Aureus East Property
In February 2020, Aurelius Minerals Inc. (Aurelius) acquired 2672403 Ontario Ltd. (property owner, since renamed Aureus Gold Inc.) from Sprott Resource Lending for a total consideration of US$8,200,000 in deferred payments payable in cash or common shares of Aurelius Minerals Inc. The mine has seen over $30mm invested in development by previous owners. The Aureus East property is permitted with extensive modern infrastructure including a 300tpd mill with on site assay laboratory. The property can be accessed via provincial Highways and is serviced by provincial grid power. The deposit remains open along strike and at depth.
Mineral Resource Estimate
Open Pit (0.44 g/t Cut-off) and Underground (2.40 g/t Cut-off)
Resource Type Gold
Open Pit 0.44 Indicated 653.7 3.71 78.0 Inferred 2,557.4 1.79 147.2 Underground 2.40 Indicated 331.7 7.94 84.7 Inferred 1,628.0 4.59 240.4 Combined Open
Pit and Underground
0.44/2.40 Indicated 985.4 5.14 162.7 Inferred 4,185.3 2.88 387.6
Source: Nordmin 2022
- Combined Open Pit and Underground Mineral Resources; The Open Pit Mineral Resource is based on a 0.44 g/t gold CoG, and the Underground Mineral Resource is based on 2.4 g/t gold CoG.
Mineral Resource Estimate Notes
- Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
- Open Pit Mineral Resources are reported at a CoG of 0.44 g/t gold that is based on a gold price of US$1,700/oz (approximately CAD$2,267/oz) and a gold processing recovery factor of 96%.
- Underground Mineral Resource is reported at a CoG of 2.40 g/t gold that is based on a gold price of US$1,700/oz (approximately CAD$2,267/oz) and a gold processing recovery factor of 97%.
- Assays were variably capped on a wireframe-by-wireframe basis (Table 14-8 and Table 14-12).
- SG was applied as follows:
- Mineralized belt Zone wireframes were assigned a weighted average SG of 2.770
- Low grade background Zone wireframes were assigned a weighted average SG of 2.723
- Mineral Resource effective date May 20, 2022.
- All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.
- Excludes all mined out and unclassified mineralization located within block model.
- Reported from within a mineralization envelope accounting for mineral continuity.
The Property is underlain by metasediments of the Goldenville Formation, principally greywacke with minor interbedded argillite, and the Halifax Formation, composed of black, graphitic slate, that are folded into a series of gently east-plunging, upright anticlines and synclines. Strata of the Halifax Formation are confined to the northern end of the Property but serve as an excellent marker horizon.
Turbidite-hosted Meguma gold deposits are a sub-type of orogenic gold deposits. Orogenic gold deposits form near or soon after peak metamorphism in collisional metamorphic terranes of all ages. These deposits exhibit strong structural control in brittle faults and ductile shear zones as quartz-dominated stockworks, breccias, sheeted veins, vein arrays, replacements, and disseminations. Most deposits formed under greenschist facies metamorphic conditions (250-350°C, 1 to 3 kbar, 2 to 20 km deep) in compressional or transpressional settings.
Mineralization occurs in quartz veins and altered wall rock, with generally high gold:silver ratios and high fineness, accompanied by 2 to 5% sulfides. Historically, high-grade veins were exploited (5-30 g/tonne), but many deposits comprise large volumes of lower-grade, bulk-mineable mineralization.
The gold-bearing anticlinal structures at Aureus East have a strike length of at least three km and a depth of at least 400 metres. Eighteen or more stacked saddle-reef veins have been intersected by diamond drilling or exposed in underground workings. The saddles have a crest and associated leg-reef veins. The anticlinal crests are sub-horizontal and are stacked one above the other with 20 to 40-metre spacing. Saddle 1, which begins at the portal, has been followed to the east for a strike length of 1,200 metres and collectively, mineralized veins have been traced over a strike length of 1.6 km.
The saddle veins are of milky white to grey coarsely crystalline quartz containing thin layers of argillite and/or chlorite. The veins are generally thicker at the fold apex with sharp contacts between quartz and argillite on both the hanging wall and the footwall. Common gangue minerals in the quartz include ankerite, siderite, calcite, kaolinite and chlorite. Sulphide minerals, in order of decreasing abundance, include arsenopyrite, pyrite, galena, sphalerite, chalcopyrite, pyrrhotite and stibnite. Gold commonly occurs with galena and arsenopyrite, with galena being considered the best indicator sulphide for gold. Arsenopyrite, up to a few percent, occurs within the veins and the wall rocks.
The Company has a 100% interest in the property through its wholly owned subsidiary Aureus Gold Inc.
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