  |
| Minerals: |
Gold |
| Location: | Southeastern Yukon, 160 km North of Watson Lake; adjacent to the Nahanni Range Road |
| Area: | 7,400 acres |
| Ownership: | Under option to earn into a 100% interest |
Overview
Northern Tiger optioned the 3Ace Property in April 2010 from Alex McMillan, a long standing Yukon prospector who discovered a quartz vein on the property containing abundant quantities of free gold. The steeply dipping vein is up to two metres in width and exposed on surface for approximately 5 metres along strike. The vein and vein float located immediately below the exposure was found to contain abundant quantities of visible gold over narrow widths.
The property was initially explored by Hudson Bay Exploration in the late 1990's, resulting in the delineation of several large anomalies (up to 400 metres by 400 metres) with gold-in-soil values ranging up to 1,300 ppb. These anomalies are contained within a broader area of anomalous arsenic and gold measuring about two kilometers by two kilometers. Quartz vein swarms and vein stockworks are located within brittle quartz pebble conglomerate units and frequently contain variable amounts of fine to coarse crystalline arsenopyrite and occasional blebs of galena with sphalerite and pyrite.
Option Agreement
The agreement provides Northern Tiger an option to earn a 100% interest in the property. To complete the option, Northern Tiger will be required to make cash payments of $500,000, issue 2,000,000 shares and incur $700,000 in exploration expenditures, all over a four year period. An annual advance royalty payment of $45,000 will start on the 5th anniversary of the agreement and continue until the commencement of commercial production.
The Vendor will retain a 2% net smelter return interest (NSR) on the property. If a National Instrument 43-101 compliant resource estimate in excess of 500,000 ounces of gold at a grade greater than 5 g/t is defined on the property, the Vendor's NSR will increase to 2.5% and the vendor will receive a bonus payment of $300,000 (in cash or equivalent Northern Tiger shares). If a National Instrument 43-101 compliant resource estimate in excess of 1,000,000 ounces of gold at a grade greater than 5 g/t is defined on the property, the Vendor's NSR will increase to 3.0% and the vendor will receive an additional bonus payment of $300,000 (in cash or equivalent Northern Tiger shares). Each 1% of the NSR can be purchased by Northern Tiger for $2,000,000.
What's Next?
An intense surface exploration program is planned to commence at the start of July, 2010 and last for approximately 6 weeks. In addition to thourougly investigating teh existing high grade occurrence, a detailed mapping, prospecting and sampling program will be used to identify similar geological and structural environments with potential to host additional high grade gold occurrences on the property.
|
