In June 2016, Abcourt completed the acquisition of the Sleeping Giant mine and mill and several other properties with excellent showings of gold.
The Sleepy Giant property is 100% owned by Abcourt since its purchase in June 2016. The property is located half-way between Amos and Matagami, in Abitibi, Quebec, in the territory covered by the Plan Nord of the Quebec government. It comprises four (4) mining leases covering an area of approximatively 458 hectares and 69 mining claims. A royalty of $5.00/ton on the first 350,000 tons of ore extracted from the Sleepy Giant property is payable.
Among the assets that Abcourt has acquired, there is a mill with a capacity of 700 to 750 tonnes of ore per day, or 250,000 tonnes per year. This capacity is adequate to treat the Elder and the future Sleeping Giant production. The process is carbon in pulp. There are also installations to deposit the mill tailings, underground infrastructures including two shafts and drifts, a mechanical shop, offices, a store, dries and mining equipment, surface installations, an important inventory of parts, five (5) mining leases and forty (40) adjacent cells and several other exploration properties.
The treatment plant was restarted by Abcourt in August 2016 to process ore from the Elder Mine and custom milling to utilize the full capacity of the mill.
In September 2018, a NI 43-101 resource calculation has been prepared by Jean-Pierre Bérubé, geological engineer. Mr. Bérubé is a qualified and independent person under National Instrument 43-101 and has relevant experience in this area.
A summary of Measured, Indicated and Inferred Resources is presented in the following table:
|ZONE||MEASURED||INDICATED||MEASURED + INDICATED||INFERRED|
|Tonnes||Grade (g/t)||Tonnes||Grade (g/t)||Tonnes||Grade (g/t)||Tonnes||Grade (g/t)|
Calculation Criteria Used:
- Cut-off grade of 6.5 g/t Au. Some polygons under this cut-off grade were included to ensure the continuity of the zones.
- Price per ounce of gold at US $1,225 (3 years average) and an exchange rate of US $1 = Can $1.20.
- Maximum content: 60 g/t Au for core samples and 55 g/t Au for chip samples. A grade of 32 g/t Au was applied for the polygons generated by the 2013-2014 drilling.
- Specific Gravity: 2.85 g/cm3 as used in previous resource estimates.
- Resources were evaluated from diamond drill samples and face samples using the polygon method applied to inclined longitudinal sections.
- The minimum true thickness of the veins is calculated from its dip; 1.6 metre for veins having more than 50° and 1.8 metre for those having less than 50°.
- The vein content is determined by the drilling intersection and the content of the adjacent material to meet a minimum thickness of 1.6 or 1.8 metre.
- One Troy ounce = 31.1035 grams. The metric system was used for these calculations (metres, tonnes and grams/tonne).
- Calculated tonnes have been rounded to the nearest hundred. Differences in the calculation total are due to rounded figures as recommended by NI 43-101.
- ICM definitions and guidelines were used for this resource calculation.
Plan view of level 665 showing drifts and cross-cuts in known mineralized areas and the geological context
QUALITY CONTROL AND REPORTING PROTOCOLS:
Considering the potential sources of errors that a laboratory may encounter in the context of large-scale sampling. Previous owner, Aurbec Mines Inc. (“Aurbec”), introduced a Quality Assurance and Quality Control (QA/QC) program in 2013-2014. This program consisted of; 1) the use of a control laboratory (Agat) to verify the accuracy of pulps and rejects results; 2) the insertion of blanks to control the sources of contamination; 3) the insertion of pulps in renumbered core sample rejects whose gold content was known to evaluate the reproducibility of the results; and 4) insertion of Rocklabs certified referenced material.
Core samples taken from diamond drill holes were split in two equal parts with a core splitter by Aurbec’s employees. One half of the carrot was prepared to determine its gold content while the other half was kept in the core box. The whole core from definition drilling samples was analyzed at the mine’s laboratory.
The reception and preparation of samples at the mine’s laboratory was done according to the accepted standards of the industry. The steps of drying, grinding (80% passing 10 mesh), splitting and pulverization were followed to produce 200 grams of pulp of which 80% passes a 200-mesh screen. A pulp fraction weighing just under 15 grams (half assay-ton) was used to determine the gold content of each sample. Although this quantity of pulp is one-half that used in the industry (one assay-ton) for gold determination made during exploration programs, it is considered sufficient when used for mining sites given the large number of samples taken by producing mines. The analytical method consisted of pyro-analysis with an atomic absorption finish. The method has a detection limit of less than 0.01 g/t Au.
After having examined Aurbec’s internal protocol for controlling analytical results and compared 588 pulps and rejects made by an accredited external laboratory (Agat), the author is of the opinion that the manipulation, sampling and analysis of core samples, as performed at the mine’s laboratory, are consistent with current industry standards.
Moreover, considering that:
- the gold mineralization of the VMS-type vein deposits (which includes the Sleeping Giant gold deposit) is, by its nature, distributed more homogeneously than the gold contained in the classical vein deposits;
- the validation work done by InnovExplo in 2013 from drillings carried out prior to 2013, in areas also targeted by the 2013-2014 drilling program, concluded that the drilling database was adequate and reliable; and
- the update of the diamond drillhole database was done by a qualified geologist having an extensive experience of the Sleeping Giant geology.
The author’s report is of the opinion that the analytical results of the Sleeping Giant mine’s laboratory can be used safely for this mineral resource estimate.