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BROULAN REEF GOLD PROJECT 3D PRESENTATION - 2009 DRILLING
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2009 Broulan Reef deep drill program contact Don Huston, President at (604) 687 3376.
Red Lake Gold Camp Overview
With a renewed interest by established gold producers on grade and low production costs, the Red Lake mining camp in northwestern Ontario continues to garner world attention. The leader in the camp, Goldcorp Inc., is processing ore from its underground mining operation that averages more than 2.0 ounces of gold per ton - unheard of anywhere else in the world for a mine of its size. The area hosts several gold mines, where the combined production and remaining proven resources are more than 30 million ounces of gold. Initial gold production occurred at the Howey mine in 1930, and two mines (Campbell and Red Lake) remain in operation today. The largest mines historically are Placer Dome's Campbell mine (cumulative production and remaining resources of 13 million ounces) (now owned by Goldcorp), Goldcorp's Red Lake (10 million ounces) and Madsen mines (2.5 million ounces). Goldcorp's Red Lake mine lies immediately adjacent to the Campbell mine, and the deposit mined at each are interpreted to be portions of the same ore body. However, the deep high-grade zone of the Red Lake mine continues to be one of the highest-grade deposits in the world.
Click Here to read "The Goldcorp Story".
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Classic Greenstone Gold Belt
The Red Lake gold district is situated in an Achaean greenstone belt consisting of a series of metavolcanic and metasedimentary rocks. Most of the gold production in the district has come from structurally controlled vein-type gold deposits hosted in sequences of ultramafic mafic to felsic volcanics and sediments. Regionally, the belt hosts a system of at least five northeast and northwest-trending deformation zones with associated hydrothermal alteration. All of the key producers in the district are located close to a regional mafic volcanic-sediment contact or 'break' which for years may have been overlooked as an important control on gold mineralization.
Major gold camps in the Timmins and Kirkland Lake areas of northeastern Ontario also show a close association with similar breaks. The most prolific gold producers in the Red Lake district, are hosted by the northwest-trending Cochenour-Gullrock Deformation Zone and are situated within the well-established "mine trend" of the Red Lake gold district.
Gold deposits in the Red Lake district have been classified into three main categories: mafic volcanic-hosted; felsic intrusive-hosted; and stratabound. The majority of the productive zones in the Red Lake camp are of the mafic volcanic-hosted type and occur as vein systems within a lower mafic to komatiitic and ultramafic volcanic sequence. Goldcorp's mine lies in the eastern section of the Red Lake Precambrian greenstone belt, an older assemblage of mafic and felsic volcanic rocks within a sedimentary sequence.
As a result of the proven potential of this gold camp and the continued excitement being generated by Goldcorp's Red Lake mine, the Red Lake and Birch-Uchi greenstone belts have attracted many firms, from senior producers to junior exploration companies, to stake and explore the district. Active major companies in Red Lake include Goldcorp and Placer Dome. In addition, there are many junior exploration companies actively exploring the camp.
Broulan Reef Gold Project, Red Lake, Northwestern Ontario
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The Broulan Reef Property
In January of 2006, Cypress Development announced that the Company had acquired an 80% interest in the Broulan Reef property (claims # KRL41961 to KRL 41970) located in the heart of the Red Lake gold camp in northwestern Ontario. The Broulan Reef property joint venture ownership consists of Cypress having an 80% interest and Skyharbour Resources Ltd. (TSX.V: SYH) owning the remaining 20% interest.
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Location of East McKenzie Island & Broulan Reef Gold Properties to Goldcorp's Cochenour / Bruce Channel Deposit ) Click to Enlarge |
Broulan Reef - Gold Eagle Mines Drill View Map ) Click to Enlarge |
The Broulan Reef property is comprised of 10 mineral claims situated adjacent to the south of Goldcorp's Cochenour / Bruce Channel Deposit (BCD). The property is 5 miles due west of Goldcorp's (TSX: G) operating Red Lake and Campbell gold mines.
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The Broulan Reef Property Location and the Adjacent Bruce Channel Discovery
Two of the main gold producing trends in Red Lake converge on the Broulan Reef property as identified by ground magnetic surveys. The property is located at the southern extent of the East Bay Deformation zone and at the west end of the Mine Trend Deformation zone that is host to the Goldcorp Red Lake Mine and Campbell Mine. The resulting structural complexities are likely to have produced numerous favorable depositional settings in this "gold prone" section of the Red Lake belt. The property also lies at the apex of a regional nose fold in the Bruce Channel sediments.
Both the Cochenour / Bruce Channel Deposit (Goldcorp) adjacent to the north and the Premier Gold Mines (TSX: PG) project located to the east have had significant discoveries made since 2005 in sedimentary rocks of the Bruce Channel and are the subject of ongoing exploration and delineation drilling.
Click to Enlarge) Broulan Reef Area Geology Map |
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Click to Enlarge) Broulan Reef Property Magnetometre Data |
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Click to Enlarge) Broulan Reef Prospective Bruce Channel Zone (Top View) |
The Bruce Channel deposit, located on Golcorp's Gold Eagle property, is situated along the prolific Red Lake Trend and is adjacent to the north of the Broulan Reef. The BCD is immediately southwest of Goldcorp's past-producing Cochenour-Willans Mine which produced approximately 1.2 million ounces of gold from 2 million tonnes of ore at a recovered grade of 18.5 grams gold per tonne.
Gold Eagle Mines Ltd. (TSX: GEA) did over 85,000 metres of diamond drilling on the Bruce Channel deposit. The discovery is located approximately 800 metres beneath the shallow Bruce Channel waterway that separates McKenzie Island from the mainland. The current "footprint" of the BCD mineralized envelope is 1.45 kilometres vertically and horizontally, approximately 800 metres in a NE-SW direction and 450 metres in a NW-SE direction. Based on the exploration work done to date, there is an estimated 8-13 million ounces of gold in the Bruce Channel deposit and the mineralized envelope remains open in all directions.
In September of 2008, Goldcorp Inc. announced it acquired Gold Eagle Mines Ltd. valued at approximately $1.3 billion. Under the Plan of Arrangement, shareholders of Gold Eagle received at their election and subject to proration either C$13.60 in cash or 0.292 of a share of Goldcorp or any combination thereof, for each Gold Eagle share they held. Gold Eagle's principal asset was the Bruce Channel gold discovery.
Exploration on the Broulan Reef Property
The Broulan Reef property has never had any detailed exploration conducted on it prior to Cypress Development and Skyharbour Resources acquiring the ground in January of 2006. Cypress has been aggressive in its exploration approach to the Broulan Reef project and believes the property, adjacent to and on strike to the major Bruce Channel gold deposit, is ideally located for the potential extension of this newly developed gold zone onto its Broulan Reef ground.
In April of 2006, Cypress announced its Phase 1 exploration program on its Broulan Reef property had been completed and results to date were highly encouraging. A structural / lithological framework was clearly identified from the ground magnetic data and a preliminary geological model emerged from the shallow diamond drilling.
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Cypress Development's Phase 2 drill program commenced in the summer of 2006 and consisted of two approximately 1,500 metre (5,000 feet) holes drilled deeper into the regional fold closures of the Bruce Channel sedimentary horizons.
This drill program identified a relatively shallow dip to the underlying Balmer Assemblage rocks and established that targets within the Balmer Assemblage rocks are within drill range. The Balmer Assemblage refers to the oldest rocks in the Uchi sub-province and "consists of basaltic tholeiite and komatiite flows with intercalated magnetite-quartz iron formation."
Low but widespread gold values were identified within structural features in the Bruce Channel rocks which are located above the prospective Balmer Assemblage rocks. A number of scattered short intercepts of between 0.2 and 2.35 grams per tonne gold were encountered in both holes including 0.45 grams per tonne between 1,256 and 1,269 metres in one of the holes.
The information gained from the 2006 Phase 2 drill program has been critical in evaluating deeper targets within favorable Balmer Assemblage rocks. Identified targets have structural links to gold bearing zones reported from Balmer Assemblage rocks immediately north on the Gold Eagle Mines property (Goldcorp).
Click to Enlarge) New Red Lake Gold Deposits |
With the drilling to date having encountered numerous gold bearing zones and with the ideal geological location of the property, there was significant potential that warranted a deeper 2008 Phase 3 diamond drill program.
On May 3rd 2007, Cypress announced a private placement of 4,000,000 units at a price of $0.65 per unit with Goldcorp Inc. Each warrant entitles Goldcorp to purchase an additional common share of the Company at an exercise price of $1.30 per common share. This private placement is being utilized to augment the Cypress Development Resources' drill program on the Broulan Reef property.
The 2008 / 2009 Cypress Phase 3 deeper drill program, consisting of 2500+ metre holes, was first collared on Goldcorp's land to the east of the Broulan Reef property and was drilled out underneath the shallow waters of the Bruce Channel. This first deep drill hole consisted of a mother hole (BR08-3C) and two daughter or wedge holes (BR08-3D and BR08-3E) which are off-shoots from the mother hole.
Click to Enlarge) Picture of 2008 Broulan Reef Deep Drill Rig |
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Click to Enlarge) Picture of Dave Busch, VP of Exploration, Logging Broulan Reef Core |
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In April of 2009, a new zone was intersected in the first wedge hole (BR08-3D) as it approached the north boundary of the Broulan Reef property. Cypress believes this is part of the north--south trending system that extends 2.5 kilometres from the Cochenour mine and includes the Bruce Channel and Finn gold zones bought by Goldcorp from Gold Eagle Mines Ltd. in 2008. The zone is very strong and distinct where intersected, and it consists of 14.2 metres (core length) of near solid quartz veining and an additional 27.5 metres (core length) of sheared and altered felsic porphyries. Visible gold was noted in this latter unit.
Core Box Picture from BR08‐3D Click to Enlarge |
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2009 Visible Gold Core Picture) Click to Enlarge |
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The most significant feature controlling gold mineralization in the Cochenour / Bruce Channel area of Red Lake is a shallow dipping thrust fault within the mafic / ultramafic volcanic rocks of the Balmer Assemblage. This fault strikes roughly east west and dips at 48 degrees to the southwest. It is known to be folded and faulted, is generally marked by silicification and has been intruded and flanked by a rhyolite dike. The thrust, accompanying alteration and rhyolite dike is referred to as the "Thrust Package". All significant gold found to date in the Cochenour / Bruce Channel area occurs immediately below this Thrust Package. The Thrust Package could be viewed as "Trap Rock" that has confined fluids below it. These fluids have severely altered the rock and resulted in gold being deposited along the footwall of the Thrust Package.
On the second wedge hole (BR08-3E) a zone from 2177.8 metres to 2181.9 metres returned 2.47 grams per tonne gold over 4.1 metres. This zone lies above the Thrust Package. A second zone from 2660 metres to 2661 metres returned 2.62 grams per tonne gold over 1 metre within a large zone of anomalous gold values from 2637 metres to 2665 metres. This second zone lies within the Thrust Package. Cypress has yet to drill a hole that fully pierces the Thrust Package in order to explore the prospective zone directly underneath the structure.
Broulan Reef Deep Drill Holes
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It has recently been ascertained that the Thrust Package occurs at shallower depths on the western part of the Broulan Reef property. By drilling from west to east it will allow more of the hole to test the stratigraphy immediately under the Thrust Package.
In May of 2009, Cypress started Drill Hole BR09-1 from west to east from McKenzie Island and was designed to intersect the north-south shear/ breccia at nearly right angles. The location and dip of the hole was also designed to intersect the prospective north-south shear / breccia system below projections of the thrust package. The hole did exactly as planned and encountered the north-south shear / breccia at 2430 metres. The hole was still in the shear breccia system when technical difficulties forced the stoppage of drilling. Anomalous to highly anomalous (100 to 1000 ppb) gold values were continuous in the last 10 metres of the hole between 2776 and 2786 meters.
Drill Hole BR09-01 (Looking North)
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Drill hole BR09-1 demonstrates that the north-south shear / breccia system has a strike length in excess of 2.5 kilometres and continues in size and strength well on to the Broulan Reef property.
The Red Lake gold camp is full of surprises as is illustrated by the Goldcorp acquisition of the Red Lake Mine in 1995 and by Gold Eagles' world class Bruce Channel discovery. The exploration activities of Cypress Development in the Red Lake area has gotten some real "traction" with the acquisition of the Broulan Reef property and the type of targets that have been developed.
McKenzie Island Gold Project, Red Lake, Northwestern Ontario
Cypress Development Corp. holds an 80% interest in the 5,100 acres McKenzie Island gold property in the Red Lake greenstone belt of north-western Ontario. Skyharbour Resources Ltd. (TSX.V: SYH) owns the remaining 20% interest.
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The McKenzie Island property is located west and adjacent to Goldcorp's Cochenour / Bruce Channel Deposit . The project is also on strike with the currently producing Goldcorp (TSX: G) Red Lake and Campbell gold mines 7 kilometres to the east.
| McKenzie Island Property Location Map Red Lake, Ontario ) Click to Enlarge |
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