TECHNICAL REPORT ON KIRKLAND LAKE MINERAL PROPERTIES (Macassa Mine, Kirkland Lake Gold, Teck-Hughes, Lake Shore, Wright-Hargreaves) Located in Kirkland Lake, Ontario, Canada For FOXPOINT RESOURCES LTD. Prepared and Submitted By: Roland Ridler, B.A.Sc. (hons.), M.A.Sc., Ph.D. (Econ. Geol.), P.D. November 30, 2001
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TECHNICAL REPORT ON
KIRKLAND LAKE MINERAL PROPERTIES (Macassa Mine, Kirkland Lake Gold, Teck-Hughes, Lake Shore,
Wright-Hargreaves)
Located in Kirkland Lake, Ontario, Canada
For
FOXPOINT RESOURCES LTD. Prepared and Submitted By: Roland Ridler, B.A.Sc. (hons.), M.A.Sc., Ph.D. (Econ. Geol.), P.D. November 30, 2001
Table of Contents
EXECUTIVE SUMMARY...............................................................................................................................................................I
INTRODUCTION ..................................................................................................................................................................1
PROPERTY DESCRIPTION AND LOCATION..................................................................................................5
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ................................................................................................................................................................10
HISTORY..................................................................................................................................................................................12
MACASSA ................................................................................................................................................................................ 14 KIRKLAND LAKE GOLD ...................................................................................................................................................... 15 TECK-HUGHES...................................................................................................................................................................... 20 LAKE SHORE .......................................................................................................................................................................... 22 WRIGHT- HARGREAVES ..................................................................................................................................................... 26
GEOLOGICAL SETTING...............................................................................................................................................28
GEOLOGY OF THE ABITIBI GREENSTONE BELT......................................................................................................... 28 GEOLOGY OF THE KIRKLAND LAKE CAMP ................................................................................................................. 34
DEPOSIT TYPES..................................................................................................................................................................35
BREAK ORE ............................................................................................................................................................................ 35 VEIN ORE ................................................................................................................................................................................ 36 BRECCIA ORE ........................................................................................................................................................................ 36
MINERALIZATION ..........................................................................................................................................................37
DESCRIPTION OF HOST ROCKS....................................................................................................................................... 37 LATE STAGE DYKES............................................................................................................................................................. 41 ALTERATION ........................................................................................................................................................................... 41
EXPLORATION & TARGETS.....................................................................................................................................43
’04 BREAK .............................................................................................................................................................................. 43 ’05 BREAK .............................................................................................................................................................................. 45 #6 BREAK ................................................................................................................................................................................ 45 SURFACE ZONES .................................................................................................................................................................. 46 #7 VEIN .................................................................................................................................................................................... 46
SOURCES AND VERIFICATION OF DATA......................................................................................................46
SAMPLING METHOD AND CUTTING................................................................................................................47
CORE SAMPLES..................................................................................................................................................................... 47 CHIP SAMPLES ...................................................................................................................................................................... 48
SAMPLE PREPARATION AND ANALYSIS.......................................................................................................48
CORE ANALYSIS .................................................................................................................................................................... 48
CHIP ANALYSIS ...................................................................................................................................................................... 48 QUALITY CONTROL .............................................................................................................................................................. 49
MINERAL PROCESSING AND METALLURGICAL TESTING............................................................49
CRUSHING............................................................................................................................................................................... 49 TAILINGS RECLAMATION................................................................................................................................................. 50 TAILINGS GRINDING............................................................................................................................................................ 52 ORE GRINDING ...................................................................................................................................................................... 52 ORE PRE-LEACHING, THICKENING AND CARBON COLUMNS ............................................................................. 54 LEACHING............................................................................................................................................................................... 54 CARBON-IN-PULP (CIP) ................................................................................................................................................... 55 CARBON STRIPPING AND GOLD RECOVERY............................................................................................................... 55 CARBON HANDLING AND REGENERATION................................................................................................................ 56 CATHODE LEACHING AND GOLD REFINING.............................................................................................................. 57
MINERAL RESOURCE ESTIMATES ....................................................................................................................57
RECOMMENDATIONS AND CONCLUSIONS ...............................................................................................57
List of Tables and Figures # Figure Page 1 Kinross Property Package 4 2 Location Map 6 3 Mineralized Zones and Surface Infrastructure 7 4 Composite Long Section 8 5 Property Location 10 6 Macassa Milling Statistics 1933 – 1999 16 7 Kirkland Lake Gold Section 17 8 Plan of Structural Geology of the Lake Shore and 22 Wright-Hargreaves Mines (600’ Level) 9 Abitibi Subprovince 26 10 Geology of the Abitibi Greenstone Belt 28 11 Macassa Mill (High Tonnage at 1450 tpd) 47 12 Macassa Mill (Split Circuit) 49
# Table 1 Subject Property Historical Production 3 2 Gold Mines of Kirkland Lake (Historical Production) 12 3 Macassa Mine, Historical Production 15
Appendix A Subject Property Claim Information
Executive Summary The Kirkland Lake camp of Northeastern Ontario has produced 24,000,000 troy ounces of gold over a
period of 86 years from seven mines on one coherent, though internally complicated, gold lode. The
average recovered grade was slightly under 0.5 ounces of gold per short ton. Mining continued along a
strike of 21,000 feet and to a depth of 8,100 feet, open.
The 10,300 acre property assemblage, which comprises the assets of the “Asset Purchase Agreement”
between Foxpoint Resources Ltd. and Kinross Gold Corporation, includes five of the seven mines which
together produced roughly ninety percent of the gold, and, most importantly, includes the western portion
of the lode with most of the remaining exploration and mining potential, plus a complete, modern mine-mill
complex only very recently placed on standby.
The Kirkland Lake camp is a major heavily mineralized volcano-sedimentary complex of Archean age
among many in the highly productive Abitibi Belt of Canada. It is cut by a number of pregnant fracture
systems. The most productive of these, known as the Kirkland Lake Main Break, is the mineralization
locus exploited by the seven mines.
The existing modern mine, the No. 3 shaft on the Macassa property will be dewatered to provide access
for the exploration programme which is the focus of this technical report and for evaluation of the
accessible historic resources for mining purposes.
Numerous exploration targets are either indicated directly or are implicit in the voluminous historic files. A
portion has been derived by applying modern exploration ideas and approaches to the historic information.
Most of the highest priority prospective zones lie above past mined ore and are therefore much closer to
surface. A $2,000,000 surface and underground exploration drill programme has been recommended
which is designed to extend upwards and upgrade existing known mineralization to resource quality as
quickly as possible
Lastly, little, if any, of the remnant historic resources or reserves east of the Macassa would qualify as
such, at this time, by the rigorous standards of NI 43-101. However, near the time of closing, in 1998
Kinross Gold Corporation listed an in house mining reserve of 132,903 tons at 0.41 ounces of gold per
ton proven and 276,927 tons at 0.51 ounces of gold per ton probable at the Macassa itself. These
reserves and resources were calculated above the 5700 Level.
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Introduction
Foxpoint Resources Ltd. (Foxpoint), a corporation continued under the federal laws of Canada, and
Kinross Gold Corporation (Kinross), a corporation amalgamated under the laws of the province of Ontario,
have entered into an “Asset Purchase Agreement”. The agreement states that Kinross wishes to sell, and
Foxpoint wishes to purchase, “all of the right, title and interest of Kinross in and to Kinross’ real property,
including mineral properties, and mining assets located at or about Kirkland Lake, Ontario pursuant to and
in accordance with the terms of this agreement”.
This “Asset Purchase Agreement”, when complete constitutes a material change for Foxpoint Resources
Ltd. and, as such, this technical report must be prepared and filed in accordance with National Instrument
43-101.
The property package included in the “Asset Purchase Document” comprises five of the seven major past
producing mines of the Kirkland Lake gold camp within the Abitibi greenstone belt which hosts other
prolific mining camps such as Timmins, Rouyn-Noranda, Larder Lake, and Val d'Or. Kirkland Lake is the
largest known single coherent lode gold deposit in the world. From west to east, the Kinross package
consists of Macassa, Kirkland Lake Gold, Teck-Hughes, Lake Shore and Wright-Hargreaves (Figure 1).
Collectively these five mines have produced in excess of 21 million ounces of high-grade Archaean lode
gold ore, at an average recovered grade near 0.50 oz/T, since the initial discovery in 1911 (Table 1). The
discovery claim in Kirkland Lake is part of the Wright-Hargreaves Mine property.
On June 12, 1999 all underground operations and exploration at the Macassa Mine, the only remaining
operating gold mine in the area, were suspended indefinitely due to incidental mining costs at a time of
ongoing low gold prices. Until this point, Kinross was aggressively exploring for additional reserves along
existing and untested structures in order to continue the long and rich mining history in the area.
Numerous studies have been completed in the Kirkland Lake area since the original discovery of gold in
1911. Most of the gold mined in the Kirkland Lake camp has come from mines situated on, or adjacent to,
the Kirkland Lake Fault Zone (the Main Break). The Main Break strikes at 67 degrees and dips south at
75 degrees (see “Mineralization” later). The first structural study of the Main Break was completed in the
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1920's by Tyrell and Hore (1926). A more comprehensive study was completed by Todd (1928) who
detailed the structure and nature of mineralized zones with emphasis on portions of the Main break. The
next major work on the Kirkland Lake camp, by Thomson (1950) and Thomson et al., (1950), served as an
invaluable reference on the Kirkland Lake camp for close to 50 years. It details the geology of the main
ore zone at Kirkland Lake with an emphasis on structural geology and mineralogy of the gold ores.
The classic work of Thomson et al., (1950) was followed up by Charlewood (1964) who updated the
previous work and detailed the geology of deep developments on the main ore zone at Kirkland Lake.
Since then, many of the geological reports and studies on the Kirkland Lake camp have been specific to
certain aspects of the regional geology.
Information for the preparation of this report was obtained from many Kinross Gold Corporation and Lac
Minerals reports on the various properties. Other information was obtained from the numerous studies
that have been completed on the world famous “Kirkland Lake Camp” since the original discovery of gold
in 1911. A reference list is attached to this document.
The author, the Qualified Person retained by Foxpoint to be responsible for the completion of this report
because of his extensive experience in the area, carried out a field visit to the property from November
26th, 2001 to November 30th, 2001. During this visit the author supervised an in-depth study on the
material available and reviewed Foxpoint’s plans for the future. The author’s recommendations are
included in a later section of this report.
Kinross has not guaranteed or warranted the accuracy or completeness of the data and information that it
provided to Foxpoint or any subsequent communication made by Foxpoint regarding the data or the
properties.
The author has included published opinion on the geology where necessary for completeness but cautions
that he cannot be responsible for such where referenced. Moreover, although due care and diligence was
exercised in 1) the study of the documents supplied by Foxpoint, and, 2) the supervision of study by others,
no guarantee can be made, given the enormous volume of information available, that exhaustive study of
all relevant information has been completed. However, the author has no reason to doubt the quality of
work performed by the predecessor mining companies or professionals.
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Property Description and Location
All of the subject properties totaling approximately 10,318.27 acres of mining rights, located at or about
Kirkland Lake, Ontario are controlled by Kinross Gold Corporation, subject to exercise of agreement.
From west to east, the past producing properties included in the larger subject property package are
Macassa (which now includes the Tegren property west of the original Macassa), Kirkland Lake Gold,
Teck-Hughes, Lake Shore and Wright-Hargreaves. The properties center at approximately 48 deg. 09
min. north and 80 deg. 03 min. west in eastern Teck Township and western Lebel Township in the district
of Timiskaming, municipality of Kirkland Lake, Ontario, Canada (Figure 2). All holdings are in the Larder
Lake mining division.
The Teck township holdings consist of 34 staked claims (2,846 acres of mining rights), 6 leased claims
(543.52 acres of mining rights and partial surface rights) and 249 patented claims (6,928.75 acres of
mining rights and partial surface rights). The Lebel township holding consists of 11 staked claims (560
acres of mining rights) and 33 patented claims (963.59 acres of mining rights and surface rights)
(Appendix A). Figure 3 shows the mineralized zones and surface infrastructure on the subject properties
relative to the outside property boundaries and figure 4 is a composite long section showing the mine
workings and plunge of the mined orebody, as established prior to Foxpoint.
There are two royalties attached to the Macassa Mine. One royalty is a $3,000 annual advance royalty
regardless of production and the second is a $10,000 annual advance royalty only when production occurs.
A complete listing of royalties on all of the properties can be seen in Appendix A.
Upon the successful completion of the “Asset Purchase Agreement” on the subject properties, Kinross
Gold Corporation and Foxpoint Resources Ltd. shall enter into a net smelter royalty agreement (NSR)
whereby Foxpoint shall grant, and agree to pay to Kinross, an NSR on any minerals produced from the
subject properties based on the price of gold.
Kinross Gold Corporation prepared, and had approved, closure plans (currently in abeyance) for both the
Macassa Mine and the Lake Shore Mine. Financial assurance for Macassa ($1,481,795 CDN) and Lake
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Shore ($561,640 CDN) is in place and Foxpoint Resources Ltd. has agreed to assume the responsibilities
of these assurances upon the successful completion of the “Asset Purchase Agreement”. The other three
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properties will require geotechnical investigations and possible closure remediation to meet Ministry of
Northern Development and Mines approval.
In order to perform any exploration or mining underground in the Macassa Mine there is a need to carry
out a dewatering program. This program requires a “permit to take water” under section 34 of The
Ontario Water Resources Act, R.S.O. 1990 which has now been granted for 13,104,000 litres (2,886,343
US Gallons) per day.
Accessibility, Climate, Local Resources, Infrastructure and Physiography
The town of Kirkland Lake (population 10,000) and its immediate surroundings are located within the
Canadian Shield and are surrounded by several lakes and swamps. The local vertical relief is limited with
Kirkland Lake sitting at 1000 feet above mean sea level. The immediate area is dominated by temperate
boreal forest and enjoys warm summers and cold winters. The annual precipitation in the area is 118
inches of snow in the winter and 23 inches of rain in the summer. The average temperature ranges from
minus 9 degrees Fahrenheit in the winter to 74.5 degrees Fahrenheit in the summer.
Kirkland Lake, and the mining properties, are accessible via paved highways. The properties are located
approximately 80 miles southeast of Timmins which has an all weather, jet capable, airport with frequent
scheduled service. Kirkland Lake is serviced by rail and motorcoach and has a small airport not currently
with scheduled service (Figure 5). Kirkland Lake is a modern town with most of the amenities usually
expected in larger centers. There is an available workforce in the area and all of the infrastructure
required for a full mining operation.
One of the fixed assets of the “Asset Purchase Agreement”, located on the Macassa property, is a
2,000Tpd CIP mill. Based on a 2,000Tpd processing rate the CIP plant tailings impoundment area has a
capacity greater than 10 years. All of the appropriate permits for processing are in place and are either
active or can be easily re-activated.
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History
Seven major underground mines, and a number of smaller ones, have produced gold in Kirkland Lake. All
are located along a continuous stretch of the Main Break and related subsidiary zones. From west to east
these major mines are Macassa, Kirkland Lake Gold, Teck-Hughes, Lake Shore, Wright- Hargreaves,
Sylvanite, and Toburn. The first of these mines to enter production was the Tough-Oakes Burnside (later
known as Toburn) which began milling in 1915 and was followed by Teck-Hughes (1917), Lake Shore
(1918), Kirkland Lake Gold (1919), Wright- Hargreaves (1921), Sylvanite (1927), and Macassa (1933)
(Thomson et al., 1950).
The seven mines collectively produced in excess of 24 million ounces of gold and over 4 million ounces of
silver from an area of ground stretching for about 21,000 feet along strike, and from surface down to the
deepest workings in the camp, the 8100' level at Wright-Hargreaves. Peak production from the camp
came during the period between 1931 and 1941 where, in each of these years combined, annual production
exceeded 1.5 million tons (Thomson et al., 1950). The historical recovered grade of the Kirkland Lake
camp is near 0.50 oz/T (Table 2).
The post World War II years saw the beginning of the decline of the great gold mines of Kirkland Lake
due primarily to the fixed price of gold ($35 per ounce), increased production costs, and depletion of easily
accessible ore (Charlewood, 1964). The Toburn was the first mine to cease production (1953) and was
followed by Kirkland Lake Gold in 1960, Sylvanite in 1961 and Lake Shore in 1965. Underground mining
of the crown pillar at Lake Shore was conducted by Lac Minerals Ltd. in the mid 1980's and surface
mining of other crown pillars was conducted by Kinross Gold Corp. in 1997 and 1998. Wright -
Hargreaves closed in 1965 (with Kinross Gold Corp. also mining portions of the crown pillar from surface
in 1997 and 1998), and Teck-Hughes in 1968. Underground operations at Macassa were suspended
indefinitely in June 1999. A history of the subject properties follows, compiled predominantly from
Thomson et al (1950) and Charlewood (1964).
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Macassa
The Macassa gold mine was in continuous production from 1933 until operations were suspended
indefinitely in June 1999. The mine was the last of the seven major gold mines in Kirkland Lake to halt
production. The original mine was developed on 11 mining claims by Macassa Mines Ltd. that organized in
1926 and obtained the assets of United Kirkland Gold Mines Ltd., in 1933. In 1962 the company combined
with Bicroft Uranium Mines Ltd., and Renabie Mines ltd., to become Macassa Gold Mines Ltd.
Amalgamation in November 1970 with Willroy Mines Ltd., and Willecho Mines Ltd., created the parent
company Little Long Lac Gold Mines, located in Toronto. Upper Canada Mines Ltd. optioned
management rights from 1970 – 1976. In December 1982, the amalgamation of several groups, including
Little Long Lac Gold Mines, created Lac Minerals Ltd. (Macassa Division). It was during this period that
the Tegren property was added to the traditional Macassa property. In August 1994, Barrick Gold
Corporation successfully took over Lac Minerals Ltd., and Kinross Gold Corporation acquired it from
Barrick in May 1995.
The first shaft was the 500-foot Elliot shaft that was developed in the Main Break Zone in the late 1920’s.
Mining was unsuccessful and operations halted. In 1931, development westward onto Macassa ground
from the 2475-foot level of the Kirkland Lake Gold Mine discovered ore on the Main Break for 700 feet
along strike and in subsidiary hangingwall veins. These underground workings were connected with the
3100 foot No.1 shaft, and later by two winzes to greater depths. The No. 1 winze connected the 3000-foot
to 4625-foot levels and the No. 2 winze the 4625 to 6875 levels. The No. 2 shaft was sunk from surface to
a depth of 4625 feet about 1000 feet southwest of the No. 1 shaft. In 1986, the No. 3 shaft was sunk from
surface (in what had been Tegren ground) to the 7050-foot level and then to a final level of 7225 feet.
Until the mid 1990’s this was the deepest single -lift shaft in the Western Hemisphere. The No. 3 shaft
was the most recent access shaft, and gave access to 21 levels from 3800 feet to the 7050-foot level until
1997. As a result of a rock burst on April 12, 1997, only the levels between the 4250 and 5150 levels
remained active. Exploration development was underway on the 3800 foot level when production was
halted in 1999. Rehabilitation of levels down to the 5700' level was in progress prior to closure.
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Since active production began in 1933, until the end of 1988, more than 115 kilometers of underground
drifting and cross-cutting had occurred on 51 levels/sub-levels (Kinross, 1996), and from the date of initial
production until the end of 1997, well in excess of 500 km core were drilled.
The first mill began operation in October 1933 at a capacity of 200 tons per day. The milling rate was
increased to 425 tons/day in 1949 and to 500-525 tons/day in 1956. In August 1988 a new mill was built
which could process 500-600 tons of rock and 750 tons of tailings per day. By 1996, modifications had
increased capacity to 900 tons of rock per day and 1,000 tons of tailings per day. At the time of closure in
1999, mill capacity was near 1,600 tons of rock per day, or 600 tons of rock and 1,400 tons of tailings per
day.
Production statistics for the Macassa Mine from 1933-1999 are listed in Table 3 and illustrated in Figure 6.
These statistics show that during 1998, the 3.5 millionth ounce was produced.
Kirkland Lake Gold
The mine is near the western end of the Kirkland Lake camp bounded to the west by the Macassa mine
and to the east by the Teck-Hughes mine (Figure 4). A total of 172,955 ounces of gold at an average
grade of 0.37 oz/T was mined between 1919 and 1960. The mine ranks sixth out of the seven mines in
Kirkland Lake in terms of total ounces produced and average head grade.
The first reported discovery was in 1911 on Claim L1236 (what was to become the shaft claim) staked by
C.A. McKane. A short while later, in 1912 the Main Break was discovered on the claim. In 1913 a two-
compartment shaft (to become Kirkland Lake Gold No.1) was sunk to 80 feet by Kirkland Gold Mines
Limited. The No. 1 shaft was deepened, in 1915, to 200 feet and a level was established at 175 feet by
Beaver Consolidated Mines Limited (under option from Kirkland Lake Gold Mines Limited).
From 1916 to 1918 Kirkland Lake Gold Mining Company Limited (controlled by Beaver Consolidated
Mines Limited) deepened No. 1 shaft to 700 feet and sank another shaft (No. 2 main shaft) to 500 feet
with levels at 300, 400 and 500 feet. A 150-ton mill was installed and production began in 1918
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In the early years of the mine, most gold production came from workings on the Main Break. In 1937
significant production started from the No.5 vein. The No.5 vein was a 50° south dipping hangingwall vein
structure which was mined as a continuous sheet of ore from the 3475 foot level to the 3875 foot level
along a strike length of 1,200 feet. This vein rolls into the Main Break along a line plunging to the west at
17°. The vein is sub-parallel to and in the hangingwall of the No.6 break (Figure 7).
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Another major source of ore from the mine came from a series of veins that were mined from the 3750
foot level to the bottom 5975 foot level between the Main Break and the No.6 fault. The No.6 fault (as
shown in Figure 7) branches from the Main Break below the 3375 foot level at the eastern boundary of
the mine dipping 40-60° south and plunges to the west near 20° along the line of intersection with the Main
Break. The veins associated with this structure formed a zone up to 250 feet wide and up to 1,500 feet
along strike, which was nearly vertical and plunged gently to the west. Locally, up to seven sub-parallel
veins were mined in places "across the width of the zone" (Charlewood, 1964).
Another source of ore was obtained from a series of veins related to an antiformal structure between the
3750 foot level to below the 5725 foot level where it plunged west into Macassa. The No.10 vein was the
most prolific of these veins being mined from the 5230 foot level to below the 5600 foot level. The axis of
the folded vein strikes near 125° and plunges to the west near 30°. Various veins have been mined on
both the south and north limbs of the antiform with one vein mined around the nose of the antiform. The
veins are steeper on the limbs and flatter towards the top of the antiform. None of the veins have been
reported to intersect the Main Break.
Teck-Hughes
The Teck-Hughes mine is bounded on the west by Kirkland Lake Gold and by the Lake Shore mine to the
east. The mine began production in 1917 and had produced 3,688,664 ounces of gold at a recovered grade
of 0.38 oz/T when the mine ceased operating in 1968. The mine ranks third among the seven mines of
Kirkland Lake in terms of total ounces produced, but had an average recovered grade considerably below
the camp wide average of 0.46 oz/T. In the latter years of operation the mine relied heavily on lower
grade "slough ore" which had caved from the hangingwalls of open stopes.
In 1911 three claims (Tl 6624-Tl 6626), which were to form the most important part of the mine, were
staked by Stephen Orr and three neighboring claims (Ll 238-Ll 240) were staked by John Reamsbottom.
In 1912 gold was discovered in claim Ll 238 by James A. Hughes and Sandy McIntyre. Prospecting and
surface trenching were carried out by Teck-Hughes Gold Mines Limited and a 35-foot shaft was sunk.
In 1913 No.1 Shaft was sunk to 212 feet and 203 feet of drifting was carried out on the 200-foot level.
No.2 Shaft was sunk to a depth of 75 feet with 500 feet of lateral development on the 75-foot level by
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Teck-Hughes Gold Mines Limited. From 1914 to 1915 the No.3 Shaft was sunk to 124 feet and an 85-foot
winze was developed from the second level. 1,360 feet of lateral development in No.1 and No.3 shafts
were carried out by Nipissing Mining Company (under option from Teck-Hughes Gold Mines Limited).
From 1915-1917 the underground workings were dewatered and the No.3 shaft was deepened to 400 feet
with a winze to 600 feet, and 1,804 feet of lateral development was carried out. In 1917, a 50-ton mill was
installed and milling began. This work was completed by Teck-Hughes Gold Mines Limited.
As with other major mines in Kirkland Lake, the most important structure at the Teck-Hughes mine is the
Main Break. This structure and the veins related to it yielded most of the gold in the mine. The mineralized
structure was mined as the No.3 vein from surface to the 6105 foot level, the deepest level at the mine.
Longitudinal sections reveal that stoping on the No.3 vein was almost continuous from surface to near the
3000 foot level. Diamond drilling defined the Main Break down to 6650 feet, however there was
insufficient ore to warrant development below the 6105 foot level. Grade and production both decreased
below 3 000 feet. This decrease in ore with depth has been suggested to be directly related to a decrease
in the proportion of augite syenite to syenite porphyry with depth (Charlewood, 1964).
The No.4 break lies about 600 feet south of the Main Break and is generally believed to be the westerly
extension of the South (No.1) vein of Lake Shore. Although this structure contains some low gold values,
no ore has been mined along it in the Teck-Hughes mine. This fault may merge with the No.6 break at
depth and has never been identified in the western portions of the mine.
From 1938 onwards, veins in the hanging wall of the Main Break became an important source or ore.
These hanging wall veins are typical of other such veins in the Kirkland Lake camp which drape off the
Main Break and dip flat to the south, generally between 30 and 50 degrees.
The relatively late discovery and subsequent mining of hanging wall veins can be attributed to a number of
factors. Firstly, mining was concentrated on the Main Break where stoping was extensive, and easily
traced. Secondly, many of the initial diamond drill holes testing for ore associated with the Main Break
were not extended any significant distance into the hangingwall. In later years, improvements in diamond
drilling and reduced drilling costs, increasing realization of the significance of the hangingwall veins, and
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the depletion of Main Break ore led to more and more exploration holes probing the hangingwall of the
Main Break revealing numerous significant ore-bearing veins.
Lake Shore
The Lake Shore mine is located in the center of the Kirkland Lake camp bounded to the west by the
Teck-Hughes mine and to the east by the Wright-Hargreaves mine. Lake Shore may be thought of as the
"crown jewel" of the Kirkland Lake camp, for it was by far the largest gold producer, producing 8,499,199
ounces at a grade of 0.51 oz/T from continuous production from 1918 unti11965. This is almost twice the
total number of ounces produced from the neighboring second highest producer, Wright-Hargreaves, and
represents 36% of the total ounces produced from the entire camp (Table 2). Additional amounts were
recovered from pillars in later years
Harry Oakes discovered gold on claim L1557, in 1911. In 1913 Harry Oakes purchased the adjoining
claim to the west (Ll6635). From 1914-1918 the No.1 Shaft was developed to 400 feet on the South
(No.1) Vein Zone and 7,464 feet of underground development on levels at 100, 200, 300, and 400 feet was
carried out. A 65-ton mill was installed and milling began in 1918. All work was carried out by Lake
Shore Gold Mines Limited.
From 1919-1965 the mine was eventually serviced by four surface shafts and three internal shafts. The
original No.1 Shaft and its extension were both inactive during the latter years of operations. The No.4
Shaft, collared at 4,325-foot level, took the workings to a depth of 8,150 feet. Underground development
was carried out on 57 levels and, during the life of the mine, totaled 279,238 feet of drifting, 108,317 feet of
crosscutting, and 154,547 feet of raising. Milling capacity was gradually increased to a maximum of 2,400
tons per day and production was continuous until the mine closed in July 1965. Ore from the Wright-
Hargreaves Mine was treated at the Lake Shore mill from 1957 until the closure of that mine in March
1965.
High-grade ore material, on the bottom levels, was still being mined when the mine closed. Diamond
drilling below these levels indicated that the ore continues and that the Main Break shows no signs of
weakening at depth. Relatively low tonnage of ore at deeper levels and difficulties in mining at these
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extreme depths proved deepening of the mine workings to be uneconomical with the fixed gold prices of
the day.
The Main Break and related sub-parallel structures strike continuously across the Lake Shore property but
are offset by significant post-ore faulting along the Lake Shore fault at the east end of the property (Figure
8). Near surface, offset on this fault is 600-750 feet horizontally and about 325 feet vertically, with the east
side moving down, and north, relative to the west side. The fault strikes about 012° and dips sub-vertically
to the southeast. At deeper levels the fault appears as a strike fault and merges with the No.5 fault
between the 6325 and 6825 foot levels. At the bottom levels of the mine, the strike of the fault follows the
North vein.
The North, or No.2 vein is the most productive and extensive structure at Lake Shore. This structure is
continuous from surface down to the 8075 foot level and has been traced by diamond drilling for 800 feet
below this level. Between the 1200 and 4000 foot levels the Main Break branches into several faults. The
North vein is the continuation of the Main Break at the west end of the property. At the east end of the
property the Main Break is represented by the South, or No.1, vein which continues as the South vein on
the Wright-Hargreaves property.
Mining on the North (No.2) vein was extensive throughout the mine. Of these zones, the area containing
mixed syenite porphyry and augite syenite west of the shaft area from surface to the 5450 foot level was
most productive. Occasionally sub-parallel veins were mined separately from this vein, but in places the
veins are closely spaced and have been stoped together across widths up to 70 feet. Stoping was nearly
continuous on the North vein from surface to the 5400 foot level where veining weakened considerably
and stopped at the 6325 foot level. Another ore shoot continues below this from the 7575 foot level to the
8075 foot level, the bottom level of the mine. This ore shoot was traced by diamond drilling down to 8,500'
and showed no signs of weakening. The North vein on the 8075' level was mined over an 807' strike
length at an average stoping width of 7.6 ' and an average grade of 0.677 oz/T.
The South (No. I) vein was second in importance only to the North vein. This structure contains
numerous branches and splays and related veining and is far less continuous than the North vein . The ore
also was not as extensive with lower average stoping widths varying from 3 to 35 feet. Above the 1000
foot level, the South vein is regular and is sub-parallel to the North vein which is some 400 to 500 feet to
24
the north. Below the 1000 foot level, the south vein is much less regular and less continuous until finally the
ore bottoms out on the 6075 foot level.
25
26
Several subsidiary veins have also been mined in the ground adjacent to these main structures. Most of
these veins occurred between the North and South veins, where they formed along tensional fractures
related to fault movements.
Another significant structure, sub-parallel to the North vein, occurs some 1,200 to 1,600 feet to the north.
It is referred to as the Narrows break, or No.3 vein zone, and has been drilled and explored on various
levels down to the 5450 foot levels. While some high-grade intersections have been reported, no significant
amounts of ore have been mined form this zone. This structure likely continues to the west and east and is
called the '05 break at the Macassa mine
.
Mining at Lake Shore was almost entirely within intrusive rocks except in the upper levels of the mine to
the 800 foot level, where ore was found in conglomerate on the north side of the North (No.2) vein. Most
of the ore is hosted in syenite porphyry with augite syenite hosting some ore at the west end of the
property. Syenite porphyry is the only rock type reported in the lower levels of the mine.
Wright- Hargreaves
The Wright-Hargreaves mine is located to the east of Lake Shore in the central portion of the Kirkland
Lake camp. It ranks second to Lake Shore in terms of gold production and grade, having produced
4,817,680 ounces of gold at a grade of 0.49 oz/T.
This was the first discovery of gold in the Kirkland Lake camp, made on claim L1830 by W.H. Wright in
1911. In 1913 a shaft (Wright-Hargreaves No.1) was sunk to 85 feet with 110 feet of drifting on the 75-
foot level. From 1916-1921 the No.1 shaft was deepened to 400 feet, No.2 Shaft to 320 feet, No.3 Shaft
to 425 feet, and a total of 3,900 feet of lateral development took place. In 1921 a mill was constructed and
milling started at 175 tons per day.
The mine was developed down to the 8200 foot level, the deepest development in the Kirkland Lake
camp. Diamond drilling below the 8200 foot level revealed several high-grade intersections persisting
several hundred feet below the level. However, the cost to develop these intersections at such deep levels
proved to be too high, and mining was not continued.
27
The Main Break is the most prominent structure crossing the Wright-Hargreaves property. This structure
has been traced, as a consistently strong fault, down to the 8100 foot level, and by diamond drilling below
this. A significant amount of ore was mined from this structure, however, most of the tonnage came from
the North vein. The North vein branches off the Main Break to the north just to the west of the property
boundary with Lake Shore. Stoping on the North vein was extensive to about the 4500 foot level and
development was to the 6600 foot level. Below this level, mining was concentrated along ore-bearing
fractures of the North vein zone known as the North Heading Vein, North vein, and North D Vein. These
veins are typically dipping near 75° south.
Another significant mineralized structure is the South vein-fault which branches off the south side of the
Kirkland Lake fault in the western portion of the mine. As with many of the other mines in the camp there
are also numerous veins which branch or splay off the main structures and form along tension fractures in
the wedge of ground between major faults.
Post-ore faulting at Wright-Hargreaves has been well documented by the mine's former chief geologist,
Harold Hopkins (Thomson, 1950). The Lake Shore fault is the most important post-ore fault in the western
portions of the mine. This fault strikes 012- 025° and dips steeply to the east near surface, becomes
vertical with depth, then by the 5000 foot level dips to the west. This cross-fault has several important
faults branching off the east side including the F and L faults.
A series of four major north-dipping "strike" faults have been numbered 1, 2, 6 and 5. Nos. 1 and 2 faults
generally dip at 45°, or less, to the north and displace the Main Break and other vein zones some 150 and
300 feet respectively with reverse movement (hangingwall displaced over the foot wall). The No.6 strike
fault has the smallest displacement averaging around 80 feet (again reverse movement), although it has a
steeper dip of around 65°. The No.5 strike fault is the most important of these faults and outcrops on
surface as the Murdock Creek fault. It can be traced to the east across the Sylvanite and Toburn
workings. The fault dips at about 45° north on the Wright-Hargreaves property, but the dip appears to
steepen with depth. Displacement on this fault has a maximum of 700 feet (reverse movement) on the
Wright-Hargreaves property.
Most of the ore mined at Wright-Hargreaves was found within syenite porphyry with veins north of the
Main Break below the 6600 foot level mainly in tuff, greywacke, conglomerate and granite porphyry
28
located in the footwall of the main syenite porphyry plug. The Main Break is located within syenite
porphyry throughout the mine. The north veins below the 6600 foot level are much less continuous than
veins in the upper levels hosted by syenite porphyry.
Geological Setting
Geology of the Abitibi Greenstone Belt
Kirkland Lake is located in the 2.75 to 2.67 Ga Abitibi greenstone belt, which is the world's largest
greenstone belt covering an area of roughly 33,000 square miles in north-eastern Ontario and north-
western Quebec (Card, 1990; Jackson and Fyon, 1991; Spooner and Barrie, 1993: see Figure 9). The
Abitibi belt is part of the larger Abitibi Subprovince, a granite-greenstone-gneiss terrain that is located
within the south-eastern portion of the Archaean Superior Province. The Abitibi Subprovince is bound in
the north by para- and orthogneisses of the Opatica Subprovince; to the west by the Kapuskasing
Structural Zone; to the east by the faulting and cataclasis of the Grenville Front Tectonic Zone; to the
south-west by unconformably overlying sediments of the Huronian Supergroup and Keweenawan
volcanics and sediments; and to the south-east by fault contact with Archaean metasediments of the
Pontiac Subprovince (Card, 1990). (A note on metamorphism follows below).
Although outcrop in the Abitibi greenstone belt is limited by a glacial sedimentary cover, locally over 100
feet thick, exposure in the Kirkland Lake camp is quite good, leading to the first discovery of gold in a
surface outcrop in 1911. Surface mapping in the Abitibi Subprovince has been supplemented by
geophysical surveys (i.e. GSC 1: 500000 color magnetic and gravity surveys, 1996) showing broad regional
negative magnetic and positive gravity expressions in areas where the surface geology consists of
greenstone belts and tonalitic plutons, and similar broad regional positive magnetic and negative gravity
anomalies in areas of granitic plutons (Card, 1990).
Jackson and Fyon (1991) have summarized the geology of the western Abitibi Subprovince in Ontario.
Volcanic rocks were formed between 2.75 and 2.70 Ga. The volcanic rocks are komatiitic, tholeiitic, and
calc-alkaline. Between 2.70 and 2.68 Ga, turbidite-dominated sedimentary assemblages formed. This was
followed locally by formations of alkaline metavolcanic rocks and associated alluvial fluvial sedimentary
29
rocks between 2.68 and 2.67 Ga. Three main divisions of granitoid intrusive rocks exist. Tonalite-
trondjhemite-granodiorite batholiths reached their intrusive peak between 2.74 to 2.69 Ga;
30
31
smaller granodiorite intrusives formed between 2.70 to 2.68 Ga; and syenite stocks formed between 2.69
to 2.67 Ga.
Supracrustal Rocks
A simplified geological map of the Abitibi greenstone belt (Figure 10) shows that about 80% of the Abitibi
belt is composed of volcanics and related intrusions, whereas sediments compose the remaining 20%
(Card, 1990). Within volcanic sequences, about 70% are tholeiitic and 25% are calc -alkalic with minor
komatiitic and alkalic sequences (Card, 1990). In the southern Abitibi belt, Goodwin ( 1977) estimated that
volcanic sequences consist of 55% basalt, 34% andesite, 7% dacite, and 4% rhyolite. Various species of
iron formation, or their relatives, are scattered throughout the supercrustal rocks but are volumetrically
insignificant.
Most of the volcanic assemblages are between 2.72 and 2.70 Ga; however, some are 2.75 to 2.72 Ga and,
at least locally, form stratigraphic and/or structural basement to the younger assemblages. The alluvial-
fluvial sedimentary assemblages locally rest unconformably on top of the volcanic -dominated assemblages
and the turbidite-dominated sedimentary assemblages.
Alluvial-fluviatile sedimentary assemblages characterized by lenses of conglomerate are spatially related to
many major deposits in the Abitibi belt as evidenced by their occurrences near deposits in Timmins-
Porcupine, Kirkland Lake, Val-d'Or, Noranda, Larder Lake, Duparquet, and Chibougamou (Mueller and
Donaldson, 1992).
Plutonic Rocks
2.74 to 2.69 Ga plutonic rocks form batholithic complexes of early, pre-kinematic tonalite gneiss which are
found within, and surrounding, the Abitibi belt (Card, 1990). Some of these may constitute remobilized
basement. Numerous 2.70 to 2.68 Ga pre to synkinematic plutons of quartz diorite, tonalite, and
granodiorite form the cores of central volcanic complexes. Many late to post-kinematic intrusions, most
commonly granodiorite or monzogranite in composition, cut structural trends and often have amphibolite
facies metamorphic aureoles (Card, 1990). 2.69 to 2.67 Ga syenitic Timiskaming and other alkalic rocks
32
are intruded into younger supracrustal rocks in several locations, most notably in the Kirkland Lake area
(Cameron, 1990).
33
Structural Geology
Regional structural geology has been summarized by Jackson and Fyon (1991). Within the Abitibi
Subprovince large-scale structures and tectonic fabric are distributed in domains within the supracrustal
rocks. Most penetrative fabrics and structures parallel regional faults, large batholiths, and assemblage
boundaries. Reverse faults, "pre-cleavage" folds, and structures associated with batholith emplacement are
all early (2.74 to 2.69 Ga). Folding and regional shear zones formed during and after emplacement of
batholiths. Steep reverse faults were also formed during this period. Neoarchaean north-south
subhorizontal compression likely formed these structures.
Late, brittle faults related to the formation of the Paleoproterozoic Cobalt Embayment and the Phanerozoic
Timiskaming Rift overprint earlier Archaean structures. The Archaean structures generally strike west,
northwest to west-northwest, and northeast to east-northeast while the late structures strike northeast,
northwest, and north-northeast.
Metamorphism
The metamorphic grade of the Abitibi belt is generally very low (Jolly, 1978; Card, 1990). Most of the belt
is low greenschist facies, and significant areas are in sub greenschist, prehnite-pumpellyite facies. Higher
grades are achieved in contact metamorphic aureoles around granitic intrusions where grades of upper
greenschist and lower amphibolite or hornblende hornfeld facies may be reached, and near the Grenville
Front.
Formation of the Abitibi Belt
The formation of the Abitibi belt as the result of Archaean subduction-related accretion against a pre-
existing granitic protocraton is now widely accepted as a plausible model of formation (Card, 1990;
Hoffman, 1991; Jackson and Cruden, 1995; Calvert and Ludden, 1999). Several recent papers have
discussed Archaean accretion and tectonics. Calvert and Ludden (1999) explain the formation of the
Superior Province using recent seismic reflection and refraction surveys. Evidence presented is used to
support a model for the formation of the continental crust of the southeastern Superior Province in the late
34
Archaean through terrain accretion along one or more prograding north subduction zones. The Opatica
plutonic belt developed as a volcanic arc against which the terrains of the Abitibi plate were accreted.
Geology of the Kirkland Lake Camp
The geology of the Kirkland Lake camp has been described in a number of key papers (Todd, 1928;
Thomson et a1., 1950) and is well summarized by Lackey (1990). To the north and south of Kirkland Lake
are massive and pillowed mafic volcanic rocks which have been subdivided into the Blake River and
Kinojevis Groups (Jensen, 1976). To the north of Kirkland Lake, the volcanic rocks of the Blake River
Group are profoundly uncomformably overlain by the alkalic volcanic and sedimentary rocks known as the
Timiskaming Group (Figure 10) To the south, the contact between the Timiskaming Group and the older
volcanic rocks is a disconformity. The Timiskaming Group consists of trachytic alkaline lava flows,
pyroclastic tuff units (Lackey, 1990), and alluvial –fluvial conglomerates and sandstones (Mueller and
Donaldson, 1992) and the belt of Timiskaming rocks strike about 065 degrees and are up to 3200 m in
width. The Timiskaming rocks are part of a complex synclinorium.
Numerous alkaline sills intrude the Timiskaming sediments. They consist of alkali-feldspar syenite, augite
syenite as well as quartz-monzonite porphyry. In general terms, these units are known as feldspar
porphyry (or syenite porphyry; Thomson, 1950) as it is difficult to estimate modal percentages of primary
plagioclase and alkali feldspar in the ground mass (Levesque et al., 1991).
A series of alkali-feldspar syenite and quartz-monzonite (feldspar porphyry) plutons with differing phases
of composition intrude the central and south limb of the synclinorium. The Otto and Murdock Creek
Stocks are examples. Another pluton, the Lebel Stock is entirely syenitic and may be the core intrusive of
the alkaline volcanic assemblage.
There are a number of key structural features within the Kirkland Lake camp. The major regional zone of
accommodation is known in the vernacular as the “Larder Lake Break” or more regionally the “Cadillac-
Larder Lake Break” and has been traced for over 200 miles along strike. This complex structural feature
has been traced to the east through the Larder Lake-Virginiatown area (Kerr-Addison Mine) and into
Quebec through Rouyn-Noranda, Cadillac, Val d'Or and terminates near Louvicourt at the Grenville Front.
35
The Larder Lake Break continues westward under Huronian sediments and appears in the Matachewan
area some 30 miles away. The Larder Lake Break is a broad zone of intense shearing and polyphase
ductile deformation which represents the zone of structural accommodation between the proto-continent to
the south and the main mass of volcanics to the north. One of the more colorful lithofacies in the
Timiskaming assemblage and situated partly in the Larder Lake Break is a zone of extremely altered
ultramafic volcanic rocks and associated massive and bedded carbonate up to several hundred feet thick
and locally sufficiently rich in gold to constitute ore (eg. Kerr Addison). Characteristic green fuchsite
bearing carbonate is often associated and is mined locally in the Kirkland Lake area as a decorative stone
in large panels. The Larder Lake Break generally strikes near east-west and dips sub-vertically. Folding is
polyphase but is inhomogeneously distributed, creating all scales of interference patterns locally within the
Timiskaming. In the Kirkland Lake camp, known plunges are mostly to the west south west at about 60
degrees. The thickest part of the syenite sill, with which most of the significant gold mineralization is
associated, plunges the same way.
A few post-Archean, pre-Huronian, thin, north south diabase dikes of the Matachewan swarm are
present.
Deposit Types
Three major structural types of gold ore are found in the Kirkland Lake camp: break-related ore,
hangingwall and footwall veins, and breccia ore (Watson, 1984).
Break Ore
Break ore occurs continuously along major faults (breaks), and related branches. These major faults
(breaks) all typically trend near 060° and dip steeply to the south from 70 to 80°. The '04 break is the most
significant of the ore-associated faults at Macassa and was mined from section 16E west to the
Amikougami Creek fault (near 50W) and from the 4250' level to the 7050' level. Further to the east,
36
significant mining was conducted on the Main break. Significant mining was also conducted along the R-2
break and the South break.
Break ore typically occurs as mineralized zones of fractured and brecciated quartz within the fault gouge
or in the immediate hangingwall or footwall of the fault as fragmental quartz zones or as discrete veins.
The quartz zones are typically l' to 5' wide with gold occurring in fine, native form along with lesser
amounts of tellurides (chiefly altaite). Overall sulphide content is near 1-3% with the vast majority of this
occurring as pyrite. Fine native gold may occur in chlorite fault gouges, however, this is generally in minor
amounts and rarely will make ore without the presence of quartz.
Vein Ore
Vein ore occurs primarily as hangingwall veins to the major faults or breaks. Footwall veins are also
present but are far less common and make up a much smaller portion of ore than hangingwall veins.
Hangingwall and footwall veins typically occur as quartz filled fracture zones from 1" to 2'wide. They dip
from sub-vertical to sub-horizontal, and are most common in close proximity (within 100') to major faults.
They occur as single veins to multiple sheeted or stacked vein systems adjacent to major faults. Generally,
most veins are defined by a sharp chlorite +/- molybdenum coated slip or fault and show evidence of
repeated episodes of mineralization. Gold typically occurs in its native form in fractured vein quartz along
with commonly occurring tellurides, predominantly altaite and calaverite. Total sulphide content is usually
1-3%, comprised chiefly of pyrite.
Breccia Ore
Breccia ore is characterized by mineralized lensoidal and fragmental quartz in wide zones (up to 50')
confined by a major fault in the hangingwall and footwall. Between the two faults, the host rock is altered,
silicified and strongly fractured. The zone generally has 1-4% total sulphides, occurring mainly as pyrite
with the mineralized quartz containing native gold and tellurides. Outside the hangingwall and footwall
contacts the host rock is distinctively less altered and fractured and is not mineralized. Four major zones of
breccia ore are present at Macassa: between the '04 break (north contact) and South break (south
37
contact) between sections 28W to 34W and from the 5025' to the 5400' level; between the footwall
fault/North break (north contact) and '04 break (south contact) between sections 21W and 25W from the
5700' to the 6300' level; between sections 33W to 38W between the 6100' and 6400' levels; south of the
'04 break between sections 17W to 21W from the 4750' to the 5450' level.
Mineralization
The Macassa property is going to be the emphasis of Foxpoint Resources Ltd. initially and, as such, will be
described in this section. All of the other important subject properties are contiguous and very similar in
nature.
Mineralization at the Macassa Mine is intimately associated with the Main Break which strikes on average
067° and dips steeply to the south at 75°. The Main Break and various related branches and splays host
most of the gold mineralization in the camp in quartz-rich zones adjacent to the faults and in related
hangingwall and footwall quartz veins. At the east end of the camp there are an increasing number of
branches and splays off the strong main branch (Thomson, 1950). These faults act to dissipate and lesson
overall fault displacement which, based on pre-ore lithological relationships, is of a reverse nature (south
side up). The overall displacement is rotational and has been calculated to be near 1500 feet at the west
end of the camp, and near 350 feet at the east end (Thomson, 1950). To the west end of the camp, a fault
sub-parallel to the Main Break, known as the '04 break, hosts most of the ore at the Macassa Mine. At
least some movement on the Main Break post-dates the Matachewan diabase dyke swarm.
A series of later cross-faults have displaced the various lithologies structures, and mineralization in
Kirkland Lake (Figure 8). The two most significant of these late faults are the Amikougami Creek Fault
and the Lake Shore Fault. Both faults strike near north-south and are sub-vertical. The vertical
displacement on these faults is not well known.
Description of Host Rocks
38
The rocks at the Macassa mine have been described in detail in previous works on the mine itself and in
reports dealing with the geology of the Kirkland Lake Camp (Todd, 1928; Thomson, 1950; Charlewood,
1968; Watson, 1984; Lackey, 1990). An overview of the significant rock types within the mine is
presented here.
The surrounding area is underlain by sedimentary and volcanic rocks of the Archaean Timiskaming Group.
These rocks are up to several miles thick, and trend to the east. They flank and are nearly parallel to the
strike of the Larder Lake Break. They unconformably overlie pre-Timiskaming, pillowed and massive,
volcanic rocks belonging to the "Abitibi Supergroup" which include the Blake River Group volcanics and
the predominantly tholeiitic Kinojevis Group (Jensen and Langford, 1985). Although these pre-Timiskaming
volcanics are ubiquitous in the surrounding district, they have not been encountered in any of the Macassa
mine workings.
Intruded into the Timiskaming sedimentary and volcanic rocks is a composite syenitic sill that is broadly
centered on the town of Kirkland Lake. The long axis of the stock is roughly parallel to the strike of the
Timiskaming rocks and dips steeply to the south. The three main components of the syenitic stock and
related dykes are augite syenite, felsic syenite, and syenite porphyry. These intrusive rocks host most of
the ore at the Macassa mine.
The youngest rocks at Macassa, other than mineralization, are a few Matachewan diabase dykes.
Timiskaming Group
Conglomerate.
Conglomerate-hosted ore makes up a minor component of the total ore produced at the Macassa mine.
Most of the conglomerate encountered in the mine is in development to the north or south of the '04 and
Main Break planes or in exploration diamond drill holes to the north or south of this plane.
The conglomerates found in the Macassa mine are typical Timiskaming-type conglomerates with
characteristic red jasper pebbles (Mueller et al., 1992; 1994). They most commonly consist of a fine-
grained, fluviatile, sandy or silty matrix that supports rounded to sub-rounded pebbles generally ranging in
39
size from 2 cm to 10 cm in diameter. Although red jasper pebbles are characteristic, they form a minor
overall component of the pebbles usually making up less than 2 % of the total. The clast populations in the
conglomerates are extremely diverse with the main clast components being porphyry (mostly quartz
monzodiorite with minor spessartite lamprophyre), trachyte (trachytic volcanic and volcaniclastic rocks),
tholeiitic basalt (with minor andesite and komatiitic volcanic rocks), sedimentary rock (chert and epiclastic
sedimentary rock), tonalite (holocrystalline tonalite and trondhjemite), and other minor components
(Legault and Hattori, 1994). The conglomerates are intimately associated with fluviatile sandstones.
Greywacke.
Greywacke is the mine term used for thick beds of medium to fine-grained massive sedimentary rocks
commonly dispersed as lenses in the conglomerate units in the mine. These light to dark grey sandstone to
mudstone units have well-preserved graded bedding. They occur along both the northern and southern
flanks of the intrusive rocks. Petrographic studies reveal a composition of angular quartz and feldspar
fragments in a matrix of quartz, chlorite, biotite, feldspar , and lesser amounts of carbonate materials
(Watson, 1984).
Tuffs.
Volcanic tuffs are far more common at Macassa than conglomerate and greywacke combined. The tuffs
consist of a diverse range of trachytic pyroclastic flows and reworked waterlain tuffs. They have been
studied in great detail by a number of authors especially Lackey (1990) who meticulously described the
various tuff units and separated them into fourteen stratigraphic units.
Most of the tuffs at Macassa consist of fine-grained to sandy cherty tuffs with well preserved primary
bedding and depositional features including normal and reverse grading, cross-bedding, parallel laminae and
scour channels (Lackey, 1990). Also common are a series of coarser units consisting of lapilli tuffs and
agglomerates. These units may contain blocks and or bombs of leucitic lava and pumice that are
commonly several inches in diameter.
Intrusive Rocks
40
Augite (Basic) Syenite
The composite syenitic sill, which is centered near the town of Kirkland Lake and the Lake Shore mine,
extends to the west into the Macassa mine workings. The syenite at Macassa is predominantly augite-rich
(basic syenite) with lesser amounts of felsic syenite and syenite porphyry .The main body of the sill
outcrops on surface at the Sylvanite, Wright-Hargreaves, Lake Shore, and Teck- Hughes mines but
plunges to the west beginning at the Kirkland Minerals property so that at the No.3 shaft, on the Macassa
property, the upper edge of the thick part of the syenite sill is close to 4000' below surface. This plunge is
similar to the plunge of the mined areas of the camp as shown in Figure 4.
The augite syenite at Macassa is a common host rock for ore mineralization along the '04 Break and other
related structures. The fresh rock is dark grey-green with a coarse-grained equigranular texture consisting
primarily of augite and alkali feldspars. The augites are well formed euhedral tabular laths to 5 mm in
length, which show a distinctive light green alteration color. Numerous "felsic ribs" within the syenite are
generally less then 6 inches in width and are characterized by a distinctive orange-brown color. They are
thought to represent a fractionation of felsic syenite within the basic syenite mass. Detailed descriptions of
basic syenite including petrochemical data may be found in Todd (1928), Thomson (1950), and Watson
(1984).
Felsic Syenite
For descriptive purposes, a syenite with <25% mafic minerals is termed felsic syenite at Macassa. Felsic
syenite is less common throughout the Macassa mine but still hosts a significant proportion of ore material.
Felsic syenite is more abundant in the upper levels of the mine, particularly in the east end, than in the
lower levels. It is similar in texture and composition to the augite syenite, but has less mafic minerals. The
felsic syenite has a lighter appearance, often having a brown-orange color . Detailed descriptions and the
chemical composition of felsic syenite can be found in Todd (1928), Thomson (1950), and Watson (1984).
Syenite Porphyry.
Porphyritic feldspar syenites constitute a major portion of the intrusive rocks at Macassa. Syenite porphyry
occurs intermingled with felsic and augite syenite but is not the predominant igneous host rock as in the
41
central portion of the Kirkland Lake camp at the Lake Shore, Wright-Hargreaves, and Sylvanite mines,
which are centered on a largely feldspar porphyritic syenite sill. The porphyritic syenite intrudes both
augite and felsic syenite as minor dykes and as small sills with sharp contacts that may exhibit chilled
margins. The syenite porphyry is the latest phase of the intrusive units.
The syenite porphyry is generally red-brown to grey-brown and has distinctive feldspar phenocrysts.
Watson (1984) has shown that these phenocrysts are dominantly plagioclase (Abso -Ab9s). At various
locations the phenocrysts are bimodal when a second set of plagioclase phenocrysts, that are bigger, is
present. This unit is referred to as bimodal porphyry throughout the mine.
Another distinguishing feature of syenite porphyry is the presence of irregula r shaped xenoliths of mafic
rock that may comprise <2% of the total rock. They can range in size, up to 10” in diameter, but generally
average a little over 1” in diameter. The source of these xenoliths may be the ubiquitous pre-Timiskaming
Group volcanic rocks (Watson, 1984). Detailed descriptions of the porphyritic syenites can be found in
Todd (1928), Thomson (1950), and Watson (1984).
Late Stage Dykes
A few Matachewan diabase dykes occur in the Macassa mine. These late dykes have been reported at
various locations including approximately 1,000 feet west of the No.1 shaft and near the No.2 winze on the
lower levels (Watson, 1984). Such dykes occupy some of the plethora of north trending fractures of
which the Amikougami Creek fault is a prominent member.
Alteration
Alteration of the wall rock adjacent to mineralized zones in the Kirkland Lake camp has occurred through
mechanical deformation of original textures and through chemical and mineralogical changes related to
hydrothermal alteration (Thomson, 1950; Watson, 1984). Alteration is strongest and most noticeable
adjacent to fault related ore zones in intrusive bodies. Alteration adjacent to hangingwall veins or footwall
veins is much less extensive and lacks deformation fabrics. These veins are believed to have formed along
42
extensional fractures (Thomson, 1950). The altered zones are not known to contain sufficient gold to make
ore without the presence of quartz or silicification.
Wallrock adjacent to fault-related mineralization is commonly strongly deformed, brecciated, or foliated
and reddened, bleached and/or silicified for several feet on either side of the main fault. These alteration
effects can be observed on a microscopic scale as well as a broad scale in development through altered
areas. Zones of alteration are rich in chlorite, sericite, and leucoxene as well as secondary enrichment in
quartz and pyrite (Watson, 1984). Carbonatization is pervasive in altered areas and wide zones of
carbonatization for up to widths of 325 feet have been reported in the system of hangingwall veins at
Macassa (Thomson, 1950). Primary silica will have been reduced by the development of, particularly,
sericite and carbonate.
Alteration in sediments and tuffs is represented by discrete color changes to red, brown, or green. This is
caused by the coating of multiple microfractures with fine disseminated particles of red hematite, brown
limonite or goethite and ferriferous carbonate and sericite (Thomson, 1950).
Detailed geochemical work at the Macassa mine by Watson (1984) showed that the wallrock adjacent to
gold ore is enriched in K2O and secondary quartz and pyrite and depleted in Na20. Carbonate gangue
minerals in these areas formed through the alteration of Fe-, Mg-, Ca-, Mn- silicates to Fe-, Mg-, Ca-, Mn-
carbonate minerals by CO2 bearing hydrothermal solutions. Pyrite in the altered wallrock formed in a
similar way as hydrothermal fluids rich in sulphur broke down iron-bearing silicates.
A number of different authors have studied, in detail, the ore mineralogy at Kirkland Lake: Burrows and
Hopkins (1923), Todd (1928), Wark (1948), Hawley (1950), and Mclnnes (1985). This work has
demonstrated that there are a number of different telluride minerals occurring with native gold in
mineralized quartz zones. The most common of the telluride minerals is altaite (PbTe) which occurs with
native gold in high-grade portions of veins. Other common tellurides include calaverite (AuTe2), petzite
(AuAg3 Te2), hessite (AgTe ), melonite (NiTe2), and coloradoite (HgTe). The pyrite content of veins is
not directly related to gold content (Todd, 1928). Veins can be pyrite-rich and contain little or no gold, but
rarely does a vein contain high levels of gold and little or no sulphide minerals. High-grade veins are also
characterized by high concentrations of molybdenum and graphite, which can be seen in hand samples,
and in thin sections, as thin coatings on fracture surfaces. Todd (1928) reported that the ratio of native
43
gold to gold in tellurides is 8.4: 1.6 and that approximately 5.5% of silver occurred amalgamated with
native gold. Telluride gold was locally a predominant source of ore at Kirkland Lake, less so at Macassa.
Exploration & Targets
Foxpoint Resources Ltd. has not carried out any exploration on the subject properties.
The following is an annotated listing of some of the historical exploration targets generated on the Kirkland
Lake properties gleaned from the available files which appear to be significant enough to be of exploration
value.
A composite long section of the camp showing the main exploration target area is in figure 4.
’04 Break
At Macassa the bulk of the historic reserves are located along the ’04 Break and splays off the ’04.
Mining has taken place from 3800 level to 7050 level. Ore continues down-plunge below 7050 with ore
intersections as deep as 7800. Ore continues above 3800 level as well (Fig. 4). There are very few drill
holes between 3600 and surface. A program, known from the files, was to be carried out from surface to
test the near surface extension of this zone, but the mine closed just as it was to begin.
It is true (see previous) that the regional geological plunge in the Kirkland Lake camp is dominantly to the
west south west at about 60 degrees. Observed fold hinge lines, extension fractures, and other ductile
deformation phenomenon, including the apparent plunge of the thickest portion of the Kirkland Lake sill,
are all consistent with this. Similarly, and unsurprisingly, the plunge of individual mined gold shoots tends to
do the same thing and, based on the mining history of Toburn and Sylvanite at the east end of the camp, it
was “camp knowledge” that no economically significant mineralization occurred below the 60 degrees
west south west plunging keel of the sill. Given the traditionally known association of significant gold
mineralization with the sill, it was therefore essentially axiomatic that there was little exploration potential
44
above the upper edge of the sill either. First attempts at mining Macassa at surface, even though the
position of the Main Break was well known, were a failure, confirming this old understanding. Thus,
Macassa was developed successfully by drifting in from the adjacent property to the east, Kirkland Lake
Gold, at 2475’ in ore, and then following the ore by mining down plunge.
There are, however, several established facts that are not consistent with this belief:
1) Excellent mineralization, otherwise economic except for its great depth, the risk of rockbursts, and
the high cost of handling in multiple internal shafts, existed below the extrapolated position of the
interpreted keel of the Kirkland Lake sill in both the Wright Hargreaves and the Lakeshore mines.
The implications are that the keel of the intrusion does not exactly conform to the regional plunge,
or that significant mineralization can occur outside the sill on the Main Break. Whatever is the
case, there is, based on this observation, no apparent reason to believe by analogy that a linearly
defined upper limit controlled by a 60 degree west south west plunge is valid either.
2) The concept above was tested directly at Macassa. Limited attempts to explore by drilling and
development underground above the interpreted linear extrapolation of the plunge of the upper
edge of the thickest portion of the Kirkland Lake sill, as projected from Kirkland Lake Gold, met
with success on the 4250’ level (see fig 4), geologically consistent with observations on the
opposing keel at Lakeshore & Wright Hargreaves.
3) At Macassa, a high proportion of ore mined has already come from non-traditional host rocks cut
by the Main Break, including conglomerate and trachytic tuffs. The immediate presence of the
Kirkland Lake sill as a host is thus also not obligatory for the occurrence of significant gold
mineralization.
4) Geologically, the plunge of individual gold shoots is not a good predictor of the geological shape in
long section of the overall outline of significant mineralization. Internal geometry does not
necessarily determine ultimate geometry.
5) Throughout the mining history of the Main Break a great deal of significant gold mineralization has
been discovered in off-shoots and zones parallel to the Main Break. The maximum established
45
width in plan of prospective rock is in excess of 2000’, i.e. roughly 1000’ on either side of the
Main Break.
6) Lastly, Kinross intended to do exploration drilling from surface. Their plans were aborted by the
enforced closure of the mine. However, their interest in the potential is indicated.
In conclusion, the evidence cited is consistent with the existence of excellent exploration potential within
and on either side of the Main Break immediately above the mined mineralization at Macassa, and to a
lesser degree through to surface.
’05 Break
The ’05 Break lies over 1000’ north of the Main Break (Fig. 3). One Lac hole returned 0.30 oz/T Au
over 6.0 feet. Large gaps remain untested. Kinross’ better intersections were 0.32/44.3’ – 24.0’
horizontal mining width (HMW) (incl. 0.49/18.3’), 0.40/6.2’ HMW, 0.42/5.1’ HMW, and 0.36/5.0’ HMW.
One deep hole intersected 0.29/23.2’ at –900’ vertical.
As part of the project, camp-wide drill holes were incorporated in one database for the first time.
Although incomplete, exploration opportunities are indicated.
#6 Break
The #6 Break is a splay off the Main Break, dipping at ~50 degrees to the South. It, and subsidiary
veining were mined extensively at Kirkland Minerals and Teck Hughes. One sub vein was mined for
1200’ along strike and for 400’ of dip length. The majority of the ore at Teck-Hughes and Kirkland Lake
Gold was mined from veining at the confluence of the #6 Break and Main Break. The #6 Break
continues westward to Macassa where the stopes have identical geometries to those at Teck-Hughes and
Kirkland Lake Gold.
46
Surface Zones
Numerous vein systems in the Kirkland Lake Camp have unmined, or incompletely mined, surface zones.
The most significant are:
#1 Lakeshore/Teck Hughes crown pillars
#2 other Main Break/South Break crown pillars (in town)
#3 Main Break at Kirkland Lake Gold
#7 Vein
A drilling program was underway, at the time of the mine closure, which was designed to delineate the #6
Break around the 4500’ level. The programme was half finished at closure. The last hole drilled on the
property extended past the #6 Break. It intersected the #6 Break returning 0.61 oz/T Au over a 5.2’
horizontal mining width (HMW). At 1100’ south of the Main Break the tuff contains very fine quartz
stringers that contain visible gold. This area has an intersection that generated a value of 0.76 oz/T over
12.8 feet of horizontal mining width. Very few holes extend 1100’ south of the Main Break. Seven holes
have intersected a significant vein 1100’ south of the Main Break.
This is the most promising underground target after the extension of the Main Break to surface. There
are a number of other exploration targets of decreasing immediacy in the files, too numerous for inclusion
in this report.
Sources and Verification of Data
Foxpoint Resources Ltd. has not carried out any exploration on the subject properties nor have they
verified any of the previous exploration work. Activity on the properties date back to the early 1900’s and
a vast amount of information and data, including years of production history on all subject properties, has
47
been generated. The company chooses to rely on this well documented production history as verification
of the data and potential of the properties.
The author of this report has had a great deal of experience in the area, has visited the properties and has
reviewed the technical information in the Macassa minesite offices in Kirkland Lake. As a result, the
author is able to comment on the data and potential of the area.
Sampling Method and Cutting
Near the end of the past production history at Macassa Mine only chip sampling and diamond drill hole
sampling were used as it was determined by the geological department, at Macassa Mine, that muck
sampling was non-representative and created unreliable data. A number of cutting formulae were
attempted over the years with varying results
Core Samples
The most recent drilling in the area was carried out using BQ drill string and the core was placed in core
boxes and delivered to the company by a drilling contractor. A company geologist oversaw the drilling
programs.
All core was logged by a company geologist and samples were marked, cut, and half core was sent for
assaying. Samples were taken according to geology and the maximum sample length was not greater than
3.0 feet.
The focus in the camp, and at Macassa, has been on assaying quartz veins. However, the mining history
of the camp indicates that the walls of the veins may carry considerable gold. The most obvious indication
of this is that stopes have traditionally been “overdrawn”; that is, more is removed than the drill pattern
was to have provided even counting conservative dilution, in some cases more than 50% more. This can
48
only have come from volumetrically significant sloughing from the walls and backs of stopes indicating that
the grade of so called “dilution” was, in many cases ore.
In the case of Teck-hughes this material was even given a formal “camp” name, “slough ore”.
Chip Samples
The chip samples underground were taken perpendicular to the ore zone, and as close to the back as
possible, as channel samples, by either a geologist or geological technician. The samples were taken, and
collected in plastic bags, in intervals corresponding to geology and the maximum sample length was not
greater than 3.5 feet. Composite samples were then weighting according to sample width with individual
assays being cut to 3.5 oz/T.
Sample Preparation and Analysis
During the exploration campaigns by Kinross Gold Corporation all samples were taken under the
supervision of a geologist or a geological technician and sent for analysis using the following methods.
Core Analysis
A weight of 29.166 grams is used for a core assay. The sample is then carried through the classical fire assay technique, except
that the gold/silver bead is completely dissolved in a test tube and then assayed using an atomic absorption machine. This
method is called a Fire Assay with an AA Finish. Any sample resulting in a reading over 0.10 oz/ton is pulled and ran the
normal classical fire assay technique with the gold bead being weighed on a microbalance.
Chip Analysis
49
A weight of 14.58 grams is used for assaying purposes on the chip samples. The sample is then carried through the classical
fire assay technique with the gold bead being weighed on a microbalance.
Quality Control
Quality Control samples were analyzed on each batch of samples. If the quality control sample, which was of a known value,
was within limits then the batch of samples were reported. If the QC sample was not within limits and the AA had been
properly checked, then the batch was re-weighed and run again. Cross-checking occurred every 5 or 6 months and
no consistent variation had been delineated.
The relative lack of coarse gold, and the consistency of historic results, militate against general use of
screened assays.
Mineral Processing and Metallurgical Testing
The existing Macassa Mill (currently on standby) is capable of treating 1450 st/d (1315 mt/d) of ore
(Figure 11) that has, in the past, averaged 0.45 oz./st (12.75 g/mt) gold. This circuit also has the capability
of having a split circuit that can treat ore and tailings at the same time, at a tonnage of 625 st/d ore and
1200 st/d tailings. (Figure 12).
Crushing
The crushing plant has the capability of crushing 1850 Tons in a 24-hour period. Actual crushing time
however is only 20 hrs. per day due to clean up, shift changes and repairs.
Crushing is carried out in 3 stages using a 28 in. x 36 in. primary jaw crusher in series with a 4 ¼ standard
Symons crusher and a 4 ¼ shorthead Symons crusher. The primary jaw crushes from 12 in. material
down to 4 in. then the standard from 4 in. reduces it to 1 in. The Shorthead then reduces down to the final
product of 7/16 in. material. There are two screen decks in the circuit, one between the jaw crusher and
50
standard crusher and one before the shorthead crusher. When the material is finally sized it is transferred
to a 1500 Ton bin located by the Mill.
Tailings Reclamation
At this time the equipment for reclaiming tailings is on the Lakeshore site consisting of Pumps, Water
Cannon, Screen Plant and Piping. The heavy equipment that was rented consisted of two 20 Ton dump
trucks and two excavators.
51
52
Tailings Grinding
Tailings at 50% solids will be pumped from the Reclaim Surge Tank at 50 st/hr. to a pulp distributor which
will split the pulp between the 12 ½ ft. x 16 ft., 1600 HP Ball Mill and the 200 HP Tower Mill taken from
the existing plant. This latter mill will have a net finished product capacity of about 5.5 st/hr.
The Ball Mill and Tower Mill will operate in closed circuit with multiple Cyclones. The underflow
returning to the Pulp Distribute and the overflow at 40% solids being pumped to the Leaching Circuit. The
target product size is 95% - 37 micrometers, however, it is estimated that at maximum throughputs 80-
85% - 37 micrometers will be obtained. Testwork data indicated that this would reduce leach recovery
from 75 to 70%.
Ore Grinding
Depending on Tonnage and the number of Mills being used the Ore will be withdrawn from the Fine Ore
Bin at a rate of 18 – 60 st/hr. using two variable speed Slot Feeders controlled by a Weightometer on the
Primary Mill Feed conveyor. Primary Grinding will be conducted in a 10 ½ dia. by 13 ft. 800 HP Ball Mill
operating in a closed circuit with 3 x 15 in. dia. Cyclones (2 operating and 1 standby). Calcium Cyanide
solution and Lime Slurry will be added to the Cyclone Feed Pumpbox.
The Cyclone overflow product size will vary over the range II 5 – 235 micrometers depending on
throughput. This material will gravitate to the Secondary Cyclone Feed Pumpbox for pumping to 6 x 10 in.
dia. Cyclones (5 operating and 1 standby) operating in closed circuit with the Secondary Ball Mill. The
Secondary Mill is a 10 ½ x 13 ft. 800 HP Ball Mill. This material will gravitate to the Tertiary Mill Cyclone
Feed Pumpbox for pumping to 8 X 10 in. dia. Cyclones (6 operating and 2 Standby) operating in closed
circuit with the Tertiary Ball Mill. The Tertiary Ball Mill is a 12 ½ x 16 ft. 1600 HP mill. The Tertiary
Cyclone overflow at 18% solids and with P80 size of 30 micrometers will gravitate through off the Trash
Screen to remove wood chips, plastic, etc. and be pumped to a 33 ft. dia. x 33 ft. Pre-leach Tank located
outside.
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54
Ore Pre -leaching, Thickening and Carbon Columns
Experience in the existing plant has shown that total gold recovery is enhanced by pre-leaching using low
solids density and that approximately 60% of the gold is leached in the grinding circuit and pre-leach
section. Trash screen underside will therefore be pumped to a 33 ft. diameter x 33 ft. Pre-leach Tank
located outside providing 5 – 7 hours residence time. This tank will overflow to a 65 ft. diameter
Thickener fitted with a high capacity feedwell that will thicken the pulp to 45% solids prior to pumping to
the leach circuit.
Thickener overflow containing approximately 2 ppm gold will be pumped via a Surge Tank to 3 x 5 ft. dia.
x 15 ft. high Carbon Columns in series. Granulated carbon (6 x 16 mesh) will be pumped periodically in
batches counter currently to the solution flow at a maximum rate of 1.3 st/d. The carbon will load to 145-
175 oz/st (5000 – 6000 g/mt) gold and be transferred from the first column to the carbon stripping circuit.
Barren solution will overflow from the third column to the mill solution tank for use in the ore grinding
circuit.
It is estimated that approximately 85% of the gold in the thickener overflow will be recovered onto the
carbon.
Leaching
Reground tailings will be pumped to the first of 5 x 40 ft. dia. x 45 ft. leach tanks in series located outside.
Calcium Cyanide solution and Lime Slurry will also be added to the first tank. Partially leached ore from
the ore thickener will be added to the third tank. This configuration will provide 133 hours of residence
time for tailings and 53 hours for ore.
Overflow from the fifth tank will gravitate through a trash screen to the CIP feed pumpbox.
55
Carbon-In-Pulp (CIP)
Trash screen underside will be pumped to the first of 5 x 20 ft. dia. x 20 ft. CIP tanks in series located
within the mill buildings. Each tank will provide 1.5 hours residence time and be fitted with a twin impeller
high efficiency agitator and a launder screen equipped with 3 screen panels per side.
The pump will gravitate through the tanks via the launder screens and finally discharge from the CIP tank
No. 6 from where it will gravitate to the vibrating carbon safety screen. This screen will collect any
carbon that escapes through the launder screen while allowing the tailings to pass to the tailings pumpbox.
Tailings will be pumped to the dam via a 6 in. dia. HDPE pipeline.
Carbon will be added to tank No. 6 at a maximum rate of 1.3 st/d and be advanced through the tanks using
recessed impeller pumps. The carbon concentration in the pulp will be about 15 g/l. Pulp from tank No. 1
will be pumped to a vibrating washing screen located above and adjacent to the carbon stripping circuit.
Washed carbon loaded to 145 – 175 oz/st (5000 – 6000 g/mt) gold will gravitate directly to the loaded
carbon storage tank while the pulp will return to the CIP feed pumpbox. The carbon pumping sequence
will be controlled by operator adjusted timers linked to a programmable logic controller. Both fresh and
recycled carbon will be screened and added to tank No. 6 via the stripped carbon storage tank.
Carbon Stripping and Gold Recovery
Loaded carbon from the washing screen and carbon column No. 1 will be educted to the stripping column
which has been sized to take up to 3.3 tons of carbon each, i.e. one day’s production. Stripping will be
conducted at high pressure using up to 15 gpm of solution containing 1.5% sodium hydroxide and 0.5%
sodium cyanide at 140 degrees C. The time required to reduce the carbon to a gold loading of about 5
oz./st (150 g/mt) will be 8 hours.
The barren strip solution will be pumped from the fresh eluate tank through an in-line electric solution
heater to bring it to the required 1400 degrees C and the to the strip column.
56
Loaded eluate containing 100 – 140 ppm gold will gravitate from the strip circuit to the electrowinning cell
which contains 13 cathodes each loaded with 4 – 5 lbs. of stainless steel wool. Up to 300 oz. of gold will
be loaded onto each cathode and cathodes attaining this weight will be removed form the cell one per
week.
Barren strip solution from the electrowinning cell containing about 5 ppm gold will be returned to the fresh
eluate tank. Make-up additions of sodium cyanide and sodium hydroxide solutions will be added as
required from a mixing tank.
Carbon Handling and Regeneration
To retain its activity, the carbon requires periodic acid washing and regeneration. Acid washing will be
carried out in a 5% hydrochloric acid solution while regeneration will be carried out in an externally heated
horizontal rotary kiln at 6000C.
The carbon educted from the strip vessel can be directed to the sizing screen, the acid wash tank, or the
dewatering screen ahead of the regeneration kiln feed hopper. Acid treated carbon will be neutralized
with sodium hydroxide prior to educting to either the regeneration kiln or the sizing screen. Carbon
discharging from the kiln will be water quenched and then educted to the sizing screen.
Carbon will be transported through the circuit using eductors powered by a dedicated high-pressure water
system. Water will be pumped from the eductor water tank to each eductor as required and then drained
back to this tank from the vessel to which the carbon is delivered. The tank will be fitted with a central
feedwell that will allow carbon fines, which accumulate in the eductor water, to settle. The collected fines
will then be pumped to a filter press.
Carbon consumption is expected to range from 0.04 – 0.10 lb./st (20 – 50 g/mt) of ore treated. The
losses will be made up with fresh carbon that will be educted to the carbon sizing screen from a
conditioning tank. Batches of up to 1.0 ton of carbon will be agitated for several hours with water in this
tank to break off weak comers from the carbon grains which would otherwise degenerate to fines in the
57
CIP circuit and cause losses of gold. The fines will be removed as sizing screen undersize that will drain
to the eductor water tank feedwell.
Cathode Leaching and Gold Refining
Cathodes removed from the electrowinning cell will be dismantled on the stripping table and the wire wool
and deposited gold placed in a drying oven overnight. This dried material will be fluxed and smelted on an
electric induction furnace and poured into bullion molds.
Mineral Resource Estimates
Foxpoint Resources Ltd. has not carried out any resource or reserve estimates.
There are scattered blocks of interesting mineralization within the old underground workings east of
Macassa. Most are in pillars. Very little, if any would qualify for definition purposes according to
National Instrument 43-101 policies. Compilation has begun.
In 1998, near the time of closure, Kinross listed an accessible mining reserve at Macassa of 132,903 tons
at 0.41 ounces of gold per ton proven and 276,927 tons at 0.51 ounces of gold per ton probable
in their company files. These historic reserves have been permitted for exploitation. Foxpoint has not
formally audited these historic reserves from the perspective of NI 43-101; but, has no reason to doubt the
high professional standards of the previous mining companies. Examination of several representative
Kinross estimates by the author revealed no obvious discrepancies with standard industry practice.
Recommendations and Conclusions
The subject properties, with their long, productive mining history, have, east of Macassa, left behind many
small amounts of defined mineralization too scattered and inaccessible to be of any immediate mining
58
interest or to qualify as resources or reserves according to Policy NI 43-101, at the present time. These
should be compiled on a single database to enhance their exploration value.
Various attempts to generate a cutting formula which consistently reconciles reserves with mill results
have been tried. Results have varied. The author’s experience indicates that all such formulae are
inherently scientifically arbitrary and unnecessarily conservative. Reserves are invariably understated. A
primary source of major error is lack of knowledge of real gold distribution. An initial programme of
detailed saturation sampling of exploration holes followed by rigorous mathematical analysis is
recommended.
There is an abundance of technical historic data available within which are numerous indications of
exploration potential. These should be compiled on a single database.
The few existing holes for which core is available above the mined mineralization at Macassa should be
subject to saturation sampling. At roughly one thousand foot separations, only composite concentrations of
geologically anomalous gold over several feet or better, several tens of feet, could possibly be broadly
correlated.
This technical report has identified and prioritized a selection of zones of immediate exploration interest for
follow up which in the author’s opinion provide the greatest opportunities at the least cost and shortest time
to define qualified resources, 1) by limited underground development taking advantage of the existing,
relatively easy to rehabilitate infrastructure associated with the #3 shaft, and 2) by surface drilling.
The two highest priority targets are:
1) The extension of previously mined mineralization above the current vertical limit of mining
both from underground and surface and
2) Up-grading of the incompletely drilled No. 7 zone by underground drilling, to resource quality.
To do the above the No. 3 Shaft has to be dewatered, rehabilitated and recommissioned to the 4250 level.
Five drill stations and cross cuts have to be cut into the footwall at ~ 500’ intervals to allow for fan drilling
59
sufficient to generate piece points no further than 200’ apart on the Main Break. It is anticipated that his
will require ~ 30,000’ of drilling. A rough estimate of the cost is:
5 stations @ ~ 15,000. 75,000.
30,000’ @ $11. Contract. 330,000.
Saturation ** assaying @ 3’ @ $10. 100,000.
Logging, splitting etc. 50,000.
-----------
555,000.
Contingency @ 20% 111,000.
-----------
Total 666,000.
Say $ 700,000.
The surface program will be less costly because all holes will be on section.
Say $ 650,000.
Exploration of No. 7 will be less costly because of existing information:
Say $ 550,000.
Grand Total $1,900,000.
__________
Say $2,000,000.
* Past sampling has been influenced by a belief that gold is correlated with quartz veining and little else. The initial sampling and assaying should be total to test the entire interval transected (see history of the Camp). Once a satisfactory, consistent behavior is established then the degree of saturation can be reduced, to say, every third hole, with lots of room for the supervising geologist’s direction.
60
This program will provide coverage of the Main Break at 200’ centers for 1000’ up from existing
underground infrastructure and 1000’ down from surface, leaving an untested interval of about 1000’ for
future exploration. Moreover, the broader prospective width of the Main Break, understood as a zone,
given the established history of the Camp, will also be tested for significant distances on either side of the
trace of the Main Break itself.
Kinross’ historic mining reserve estimate of 132,903 tons at 0.41 ounces of gold per ton proven and
276,927 tons at 0.51 ounces of gold per ton probable , though unlikely to be flawed, should
nevertheless be representatively audited by a third party expert in these matters prior to the mining of
these reserves and resources.
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CERTIFICATE To accompany the Technical Report dated November 30, 2001: Technical Report on Kirkland Lake Mineral Properties, (Macassa, Kirkland Lake Gold, Teck-Hughes, Lake Shore, Wright-Hargreaves) I, Roland H. Ridler, B.A.Sc. (hons), MASc, Ph.D. do hereby certify that: 1. I reside at 2 Shaughnessy Blvd., Willowdale, Ontario, M2J 1H5. 2. I am a Consulting Geologist. 3. I am a Member of the Association of Geoscientists of Ontario; Member of the Prospectors and Developers
Association of Canada; Member of the Society of Economic Geologists; Fellow of the Geological Association of Canada; and a Member of the Canadian Institute of Mining and Metallurgy. I hold an Honours Bachelor Degree in Applied Geology from the University of Toronto, a Masters Degree in Applied Geology from the University of Toronto, a Ph.D. in Economic Geology from the University of Wisconsin, Madison and did Post Doctoral Studies at the University of Western Ontario. I have practiced my profession as an economic/exploration geologist for 32 years and have worked extensively in Sweden and North America, and briefly in Finland, South Africa, Australia and Brazil. I have worked with the Canadian Geological Survey and the private sector. My Ph.D. thesis was on the relation of mineralization to volcanic stratigraphy in the Kirkland Lake area. I have directed, a) metallogenetic studies for the Geological Survey of Canada in the Kirkland Lake area, and b) an exploration programme for the private sector at Kirkland Lake and authored papers and reports on the geology and mineral deposits. I also visited the Macassa Mine, and others, some years ago while in operation. I am familiar with the geology and mineral deposits of the area.
4. I am a qualified person for the purposes of National Instrument 43-101, “Standards of Disclosure for Mineral
Projects”. 5. I visited the subject property November 26th to November 30, 2001. 6. I prepared and supervised preparation of the technical report in its entirety. 7. I am not aware of any material fact, or material change, with respect to the subject matter of the Technical Report
which is not reflected in the Technical Report for which the omission to disclose would make the Technical Report misleading.
8. Neither I nor any affiliated entity of mine is at present, nor under any agreement, arrangement or understanding,
expects to become an insider, associate, affiliated entity, partner or employee of Foxpoint or an associate or affiliate of Foxpoint.
9. Neither I nor any affiliated entity of mine owns, directly or indirectly, nor under any agreement, arrangement or
understanding expects to receive: a) any securities of Foxpoint or of an affiliate of Foxpoint, or b) any royalty interest in the properties which are the subject of the Technical Report.
10. Neither I nor any affiliated entity of mine has earned the majority of our income during the preceding 3 years from
Foxpoint or an associate or affiliate of Foxpoint. 11. Neither I nor any affiliated entity of mine,
a) is, or by reason of an agreement, arrangement or understanding expects to become an insider, affiliate or partner of any person or company which has an ownership or royalty interest; or
62
b) has, or by reason of an agreement, arrangement or understanding expects to obtain an ownership or royalty interest, in a property which has a boundary within two kilometers of the closest boundaries of the subject properties.
12. I have not previously worked on these properties. I have worked on a non-contiguous property 500’ across
strike from an isolated claim of the subject properties twenty-three years ago. 13. I have read NI 43-101 and Form 43-101F1 and have prepared the Technical Report in compliance with NI 43-101
and Form 43-101F1 and in conformity with generally accepted Canadian mining industry practices. Dated the 30th day of November, 2001 “signed” Dr. Roland H. Ridler
63
REFERENCES Burrows, A. G., and Hopkins, P. E., 1925: Kirkland Lake gold area (revised edition); Ontario
Dept. Mines, Vol. XXXII, 1923. Calvert, A.J. and Ludden, J.N. 1999, Archean continental assembly in the southeast superior
Province of Canada; Tectonics. Cameron, E.M., 1990, Alkaline Magmatism at Kirkland Lake, Ontario: Product of Strike-Slip
Orogenisis, Geol. Surv. Canada. Card, K.D., 1990, A Review of the Superior Province of the Canadian Shield, a producer of
Archean accretion; Precambrian Research. Charlewood, G.H., 1964, Geology of Deep Developments on the Main Ore Zone at Kirkland
Lake; Ontario Department of Mines. Goodwin, A.M., 1977, Archean Volcanism in Superior Province, Canadian Shield: Geol. Assoc.
Canada, Spec. Paper No. 16. Hawley, J.E., 1950, Mineralogy of the Kirkland Lake Ores; Geology of the Main Ore Zone at
Kirkland Lake; Ont. Mines, Ann. Rept.
Jackson, S.L. and Fyon, J.A. 1991 The western Abitibi Subprovince in Ontario; in Geology of Ontario, OGS, Special Volume 4, Part 1, p.405-484
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CONSENT TO: FOXPOINT RESOURCES LTD. (“Foxpoint”) AND TO: THE ONTARIO SECURITIES COMMISSION, THE ALBERTA SECURITIES COMMISSION AND THE
BRITISH COLUMBIA SECURITIES COMMISSION (collectively the "Securities Regulators") RE: TECHNICIAL REPORT OF DR. ROLAND H. RIDLER DATED NOVEMBER 30,2001 IN RESPECT OF
CERTAIN MINING PROPERTIES TO BE ACQUIRED BY FOXPOINT.
Reference is made to the technical report dated November 30, 2001 which I prepared for Foxpoint in respect of the acquisition by Foxpoint of certain miming properties from Kinross Gold Corporation (the "Technical Report"). I hereby consent to the filing of the Technical Report with the Securities Regulators, to the written disclosure of the Technical Report and to the inclusion of extracts therefrom or a summary thereof in the Annual Information Form (AIF) of Foxpoint. Date this 30th day of November, 2001.
“signed” Dr. Roland H. Ridler
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