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Kapuskasing Gold has six projects in Chapleau area

By Gregory Reynolds

Jan 25, 2017


One of the active companies in the new Chapleau Mining District is Kapuskasing Gold Corp.

It has six projects with intentions to work on two of them, the Rollo and Borden North.

Several mining companies acquired ground around the community of Chapleau after Probe Mines Limited announced a major gold discovery and then sold its Borden Project in 2015 to mining giant Goldcorp Inc. for $526 million.

The property is 160 km west of Goldcorp's mill at the Dome Mine in the City of Timmins.

On July 11, 2016 KAP announced it has closed on a total of 1,640,000 Non Flow-Through Units at a price of $0.05 per NFT Unit and 2,743,334 Flow-Through Units at a price of $0.06 per FT unit for aggregate gross proceeds of $246,600.04.

Net proceeds of the private placement will be used for general working capital purposes and to advance the company's mineral properties.

The Rollo Property is situated within the Destor-Porcupine Fault Zone, which hosts several million-ounce-plus gold producers in the nearby Timmins Gold Camp.

Rollo sits between IAMGold's Cote Lake gold deposit and Goldcorp’s Borden Project.

Initial targets will center around a similarity in composition of Quartz Feldspar Porphyries between the Rollo Property and Timmins.

The property is located in the western portion of the Swayze Greenstone Belt of the Abitibi Subprovince, which is host to numerous significant gold occurrences and past producing mines.

 The project is essentially a grassroots exploration project on a relatively under-explored property, and is based on the concept that the property has the potential to host greenstone-hosted quartz-carbonate gold mineralization similar to that found locally in the area of the property, elsewhere in the Swayze Greenstone Belt and in many other important greenstone belts in the Superior Province.

Very little exploration has been done on the Rollo Property to date, with the work being done consisting primarily of airborne geophysics and some prospecting.

Borden North Property is situated along the southern flank of the Kapuskasing Structural Zone approximately 50 km northeast of the Borden Project in Northeastern Ontario.

It can be reached via Highway 101 from either Wawa or Timmins and then by a series of gravel forest access roads that traverse both claim groups.

The company says two mineralization targets are similar to that of the Borden Project:

•Low grade zone of mainly pyrite and pyrrhotite associated gold mineralization;

•High grade zone where the gold is associated with quartz veining rather than sulphides.

The Borden North property lies along the southeastern boundary of the Shawmere Anorthosite Complex which, in turn occupies the eastern portion of the Kapuskasing uplift in north-central Ontario.

The Kapuskasing uplift is a northeasterly striking, 500 km long, Paleoproterozoic thrust structure cutting Archean stratigraphy and exposing high grade gneissic rocks.

On May 4, 2016 KAP announced the signing of a memorandum of understanding (MOU) with Flying Post and Mattagami First Nations with respect to KAP's recently acquired West Keefer Property located near Timmins.

 The MOU establishes the desire for First Nations and KAP to work together, creating a long-term, mutually beneficial, cooperative and respectful relationship with the spirit of social, ecological, cultural and economic well-being.

The MOU also signals a commitment by KAP to identify opportunities for businesses and citizens of the First Nations communities to participate in KAP's exploration activities through business, employment and training opportunities.

 In addition, the company has granted 50,000 common shares and 50,000 share purchase warrants of the company to Mattagami First Nation.

 Flying Post First Nation is not receiving shares and warrants for the signing of this MOU, as it received 50,000 shares and 50,000 warrants as signatory to a MOU with KAP for the Borden North, Borden South, Golden Route, Rollo, Schewabik, and West Chapleau Projects.

On April 20 KAP announced that it had signed a non-binding letter of intent to acquire a 100% interest in the West Keefer Property. The property is drill ready and consists of 10 claims covering 1,250 hectares in the heart of the prolific Destor-Porcupine Fault Zone, 40 km west of Timmins.

The company is planning a 1000 metre diamond drill program.

The project is underlain by mafic and felsic metavolcanics, metasediments and intruded by granitic porphyries in a similar geological setting to Lake Shore Gold's Timmins West Mine, located approximately 15 km to the east.

KAP’s four other Chapleau area exploration properties are:

--Borden West (9,904 hectares) sits at the southwestern flank of the Kapuskasing Structural Zone, immediately west of Chapleau and 20 km west of Probe’s Borden Gold discovery. The property covers ground along a projected offset of the structural zone, which hosts the Borden Gold Zone to the southeast.

--The Schewabik Belt consist of 6,304 hectares. The property hosts strongly altered and metamorphosed rocks interpreted to represent the eastward continuation of the Destor-Porcupine Fault Zone within the Kapuskasing Structural Zone.

--Borden South (4,256 hectares) comprises approximately 4,200 Ha on the southeastern flank of the Kapuskasing uplift, running from a large carbonitite intrusive to the southwest along the Ivanhoe Fault abutting into Probe’s East Limb Property to the northeast. Borden South may be associated with the locally offset portion of the Rideout Shear System which hosts Probe’s Borden Gold and IAMGold’s Cote Lake deposits.   

--Golden Route (1,232 hectares) encompasses approximately 1,200 Ha situated 10 km southwest of Chapleau approximately 20 km southwest of the Borden Gold Project. These claims are located parallel to Highway 101.