Dufferin Mine
Nova Scotia
Ressources Appalaches has become, as of April 9th, 2009, the sole owner of the Dufferin Mine, located in Nova Scotia. The transaction comprises the acquisition of the ramp-access Dufferin Mine, together with its processing plant (mill), mining lease, environmental permits, and all the other infrastructure required for production.
Details of the Agreement
The cost of the transaction established at $4,000,000 is payable in four installments spread over three years. The first installment of $500,000 was made on April 9th, 2009; the second installment of $500,000 will take place 6 months following this first payment; the third installment of $1,500,000 will take place 12 months following the second payment and the final installment of $1,500,000 will take place 12 months thereafter. Once the final payment has been made, the acquisition will be free of all royalties. In the meantime, Appalaches must pay a royalty of 2% to Jemma Resources.
Resource Estimates
The mineralization at the Dufferin Mine consists of gold-bearing quartz veins of stratiform “Saddle Vein” type, folded en echelon and enclosed in sedimentary rocks. Thirteen veins have been identified by earlier drilling over a distance of 900 metres, down to a depth of 400 metres. The historical resources in the first two veins were estimated at 152,100 tonnes at a grade of 12 g/t Au (figures not compliant with NI 43-101). The estimate is based on 40 holes spread over a length of 450 metres and to a depth of 60 meters.
2008 drilling campaign
The 2008 drill program comprised 23 drill holes for a total advance of 2,995 metres. The best results include the sampling of a quartz vein and its wall rocks in Borehole F08-07, which gave 31.64 g/t Au over 4 metres, including 125.5 g/t Au over one metre. Sampling of several stratiform quartz veins in an argillaceous mudstone layer in Borehole F08-11 yielded a grade of 8.34 g/t Au over 9 metres. The following table shows 13 boreholes with analytical results in excess of 8 g/t Au, together with the number of the corresponding "saddle vein" (numbered from the surface downwards):
* Length of drill core sampled
As expected, the drill campaign has confirmed the extension of the gold-bearing quartz veins towards the east and in depth, as well as their regular arrangement, as predicted by the ‘‘Saddle Reef Vein’’ model. The principal characteristic of this type of deposit, which is also seen at the Dufferin Mine, is the continuity of stratiform veins associated with argillaceous beds and anticlinal folding.
Fifteen Saddle-type veins have so far been identified on the deposit. These 15 veins are disposed sub-horizontally in the noses of anticlinal folds, stacked one above another at intervals of 10 to 40 metres.
Corporate Goal
The Company's exploration target is to define 1,250,000 to 1,750,000 tonne at 7 to 10 g/t Au. This objective is based on an extrapolation of the historical resources in the first two veins to all 15 veins, over the length of 900 metres indicated by the earlier work, which includes about fifty holes.
