The Red Rice Lake Gold Property

The Red Rice Lake Gold property totals 801 ha and comprises four non-contiguous claim groups, the West claims, Packsack claims and CUPP claims. The property is located 4 km southwest of Klondex Mines’ True North mine-mill complex in the town of Bissett.
The Red Rice Lake property is located within the Archean-age Bissett-Rice Lake greenstone belt in southeastern Manitoba. This belt forms part of the Uchi Sub-province that includes the Red Lake and Pickle Lake belts in Northwestern Ontario. The Uchi Sub-province has produced more than 15 million ounces of gold, and production from the Bissett-Rice Lake belt exceeds 1.7 million ounces.
Numerous veins are known on Alliance Mining’s Packsack and CUPP claim groups, controlled by conjugate shear/fracture sets adjacent to the Red Rice Lake shear zone. This structural control on veining is very similar to the pattern on “16 shear” and “38 extensional” type veins in the historic San Antonio (True North) mine at Bissett.
Significant underground exploration was completed on Alliance Mining’s Packsack property between 1936 and 1940, with a shaft down to 525 ft (160 m) and 2867 ft (874 m) of drifting and crosscutting on 4 levels down to 500 ft (152 m). This work was focused on the Big Dome and Hargreaves veins, but several other veins are known on the property. No significant exploration work has been undertaken on the Packsack property since 1940. Recent work on the CUPP claims has included stripping, trenching and sampling, with chip sampling on the ABC vein in 2007 returning up to 56.22 g/t Au / 0.8m.
Initial drilling in 2018 will be focused on extending the Big Dome vein, and other related veins within the localized vein set near the Packsack shaft, below the 4th level drift at 500 ft (152m). Subsequent drilling will test known veins and targets within the West and CUPP claim groups, as well as following up on drilling under the Packsack shaft.