Golden Arrow Propert (Timmins, Ontario ) - 40% ownership
With the gold price starting to turn back up - Cdn$1,534 now, might fluctuate up and down short term but will get to Cdn$1,800 (+) eventually, this property might become viable for small scale (lower grade, but bulk tonnage) mining and production. Alexandria/Murgor could either try to convert the 40% ownership into a 2.5% NSR then step away (and let another company bring it forward) or could try to cut a deal with the other 60% owner (private company), to say, Alexandria increasing its ownership to 70 - 80% by earning through (some) exploration spending, paying initial costs of the near-term bulk sample mining program (I think the existing permit goes to 100,000 tonnes) and conducting a PEA production study. The private company likely cannot raise exploration money at this time, hence the delay. The property has a shallow shaft (about 130m down) with about 700m of lateral development adjacent to paved hwy 11. The best nearby mill might be Primero`s Black Fox mill (if Primero is able to accommodate), about 30 km away, along hwy 11 and hwy 101 – there are other mills also, but a bit further away. They will need to do an economic study to see if the main deposit can be trucked economically at these gold prices. The low oil price will help, if it stays low for a while. The zone has a strike length of nearly 1.1 km (but the main deposit is about 300m length, I think) - sub-vertical w/avg true width of 42m, located at surface and extending to a vertical depth of 425 metres. Avg grade ranges from 0.813 g/t to 1.296 g/t gold, depending on cutoff grade. I think it has to be done in a bulk tonnage trucking and processing manner to work, where the fixed costs are spread out widely. The wide avg true width of 42m will help in that regard. It`s not clear how many ounces have been delineated in the main zone (they probably need to do an official 43-101 report) – probably enough for small scale mining, but will likely need gold prices in the Cdn$1,500 - Cdn$1,800 is my guess. Historic metallurgical Au recoveries of 91.2%. Past producer 303,449 tons @ 0.063 oz/t (2.15 g/t) Au. Some of the deep intercepts by Murgor in the Main Zone includes: 1.47 g/t Au over 52m (incl. 2.26 g/t over 18m and 2.76 g/t over 8m), 2.11 g/t over 15m, 1.44 g/t over 46m (incl. 3.38 g/t over 6m) and 2.20 g/t over 35m (incl. 7.22 g/t over 6m). The wider intercepts (at various locations in the Main Zone, both open pit and u/g): 1.43 g/t Au over 72m, 1.28 g/t over 108m, 1.36 g/t over 113m, .98 g/t over 91m (incl. 1.84 g/t over 35m), 1.37 g/t 12m, .57 g/t over 51m, .75 g/t over 28m and 1.65 g/t over 49.5m. The existing open pit can be enlarged to capture the surface material for production, then I think the existing shaft and lateral tunnels (after rehab, if required) can be used to capture u/g material from about 50m down to about 130m. I think they can try to extend the open pit lower, to perhaps 150m down (instead of using the shaft for the top level material), if they firm up exploration towards the other end (away from disturbing the shaft area) – this option only works if they can get the strip ratio (waste to ore) to work. I think decision to extend the shaft down to 425m later on will depend of further exploration success down below to ensure sufficient resources (and grades) are identified before making such a commitment. The following note is from the Murgor website: ``Pre-development Near Complete``. I don`t know what that means exactly but I`m guessing they almost finished preparing the open pit for the 100,000 bulk tonnage sampling before work on the property was discontinued (due to lack of cash, low gold price or other reasons). If so, it likely wouldn`t take much to restart the work given that the bulk sample permit likely still exist. There seems to be other zones on the property to explore also. There is a new discovery called South Target (about 300-400m long), with drill results of 5.48 g/t Au over 4.5m and 1.42m Au over 15m. There is also the newly discovered West Extension (about 300m long), with drill results of 1.23 g/t Au over 30m, 6.4 g/t over 4.0m, 1.22 g/t over 5.0m and .92 g/t over 18m. This West Zone also comes with a number of much wider but lower grade intercepts. I think there are other areas on the property that can be tested for new zones. In general, there are a number similarities with the Golden Arrow property and the Aurico`s Young-Davidson property in Matachewan, especially with regards to the type of mineralization. Both are Syenite-Hosted and K-Hm-Py alteration – Quartz Stockwork. Of note, the Golden Arrow deposit is vertical (down to 425m thus far). Young-Davidson is also vertical and goes down to over 1.5km – both plunges. Open pit grades are comparable. Deposit widths are comparable.