Atacama Resources holds an option to acquire a 100 percent interest (the “Option”) in the Tannahill Gold Property which is located 35 kilometers northeast of the prolific Kirkland Lake Gold Camp in northeastern Ontario. Per the terms of the option agreement, Atacama can exercise the Option upon fulfilling the following requirements:
- Make cash payments in the aggregate amount of $100,000 to, or to the direction of, the optionors, over the course of a 4-year period and;
- Complete $250,000 of eligible work on the Tannahill Gold Property over the course of a 4-year period.
Past work on the Tannahill Gold Property (1998) has identified two parallel, gold bearing structures. The gold bearing structures (Lower Zone and Upper Zone), consist of pervasive quartz-carbonate-albite alteration with disseminated pyrite and variable quartz veining. The zones strike in a northeast/southwest direction and dip to the north at 60 degrees.
Of the 28 diamond drill holes drilled into the gold bearing zones, 27 intersected significant gold values. The Lower Zone has returned the higher gold grades to date, including visible gold in four holes, and seems to hold the greatest exploration potential. The Lower Zone shows continuity along strike and consistency in grade. It has been successfully intersected along 300 metres of strike length at the 25 and 50 metre levels and remains open in both directions. Grades and widths above the 50 metre level are generally 0.35 to 3.25 g/t over widths ranging between 0.60 to 3.0 metres. At depth the zone widens significantly and gold grades increase dramatically (see Figure l and Figure 2). Three holes below the 75 metre level along 100 metres of strike length have excellent widths with higher gold grades:
5.16 g/t over 5.0 metres in T-96-9,
4.80 g/t over 5.00 metres in T-96-11, and
7.02 g/t over 3.7 metres in T-96-15.
Figure 1: Upper and Lower Gold Zones with gold intersections (Adapted from Ontario Assessment File 2.19047 32D05NE2009 Tannahill Project, Assessment Report on Diamond Drilling).
Figure 2: Composite Longitudinal Section showing Diamond Drill Hole Pierce Points (Adapted from Ontario Assessment File 2.19047 32D05NE2009 Tannahill Project, Assessment Report on Diamond Drilling).
Note: “V.G.” equals visible gold in the drill core.
An additional 2011 drill program consisting of 5 holes returned the following results:
Hole 1: 1.8 g/t/2m (depth 310 meters downhole)
including: 3.2 g/t over 1m
Hole 2: 1.2 g/t/1m (depth 359 meters downhole)
Hole 3: 2.4 g/t/3m (depth 364 meters downhole)
including 3.1 g/t/1m
Hole 4: 2.2 g/t/0.8m (depth 23 meters downhole)
Hole 5: 4.0 g/t/1m (depth 42 meters downhole)
plus 1.3 g/t/1m (depth 62 meters downhole)
The 2011 drilling results were found to be consistent with previous drill programs on the property.
Crews are presently on site to locate the old cut lines and drill hole casings. All of the core from the 1998 drill program is available for evaluation and further analysis.
Future work will include geophysical surveys, prospecting, geological mapping and eventual diamond drilling to expand the existing gold zones.
*Note- Historical Exploration results that pre-date the adoption of NI 43-101 do not comply with current definitions prescribed by NI 43-101 or the Canadian Institute of Mining, and are disclosed only as indications of the presence of gold and possibly other minerals.
Downhole widths do not represent true widths. True widths are not known at this time.