Pelangio controls a number of early-stage properties in Ontario and Quebec, mostly in areas with active and historic mining activities.
Seeley Lake and Page Lake, Ontario
The property comprises 19 contiguous unpatented mining claims (760 acres) located within the Seeley Lake and Page Lake areas, approximately 14 kilometres northeast of Marathon, Ontario. There are no underlying royalties pertaining to this property. A limited prospecting program was competed on Page Lake in June 2008. Approximately 20 kilometers of linecutting followed by soil geochemistry will be completed in the third and fourth quarters of 2008.
We entered into an option agreement on May 8, 2008 in respect of the Page Lake Property which entitles us to acquire a 100% interest in the property. The property comprises 18 claims, 215 units or 3,440 hectares, and is located in the Page Lake Area in the Thunder Bay Mining Division, Ontario. The property is host to a number of untested gold showings (Page Lake and Khuner showings) immediately north of the Seeley Lake property. As well as gold showings, the project hosts several newly discovered polymetallic base metal occurrences, with zinc grades from grab samples ranging from 4% to 11%. Several molybdenum occurrences also exist.
Under the terms of the option agreement, we may acquire a 100% interest by spending $536,000 on the property and making payments totaling $120,000 and 24,000 common shares to the vendors, with such payments to be made on specified dates within four years after the execution of a definitive option agreement. The option agreement provides that any share issuances subsequent to the Effective Date shall be common shares of Exploration, provided that the aggregate value of the shares to be issued shall be no less than $100,000. To date, Pelangio has issued the first payment of 6,000 common shares to the vendors under the option agreement.
Manitouwadge, Ontario (option to acquire 100%)
The Manitouwadge property encompasses (i) the Moshkinabi property, comprising 14 claims, 110 units, 1,760 hectares, located in the Herbert and Roberta Townships of the Thunder Bay Mining Division, Ontario (the "Moshkinabi Property"), and (ii) the Fairies Lake and Rawluk properties, comprising 10 claims, 83 units and 1,328 hectares, located in Cecil Township of the Thunder Bay Mining Division, Ontario (the "Fairies Properties").
The Moshkinabi Property is host to a poly-metallic NI, Cu, Pt/Pd rich massive sulphide unit hosted in a metamorphosed suite of volcanics overlain by a sulphide rich ultramafic unit, that can be traced along a strike of two kilometres. Grab samples taken by the Company returned values of up to 3.9 g/t combined Pt/Pd accompanied by up to 1% Cu and 0.2% Ni. All information at this stage indicates good potential for both bulk tonnage Cu-PGM and massive sulphide Ni-Cu type deposits.
The Fairies Properties are both host to Cu and gold massive sulphide showings. The general setting and environment of the Fairies Properties indicates good potential for massive sulphide deposits.
Under the terms of the Option Agreement, the Company may acquire a 100% interest in the Manitouwadge property by making payments totaling $385,000 to the vendors, with such payments to be made on specified dates within four years after the execution of the Option Agreement.
Birch Lake, Ontario
Pelangio owns a 100% interest in the Birch Lake property, which comprises 28 contiguous unpatented mining claims (1,120 acres) located in the Keigat Lake area, approximately 120 kilometres northeast of Red Lake, Ontario.
The property is subject to an underlying agreement whereby Goldcorp retains a 2% NSR royalty on all of the claims. There are currently no obligations to Goldcorp other than payment of the royalty on production.
Previous work by Placer Dome delineated a gold-bearing system (High Grade Island) over a strike length of approximately 300 metres to a vertical extent of 150 metres. From 1986 to 1996, Placer Dome completed 110 drill holes totaling 19,918 metres, together with mapping, trenching, geochemical and ground geophysical surveys.
Prior to September 30, 2008, the property was subject to an option agreement between Pelangio and Trade Winds Ventures Inc., which spent approximately $1.2 million on the property during the term of the option. Trade Winds completed its most recent drilling activities on High Grade Island during winter 2005. The previous 2004 drilling program consisted of four holes, TWBL-094/095/096/097, totaling 1,102.60 metres, testing the continuity and down-dip extension of the central gold zone located on High Grade Island. Trade Winds reported multiple occurrences of visible and coarse gold, with the best assay results reported from the program being: 115.89 g/t gold over 2.90 metres (est. true width 1.86 metres) from 239.35 to 242.10 metres (TWBL-096); and 21.22 g/t gold over 2.35 metres (est. true width 1.51 metres) and 229.96 g/t gold over 2.45 metres (est. true width 1.58 metres) between 300 and 360 metres (TWBL-097).
Trade Winds 2005 drilling program consisted of three holes, TWBL-098/099/100. Coarse and visible gold was reported in holes TWBL-098 and -100, with the best results from those holes being: 14.7 g/t gold over 1.2 metres contained within a broader zone of mineralization of 4.8 g/t gold over 4.4 metres (TWBL-098); and 11.8 g/t gold over 0.5 metres and 19.7 g/t gold over 1.0 metre (TWBL-100).
Black Township, Ontario
The Black Township property includes leased and staked mining claims (approx. 640acres), located between the towns of Timmins and Kirkland Lake, approximately 100 road kilometres east of Timmins. Pelangio has not completed any exploration on the property since its acquisition. Previous reports during the 1980s indicate the presence of a north-trending shear zone over a projected strike length of approximately 300 metres. Some of the better gold values include 0.23 oz/t over 1.5 metres from a channel sample and 0.36 oz/t from a grab sample. Another parallel zone located 200 metres to the north returned gold values ranging from 0.03 to 0.10 oz/t. Some near-surface drilling is reported from the adjacent claim to the east but results are not available.
Other Canadian Properties and Royalties
Pelangio owns a number of other Canadian properties as shown below.
|
Lartic Gold |
Poirier Gold |
Thunder Gold |
Location |
4 km west northwest of Malartic, Quebec |
22 km west of Timmins, Ontario |
20 km west of Timmins, Ontario |
Size |
9 claims (900 acres) |
2 claims (160 acres) |
3 claims (120 acres) |
Pelangio Interest |
100% |
100% |
100% |
Underlying Royalty |
None |
2% to vendor |
2% to vendors ($1000/yr advance royalty) |
In addition, Pelangio has royalty interests in a number of Canadian properties as shown below.
Matheson West and East |
1% NSR can be purchased by Matamec Explorations Inc. for $1.0 million and 100,000 common shares of Matamec |
Stoughton Staz |
10% carried to bankable feasibility |
Mord |
1.5% NSR (provided Pelangio exercises right to buy back 1% for 100,000 shares of Pelangio) |
Ross |
1% NSR |
Simon |
1% NSR |
Kennecott McGarry |
15% Net Profit Interest |
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