Mon Gold Project

Location and Access

The Mon Gold Property consists of 11 contiguous mining leases and two mineral claims, covering 1,221.24 acres, located about 45 kilometres north of Yellowknife. Personnel, food and materials are provided through the combination of float or ski-equipped aircraft and helicopter from the City of Yellowknife, about 15 minutes flying time south. A winter road provides access for fuel and other heavy or bulky materials from Yellowknife via the Bluefish Hydro-Electric Dam, 20 km south of the Property.

Ownership

The project leases and claims are held by New Discovery Mines Ltd. (NDM). Sixty North Gold Mining Ltd. has an option to earn an 80% interest in the Mon Gold Project, subject to a 20% carried interest and a 2% net smelter returns royalty by spending $6m on the project to the end of 2020. NDM is the Manager of the Project and Sixty North Gold is the Operator under the Restated Minerals Property Earn-In Agreement between the parties.

Permits

NDM obtained Land Use Permit MV2015C0015 and Water Licence MV2015L2-004 to restart the mine at 100 tpd. The permits allow all listed exploration and development work including the installation of camp and related infrastructure, mine shops and related mine infrastructure to allow for diamond drilling and underground development and mining. In addition, these permit NDM to install and operate a 100 tpd gravity plus flotation mill, related infrastructure, roads and tailings containment facility on a limited total volume of material moved basis before renewal of the permit is required.

History

A high-grade quartz vein was discovered in 1937 by prospectors working for Cominco Limited during an aerial reconnaissance flight north of Yellowknife. In 1988 the Property was optioned by Cominco to David R. Webb. Between 1991 and 1997 the mine was in operation on a summer only basis, with a total reported production of 3,100 ounces of gold from 10,000 tons of ore for a calculated recovered grade of 10.63 gpt for royalty purposes. In total, it is estimated that 15,000 ounces of gold were recovered from 15,000 tonnes of ore contained in 15 m of elevation from the west limb (West Stope) and 15 m of elevation from 15 to 20 m of strike-length on the east limb (East Stope). Since the Mon Mine closure in 1997, due to gold prices falling below US$300 per ounce to a low of $US287/ounce, no surface exploration or mining was done at the Mon Gold Property until October, 2016. These are historical results and are only reported for completeness, and this information cannot be verified and should not be relied upon.

Geology

The Mon deposit is an Archean, turbidite-hosted, stratabound, non-stratiform quartz shear/vein deposit and as such has substantial potential. The deposit is described as an anticlinally-folded quartz vein, plunging to the south at around 20 to 40 degrees. The higher gold grades at the fold nose are consistent over the mined length of 75 meters (open to south), with lower grade gold values being found in the limbs of the structure. Fundamentally, the production records show that the previous operators were able to successfully follow the interpreted mineralized structure and obtain gold grades that are representative of the sampling done.

The Mon Gold Property is underlain by igneous rocks assigned to the Kam and Banting Group, and clastic sedimentary rocks assigned to the Burwash Group. Early mafic and felsic igneous rocks intrude all rocks, and late felsic intrusions occur to the west of the property. All rocks have been metamorphosed to, between, greenschist and amphibolite facies.

The overall size, grade and form of the mineralization as well as its host rock assemblage is similar to the Discovery Mine (located 50 km to the north) where 1 million tons of ore were mined and 1 million ounces of gold were recovered between 1949 and 1969. There are no known resources or reserves on the Mon Gold Property and the presence of mineral deposits on properties adjacent to or in close proximity to the Mon Gold Property is not necessarily indicative of mineralization on the Mon Gold Property. The mineralization identified in the A-Zone appears to be a viable exploration target for a “Discovery Mine” type of deposit.

Recent Work Programs

Sixty North Gold and NDM conducted a 5-hole, 378.9 m drilling campaign in 2016 that confirmed mineralization below the mined-out stopes on the A-Zone. All drill holes intersected the A-Zone at target depths.

Verification continuous chip samples (2016) at the mouth of the central adit (crown pillar) in the former-producing A-Zone averaged grades of 147g/t of gold over 3 m (see NI 43-101 report Dupre and Fitzpatrick, 2017).

No mineral resource nor mineral reserve estimations have been completed by Sixty North Gold Mining Ltd. A surface prospecting program was carried out in 2017 on other areas of the property away from the former-producing A-Zone.

Recommended Program from Technical Report

  • a surface prospecting and sampling program to confirm and qualify old showings that have not been reviewed in several decades, as well as identify new showings.
  • a >1000 tonne bulk sample be collected from the A-Zone from several locations along the vein. The large sample of the vein by sub-drifting will allow for a most definitive assessment of grade, width, and continuity which is critical in high-grade vein deposits.

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