Douay Gold Project
Overview & Highlights
- Located in one of the best mining jurisdictions in the world
- Established gold resource – see Resource Estimate below
- Royalty free except for 1% NSR that covers only ~40k oz (NW Zone) of the current resource
- Excellent infrastructure with large operating mines within 150km
- District-scale ~390km2 property package
- 55 km of strike along the Casa Berardi Deformation Zone
- Significant resource expansion and exploration upside
Upcoming Plans & Catalysts
- 2019 winter drilling campaign (6,045 metres completed)
- New drill results (May-June-July 2019)
- Updated resource estimate process underway
- New 3D models will be refined to include 2019 drilling
- Broad spaced IP completed east of resource area (results pending)
- Additional gold deportment work planned (spring/summer)
- Continue progressing discussions with prospective long-term partners
The Douay Gold Project is located in Quebec, Canada. The Project is approximately 2.5 hours north of Val d’Or and 1.25 hours north of Amos via Highway 109. The pre-existing facilities are accessible via a gravel road less than 10 minutes from the main highway, while a new 75-person camp has been built just west of the highway.
Renowned for its mineral content, Quebec has a total area of 1.7 million km2, of which only 1% is mined and only 5% is covered by mining rights.
Quebec has a favourable business climate with over 200 mining companies working over 350 exploration & development projects (Investissement Quebec 2015); it is also the second most important province in Canada in terms of gold production.
Quebec offers a number of competitive tax incentives created specifically for mineral producers. Quebec's refundable tax credits, deductions and allowances make for a very friendly business climate with a combined tax rate for corporations of 26.8%, one of the lowest in North America.
The project benefits from existing infrastructure, which includes:
- Hwy 109 leads to and cuts across the Project
- Hydro-Powerline (Powerline 6) currently runs right through the Project
- Full-service 75-person camp in place just west of highway 109
- Core logging & storage facilities
- Rail & Air within 55km (Matagami)
The Douay Gold Project covers an area of more than ~390km² along the Casa Berardi Deformation Zone (“CBDZ”) within the prolific Abitibi Greenstone Belt (“AGB”). Douay belongs to the alkaline-intrusive-associated gold class of mineral deposits, which includes Beatty (>5.6Moz Au), Holt-McDermott (>1.3Moz Au), and Canadian Malartic (>17Moz Au) in the AGB. The area is also prospective for the more typical AGB orogenic style (structurally controlled gold-quartz veins and veinlets) of gold deposit as well as for volcanogenic massive sulphide (“VMS”) deposits.
The Douay project is underlain by a northern assemblage of mafic and felsic pyroclastic and sedimentary rocks (Taïbi Grp), a central assemblage consisting of basalts, co-genetic gabbros with lesser felsic volcanic rocks (Cartwright Hills Grp) intruded by the 6.5 x 2km Douay alkaline intrusive complex (syenite to monzonite, alkali gabbro and carbonatite) with its associated gold mineralization; and a southern assemblage consisting mostly of basalts (also Cartwright Hills Grp) with siliceous-chemical sediments and chlorite-sulphide alteration zones that may be associated with VMS style of mineralization. The volcanic stratigraphy strikes WNW to ESE whereas the major regional fault zones trend E-W or NW-SE. Existing drill data shows multiple higher-grade zones, including Douay West, within and near the Douay intrusive complex. In addition, there are further poorly explored known and possible syenitic bodies elsewhere on the property.
Fe-carbonate-albite-pyrite alteration assemblages may be associated with higher gold values, generally above 5 g/t gold. Fractured syenite containing irregular fine pyrite veinlets in addition to disseminated pyrite, encompassing altered basalt fragments and magnetite-rich zones typically yields 0.1 to 1 g/t gold or more over intervals from tens of metres to over 150m.
Table 1: Douay Gold Project Pit-Constrained Indicated & Inferred Resource Summary (Base-case)
*See disclosure notes below
Indicated Resources are present in the more tightly drilled Douay West Zone (3,693,000 tonnes grading 2.47 g/t Au for 294,000oz Au) and also in four areas within the Porphyry Zone (5,690,000 tonnes grading 1.01 g/t Au for 185,000oz Au). The Indicated and Inferred Resources at various cut-off grades are summarized in Table 2 below.
Table 2: Douay Gold Project Pit-Constrained Indicated & Inferred Resource Summary (Various Cut-Off Grades)
*Comparison note: Micon 2017 estimate was all Inferred Resources of 2,813,000 ounces @ 1.05 g/t using a 0.5 g/t cut-off grade.
**Base-case. See disclosure notes appended to press release (Feb 14, 2018)
Figure 1: Plan view of Micon 2018 Resource Areas: conceptual pit shells, with several zones apparently merging into a larger unified system.
For comparison purposes, click here to view the conceptual pit-constrained plan view used in the Micon 2017 Resource Estimate.
Douay Summary Report Table by Zone (base case @ 0.45 g/t Au cut-off)
|Zone||Category||Cut-off Au||Tonnes||Avg. Grade||Gold Ounces|
*See disclosure notes below
Click here to view summary report table by zone @ 0.50 g/t cut-off grade
- Mineral resources that are not mineral reserves do not have demonstrated economic viability. Micon does not believe that mineral resources estimate is materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
- The quantity and grade reported includes both indicated and inferred resources for the Douay West and Porphyry zones and inferred resources for the remaining zones in the deposit. The inferred resources in this estimation are conceptual in nature and there has been insufficient exploration data to define these resources as an indicated category and it is uncertain if further exploration will result in upgrading them to an Indicated mineral resource category. There are no measured resources currently for the mineral zones comprising the Douay Project.
- The mineral resource estimate has been prepared without reference to surface rights or the presence of overlying public infrastructure.
- Figures may not total due to rounding.
- A gold price of US $1,400 per ounce was used for the purposes of demonstrating economics.
- The mineralized envelopes were re-modelled in GEMS at 0.3 g/t Au cut-off assuming an anastomosing style of mineralization with some inclusion of lower grade material for modelling purposes.
- Although the Douay West, Porphyry Zones were able to produce supporting variograms, all zones within the entire deposit were estimated using Inverse Distance Cubed.
- Search ellipses range from 50 m to 300 m using 3 passes to fill the model. The search ellipses were also optimized to reflect the anastomosing nature and different directions and dips within the mineralized zones.
- Block size of 10 m x 2 m x 5 m was used.
- The effective date of the mineral resource estimate is February 9, 2018.
About Micon International Limited
Micon International Limited (Micon), mineral industry consultants, is an independent firm of senior geological, mining, metallurgical and environmental consultants. The firm operates from integrated offices in Toronto and Vancouver, Canada and Norwich and Cornwall, United Kingdom. The professionals of Micon have extensive experience in the mining industry with both mining companies and leading consultancy firms
NI-43-101 Technical Report - March 2018
The first gold discovery at the Douay Gold Project was made by Inco Ltd. in 1976. Drilling prior to 2004 was focused primarily on smaller higher-grade zones with more recent campaigns defining a larger intrusive related gold system.
|Company||Year||Drill Holes||Total Metres||Cumulative Drill Holes||Cumulative Metres|
|Inco, SOQUEM and Aurizon||1976 to 1999||468||122,906||468||122,906|
|Vior||2004 to 2010||107||32,785||575||155691|
|Maple Gold||2011 to 2019||249||99,309||757||221,833|
|TOTAL||1976 to 2019||824||249,000|
The Douay Gold Project hosts numerous high-grade gold occurrences within larger low-grade envelopes of mineralization. Visible gold occasionally occurs in quartz veinlets and the table below highlights some of the high-grade results reported from previous drill campaigns:
Drill Highlights from Previous Campaigns
|DDH# (Year drilled)||Location||Gold Grade (g/t)||Intercept||Accumulation|
|D-107 (2005)||Douay West||2.99||46.5||143.2|
*Drill results in the above table are core lengths. Please refer to the 43-101 technical report for further information on drilling at the Douay Gold Project
Exploration Upside & New Discovery Potential
The Douay Gold Project not only hosts intrusive-related gold mineralization, but potentially also copper-zinc mineralization potentially of the volcanogenic massive sulphide (“VMS”) type, as well as orogenic gold vein systems. Gold mineralization hosted by altered mafic volcanic host rocks of the causative alkaline intrusive complex is generally of higher grade, occurring in zones such as Douay West , whereas gold hosted by altered, often porphyritic syenitic rocks forms larger lower-grade areas such as the Porphyry Zone. The Douay Resources are open along strike and down-plunge, such that brownfields exploration potential for resource expansion is considered excellent.
The greenfields portion of the Project (about 75% of the total area) remains relatively unexplored, despite its location along a major regional structure (Casa Berardi Fault Zone). This greenfields area is also considered to have potential for all three styles of mineralization mentioned above.
A thorough review and analysis of all existing geological, geochemical and geophysical data continues, which combined with new data generated from the current winter drill program as well as ongoing re-logging and sampling, will be used to refine the company’s comprehensive exploration strategy going forward. There are numerous high-priority target areas within the known resource area (e.g. recently discovered Nika Zones), but the Company remains very committed to testing brand new discovery targets throughout its large property package as well.
For further information on the Company’s ongoing exploration and drilling plans, please refer to recent press releases.
Unless otherwise stated, the scientific and technical data contained within this website was reviewed and approved by Fred Speidel, M.Sc., P.Geo., Vice-President, Exploration, who is responsible for ensuring that the geologic information provided on this website is accurate and acts as a “qualified person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects.