This property consists of 98 claims totaling 2,450 hectares adjacent to the Trans-Canada-Highway. The Company issued 7,754,371 common shares and issued 1,428,571 share purchase warrants to acquire the property and committed to spending $500,000 within 12 months of acquisition. The purchase warrants have a strike price of $0.05 per share and expire in three years, on March 17, 2021. The property is subject to a 2.0% NSR Royalty including 1.5% to the vendor and a 0.5% NSR royalty to an arms-length 3rd party.
Moosehead is a very accessible orogenic lode gold project in a jurisdiction open to exploration and development. Historic sampling has returned values of up to 442 g/t Au from boulders and up to 170 g/t Au over 1.53 metres from drill core samples. The mineralized system remains virtually untested below a vertical depth of 100 metres (the only “deep hole” intersected 278 g/t Au over 0.45m at a hole depth of 257 metres) and remains open along strike. Mapping of the recently exposed bedrock and mineralized veins indicated that the controlling Au-bearing structures are orientated E-W and WNW, whereas the majority of historic drill holes targeted N-S structures.
In March 2018, the Company initiated its 2018 program with Phase 1 diamond drilling commencing in June. Phase 1 consisted of a 1,970.5 m in 15 holes, which in late July resulted in a high-grade discovery in the Eastern Trend, an area with little previous drilling. Phase 1 Discovery Hole MH-18-01 returned 11.90 m @ 44.96 g/t Au from 109 m down-hole. The Phase 2 drill program started October 1, 2018 with 7,643 metres completed in 35 holes. The Eastern Trend high-grade mineralization was extended in two step-outs to the north of MH-18-01. Drill Rig #2, which was testing targets up to 1 km north and south of the Eastern and Western Trend area, cut anomalous gold mineralization in several holes that require further evaluation.
Phase 2 highlights from the Eastern Trend include MH-18-17 that returned 24.90 m @ 33.56 g/t Au, and MH-18-39 that returned 5.10 m @ 124.20 g/t Au, including a 1.10 m visible gold-bearing quartz vein @ 550.30 g/t Au.
Phase 3 drill program, starting in early 2019, will follow up on the Phase 2 results focusing on the extensions to the Eastern Trend along strike and to depth.
Structural Analysis of the Eastern Trend
In early January 2019, the Company commissioned an analysis of the structural setting and possible controls of the high-grade gold bearing system at the Eastern Trend. The preliminary study (final report in progress) was completed by Earth Tectonics Limited, the same firm that completed the 2016 structural report on the Moosehead property for then owner Altius Resources Inc. The 2016 report revealed that high-grade veins in the Western Trend were oriented East-West, nearly parallel to the direction of most of the historical drilling, thus calling into question the value of the earlier drilling. The structural analysis utilizes data from the Company's 2018 televiewer survey, as well as the examination and relogging of holes recently completed on the Eastern Trend including MH-18-01. The report has identified the following features of the Eastern Trend: