Red Lake Projects

Transaction

Prime Meridian Resources (PMR) has an option to acquire a 100% ownership in two claim blocks (10,500 acres) in the Pakwash area of the Red Lake gold district in Ontario, Canada, subject to a 1.5% NSR royalty.

The Bruce Lake Project comprises 4,250 acres and is located south east of the Dixie Project of Great Bear Resources (GBR.TSXV) and the Camping Lake Project comprises 6,250 acres and ties directly on to the south east of the Pakwash Project of Great Bear Resources.

The Company has the right to acquire a 100% interest in the Bruce Lake and Camping Lake Projects by paying $86,500 and issuing 400,000 common shares over 5 years, as per the following:

  • $13,500 cash payment to the Vendor on signing of the LOI (payment has been made);
    Issuance of 200,000 common shares to the Vendor on TSX-V acceptance of the Formal Agreement
  • $12,000 cash payment and issuance of 200,000 common shares to the Vendor on the 1st anniversary of the execution of the LOI
  • $16,000 cash payment to the Vendor on the 2nd anniversary of the execution of the LOI
  • $20,000 cash payment to the Vendor on the 3rd anniversary of the execution of the LOI
  • $25,000 cash payment to the Vendor on the 4th anniversary of the execution of the LOI
  • The vendor will retain a 1.5% NSR on all mineral production, 0.75% of which can be purchased by PMR for $500,000.
  • The transaction and formal agreement are subject to acceptance by the TSX Venture Exchange.

Location

Claims

100% ownership of 2 claim blocks (10,500 acres total) in the Pakwash area of the Red Lake. Ontario gold district.

Prime Meridian Resources Corp.

  • Bruce Lake
  • Camping Lake

Great Bear Resources Ltd.

  • Dixie Lake Project
  • Pakwash Project

Laurentian Goldfields Ltd.

  • Goldpine Project

Geology

The supracrustal rocks in the north are intruded by two intermediate intrusions, 1) a granodiorite of undetermined age and 2) diorite intrusions known as the Pakwash Lake Pluton and the Bruce Lake Pluton

Magnetic Susceptibility

The magnetic data is an asset for identifying structures and lithological contacts. Most notably the survey resolved a previously unrecognized, highly magnetic granite with a distinct ellipsoid shape. This body is noted as an important exploration target because of the significance of oxidized granitiods in other Archean gold deposits in the Superior Province.

MMI Samples

MMI™ Soil Samples of Laurentian Goldfields Ltd. – November 2010

Laurentian Goldfields conducted a soil sampling program using the MMI sampling method across its entire Goldpines property at 500mx500m sample spacing. The MMI sampling method was employed because the Goldpines property is largely covered by thick glacial till. In the absence of outcrop, MMI can be used to effectively delineate the geochemical expression of mineralized bedrock below the overburden. This method is unique in that it measures the concentration of only the mobile ions in the surface soils. It relies on the principle that ions which migrate from a source at depth (by processes such as convection, electrochemistry, diffusion, and capillary rise) are absorbed into surface soils, forming weak bonds with the soil particles around them.

http://www.geologyontario.mndm.gov.on.ca/mndmfiles/afri/data/imaging/20000006808/20009804.pdf

MMI

Regional MMI conducted by Laurentian Goldfields on their previously held Goldpine Project.

D-Nut

Laurentian’s D-Nut detailed soil grid was designed to cover a highly prospective area within the Pakwash Lake Fault Zone near the edge of on oxidized granite pluton.

Portions of these gold anomalies have been captured in the Camping Lake claim block. These samples may reflect weakened element responses since the region is blanketed by a thick layer of impermeable clay that may restrict ion migration.

Ear Falls

The Ear Falls grid of Laurentian provides detailed sampling coverage near the eastern portion of the Sydney Lake Fault Zone.

Portions of these gold anomalies have been captured in the Camping Lake claim block.

Pakwash Plan

Mineral Target Exploration & Development
Gold
  • Camping Lake - D-Nut Area
  • Camping Lake - Ear Falls Area
  • Bruce Lake Claim Block
  • Continued surface and subsurface sampling of the D-Nut and Ear Falls area to help define potential drill targets.
  • Continued lake sediment sampling in the Bruce Lake claim block
  • Continued geochemical mapping of alteration associated systems.
  • Structural analysis of first and second order faults as part of a linked fault system to identify potential fluid conduits.
TSX-V: PMR
0.095