Pelangio has entered in an agreement to purchase a 100% interest in the highly prospective, 178 hectare gold, silver, zinc polymetallic project in Kenogaming Township, located approximately 63 km southwest of the City of Timmins, Ontario.
Highlights Of the Kenogaming Project:
- The Kenogaming Project covers 800 m of strike length on an established 300 meter wide strongly pyritized corridor of highly altered felsic rocks that are geochemically enriched in gold and zinc.
- Significant gold and base metal mineralization has been intersected within this corridor by previous explorers.
- Highlights of historical drilling include intercepts grading 35.65 g/t gold over 1.21 meters, 18.5 g/t gold over 1.0 meters and 0.59 g/t gold, 1.8 g/t silver and 1.10% zinc over 10 meters.
- Minimal drilling has been completed below 150 vertical meters with approximately 400 meters of untested strike length.
- The Kenogaming Project is a drill-ready project.
- Permitting is underway for a fully-funded, 1,000-meter diamond drill program.
Pelangio has agreed to purchase a 100% interest in the Kenogaming Project by granting DSB Capital Corp. (“DSB”) a 1% net smelter return royalty and issuing to DSB 350,000 common shares in the capital of Pelangio. The Kenogaming Project is subject to an underlying 3% net smelter return royalty. Pelangio will have the right to buy-out 1% of the 3% NSR for $1,000,000. A wholly-owned subsidiary of Pelangio holds 70% of the underlying royalty.
“The acquisition of the Kenogaming project represents a cost-effective opportunity to augment our polymetallic project portfolio in Ontario. We look forward to drilling this highly prospective project once permits are received,” said Ingrid Hibbard, President and CEO.
Kenogaming Summary and Geological Description
In 1996, Eastmain Resoures Inc. conducted the last major drilling campaign on the adjoining Glencore patents and a few holes on the adjoining Kenogaming Project. Eastmain prospecting, geophysics and drilling demonstrated the presence of a strongly pyritized corridor of highly altered felsic rocks which are geochemically enriched in gold and zinc. This corridor was reported to have extended for approximately four km over a width of 300 meters. Approximately 800 meters of prospective strike length within this corridor is located on the Kenogaming Project. Coincident with the pyritized corridor and an associated alteration package of sericite, chlorite, silica and fushite is the historical Dunvegan gold, zinc occurrence. The original Dunvegan occurrence and a substantial portion of the known gold-bearing Dunvegan trend is now located within the Kenogaming Project.
Limited drilling by Eastmain on the Kenogaming Project demonstrated considerable gold and base metal potential associated with the Dunvegan trend. Eastmain drill hole EAK-96-20 returned 0.59 g/t gold, 1.8 g/t silver and 1.10 % Zn across 10 meters. A higher-grade intercept in Eastmain hole EAK-96-20 returned 18.5 g/t gold over 1 meter.
Prior to Eastmain’s work, Halley Resources Inc. completed a series of holes in 1988 on the Kenogaming Project. A number of holes were drilled on the Dunvegan trend. A highlight from Halley’s work on the Duvegan trend included an intercept of 35.65 g/t gold over 1.21 meters. More importantly, Halley found a second gold -bearing zone which was designated the “New Zone” (NZ). The NZ appears to lie in the footwall of Dunvegan Zone. Drilling on the NZ returned a number of significant drill hole intercepts including 20.57 g/t gold over 1.95 meters in hole H88-6, and 13.02 g/t gold over 0.61 meters in hole H88-1. (Note: All values reported are core lengths.)
With respect to new exploration potential, drilling to date for the most part has been focused above 150 meters vertical on the Kenogaming Project. More recent results by Eastmain and Halley suggest that there is excellent potential to increase metal grade and thickness on the known zones with further drilling at depth and along strike. Further, the discovery of the NZ below the Dunvegan Zone suggests there may be potential for other mineralized zones within the large alteration corridor noted by Eastmain geologists.
(References: Ontario Government Assessment Files for Eastmain Resourec Inc., Halley Resources Inc., Falconbridge Nickel Mines, Dunvegan Mines, and OGS Report 97 by V.G. Milne, 1972)
The Kenogaming Project is a drill-ready project. Pelangio will immediately apply for exploration permits and plans to conduct a minimum first-phase drill program of 1000 meters. This fully-funded program is designed to follow up on the strike and down dip extensions of both the NZ and Dunvegan Zones.