On the local scale, the Nelligan project contains several gold showings including Liam and Dan Zones discovered by drilling in 2013 ( drill hole NE-13-04 ( Liam ) – 20.7m @ 2.04 gt / Au ) and 2014 ( drill hole NE-15-26 ( Dan ) – 10.20m @ 2.47 gt / Au ) and the historical Lake Eu showing with grades of 2.17 g/t Au and 3.5 g/t Au (drill holes 94-13 and 95-01) on respective widths of 4.4m and 10m.
New gold zones were intersected to the north of the known gold showings and revealed the widespread presence of gold over a strike length of more than 1km, over a width of a few hundred metres and a depth of over 450m vertical (Zones 36 and Renard). These zones remain open along strike and at depth and appear to fall within a corridor highlighted in the regional magnetic data identified over a potential strike length of several kilometres.
The area of Lake Eu was discovered in the 1990s and is located about 500m NE of the Liam-Dan area. Liam and Dan showings were discovered by drilling in 2013 and 2014. These gold structures were intersected by drilling over 400m and remain open both at depth and laterally.
The 2016 exploration drilling program intercepted wide zones of alteration and mineralization that delineated the 36 and Renard zones. Further drilling in 2018 has confirmed depth extensions as well extensions to the west of the Renard zone structure over 1.3 km. This gold corridor, associated with a large hydrothermal gold system of >2.3km strike length, corresponds to a Magnetic low anomaly and remains open along strike and at depth. Recent drilling results (32 holes totaling 13,360 m) disclosed in 2018-2019 indicate significant drill results from the Renard and 36 zones.
The presence of gold is relatively constant throughout the drilling campaigns that we estimate totals nearly 37,000m (in 146 holes) since the late 1970’s with the majority of these holes focused in the Dan, Liam, Zone 36 and Renard area since 2014 by Vanstar and IAMGOLD.
The Nelligan project is affected by several structures and deformed zones and contains several interesting gold showings. The Nelligan deposits (Liam, Dan, 36, Renard) are essentially blind deposits where exploration vectors have permitted to advance subsequent exploration phases. The characteristics of the mineralized zones Dan, Liam, Zone 36 and Renard appear to be of variant type, style and of potential. Saliently, significant alteration and associated gold mineralization has been intersected over wide intervals at Zones 36 and Renard over a strike length of more than 1.1km, to a depth of over 450 vertical metres
The geological modelling of the drilled area on Nelligan remains on-going and interpretation suggest that drill holes are located within a vast hinge zone where folding, faulting and transposition occur. Molybdenite appears as a gold tracer and breccias units intersected in drillhole may have different signatures and some breccia type may be more auriferous than others.
Gold showings at Nelligan can be grouped according to their style of mineralization: i) quartz-sulphide vein type mineralization and ii) disseminated pyrite mineralization. Trace molybdenite and infrequently visible gold are also observed. We note the density of the hydrothermal system with the 4 zones and their scale (300m to 1.1 km strike length, 5 to 150m widths and depth beyond 450m). This may lead to the probable presence of a robust auriferous hydrothermal system amenable to open pit and underground operations.
Drilling programs in 2018 and 2019 totaling more than 30,000 meters resulted in a first resource estimate close to 100 millions MT at a grade of 1.02 g / t Au for a total of 3.2 millions inferred gold ounces . The 2020 winter drilling campaign aims to verify the west and depth extensions of the Nelligan gold deposit as well as to categorize part of the inferred resource into indicated resources. The results obtained in the first part of the winter program 2020 all met their objectives, the Renard zone having been intersected more than 500 meters west of the open pit designed in the NI 43-101 report, of October 2019 and that it has also been recognized in depth.
Remaining unknowns are the metallurgical recoveries for the different zones and RQD of rock types. However, we anticipate potential good gold recoveries (~92-97%) and highlight that there are no deleterious minerals such as arsenopyrite.