SMDI #

1877b

Historical Showing Names

Jolu Mine; Rod South Gold Zone

Project Name

UTM Northing (NAD83 Z13)

6206621.9400

TRM (Township-Range-Meridian)

81-15-2

Associated Commodities

Copper, Iron, Molybdenum

Status

Deposit: Post-Production

Geological Domain

La Ronge

Host Minerals

Molybdenite, Pyrite, Pyrrhotite

Exploration History

8/11/1989 The Jolu block of claims (Jolu 1 to 8) was staked for Cominco Ltd. In 1944 and 1945. Geological mapping, prospecting and excavation of several trenches on the southeast side of Mallard Lake resulted in the discovery of the Mallard Lake zone (SMDI 0901). Thirty-two diamond drill holes totalling 1405.9 m were completed to test this deposit. Work continued intermittently from 1944 to 1971. In 1962, Cominco optioned the property to Oklend Mines Ltd. They completed 5 holes on the Mallard Lake zones, but dropped the option soon after. In 1972, Cominco optioned the property to Decade Development Ltd. Which did further drilling culminating in an attempt to commercially produce the Mallard Lake Deposit. Production continued from 1973 to 1976. No further work was reported on the property. Mahogany Mineral Resources acquired the option in 1982. No significant work was done, however, until 1984 when Goldsil Resources Ltd. Gained control of Mahogany. By that time, Mahogany had acquired 100% ownership of the property except for a 4% Net Smelter Royalty owed to Cominco (Pyke, 1984; AF 74A-0005, 74A-01-0012, 0016, 0017, 0026). Previous exploration had been concentrated along the periphery of the Satr Lake pluton and immediately adjacent metavolcanics. The gold grades were generally less than 0.15 oz./ ton and not considered to be economic. When Starrex Mining Corp. found significant gold mineralization associated with the shear zones in the Star Lake Pluton, interest in the Jolu property was revived; approximately 60% of the property is underlain by rocks of the Star Lake intrusion. On 5 March 1980, the showing was staked as CBS 7430. Work in 1984 consisted of line cutting, geophysics (magnetic and VLF-EM), geologic mapping and soil sampling. Much of the work was concentrated on the Mallard Lake Zone, however, soil sampling revealed gold mineralization about 500 m (1640.4 ft) south. Trenching was carried out on this new zone, termed the Rod Main, to test the strike extension and diamond drilling was conducted to evaluate the zone and determine the dip. During drilling, the Rod South Zone was discovered (Burrill, 1985b). On 6 June 1985, Canadian Premium Resources Corp. (CPR) entered into a joint option agreement with Mahogany. Under the terms of the agreement, Canadian Premium Resources would earn 50% of Mahogany's interest in the Jolu property. The agreement required Canadian Premium to spend $ 1 million on the property by 1 June 1986, fund a production feasibility study and do further exploration by 1 June 1987, arrange production financing by 1 January, 1988 and start commercial production if deemed feasible by 1 January, 1989. On 5 October 1985, CBS 7430 converted to ML 5451. As part of this agreement, a proton-magnetic survey, geochemical testing program, backhoe trenching and a soil sampling survey were conducted (News release, 8 July 1985). These surveys combined to extend the Rod Main (SMDI. 1877a) and Rod South (SMDI. 1877b) zones as well as to delineate several new mineralized zones. The Main Rod Zone was extended from 1000 ft to over 3000 ft in length. Some of the newly exposed mineralization showed visible gold which enhanced the tonnage and grade potential of the zone. Between 1985 and 1986, the Rod was delineation drilled (AF 74A01-0091). The Rod South Zone had a drill-indicated average of 1.17 oz./ton Au. It was located east of an intrusive dyke that had been previously believed to terminate the zone. Trenching was completed and further diamond drilling scheduled. Five new zones were also located by the drilling (Rod zones A, B, D, E and F) and the Rod Main Zone renamed the Rod C Zone. The grades of gold mineralization were consistently good and the zones found to widen at depth. Reserves delineated by the 1985 drilling program were released by J. Burrill and Mahogany Minerals-Canadian Premier. Exploration continued in 1986 with more diamond drilling. Three deep holes were completed on the south structure. The results of drilling increased reserves. Further exploration was to be completed during construction of the decline (Jolu Mine Decline). Ore reserves were updated and the company received approval to proceed with a decline. In February 1987, a feasibility study was completed. A project development schedule was determined and site preparation, decline sinking and road and mill construction commenced. Production startup was estimated for the fall of 1988. A 300 tpd mill (life expectancy of 5 years with current reserves) was planned. The mill used gravity separation and cyanide leaching to give an recovery of 97.4%. Exploration continued. In February of 1988, ground VLF-EM and magnetic surveys were completed over the deposit (AF 74A01-0122). The mine commenced production in October of 1988 and the first gold bar was poured 15 November 1988. Mining continued until December of 1990 when all ore was depleted. Corona Corporation reported production for the the Jolu Mine (Rod Main, Rod South, Rod C and Mallard Lake zones). In 1990, International Mahogany Corporation completed 5 trenches on ML 5499 and ML 5500 to test for a extension of the Rod Structure in the David Lake northeast area (AF 73P16-0154). The Rod Structure was found to splay and to cross-cut volcanic/ sedimentary units. No significant gold values were returned. In August 1991, the final ore from the Jolu deposit was milled. In August 1992, a partnership involving Waddy Lake Resources and Golden Rule Resources offered to purchase the Jolu mine and mill assets from International Corona and International Mahogany for $ 786,000.00. The mill will be used to process Komis and EP zones ore. At this time, the Jolu Mine was in final phase of decommission. In 2003, Golden Band Resources completed bulk till sampling around he Jolu Gold Mine (AF 64D04-NW-0191).

Reserves and/or Resources

1986-01-01 Mahogany Minerals – Canadian Premier Property reserves: at least 450,000 tons of ore grading 0.74 oz/ton Au. Summary: Historic resource (unspecified) of 450,000.00 ton - Gold: 450,000.00 ton @ 0.74 oz/ton 1985-01-01 Rod Main Zone: at least 35,000 tons ore. (J. Burrill) Summary: Rod Main Zone: Historic reserve (unspecified) of 35,000.00 ton 1985-01-01 Mahogany Minerals – Canadian Premier Drill delineated reserves: 290,000 tons of ore grading 0.57 oz/ton Au (165,000 oz Au. Summary: Historic reserve (unspecified) of 290,000.00 ton - Gold: 290,000.00 ton @ 0.57 oz/ton