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Prosper Gold conducting 10,000 metre drilling on Ashley Project

By Gregory Reynolds, Mining Life

Oct 21, 2017


Exploration on Prosper Gold Corp’s Ashley Gold Project led to new targets being identified and an ambitious diamond drill program being initiated. Phase 2 drilling began in early April on the project located in Northeastern Ontario near the Young-Davidson Gold Mine operated by Alamos Gold Inc. The Young-Davidson is among Canada’s largest underground gold mines. Under an option agreement with four prospectors, Prosper will acquire 100% of the historic Ashley Gold Mine within three years.

Upon Prosper acquiring 100% interest, the prospectors will retain a 3% net smelter royalty but Prosper has a 2% buy-back option.

The Ashley Mine is a high-grade quartz vein similar to the lodes of the Porcupine and Kirkland Lake Gold Camps. It produced 50,099 ounces of gold from 157,636 tons of ore (0.32 oz. Au/ton) from the main Ashley vein between 1932 and 1937.

The Wydee option has several syenite bodies that resemble the Young-Davidson host rocks. A number of syenite bodies have been identified with coincident magnetic lows and will be systematically tested.

The Matachewan option has known gold showings, gold intersections in several drill holes, a large area of anomalously high gold-in soil, and a three kilometre section of the Cadillac- Larder Lake covered under Cobalt Group Proterozoic sedimentary rocks. Prosper has the option to earn a 90% interest in the Wydee and Matachewan claims.

Peter Bernier, Prosper president and CEO, said “we are excited to begin drilling to systematically test the targets identified through 2016’s Phase 1 program.

The multiparamerter airborne geophysics combined with the soil geochemistry surveys have been key to identifying new targets and delineating the structural context for existing targets.

We are fully funded to test five targets over the entire Wydee claim block. We thank the Resident Geologist Program (RGP) of the Ontario Geo-logical Survey for working with us through our targeting and providing valuable insights for Phase 2.”


Investment highlights include:

• 10,000m diamond drill program in progress,

• 5 targets to be systematically tested in 2017,

• 4 new targets derived from Phase 1 of exploration,

• Breaks target, Powell Syenite target, Arcuate target, Bends target and Galahad target,

• 1 historic target that will be tested to depth,

• high grade gold vein with historic production 50,099 oz. au from 157,636 tons of ore (0.32 oz/t),

• 9,813 hectares (24,248 acres) with untested high grade gold vein and bulk gold targets,

• highway access (Hwy 566), logging roads, ATV trails throughout,

• formerly Richfield Ventures Corp. management team,

• sold to New Gold in 2011 for ~$50 million.

Phase 2 drill program is targeting:

· The Ashley Breaks (Prospectors Option) lies directly south of the Ashley Mine area and is a profoundly disturbed pattern in the southern of three northwest trending regular magnetic bands, first recognized from last season’s high resolution airborne surveys.

The disturbed zone is about 3 km long and a one km wide. The regular magnetic bands are interpreted as magnetic layers in the basalt sequence.

The disturbed magnetic striping is interpreted to define five branching strands of a strain transfer zone in a steepdipping sinistral transcurrent fault. Drilling will assess the Ashley Breaks at branches, bends and splays to test for gold miner-alization and evidence of strain and deformation.

· Galahad Target (100% Prosper Gold) has many of the Young-Davidson earmarks. It is a narrow zone of deformation on a steep dipping crustal break called the Galer Fault, a branch of the CLLB (Cadillac Larder Lake Break). The fault zone contains slices of ultramafic rocks, basalt, syenite and green carbonate (fuchsite mariposite bearing ferrocarbonate).

The Galer structure juxtaposes Abitibi greenstone on the north side and intermediate volcanic rocks on the south. Drilling will test the known structure to depth beneath mineralization at surface and in historic drill holes, none deeper than 110 m below surface.

· Powell Syenite Target (Alexandria Minerals Option) is based on last season’s results of the soil survey. Soil sampling reveals core to margin geochemical zoning over thesyenite. The core has strongly elevated Pb, S, Hg, Ag, Sb. As, Te, Zn, Mn and the north margin or halo zone has high Mo, Cu, W, Ni, Li, Co. Core to halo zoning is also seen in the airborne magnetic data which displays a magnetic margin and a much weaker magnetic core. Similarly, resistivity is elevated in the core compared to the margins. The core to margin geochemical and geophysical zoning is interpreted as the reflection of a hydrothermal systems demagnetized core. Historic exploration focused on the north margin of the syenite where it abuts the CLLB; this season’s drilling will test the demagnetized core of the syenite body outward to the margin where the CLLB cuts syenite.

· Arcuate Target (Alexandria Minerals Option) is a new target identified from last season’s soil geochemical surveys. It is a 2km long narrow linear multielement (Au, Ag, Cu, Hg, S) soil anomaly coincident with a total magnetic field (TMF) low and strong gravity, radiometric, and resistivity signals. The linear feature runs northeast, between the Argyle, McGill and Sunisloe gold occurrences. The arcuate feature, roughly orthogonal to the volcanic sequence, terminates at its north in a circular multielement soil anomaly over the west margin of a syenite stock. The geochemistry and geophysics together are interpreted as the evidence of a steep dipping fault that crosses the greenstone belt. Drilling will test beneath the interpreted structure and beneath the syenite.

· Bends Target (Alexandria Minerals Option) is about 1200 m east of Ashley, where the interpreted trace of the CLLB between ultramafic rocks and basalt bends from its general northwest trend to turn westward and then back northwestward. It is marked by deep total field magnetic lows on the north. The western bend is intersected by a linear magnetic high, presumably marking a north trending diabase dyke. Drilling will test the fault bends as well as the area where the dyke crosses the western bend.