Matamec Explorations announces the results of a review of the gold potential of the Hoyle-Matheson Royalties Property ("HMR").
As described in its press release dated March 2, 2016, Matamec sold its interest in the Colbert/Anglo Property and surface rights on 8 claims and received as consideration an amount of CAD$500,000 and a 1% Net Smelter Return ("NSR") Royalty on four properties collectively referred to as the Hoyle-Matheson Royalties Property.
Based on its review, Matamec believes that the mineralized series of gold veins being mined and processed at Goldcorp’s Hoyle Pond Gold Mine trends onto the HMR property.
This press release summarizes publicly available information to highlight this conclusion. The four properties collectively referred to as the HMR upon which Matamec has received a 1% NSR are shown on the figure 1 and figure 2 available at the end of the release
Technical information presented herein was gleaned from Goldcorp Investor Presentations from 2010 to 2015, Ontario Geological Survey publications and other public information, all of which Matamec has assumed to be reliable.
Matamec’s review indicates that within the Hoyle Pond Gold Mine property, to the west of the HMR, the mineralized veins occur primarily within, or proximal to a 500-800 meter thick mafic volcanic package, with ultramafic rocks occurring near the core. Several individual veins have been mined or are currently being mined or developed on the Hoyle Pond Gold Mine property.
Individual gold bearing veins have a relative predisposition for an east-north-east direction. Together, these families of veins also trend in an apparent east-north-east direction with a plunge to the east. It is as of yet unknown if the mineralization system occurs within the HMR.
The similarity between the rock sequences, structural interpretation and mineralized zones occurring on the Mill Creek/Colbert Zone and at the Hoyle Pond Gold Mine is striking. These two zones are on either side of the HMR, with the prospective geological and structural packages trending onto it from both directions.
Hoyle Deep Project
The Hoyle Deep Project consists of production and exploration on Goldcorp’s Hoyle Pond Mine property up to 2,200 m deep. The currently operating surface shaft extends from surface to the 720 m Level. Also currently operating is the #1 Winze internal shaft extending from the 655 m Level to the 1390 m Level.
The No.2 Winze was scheduled for completion in Q1 2016 and will operate from 355 m to 1705 m. Goldcorp has stated that it is making additional investments at the Hoyle Pond Gold Mine, including the upgrade of the paste facilities by installing new infrastructures to improve reliability.
TVZ mineralized structures
The mineralized structures referred to as TVZ1 and TVZ2 of the Hoyle Pond Gold Mine property have significant potential and are currently in the early prefeasibility stage at Goldcorp. Their strike appears to be north-east with a dip to the north-west at about 75 to 80 degrees as shown in figure 1 and figure 2.
There is a plunge to the mineralization towards the east that has been drilled by Goldcorp from underground in 2014 and 2015. The plunge of the mineralization averages 55 degrees to the east. The discovery of the TVZ 2 structure shows that the TVZ has multiple mineralized veins in some areas. Similar features are observed on the Mill Creek/Colbert Zone.
Mill Creek/Colbert Zone
Available information also indicates to the northeast of the Glencore Metallurgical Complex and within the HMR, the presence of a down dip extension of the Mill Creek/Colbert Zone. This mineralization is hosted near the north contact of the same mafic volcanic package (angular unconformity) hosting some of the Hoyle Pond Gold Mine’s mineralized structures.
This angular unconformity has been intercepted by more than 10 drill holes and appears to be continuous over a strike of at least 350 metres and a depth of at least 650 metres. It is open on both sides and also at depth (see Matamec press release dated September 3, 2008). Figure 2 shows extrapolation of the angular unconformity at depths of 500 metres, 1000 metres and 1500 metres.
It has to be noted that the positioning of Hoyle Pond Gold Mine mineralized zones, internal shafts and the PST zone has been approximated based on publicly available information. Error in location is in the order of 200 m.
Error in orientations is on the order of 5 degrees. Positions and orientations for these zones, shown conceptually as ovals, were extracted from Goldcorp publications based on its own exploration and interpretations.
Details on Net Smelter Return ("NSR") Royalty
Goldcorp granted a 1% NSR royalty to Matamec:
in respect of the leased mining rights located in Hoyle township (shown in blue in figure 1 and 2), east of the Hoyle Pond Gold Mine. The NSR royalty on the aforementioned leased mining rights shall be payable after the initial 500,000 ounces gold equivalent threshold is met;
in respect of the fee simple mining rights (shown in teal) located in Hoyle township, east of the Hoyle Pond Gold Mine; and
in respect of the Colbert/Anglo Property (shown in red) mining rights located in Matheson township, east of the Hoyle Pond Gold Mine, with a right to buy back 0.375% of such NSR royalty for an amount of CAD$500,000;
Glencore granted a 1% NSR to Matamec in respect of Glencore’s "Bint Property" (shown in green) located in Matheson township, east of the Hoyle Pond Gold Mine.
"Taken together, these results are promising for the Hoyle-Matheson Royalties Property," said André Gauthier, President and CEO of Matamec. "They reinforce our expectation that the HMR will yield significant gold potential."
Guy Desharnais, géo., Ph.D. (OGQ No.1141), is the qualified person as defined in NI 43-101 who supervised the preparation of the technical information in this news release.