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| Minerals: |
Copper-Gold |
| Location: | Dawson Range, in the South-central Yukon |
| Area: |
20,000 acres |
| Ownership: | 100% by Northern Tiger, subject to Capstone Mining Corp.'s back-in rights |
Overview
These 5 Dawson Range projects - BOND, DAD, MEL, DEL and LED - were acquired by Northern Tiger from Capstone Mining Corp.'s wholly owned subsidiary, Minto Explorations Ltd. The five properties encompass exploration targets where previous prospecting encountered copper mineralization similar to that hosting Capstone's Minto Mine. In addition, Northern Tiger and Capstone have a Regional Exploration Alliance Agreement (through Capstone's wholly-owned subsidiary Minto Explorations Ltd.), which provides for input and cooperation on planning and executing exploration programs and long term strategies for the area, sharing of technical expertise to assist in exploration and project advancement, and access to Capstone's infrastructure to facilitate area exploration.
DAD Property
Exploration work on DAD has identified a strong geophysical anomaly coincident with a copper-in-soil geochemical anomaly that management believes has the potential to host high-grade copper mineralization similar to that found at Capstone Mining Corp's nearby Minto Mine.
Ground magnetic, induced polarization and resistivity surveys were completed on the DAD property by Aurora Geosciences Ltd. to investigate the source of anomalous copper-in-soil geochemical values. The surveys returned a distinct chargeability high anomaly suggestive of disseminated sulphide mineralization. The anomaly underlies all three of the survey lines, for a total length in excess of 300 metres. The chargeable zone is approximately 350 metres wide on the eastern end, and narrows to 200 metres as it plunges to the west. The anomaly remains open to both the east and west. Aurora's report recommends drill testing the anomaly for economic mineralization.
Quote from our April 13, 2010 News Release:
"The Gradient Array Induced Potential (GAIP) anomaly identified on the DAD property is similar in size, in orientation and in the overall tenor to the GAIP chargeability anomalies associated with the Area 2 and Minto North deposits located at the Minto Mine," says Brad Mercer, Director of Northern Tiger, and Vice President of Exploration for Capstone Mining Corp. "Also similar to Minto, the DAD anomaly lies in a similar geological setting within rocks of the Granite Mountain Batholith and is associated with favorable copper in soil geochemistry. It is now a drill ready target," he added.
MEL Property
An airborne geophysical survey has identified a number of priority magnetic targets on the MEL property, located immediately to the north of the Minto Mine, which Northern Tiger plans to investigate with additional ground exploration programs in the 2010 exploration season.
Capstone Mining Corp.'s Back-In Rights
Under its agreement with Capstone, they retain back-in rights to acquire a 65% interest in any of Northern Tiger's projects located within a 50 km radius of the Minto Mine that are found to have mineralization amenable to processing in existing Minto Mine facilities.
- The back-in rights are triggered within 30 days of Northern Tiger presenting Capstone with an independent preliminary economic assessment prepared in accordance with National Instrument 43-101 on a particular property. Capstone will pay to Northern Tiger two times the expenditures spent on the applicable property to the date of acquisition and become sole operator.
- The back-in rights may also be triggered within 30 days of Northern Tiger presenting Capstone with a National Instrument 43-101 compliant positive pre-feasibility study. Capstone will pay to Northern Tiger three times the expenditures spent on the applicable property to the date of acquisition and will become sole operator.
What's Next?
Northern Tiger intends to drill test the target on the DAD property in late August. Upon completion of our drill program at Sonora Gulch, the drill and crew will be moved to DAD.
A field team was mobilized to the MEL property in late May to begin ground truthing of the priority magnetic targets identified in the airborne survey. The results of this work will be used to identify and prioritize targets for ground geophysical surveys, with the objective of identifying new drill targets by the end of the year.
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