Goldenville Gold Mine

Goldenville, Nova Scotia, Canada. Accessible by good quality paved road.

• Historic Production (1861-1942) 551,797 tons at 11.97 g/T totaling 212,000 ounces of Au
• A 2005 Mercator 43-101 technical report determined a resource of: Indicated: Gold grade cut-off 3.5 g/T: 62,554 tonnes of 16.62 g/T for 33,429 ounces Inferred: Gold grade cut-off 3.5 g/T: 384,596 tonnes at 18.78 g/T for 232,242 ounces The high cut-off grade precludes the inclusion of numerous blocks of good grade material. At a 2 g/T cut-off the total ounces are 281,742.
• Exploration Licences 50508, 50566, 50567 consist of 58 claims totaling approximately 1053 Hectares
• Claims cover 100% of known deposit
• Known structure extends for at least 2.8 kilometers
• Consists of approx. 46 vein packages or leads occurring on both sides of an anticline
• Most auriferous veins range from 15-40 cm in width
• Wall rock typically carries 0.25 g/T Au, locally up to 7 g/T
• Contains high grade narrow veins and lower grade “belts” up to 2.1 m. Some mined widths were over 6 meters
• Mined locally to a depth of 600 ft (187 m)
• Approximately 250 “shafts” on the property, most shallow, the deepest at 274 m
• Drilling: 70 diamond drill holes prior to 1987, 41 holes after
• Geophysics: magnetometer, VLF and IP surveys all identify weakly anomalous trends along the Goldenville anticline
• Plunge is flat to the east and moderate to the west
• South limb of anticline near vertical, north limb less prolific and approx. 45-60 degrees
• Recent comprehensive study by MPH Consulting included geophysics, drilling and underground sampling. Shaft was pumped out to 600’. Recommendation for considerable, additional exploration.
• The newly acquired Mitchell Lake showing (1.5 km to the west) that has improve the value of the property significantly as values from drilling in 1997 returned values of 20.44 g/t over 0.5 m and 1.33 g/t over 20.2 m.
• Comments from the 1987 MPH Consulting Ltd. study: “Potential for identifying additional reserves is good. The surface diamond drilling undertaken over the past year (1986-7) has proven the continuity of the gold mineralization on both limbs of the anticline over a strike length of over 1 kilometer and up to a depth of approximately 300 meters below surface”. Also: “Considerable doubt exists as to the significance of individual drill hole assays, given the extreme log-normally skewed distribution of the assays (nugget effect) and the high probability that the majority of the ore intersections substantially underestimate the actual gold grade”.
• Further comprehensive evaluation by Mercator for Goldenville Mining Corp in 2003: Conclusion: “a good quality opportunity with respect to exploration and potential development of quartz vein hosted gold mineralization similar to that mined profitably at this location in the past”.
• Recommendations: Digital compilation, de-watering, drilling, bulk sample testing

The deposit occurs in the Cambro-ordovician Goldenville Group of the Meguma Super-group. The Goldenville Group consists predominantly of coarse greywacke bands inter-layered with argillitic strata, the main host of the gold bearing quartz veins. The strata vary from being perpendicular to overturned on the south flank with a 43-45° dip on the north flank. In the west the fold is broader and the vertical dip on the south limb is reached at a much farther distance from the axis. (Archibald) gentle undulations leave the main fold in a northwest direction (Faribault). Enlargements and a well defined pay streak of the veins have the same northwest direction. Faribault described 2 types of veins: those which follow the bedding planes; and angulars which strike and dip at an angle to the bedding. Hedley described four types of veins: (1) Dark banded glassy quartz in narrow leads, well mineralized and containing occasional specks of gold; (2) White banded oily quartz, often containing abundant arsenopyrite and slate inclusions (this being the principal gold carrier); (3) White massive quartz, often containing heavy arsenopyrite with some pyrite and carbonate (occurs as rolls or swells formed by the intersection of bedded and angular veins and also a notable gold carrier); and (4) Bull white quartz containing little mineralization. Vugs are common and the carbonate gives a pitted or rotted appearance. Type 1 and 2 are continuous for long lengths while Type 3 and 4 usually occur as masses enveloping the older quartz. The angulars are commonly Type 3 or 4 quartz.

The Goldenville Au District, sometimes known as the Sherbrooke District, was the largest single gold producer in Nova Scotia with a recorded gold production up to 1960 of 210,152 oz/Au from 595,928 tons crushed. The anticline on which this quartz vein deposit occurs strikes 083°Az. The anticline is asymmetrical, with the axial plane dipping north (Mines Report, 1939). The anticline is horizontal in the east end of the district but plunges 30° west in the west end.

The owner also owns several other similar properties in the area with excellent potential as well. One million ounces is conceivable on these properties. In addition, several similar deposits owned by others occur within 50 km. All are easily accessible.