Harvest Gold Conley Estate Claims
posted on
Aug 14, 2009 08:56PM
The company is now known as FUSE Cobalt.
This information is from Harvest Gold's MD&A of July 27, 2009. These claims are to the east of Wildcat's Jeep property, thus, possibly of interest ot Wildcat shareholders. When comparison is drawn between this property and San Antonio, it is interesting to note that Jeep is found in-between them.
CONLEY ESTATE CLAIMS, MANITOBA
Historical Overview
On October 5, 2006, the Company paid $5,000 and signed a letter of intent to option eight claims known as the Conley Estate Claims, held for over thirty years by Bill Conley, from the trustees of his estate. This contiguous property package is over 30 square km and covers favourable rocks including major fold structures and the shear that continues some 80 km eastwards, to and beyond the Red Lake Gold camp. The Company entered into a property option agreement on January 25, 2007 with Conley Mines Ltd. (“CML”) to
acquire 100% of CML’s right, title and interest in mineral claims referred to as Conley Estates Claims. The Company has the right to repurchase up to one half of the NSR (1.5% of Net Smelter Returns) for $500,000 per 0.5%, for a total purchase price of $1,500,000. The Company will pay the $85,000, issue 300,000 common shares of the
Company and expend $500,000 on the property to earn the 100% interest. On April 2, 2009, the anniversary payment due January 24, 2009 was re-negotiated to a payment of $7,500 and the issuance of 125,000 common shares as follows:
On Execution of Agreement .....$5,000 Paid
By January 24, 2008 ..............$10,000 Paid
By January 24, 2009 Re-negotiated $7,500 Paid
By January 24, 2010 ...............$20,000
By January 24, 2011 ...............$35,000
Total $77,500
On Execution of Agreement...... 25,000 Issued
By January 24, 2008................. 40,000 Issued
By January 24, 2009 Re-negotiated 125,000 Issued
By January 24, 2010................. 75,000
By January 24, 2011............... 100,000
Total 365,000
Date Expenditures (cumulative)
By January 24, 2008 $30,000
By January 24, 2009 $90,000
By January 24, 2010 $240,000
By January 24, 2011 $500,000
$860,000
As of March 31, 2009, the Company has incurred $228,730, net of stock-based compensation charges of $7,188
(March 31, 2008 - $225,871) on this property.
Property Description
The Conley claims are located on the northwest side of Wallace Lake approximately 25 km east of the town of the San Antonio Gold Mine at the town site of Bissett in Southeastern Manitoba. Access is by an all weather gravel road (PR 304) that intersects the southern part of the property and trails suitable for ATVs and snow mobiles. Boat access on Wallace Lake is also possible. The property consists of eight claims with a total area of 1,189 Ha. E.S. Moore of the Geological Survey of Canada was the first to map the Wallace Lake belt in 1913. William Conley (presently his estate), is the registered owner of the claims, and he has worked on the property intermittently
since 1958. Conley’s work has consisted of prospecting, trenching, sampling and limited diamond drilling. Assessment files show that Conley is responsible in whole or in part for locating numerous areas of surficial mineralization associated with quartz veins and shear zones in a wide range of rock units. Many of the showings are highly anomalous while others have yielded spectacular samples of visible gold which have high gold content (“1.12 oz/ton Au over 3.5’”).
Kerr Addison Mines Ltd (1965, AF 91559) drilled seven holes in the area in 1965. Spectacular gold assays (0.97 oz/ton Au over 1.7’ and 0.63 oz/ton Au over 1.5’) were returned from a showing known as the ‘No.1 Hi-grade’. Manitoba Mineral Resources flew an Airborne Electromagnetic and Magnetic survey in the Wallace Lake and Siderock Lake areas in 1972.
Noranda Exploration Co. performed geological work between October 1988 and June 1989. Stripping, mapping and channel and humus sampling were performed. Noranda undertook preliminary property examinations and decided that two showings (Smoky and No. 1 Hi-grade) required stripping to expose their potential. It was concluded that gold-bearing quartz veins in the Smoky showing be drill tested along their strike and down plunge extension to the northeast. As well, at the No. 1 Hi-grade showing, that it be drill tested or an induced polarization program is carried out in the vicinity of the intersection of the noted VLF anomaly and the strike extension of showing.
Background
Significant efforts have been directed towards understanding the detailed geological setting of the rocks that underpin the Wallace-Conley Estate property. This includes efforts in the summer of 2007 when geological mapping was conducted by Harvest Gold geologists for the Wallace Lake area, including the Wallace-Conley Estate property. Reports by government geologists indicate that the rocks that underlie the property are the same age and composition as the Balmer Formation in the Red Lake Gold Camp.
These have been referred to frequently as the “Balmer Equivalent rocks” and underscore the significance this holds for the property. The geology of the property consists of a basement of felsic volcanic and felsic intrusive rocks that are overlain by mafic and felsic volcanic rocks, oxide-carbonate-sulphide-iron formation and younger mafic volcanic rocks and clastic sedimentary rocks. Pillowed flows have been reported by several geologists. The Company has undertaken a line cutting program with a total of 15.14 km of grids (25 lines) cut on the property to prepare for geochemical sampling and prospecting and mapping. Gold anomalies were defined in both sampling media. In particular the soil geochemical anomalies on the Smokey Claim, immediately south of
the Wanipigow River, This gold plus copper and lead anomaly is observed to be along strike from gold-base metal bearing quartz veins on the west shore of Wallace Lake. The high grade veins found to date on the Conley Estate Option appear, from the descriptions in published reports, to be San Antonio ’16-type’ veins, which are highgrade
single vein. The ’38 type’ veins are larger stockwork vein systems that tend to be high-grade and structurally related to the ’16-type’ vein. To date there has been no focused exploration for the more prolific San Antonio ’38-type’ veins on the property.
During the year ended March 31, 2009,
The geochemical data from the 2008 winter program was received.
Subsequent Events
No activities took place subsequent to the year ended March 31, 2009.
Activities Contemplated In The Future
Exploration of the Conley Estate property will be focused on strata that are the stratigraphic equivalents of the Balmer Formation rocks at Red Lake. The Company intends to map the known veins to determine which are similar to those at the San Antonio Mine and undertake geochemical surveys of the Iron Formation and related rocks in the vicinity of the regional fold hinge. This will be followed by geophysical surveys of potential targets.