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Knick Exploration (TSXV:KNX) is focused on actively exploring its wholly-owned East-West Gold Property located in the Val d’Or mining camp of Quebec, Canada. The region is home to several multi-million ounce gold deposits, including the Kiena Mine (Wesdome Gold Mines, TSX:WDO) to the east of Knick’s project and the past producing Marban Mine (Osisko Mining, TSX:OSK) to the west of the project. To the south of the East-West property lies Agnico Eagle (TSX:AEM, NYSE:AEM) and Yamana Gold’s (TSX:YRI, NYSE:AUY) Canadian Malartic Mine. Agnico Eagle also recently acquired ground adjacent to the north of Knick’s property.
The East-West Property is in close proximity to three operating mills; Goldex, Canadian Malartic, Camflo, and three permitted mills on care and maintenance; Sigma, Beacon and Kiena. The mills are experiencing excess capacity, soon to be exacerbated by some regional operations reaching the end of their mine life. A nearby source of mill feed representing significantly lower transportation costs would be much more attractive than trucking in material from distant operations.
Five gold target zones have already been identified on the East-West property through both historical and recent exploration. The downward extent of these gold zones has yet to be tested below 200 meters of depth. Knick began its 2016-2017 drilling program at the property in October aimed at testing the resource potential of the West Zone. The company believes establishing solid proof of a resource on the project will add shareholder value by increasing the project’s attractiveness to those local mills experiencing excess capacity.
Knick is led by an experienced team of exploration specialists with in-depth knowledge of the geology associated with the Val d’Or mining camp. Jacques Brunelle, Knick President and CEO, has more than 35 years of experience in mining exploration, including as a founder and C-level executive at Niogold Mining which completed the majority of previous exploration on the Marban block located on ground now owned by Osisko Mining. Gordon Henriksen, Knick’s Vice President, is a geologist whose 30-year experience includes business dealings with Aurizon Mines and Niogold. Martin Demers is a 20-year veteran geologist who has worked for Aurizon Mines and now serves as a special advisor to Knick. He was handpicked to develop and conduct the ongoing drill program at the East-West property.
In 2016 Knick secured more than $2 million to be used for exploration work on the East-West property as well as working capital. The company is actively seeking a partner to further explore the property.
- 100-percent owned property in Quebec’s prolific Val d’Or Mining Camp.
- Surrounded by multi-million ounce deposits and large mining companies including Agnico Eagle, Yamana Gold, Wesdome, Osisko and Richmont Mining.
- Six mills in close proximity to project; excess mill capacity.
- High Grade intercepts including:
- 9.30 g/t gold over 1.95 meters, West zone;
- 11.38 g/t gold over 2.1 meters, Raven Zone
- 2016/2017 Exploration Program to determine grade continuity and geological model consistency.
- Highly experienced management team with significant knowledge of the region.
Key Property: East-West Gold Property, Val d’Or Mining Camp, Quebec
The East-West Gold Property claims cover 184 hectares in Quebec’s Val-d’Or Mining Camp and are part of the prolific Abitibi Gold District which boasts more than 80 million ounces of gold production. Easily accessible from provincial highway 117, the project is located 11 kilometers west of the city of Val d’Or and along strike between the Kiena Mine and the past producing Marban Mine.
The nearby Camflo Mill, owned and operated by Richmont Mines (TSX:RIC), is to the northwest of the East-West Property. The mill processes Richmont’s Beaufor Mine ore. Beaufor has produced more than 1 million ounces of gold and contains another quarter million ounces in reserves and resources.
Knick’s other neighbors include the most significant players in the Val-d’Or camp: Agnico-Eagle and Yamana Gold, whose joint-venture land holdings surround the East West property. The holdings include several past producers as well as one of the country’s largest gold mines, the Canadian Marlatic Mine which represents more than 10 million ounces of gold in current resources and past production.
High grade gold zones with geology similar to surrounding deposits
The East-West property is straddled by a 500-meter wide corridor which traverses 1.7 km of Knick’s ground encompassing mafic-ultramafic rocks with quartz veins. The property hosts significant alteration halos of chlorite-carbonate and albite, similar to what is hosted in neighboring deposits.
Historical drilling at East-West dates back to 1935, although the majority occurred after 1981, and totals more than 41,000 meters mainly targeting the northern portion of the property. Several gold zones have been discovered via historical and Knick drilling programs, specifically the East and West zones.
Historical drilling results include:
- 1.20g/t over 20.60m
- 5.60g/t over 44.50m
- 9.00g/t over 37.70m
- 0.80g/t over 80.46m
- 1.65g/t over 37.34m
- 4.30g/t over 41.60m
- 8.00g/t over 37.60m
- 6.70g/t over 16.92m
- 2.15g/t over 26.21m
These 10 drill holes highlight the percentage of core length historically sampled and the averaged gold obtained over the indicated widths, with the un-sampled lengths of the core considered at zero grams per tonne. Thus, they represent a potential upside when targeted areas are re-assessed by drilling.
The East zone gold mineralization associated with quartz-carbonates veins is similar geologically to that of the Kiena mine (2.5 kilometers away). Wesdome Gold Mines recently reported intercepts which include 94.35 g/t gold over 17.4 meters and 223.12 g/t gold over 14.25 meters (reference: press release of August 24, 2016). Between 1981 and 2013 the mine produced 1.75 million ounces of gold from 12.5 million tonnes at a grade of 4.5 g/t (reference: Wesdome’s website, Presentation January 2017, A Solid Foundation for a Promising Future, P. 24).
The West zone gold mineralization is associated with quartz-ankerite-tourmaline veins geologically similar to that of the northwest neighboring Marban mine. Osisko’s Marban property hosts the Marban, Norlartic and Kierens deposits which have combined in-pit resources estimated at 1.59 million ounces of gold in the Measured and Indicated categories and 195,000 ounces of gold in the Inferred category (reference: Technical Report on the Marban Block: Updated Mineral Resources, Marban Block Property, Québec, Canada, Gustin M.M., Ronning P., June 2013. Technical Report for the Quebec Wesdome Project, InnovExplo inc. December 2015).
Further exploration by Knick has identified three additional gold zones located in the eastern portion of the property near the East zone: Raven, Gilbert and Grand Canyon. Highlights from channel sampling on these zones include:
- 38.26 g/t gold over 0.5 meter, Raven;
- 41.8 g/t gold over 0.5 meter, Gilbert; and
- 5.97 g/t gold over 0.37 meter, Grand Canyon.
Returns from drilling on the Raven zone include 34.7 g/t gold over 0.95 meter from 79.35 to 80.3 meters, and 6.1g/t over 6.7meters from 73.60 to 80.30meters, down hole (reference: NI 43-101, Up Dated, Technical Report on The East-West Property, Knick Exploration Inc., June 25, 2013 by Donald Théberge, Eng., MBA).
2016-2017 Drill Campaign
Knick commenced a new 5,000-metere drill program on the East-West Gold Property in October 2016 which is ongoing. The goal of the program is to test the geological model with a focus toward deposit delineation. Management believes East-West has the potential to host a high-grade plug/dyke swarm similar to that discovered by Wesdome at Kiena.
The program is targeting the West zone next to Osisko’s Marban Mine Property as well as an area in the northeast part of the property next to Wesdome’s Kiena Mine property.
Jacques Brunelle – President, CEO and Director
Jacques Brunelle is a businessman with over 35 years of experience in mining exploration. Before joining Knick in 2007, Brunelle spent three years with Niogold Mining Corporation Inc., first as President and founder and then as director of investor relations.
Gordon Neil Henriksen – Vice-President and Director
Gordon Henriksen has over 30 years of experience in the exploration for and valuation of precious, base metal and other deposits. Over the course of his career, he has served as an exploration and consultant geologist for the Geological Survey of Canada and numerous private exploration firms, junior mining companies and prospectors. He presently acts as a senior consulting geologist for several junior exploration companies and is President of Crus Tal Explorations Inc. Henriksen graduated from Concordia University in 1986 with a B.Sc. in geology.
The 2016-2017 drill program has been developed by Mr. Martin Demers P. Geo. from Knick’s ongoing research of the East-West gold property. He has intimate knowledge of the Marban property which he acquired when he was actively involved with Aurizon Mines original joint venture with Niogold Mining Corp. The Joint venture developed into the involvement of the property subsequently by Oban Mining and more recently Osisko Mining.