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BROULAN REEF GOLD PROJECT 3D PRESENTATION - 2006 DRILLING
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2008 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 in 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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In January of 2006, Cypress Development announced that the Company has entered into an agreement with a third party to acquire a 80% interest in the Broulan Reef property (claims # KRL41961 to KRL 41970) located in the heart of the Red Lake gold camp of northwestern Ontario. The Broulan Reef property joint venture ownership is Cypress 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 Gold Eagle Mines Project ) Click to Enlarge |
Broulan Reef - Gold Eagle Mines Drill View Map ) Click to Enlarge |
The Broulan Reef property is located in the Bruce Channel area in the heart of the Red Lake gold camp. The acreage is comprised of 10 mineral claims (21 year renewable Leases with the Ontario Government), situated adjacent to the south of Gold Eagle Mines (TSX: GEA) Bruce Channel discovery, where a major successful drill program is underway, adjacent to the west of Goldcorp's / Premier Gold Mines (TSX: PG) promising drill results on their Rahill-Bonanza property, and 5 miles due west of Goldcorp's (TSX: G) operating Red Lake and Campbell gold mines.
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Both Gold Eagle Mines and Premier Gold Mines have had significant discoveries made since 2005 in sedimentary rocks of the Bruce Channel and are the subject of ongoing exploration and delineation drilling.
The Broulan Reef property has never had any detailed exploration conducted as it is 90% overlain by the waters of the Bruce Channel of Red Lake until Cypress and Skyharbour Resources acquired the ground in January 2006. Cypress has been aggressive in its exploration approach to the Broulan Reef project and believes the property, adjacent to and on strike to Gold Eagle Mines' major Bruce Channel gold discovery to the north, is ideally located for the potential extension of this newly developed gold zone onto its Broulan Reef ground.
Cypress Development considers the Broulan Reef property to be one of the key properties in understanding the geology of the Red Lake Gold Belt. Only 2 drill holes (1962) are known to have ever been drilled on this property. The complete lack of previous exploration in the productive heart of this major gold producing area makes this property very exciting for immediate exploration.
Two of the main gold producing trends in Red Lake converge on the Broulan Reef property. 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.
In April 2006, Cypress announced its Phase 1 exploration program on its Broulan Reef property had been completed and results to date were highly encouraging.
The 2006 Phase 1 exploration program advanced the property with data from a ground magnetic survey and a Phase 1 shallow diamond drill program. A structural / lithological framework has been clearly identified from the ground mag data and a preliminary geological model has emerged from the diamond drilling. Cypress Development completed 5 shallow drill holes in its Phase 1 program.
Click to Enlarge) Broulan Reef Area Geology Map |
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Click to Enlarge) Broulan Reef Property Magnetometre Data |
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The property covers a regional fold closure in rocks of the Bruce Channel sediments. These sediments have become the target of intense exploration as Premier Gold Mines (PG) continues to expand their deposit on their Rahill-Bonanza property adjacent to the east, and Gold Eagle Mines (GEA) continue to expand a major gold zone under the Bruce Channel adjacent to Cypress' Broulan Reef project to the north.
Click to Enlarge) Broulan Reef Prospective Bruce Channel Zone (Top View) |
Click to Enlarge) Broulan Reef Prospective Bruce Channel Zone (Side View) |
Cypress Development's summer 2006 Phase 2 drill program consisted of two approx. 1,500 metre (5,000 feet) holes drilled deeper into the regional fold closures of the Bruce Channel sedimentary horizons in an attempt to encounter the higher grade gold intersections reported by both "GEA" to the north and "PG" to the east of the Broulan Reef boundaries.
The 2006 Phase 2 drilling identified a relatively shallow dip to the underlying Balmer Assemblage and established that targets within the Balmer Assemblage are still within drill range. Low but widespread gold values were identified within structural features in the Bruce Channel rocks. Drill hole BR06-6 was drilled from McKenzie Island to the east under the Bruce Channel at --65 degrees.
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The BR06-6 hole drilled through the Bruce Channel rocks and entered Balmer Assemblage rocks at 1,540 metres in the hole at a vertical depth of 1,350 metres. Drill hole BR06-7 was drilled from the same location to the southeast to test the interpreted regional nose closure and several structural settings. A number of scattered short intercepts of between .2 and 2.35 grams per tonne gold were also encountered in both holes. Gold values averaging 0.45 grams per tonne were encountered between 1,256 and 1,269 metres in the BR06-7 hole.
The information gained from the 2006 Phase 2 drill program is deemed critical to evaluating deeper targets within favorable Balmer Assemblage rocks. Identified targets may have structural links to gold bearing zones being reported from Balmer Assemblage rocks immediately north on the Gold Eagle Mines property. With the drilling to date having encountered numerous gold bearing zones and with the ideal geological location of the property, the Company believes there is significant potential to warrant a deeper 2007 Phase 3 diamond drill program. |
Location of Proposed 2007 Broulan Reef Deep Drill Hole ) Click to Enlarge |
Cypress Development 2007 Phase 3 deeper drill program will be collared on the land portion of the Broulan Reef property and will be drilled out underneath the waters of Bruce Channel in an attempt to encounter the distinctive gold bearing horizons at depth.
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After several years of intense exploration in the Red Lake area, positive results are starting to pour in. What is surprising is that three new million + ounce deposits are currently being defined. What is perhaps more surprising is that all three are within or related to the Bruce channel sediments. This group of rocks had been actively avoided as a prospective gold host for many decades.
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This fits well with the strategic acquisition of an 80% interest in the Broulan Reef property by Cypress Development. This property lies at the apex of a regional fold nose in Bruce channel sediments. The recently completed ground magnetic survey has also identified the continuation of the "Mine Trend" and the "East Bay" oriented structures on the property.
The Bruce channel sediments are of limited area extent and relatively poorly understood. The Broulan Reef property is underlain exclusively by this group of rocks. The exploration activities of Cypress Development in the Red Lake area has gotten some real 'traction' with the acquisition of this property and the type of targets that are being developed.
The Red Lake camp is full of surprises as illustrated by the Goldcorp mine. This mine became the global prima dona of gold producers after 50 years of lackluster production. The Bruce channel sediments are turning out to be another one of those surprises.
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 Gold Eagle Mines (TSX: GEA) property, where a major successful drill program is currently underway. The project is on strike with the Goldcorp (TSX: G) producing Red Lake and Campbell gold mines 7km to the east.
| McKenzie Island Property Location Map Red Lake, Ontario ) Click to Enlarge |
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Location of East McKenzie Island & Broulan Reef Properties to Gold Eagle Mines Project Click to Enlarge |
Past Exploration and Drilling Completed on South End of McKenzie Island Property
Cypress Development has initiated exploration programs consisting of data compilation, detailed mapping, and geochemical and geo-physical surveys. The Company has also completed 3 drill programs with an initial phase of diamond drilling on the property in the winter of 2002-2003 consisting of approx. 7,000 feet (2,100 metres) in 13 reconnaissance holes. In May 2004, Cypress added an integral claim block to its existing land package. This acreage is situated in the middle of the held ground and now allows the Company to continue to follow another mile strike length of the known McAndrew geological trend.
A 2005 Phase I and Phase II (Feb. & April 2005) diamond drill programs in 14 reconnaissance holes (approx. 3,300 metres) were also completed on the St Paul's Bay region on the southern most portion of the McKenzie Island property to explore a district-scale WNW trending structure known as the "D2" Structure.
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Significant zones of gold mineralization were discovered. The new zones are located in diamond-drill holes M05-3 through to M05-7. In reconnaissance drill hole M05-3, visible gold has been identified within several cm-scale quartz veinlets with sample results showing numerous multi-gram intercepts with a high value of 23.8 grams per tonne gold over .2 metres. In reconnaissance drill hole M05-4, highly anomalous gold values up to 850 ppb have been intercepted over 60 metres. In reconnaissance drill hole M05-7, a 10-metre wide zone of gold mineralization was intersected in a zone hosted by quartz-sulfide veining and silica flooding within a strongly sericite altered felsic intrusive.
on South End of McKenzie Island Property
All of the intercepted zones of gold mineralization lie within a large (+1000 metres by +150 metres) envelope of quartz-sericite-chlorite alteration, which appears to be controlled by a district-scale, WNW trending D2 deformation zone. The strike length of the altered system has not been limited by the 2005 drill programs. The Company is encouraged with the results of the 2005 Phase I & II drill programs on the south end of its McKenzie Island property.
Cypress Development Corp. remains convinced that there continues to be significant potential for the development of gold deposits on its McKenzie Island and Broulan Reef properties.
Copyright © 2008 Cypress Development Corp. All Rights Reserved.