AMANDA GOLD PROJECT

The Amanda project, 100% owned by the Company, consists of a total of 138 cells with a total area of 7,306 hectares. The Amanda property is located 275 km northwest of Chibougamau within the regional county municipality of Jamésie in the southern part of the Nord-du-Québec administrative region, Quebec, Canada.

Evaluation of Geological Potential - Amanda Project (PDF)

Regional Geology

The Amanda property straddles the La Grande and Opinaca subprovinces in the center of the James Bay territory. The La Grande Subprovince is a greenstone belt dominated by multiphase intrusions of dioritic, tonalitic, granodioritic and granitic composition, injected into the volcano-sedimentary sequences of the Eastmain Group. The belt is oriented East-West and extends over approximately 300 km in length and a width which varies from 10 to 70 km. It consists of sequences of volcano-sedimentary rocks which have been released in an oceanic environment and which are injected by calc-alkaline intrusions of gabbroic to monzogranitic compositions.

The Opinaca Subprovince is made up of migmatitized paragneiss, diatexite and strips of amphibolite belonging to the Laguiche Complex. These rocks are injected by intrusions of granodiorite, granite or pegmatite from the Janin and Boyd suites. Proterozoic diabase dikes belonging to the Matachewan, Senneterre and Mistassini swarms cut across all of the region’s Archean units.

Local Geology

The Amanda project is located in the southeastern part of the Auclair Formation in the La Grande Subprovince. The Auclair Formation consists of a sedimentary stack essentially made up of paragneiss with an assembly of metamorphic minerals alternating with iron formations. Algoma type with facies of oxides or silicates. These iron formations correspond to concordant levels from a few meters to forty meters thick. South of Lake Beryl, the iron formations locally contain garnet, possibly resulting from metasomatism associated with the late Beryl tectonic intrusion. This intrusion corresponds to a foliated and homogeneous tonalite very rich in enclave of biotite and Andalusite paragneiss, placed at the interface between the Natel formation and the underlying Champion complex.

Previous Work

Before 1994, the property was the subject of various exploration works, mainly from a regional point of view, by public entities (Geological Survey of Canada, SDBJ, Ministère des Richesses Naturelles Québec) which carry out mapping programs and geophysical surveys.

From 1994 to 2009, Virginia Mines Inc. was the main player in gold exploration work on its Auclair property. The current Amanda property covers the eastern part of the former mining titles of the Auclair property. The structural study carried out in 2009 by Virginia Mines Inc. corresponds to the latest exploration work carried out from a local point of view on the Amanda property. The property has also been the subject of exploration work focused on the search for uranium or lithium in the pegmatites.

Economic Geology

Several gold showings are listed on the Amanda property. Other evidence with a similar geological background is also highlighted within a 15 km radius to the west and southwest of the property. Mineralization consists of pyrite, pyrrhotite, disseminated arsenopyrite, and gold in veined quartz veins intersecting iron formations or in paragneiss. The type of mineralization is similar to the Homestake, Lupine and Musselwhite deposits.

The following data presents some historical results from boreholes and trenches:

Hole Grade g/t Au Thickness  (m) Showing
AC-97-31 2,42 g/t Au 4 m Arianne
and 5,4 g/t Au 7 m
including 12,1 g/t Au 3 m
AC-02-01 1,15 g/t Au 18 m Arianne
AC-02-05 0,52 g/t Au 11,37 m Rock’n Hammer
Including 1,36 g/t Au 2 m
Trench Grade g/t Au Thickness  (m) Showing
TR-97-01 0,6 g/t Au over 8,3 m Arianne
and 1,07 g/t Au over 7 m Arianne
TR-97-03 1,35g/t Au over 11 m Ti Beu
including 5,2 g/t Au over 2 m Ti Beu
TR-97-04b 1,69 g/t Au over 13,8 m Kog
and 5,17 g/t Au over 2,9 m Kog
and 8,34 g/t Au over 1,6 m Kog

Gold Potential

Two types of gold mineralization could be explored for on the Amanda property. The main metallogenic model identified on the property has been recognized by Virginia Mines Inc. since 1994 and is associated with the establishment of orogenic mineralization in the iron formations of the Auclair formation. These iron formations are oxidized or silicate and strongly folded and sheared during two main deformation phases. The presence of the late tectonic pluton from South Beryl also provides a favorable context for the establishment of mineralization associated with intrusions (“Intrusion Related Gold Systems”).

The Next Steps

“The geological and geophysical data as well as the presence of many gold showings located in several locations on the Amanda property and in its environment confirm the gold potential of this project. Following the recommendations of our consulting firm, we plan to start various exploration work there (geophysics, geology and prospecting) as soon as the land is accessible in order to prepare a first drilling campaign, “underlined the CEO, Mr. Guy Morissette.

The company is currently in discussions with a few specialized firms in order to carry out this first step.