// Gold - Canada

Cougar’s exploration division is currently focussed on its Shoal Lake Gold Projects in Ontario, Canada which possesses a largely derisked, near term high-grade production opportunity, with good logistics in a safe mining jurisdiction.


SHOAL LAKE GOLD PROJECT

Cougar is actively involved in the exploration and development of two adjacent gold properties within the Shoal Lake Gold Belt. Significant previous exploration of the properties culminated in a series of resource estimations and led to partial development towards production of one deposit. Cougar intends to build on these historic results to establish itself as a near term gold producer. In addition to the advanced stage gold deposits within the project area, there is considerable unrealised potential providing a solid basis for resource growth.

The Shoal Lake West Project area is host to the historic Duport Mine and current Duport Gold Deposit. The Shoal Lake East Project hosts the Mikado Mine and Cedar Island Mine past producers and the current Cedar Island Mainland mineralised zone.

Cougar's primary focus for the Shoal Lake Project is the high-grade Duport Gold Deposit. The Company intends to fast track this advanced and partially developed deposit to production by building on the results of historic activities.


HIGHLIGHTS

  • The Shoal Lake gold properties comprise patented mining claims and leases, and staked mineral claims encompassing past gold producers, gold deposits, and gold occurrences.
  • Drill results, bulk sampling, surface sampling and historic production information on the properties confirm the high-grade nature of the gold mineralisation.
  • The properties provide exceptional logistics with close access to regional highway, power transmission line, pipeline, and railway.
  • Major urban center and airport within 50km.

Shoal Lake West

  • Host to the Duport Mine past producer and to the current Duport Gold Deposit.
  • In excess of 90,000m drilling from surface and underground.
  • Historic (non JORC) resource estimations for the advanced Duport Gold Deposit. See Historic Resources Estimations.
  • The Duport Gold Deposit is partially developed with 3,700m of underground workings across seven levels with access from vertical shaft and decline.
  • High-grade gold mineralisation established along two regional structural trends provides additional significant potential.

Shoal Lake East

  • Host to Cedar Island Mainland Zone (CIMZ) and Grano Zone gold deposits and numerous high-grade gold occurrences along three mineralised trends.
  • Hosts past gold producing Mikado and Cedar Island mines.
  • In excess of 30,000m surface drilling with high-grade gold intersections.
  • Mikado Gold Mine developed on 10 levels with access from vertical and inclined shaft (production halted 1934).
  • Cedar Island Gold Mine developed on 5 levels with access from vertical and inclined shaft (production halted 1936).

The Shoal Lake East project is currently under arbitration with Kenora Prospectors & Miners, Limited (see News Release 14 October 2013).


OVERVIEW & LOCATION

The Shoal Lake Gold Project area is located in the Province of Ontario approximately twenty kilometres from the Province of Manitoba and US borders, and fifteen kilometres south of the Trans Canadian Highway. Ontario is rich in the history of mineral exploration and development and is host to a number of World Class gold mining camps.


Shoal Lake Gold Project location in the Province of Ontario, Canada.

 

GEOLOGY

The Shoal Lake Gold Project lies within the Lake of the Woods greenstone terrain, part of the Archean aged Wabigoon Sub-province of the Superior Geological Province in the northwestern portion of the Province of Ontario. The project area is characterised by metavolcanic dominated greenstone belts surrounded by large elliptical batholiths. The two principal felsic intrusives are the Canoe Lake and Snowshoe Bay granodioritic stocks. The metavolcanic sequences include minor komatiitic, and abundant mafic and felsic varieties. Metasedimentary rocks appear minor volumetrically but diverse. Deformation of the region exhibits laterally continuous shear and fault zones as well as the folding associated with emplacement of the large batholiths. Regional greenschist metamorphism is dominant in the area.


Regional geology of northwestern Province of Ontario.


PROPERTY SUMMARY

Cougar has acquired an option to earn an interest in two adjacent properties defining the Shoal Lake Gold Project; the Shoal Lake West and Shoal Lake East properties. The properties comprise patented mining lands, mining leases, mining licenses of occupation, and staked mineral claims. Surface right are strategically included in the properties. Collectively the properties encompass gold deposits, past producers and a large number of significant gold occurrences including;

  • The Duport Gold Deposit and the significant portion of the CIMZ.
  • Historic gold producers at the Mikado, Cedar Island ("CI") and Duport gold mines.
  • Gold occurrences including the Grano Zone ("Grano"), Ontario ("Ontario"), and Duport East.

These features define a series of highly prospective gold mineralised trends on the properties.


Outline of the Shoal Lake Gold Project properties and location of the main gold occurrences.


HISTORY

Discovery of gold in the Shoal Lake area was made in the 1880’s during a gold rush which established the region as Ontario's premier gold district through to the early 1900's. A large number of gold occurrences were identified leading to the development of four mines at Shoal Lake where mining of gold commenced in 1893 and continued intermittently until 1936 when the focus changed to other developing gold belts within Ontario and North America.


Mikado Gold Mine; early 1930´’s.

 


Cedar Island Gold Mine (formerly Cornucopia Gold Mine; early 1900s)

 


Duport mine head frame over shaft on Cameron Island.


SHOAL LAKE WEST PROPERTY

The Company has acquired an option to earn a 100% interest in the Shoal Lake West properties from the Sheridan Platinum Group Ltd. Under the terms of this agreement, the Company will earn its interest in the properties by making scheduled payments totalling CDN$ 6,400,000 over four years and subject to maintaining the properties. The Sheridan Platinum Group Ltd. retains a 3% NSR royalty on the Duport Gold Deposit and a 1.5% NSR royalty on any new deposits of greater than 500,000oz gold. The properties under option total 2,700 hectares in area. The option has been assigned to Cougar’s wholly owned Ontario subsidiary, the Duport Gold Company Limited.

The Shoal Lake West property has been subject to exploration and mining activities commencing in the late 19th century, including regional surveys and extensive diamond drilling resulting in the discovery of the Duport Gold Deposit and a number of significant gold occurrences. The gold mineralisation is associated with northeast trending parallel regional deformation zones that transgress the property along its 8 kilometre strike extent.


Duport Gold Deposit

The Duport Gold Deposit comprises a series of subparallel high-grade ore lenses associated with sulphide and conformable to the westernmost of three regional northwest trending deformation zone. The Duport gold mineralisation is known to extend over a drill indicated strike length of 1,800m and is associated with sulphide in a sheared felsic to intermediate tuff. To-date two principal gold bearing zones have been identified (the Main and East Zones) plus a number of en-echelon and parallel associated zones in the hangingwall and footwall of these principal zones.

The Duport Gold Deposit was discovered in 1896 with intermittent production through to 1936. Subsequent exploration and development activities have extended the original gold deposit and culminated in excess of 90,000 metres drilling and underground development of 3,700 metres. Underground development comprises a vertical shaft accessing four levels and a separate decline accessing an additional seven levels. No mining activities have been carried out since 1936 and the underground workings have remained closed since 1989. Recent work has been limited to surface diamond drilling to establish the continuity of the deposit.

Significant work completed by previous owner, Consolidated Professor Mines Limited (“CPM”) in the period 1973 to 1996 includes the underground development with decline access, resource drilling, bulk sampling, metallurgical testing, and environmental studies resulted in a positive feasibility study and a number of consecutive resources estimations.

Cougar intends to focus its efforts on the existing gold resources to proceed to a mining decision.


Duport Gold Deposit existing underground development schematic drawing.


SELECTED HISTORIC DRILLING RESULTS

To demonstrate the high-grade nature of the Duport Gold Deposit, a selection of historic results is provided for drill hole intersections with greater than one ounce per short ton gold (Au/ton) over a minimum one foot drill intersected width.



* Indicates drill holes collared from surface. Remaining holes were collared from underground.

HISTORIC RESOURCES ESTIMATIONS

Resources estimations were completed by CPM following each phase of exploration through to 1989. A subsequent resource estimation was completed by Roscoe Postle Associates Inc. (“RPA”) in 2006. These resource estimations are not JORC compliant.

The CPM resources estimations illustrate the evolution of the Duport Gold Deposit from 1980 to 1989. CPM used the block tonnage method to calculate the resources. The final CPM resource estimation of 1989 utilised information from 442 drill hole intersections, 9 underground levels, and 3 underground raises.


SUMMARY OF HISTORIC CPM RESOURCES ESTIMATIONS


0.15opt Au lower cut off and 1.0opt top cut for intersections used and 10% zero grade dilution applied

In 2006 RPA used a contour method to estimate the Duport Gold Deposit resources. The RPA estimation was based upon 81,391m of drilling including 7,054m drilled in 2005 but did not have access to a complete dataset from underground mapping and sampling. The resulting estimate contained an Indicated Mineral Resources of 424,000t averaging 13.40g/t Au for a total 182,000oz plus an Inferred Mineral Resource of 387,000t averaging 10.69g/t Au for a total 131,000oz. This resource was conducted under National Instrument 43-101 and differs substantially from earlier estimations reported by CPM.

Results from the 2010 Everton Resources drilling campaign totalling 8,321m in 28 surface diamond drill holes have not been incorporated into a revised resources estimation for the Duport gold deposit.


Other Gold Occurrences

Other significant gold occurrences on the property are found associated with a second parallel deformation zone located immediately east of the zone hosting the Duport Gold Deposit.

Duport East
Gold mineralization of the Duport East occurrence is identified in surface sampling and in drill core and associated with a geophysical conductive trend. Historic surface sampling from this occurrence include up to 87.45g/t Au. Historic drill intersection include up to 11.72g/t over 2.44m. Gold mineralization has been identified over a 800m strike along this trend.

Golden Reef
Located east of the Duport Gold deposit and within the same deformation zone as the Duport East gold occurrence. The prospect hosts a single shaft on a small island east of Stevens Island.

Pine Island
The prospect is located immediately south of the Duport Gold Deposit and host to a number of trenches and a single shaft. Discontinuous quartz veins with up to 30% sulphide in a shear is described as hosting the mineralisation.


 

SHOAL LAKE EAST PROPERTY

The Shoal Lake East property comprises mineral rights and surface rights in 28 patented mining claims totalling 637 hectares under option from Kenora Prospectors & Miners, Limited ("KPM"). Under the terms of this agreement, the Company has the option to earn a 51% interest in the properties by making scheduled payment over five years totalling CDN$ 5,875,000 and completing a work program to extract a bulk sample from the CIMZ. The Company has not initiated its planned field programs which are pending the resolution of ongoing arbitration with KPM.

The property has undergone substantial exploration activity and holds the past producers Mikado and Cedar Island mines as well as a number of significant gold occurrences defining a series of elongate semi-parallel convergent gold mineralised trends over 1,000's metres strike across the property. Historic reports indicate remaining mineable ore at both historic mines. Both mines remain “open” on trend and at depth, having had no significant exploration activities since their closure.

The primary focus of this project is the advanced CIMZ which represents the mainland continuation of the Cedar Island Mine gold mineralisation. The gold mineralisation consists of a number of parallel veins and flanking stringers and breccias containing gold associated with sulphide. Historic work culminated in a number of resources estimates for the CIMZ which is partially contained within the property.

In excess of 30,000 metres of surface drilling has been completed on the Shoal Lake East properties.


Mikado Gold Mine

The Mikado Mine operated intermittently from 1896 to 1934 for at an average grade of 16g/t Au. There are several known mineralised veins at Mikado but only the No. 1 and No. 2 veins have received any serious attention. It is the best known and reported largest gold producer of the area with pockets of extremely rich ore; once described as “phenomenal”. Ten underground levels were developed with access from a vertical and inclined shaft. The underground workings extend laterally for a distance of 1,200m. Gold at the mine occurs associated with quartz veining in a shear zone with high-grade ore shoots and visible coarse native gold.

The Mikado Mine lies in a gold mineralised trend parallel to that which hosts the CIMZ and is alongside of the Grano Zone gold occurrence and represents a potentially significant contributor to the development of a local global gold resource.



Mikado Mine schematic longitudinal section.



Visible gold from Mikado quartz vein (fist size sample).

 

Selected results from historic sampling of trenched is tables below.



Cedar Island Gold Mine

The Cedar Island Mine operated intermittently from 1897 to 1936 with reported production at an average grade of 10g/t Au. The Mine is also reported to have a remaining developed resource of 28,000t at 24g/t Au. Historical workings consist of an inclined and vertical shaft with underground development on five levels. Gold at the mine occurs in shear zones associated with sulphide mineralization

From the closure of the Cedar Island Mine in 1936, no further substantial exploration was carried out in the Shoal Lake area until 1980 when it was optioned to Dennison Mines. This option terminated in 1982. In 1985 a trenching program was undertaken and this precipitated the involvement of Bond Gold (formerly St. Joe Canada) which optioned the property between 1985 and 1992, during which time it undertook a significant amount of drilling. The present owners initiated a decline in 1993 which halted at the “brow”. Amador optioned the property between 2002 and 2004 and completed the last drilling campaign to-date on the property. The drill programs were successful in demonstrating that the gold mineralization extended onto the mainland and prompted the delineation of the CIMZ. In excess of 30,000m of surface drilling was completed on the property in the period 1981 to 2004. Everton Resources held the property under option to 2012 but did not undertake any drilling. Each of Bond Gold, Amador and Everton Resources have published resource estimations for the CIMZ (non JORC compliant).



Cedar Island Mine schematic longitudinal section.

 

CIMZ SELECTED HISTORIC COMPOSITE DRILLING RESULTS

To demonstrate the continuity and significant widths often reached at the CIMZ, a selection of calculated historic drill intersection composites is provided; composite intersection with greater than 6g/t Au and greater than 0.50 metres drill intersected width.


 

Extensive trenching programs formed part of the historic exploration activities over the mainland extension of the Cedar Island Gold Deposit. Available results demonstrate the high-grade nature of the gold mineralisation which is supported by subsequent drilling campaigns resulting in the delineation of the CIMZ.


Distribution of historic trenches over CIMZ.

 

SELECT RESULTS FROM HISTORIC TRENCHES



Other Gold Occurrences

Other significant gold occurrences on the property include the Grano Zone, Ontario, Bullion, Sirdar, Peninsula, McKinnon Reef, and Mikado Bay. These occurrences and the past producers define three prospective subparallel gold bearing structural trends on the property.

Grano Zone
The Grano Zone was discovered in 1981 and is located immediately adjacent to the east of the Mikado Mine trend. Historic drill intersections are high-grade similar to those of the other gold occurrences on the property and include 10.62g/t Au over 2.37 metres and 72.0g/t Au over 0.9 metres.


Grano Zone schematic longitudinal section


Ontario

There are 12 known veins allocated to this occurrence where historic assays results from channel samples indicate up to 20 ounces gold per ton. Up to 2% copper and 4% zinc was also encountered. Historic exploration included the development of two vertical shafts. Available historic drilling results yielded up to 4.11g/t Au over 0.40m.



Ontario Gold Occurrence select historic results from trenches



Bullion

Located east of the Mikado Gold Mine, this occurrence is described as two parallel quartz veins associated with gold mineralisation containing “considerable” free gold. Grab samples returned values up to 101g/t Au. Two pits are located at Bullion 1 and there are three shafts associated with the Bullion 2 occurrence.

Sirdar Mine
Also located east of the Mikado gold Mine this occurrence is host to two main gold bearing veins with average grade of gold ore removed initially 0.25 oz Au/ton with up to 1.2 oz Au/ton reported in subsequent production. Two shafts were constructed at this occurrence with development on two levels circa 1899.

Peninsula Zone
This gold occurrence is located northwest of the CIMZ. Drilling at the Peninsula zone intersected up to 44.60g/t Au over 0.40m.

McKinnon Reef
This occurrence is located on a small island in Bag Bay north of the Cedar Island Gold Mine and is described as a stockwork of interlaced quartz veins containing free gold. Historic reports describe grab samples assaying as a high as 11 oz Au/ton. Lat

Mikado Bay
Drilling at the Mikado Bay occurrence returned assay results of 14.57g/t Au over 3.50 metres and up to 62.4g/t Au over 0.19 metres in multiple intersection.

 

Since 2004 no significant work has been completed on the property. Today the property has largely overgrown with indigenous forest cover obscuring much of the historic infrastructure. Mineshafts, trenches, tailings and buildings are however still easily identifiable. Old grids and drill hole collars are less easily recognized.

Cougar’s focus has been to collate and review all of the historical data, with a view to extraction of bulk samples underground of the CIMZ gold mineralisation at the earliest opportunity.