The Eleonore property is centered on a discrete tonalite-diorite intrusion, about 10 km in diameter, to the northern margin of a vast batholitic complex and within the contact zone between the La Grande and Opinaca sub-provinces. The intrusion is bounded by aluminous metasediments and conglomerates to the north and south and is in contact with basaltic units and conglomerates to the west. The sedimentary rock located along the northern edge of the intrusion host de mineralized zones of the Roberto Deposit. The host sedimentary sequence consists in an assemblage of sandstone, wacke and conglomerate. The sedimentary rocks evolve into pegmatite-bearing paragneiss to the north and to the west, suggesting a steep metamorphic gradient.

The Roberto deposit comprises numerous gold zones with the two main ones known as the Roberto and East-Roberto lenses. The Roberto packages are located in close proximity to the Ell Lake intrusion and are hosted by polydeformed sedimentary rocks. To the present day, more than 500 boreholes of length between 100 to 1,600 m have been drilled in order to define the extent of the mineralized zones laterally and at depth. About 20 trenches were excavated at surface in order to enable detailed study of the mineralized zones and nearby lithological units. The ore genesis processes are yet to be defined. Some of the geological parameters that are generally accepted are:

•The Roberto gold bearing system is a stratabound, sediment hosted, possibly intrusive related deposit. The primary targets and focus of most of the drilling activity are the Roberto zones.

•Mineralization occurrences are partially controlled by rock type as they are associated to thinly-bedded sedimentary units (greywacke). The host rock package is likely part of a turbiditic sequence.

•The mineralized Roberto zones are developed as quartz veins/sulfide stockworks with pervasive and intense actinote/microcline/tourmaline and silicic alteration.

The mineralized zones consist of stockworks of quartz-tourmaline-actinolitearsenopyrite-pyrrhotite veins and veinlets contained within microcline (potassic alteration) and brown to black tourmaline replacement zones showing variable proportions of disseminated arsenopyrite and pyrrhotite. The structural hanging wall of the mineralized zones is characterized by greywacke containing cm-scale aluminosilicate porphyroblasts, meter-scale garnetiferous metasomatic zones, and moderate potassic alteration. The structural footwall is characterized by paragneiss units containing high percentage of biotite.

Sulphide concentration within the mineralized zones varies from 2 to 5% mostly as arsenopyrite, pyrrhotite and pyrite. The host rock may contain sulphide but in lesser amount (trace to 2%), and mostly in the structural hanging wall. In places the “ore” zones form stacked sub-parallel stratabound lenses (up to 5-6 lenses) separated by 10 to 50 m of low grade to barren “waste” rock.  The “ore” zones are generally 5-6 m in true thicknesses, varying from 2 to +20 m occasionally. All zones are still open at depth and along strike. On surface the lithologic units that contain the mineralized zones extend for a minimum of 1.9 km along strike and 1000 m below surface.

Conclusions and Recommendations

The gold mineralization delineated at the Eleonore project is hosted in sedimentary rocks and exhibits complex geometrical patterns arising from a combination of structural and/or lithological controls. The area investigated by drilling extends over 5 km in strike length to a depth exceeding 1,000 m.  SRK believes that the initial mineral resource model developed for the Eleonore gold project represents a reasonable and appropriate reflection of the geological and grade continuity given current level of sampling and understanding of the geological and structural setting of the gold mineralization.

The potential to add mineral resources to this project is considered good as the main gold-bearing structures remain open laterally and at depth. Additional drilling is warranted at depth, until costs render surface drilling prohibitive. Infill drilling is required to increase the confidence in the lateral continuity of the gold mineralization in more widely spaced areas. Shallow drilling in the northern part of the deposit may quickly add mineral resources amenable for open pit mining. Deeper drilling below the Southern Zones will help increase of the understanding of the more complex northern area.

Furthermore, the exploration potential of the large surrounding property remains poorly tested away from resource area.