lac Herbin project.
In this section below are references to historical estimates of “resources” and “reserves” at Lac Pelletier. These historical “resources” and “reserves” should not be relied upon as they not conform to National Instrument 43-101 standards and definitions and they have not been verified to determine their relevance or reliability. They are included in this section for illustrative purposes only.
The first claims on the Property were staked in 1922 on what would eventually become the Stadacona mine. Exploration led to the discovery of gold in a quartz vein along the southeast shore of Lac Pelletier in 1925. Diamond drilling delineated a mineable gold resource in 1926-27, in the #2 Shear at the Stadacona mine, 600 metres east of Lac Pelletier. In 1928, Stadacona Mines Ltd sunk a two-compartment vertical shaft and, from 1928 to 1958, Stradcona produced 2.8 million tonnes of gold ore at an average mill grade of 5.49 grams gold per tonne, for 494,000 ounces of gold, from a 1,264-metre three compartment shaft and 27 production levels.
From the onset of exploration to 1987, the entire surface area of the current property was covered by geological mapping, magnetic and electromagnetic surveys, and tested by more than 19,870 metres of diamond drilling. This work culminated with the discovery, by Falconbridge Nickel Ltd, of the Lac Pelletier deposit. In 1988, 28,991 metres of diamond drilling were completed in various parts of the Lac Pelletier gold deposit to assess its economic viability.
From 1990 to 1991, Falconbridge Ltd and Thunderwood Resources Inc. drove a 1,056-metre ramp and two drifts to access the two main ore zones (137 metres at 50 metres depth, and 135 metres at 150 metres depth). Two bulk samples of development ore from drifting were processed at the Camflo mill: the first 6,907-tonne sample graded 6.79 g/t Au, with 93.5% recovery, and the other 3,641-tonne sample graded 3.08 g/t Au with 93.72% recovery.
In 1992, 1,817 metres of underground drilling and 1,233 metres of surface drilling were completed to detail the geometry and extensions of zone #3. The work was later suspended due to problems in getting access to financing by Thundermin Resources Inc. (formerly Thunderwood Resources Inc.), who had by then become sole owner. From 1999 to 2002, SOQUEM carried out assessment work on the property, including relogging core from 62 historic drill holes (14,826 metres), drilling 12 new holes totaling 3,294 metres and targeting zone extensions east of the ramp, as well as trenching and sampling in zone E. In 2004, SOQUEM completed a drilling program totaling 1,776 metres in six drill holes, targeting Cu-Ni-Pd-Pt occurrences in the northwestern corner of the property. The Company also proceeded with a reassessment of measured and indicated resources in the Lac Pelletier zone and released an estimate of 484,799 tonnes grading 7.84 g/t Au (122,200 ounces Au) using a cut-off grade of 5.0 g/t Au over 2 metres, or 688,253 tonnes grading 6.27 g/t Au (138,728 ounces Au) using a cut-off grade of 3.0 g/t Au over 2 metres.
Since it acquired an option on the property, Alexis has completed a new compilation of diamond drill holes in the Lac Pelletier gold bearing zones, and a new interpretation of fault zones and mineralized zones in order to build a 3D model. This groundwork has enabled Alexis to better define the continuity of vein systems in zones 3 and 3-1 and zones 4-1 to 4-4.