Locally, the property is within the Lobstick Bay Deformation Zone, which is a splay off the Wabigoon Fault. This deformation zone is comprised of three strongly-foliated, intensely altered, quartz, sericitic-schists containing disseminated pyrite within intermediate to felsic volcanics.
The alteration is highly anomalous in gold mineralization and historical drilling confirms this scenario, with an intercept in the Main Zone assaying 38.95 m of 0.63 g/t Au (DDH LB01-03). Of noteworthiness, the Main Zone, hosting this intercept, is only drilled to a maximum depth of approximately 25 vertical meters. This area has received very little attention; a limited drilling program was performed in 1986.
In the Wabigoon Region, New Gold is using these lower grade mineralizing envelopes as exploration guides to delineate higher grade gold discoveries down dip/plunge of lower grade mineralization that is currently delineated for a low-grade open pit scenario.
New Gold’s press release, dated January 16, 2014, issued a global Measured and Indicated Resources of 5.2 Moz at cut-off grade 0.30 g/t Au (open pit) and 2.5 g/t Au (underground) @ 1.54 g/t Au.
Strikepoint’s management believes this property represents an excellent discovery-stage opportunity. The rock types in the area are similar to the Cameron Lake and Goliath gold deposits in the region. Sedimentary rocks in the hanging wall of the shear zone suggest similar geometry to Treasury Metal’s Goliath Gold Deposit and Barrick’s Hemlo Gold Mines; acting as both cap rocks and focusing mineralizing fluids. Exploration plans are preparing for diamond drilling.
On a regional scale the property occurs near the junction of two major regional crustal breaks – the Wabigoon Fault and the Pipestone-Cameron Fault. The Wabigoon Fault is associated with Treasury Metal’s Goliath Gold Deposit (1.7 Moz gold equivalent at 0.3 g/t Au cut-off grade (open pit) and 1.5 g/t Au cut-off grade (underground); Indicated Resources: 0.76 Moz @ 2.6 g/t Au and Inferred Resources: 0.87 Moz @ 1.7 g/t Au), and the Pipestone-Cameron Fault is associated with Chalice Gold’s Cameron Lake Gold Deposit (1.4 Moz gold at 1.0 g/t cut-off grade: Measured and Indicated Resources: 0.57 Moz @ 2.45 g/t Au, and Inferred Resources: 0.83 Moz @ 2.11 g/t Au). More information regarding these deposits can be found at their websites.