Bhang Inc BHNGF

Ardeen Gold Mine synopsis

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The Ardeen Gold Mine Project is located 110 kilometers west of Thunder Bay, along the Trans-Canada Highway. The project is 100% owned by Pele Mountain, covering over 10,000 acres. The Ardeen was northern Ontario’s first gold mine, producing 30,000 ounces of gold and 175,000 ounces of silver from a 200-tonne per day mill during operations that continued intermittently until the mid 1930s. The mine and surrounding mineralized zones are characterized by structurally controlled, gold and silver mineralization hosted in quartz vein systems and iron formation. A sample from the Fisher Zone assayed 43 ounces per tonne gold and has been archived at the Ministry of Northern Development and Mines offices in Thunder Bay. There are eight established working levels at the mine, as well as a 1,250-foot three-compartment shaft. Pele has spent approximately four million dollars acquiring and exploring its Ardeen Gold Mine Project, and has drilled more than 12,000 meters. Exploration has focused on high-grade zones near the old mine workings, including the nearby Pele and Fisher Zones where high-grade gold and silver mineralization has also been confirmed. The Pele Zone is an extension of the Ardeen vein system and has been traced for over two kilometers from where the mine workings end. The Fisher Zone is located just south of the mine workings and has returned high grade gold assays. An independent Resource Estimation conducted by Minescape Exploration Inc. in 1998 (prior to the introduction of NI 43-101, in accordance with the standards of the time) credited the Ardeen Project with an indicated resource of 90,650 tonnes @15.3 grams per tonne(uncut) and an inferred resources totaling approximately 1 million tons at 14.4 grams per tonne (uncut). This calculation combined data from five different zones in close proximity to the old mine workings. The recent improvement in the gold market has led to an increase in exploration activity in the Thunder Bay area and several mining/exploration companies are once again exploring in the area around Pele’s Ardeen Gold Mine Project. Moss Lake Gold Mines has been exploring along Pele’s eastern border on the neighboring Snodgrass property. In the 1980s, according to published reports, Noranda defined a high-tonnage, low-grade deposit totaling over two million ounces of gold at Snodgrass, with the gold bearing geology striking onto and extending over Pele’s ground for more than five kilometers. A compilation report has been undertaken to update property information and to prepare for the next stages of exploration at the property. Given the recent strength in the gold market and the strong potential for additional gold and silver resources to be delineated at Pele’s Ardeen Gold Mine Project, the Company is actively considering various alternatives to provide the best value for shareholders.