The Kuulu Project (formerly Peter Lake Gold Project) is located 40 km northwest of the port town of Rankin Inlet in Nunavut, Canada. NxGold is a Vancouver-based exploration company which, pursuant to an earn-in agreement, has the right to earn up to a 70-per-cent interest in the Kuulu property. The property covers 4,174 hectares immediately along trend from Agnico Eagle's advanced Meliadine gold project (with applications pending to increase the size of the property to 10,670 hectares).
Three geological models for gold and nickel-copper-PGE are valid concepts for potential mineralization on the Kuulu Property: (1) Greenstone-hosted Quartz Carbonate vein hosted gold; (2) Iron formation/shear hosted gold; and (3) komatiite or ultramafic intrusion hosted copper-nickel-PGE deposits. The first model is the one NxGold is targeting and is considered a main source of gold from the Superior and Slave provinces in Canada, as evidenced by the Timmins - Val D’or and Red Lake camps.
Numerous clusters of high grade gold boulders have been found in three broad areas which are largely angular suggesting a potential bedrock source is in close proximity. Additionally, till sampling conducted by previous owners correlated well with the Hinge, RB and GD zones where high grade angular gold boulders were identified. At these zones quartz boulders and quartz vein stock-work float were identified within 1 km or less of these till anomalies, consistently up-ice to the northwest. These represent high priority drill targets and the Company expects to drill these during 2017.
The Property is believed to be cut in half by the large Dickson-Pyke fault, separating a regionally folded package of volcanic and meta-sedimentary rocks termed the ‘Eastern Fold Structure’(“EFS”) on the east from locally carbonatized and magnetically altered amphibolite, gneiss and granitoids of the ‘Western Magnetic Linears’ (“WML”) on the west.
In 2015 and 2016 several gold rich quartz rich boulders and smaller quartz vein stock-work float material were discovered in three broad areas along the hinge and limbs of the EFS. These are locally called the Hinge, RB, and GD zones. In the WML area several metre scale amphibolite float boulders with pitted pervasive carbonate alteration, gold rich quartz veining, quartz/calcite/magnetite alteration including local zones of ankerite, sericite and biotite were located.
Both the EFS and the WML areas contain assays from quartz vein surface float material of 38 and 451 grams per tonne gold, respectively. The boulders are largely angular and thus a potential bedrock source is interpreted to be in close proximity.
The EFS is interpreted to trend north northwest over 8 km through the eastern portion of the Property where this broad fold structure is likely cut by a thrust fault near the northern claim boundary. The structural interpretation is supported by weak to moderate trends in the airborne magnetic data. In 2015 and 2016 several gold rich quartz rich boulders and smaller quartz vein stock-work float were discovered in three separate zones called the “Hinge”, “RB”, and “GD” zones, all of which lie along and within the hinge and limbs of the EFS. Nine of the twenty angular quartz vein float samples collected in these zones assay greater than 1 gram per tonne (“g/t”) gold with local highs of 16.8 and 38 g/t gold. Host rocks to the mineralized gold quartz veins are commonly non-magnetic and vary in composition from mafic to intermediate metavolcanics, ortho and paragneiss and granitic to diorite gneiss.
The mineralized boulders are angular suggesting a local source. Minor pyrite is common with traces galena, sphalerite and pyrrhotite. The WML is an area directly west of the Dickson-Pyke break where detailed airborne magnetics identify a series of strong magnetic high lineaments. These magnetic features begin near the northwest trending Dickson-Pyke fault and splay outwards towards the west-northwest forming a network of parallel to sub-parallel magnetic high features. The lineaments vary from 1 to 4 km length, are commonly less than 100 m wide and occur over an area of approximately 50 square km. Along these magnetic high trends, metre scale altered amphibolite float boulders have been located suggesting broad haloes of pitted pervasive carbonate alteration with local gold rich quartz vein boulders, quartz/calcite/magnetite alteration, and zones of ankerite, sericite and biotite.
Fifteen of the fifty-one angular quartz float rock samples collected from these zones in the WML assay greater than 1 g/t gold with highs of 27, 65, and 451 g/t gold. Gold is associated with clean hard angular quartz boulders with minor chalcopyrite, galena, sphalerite and accessory sericite, tourmaline, pyrrhotite, biotite, calcite, ankerite and albite. These new discoveries are locally named the “Island”, “RIL”, and “282” zones.
Since 2009, the former property owners collected 250 till samples on the eastern half of the current Kuulu Project claim block. All till material was collected at active ‘Frost Boil’ sites. Till samples were collected and screened through a #10 or #8 sieve size to an approximate 10 kg field weight. These samples were dug by shovel from 0.1m to 0.5m depths on active frost boils. Samples were then placed in plastic bags together with sample tags and sealed with single use plastic ties and sent by air and truck transport to Overburden Drilling Management Limited (ODM) in Nepean, Ontario for investigation of the individual gold grain content. At the lab, ODM dried and screened the sample material to a ‘table feed’ of < 2mm and then counted the individual gold grains within the whole sample. Each individual gold grain was then classified as reshaped, modified or pristine with the shape described by thickness, width and length. The pristine gold grains represent ‘near source gold’ (within 1 km or less) while modified and reshaped gold grains have generally been transported by glacial movement over longer distances of 1 - 10 km, respectively.
The eastern part of the Kuulu Property that incorporates the EFS area has a till sample station density of between 200 to 1000 m. The central part of the Property that covers the part of the WML area has a wider till sample density of 500 to 1500 m.
The ‘pristine gold grain count’ till survey is a critical dataset to help identify local areas representing zones of mineralized float and sub-outcrop with gold. At least 3 of the 6 new gold zones identified by the previous owners had quartz boulders and quartz vein stock-work float within 1 km or less of these till anomalies (Hinge, RB, and GD zones), consistently up-ice to the northwest, representing high priority drill targets.