Miller Lake Property
Nova Scotia
Ressources Appalaches acquired the Miller Lake property in 2007. The property is located on the east coast of Nova Scotia, about 150 kilometres from Halifax. The property comprises 61 claims with a total area of 11 km2. The Ecum Secum property is located a few kilometres to the south.
More than six gold-bearing veins from a few centimetres to 30 cm in thickness have been identified and partially mined; one of them is 1,097 metres in length. Three main mineralized sites on the property were mined from shafts and tunnels in the early 20th century: the shafts went no deeper than 32 metres. The deposits consist of gold disseminated in quartz veins on either side of an anticline. Production data compiled by the Nova Scotia Ministry of Natural Resources state that 538.8 troy ounces of gold were extracted from this district between 1902 and 1951. Evaluation work carried out at the three sites during this period mentions average grades of 17 g/t, 22 g/t, and 19 g/t Au from samples of 166 tonnes, 4.0 tonnes, and 2.2 tonnes respectively. These figures represent historical data listed in various work reports distributed by the Ministry: they cannot be verified, and are mentioned for information purposes only.
Beginning in 1974, exploration work including geophysical and geochemical surveys, trenching, and drilling was carried out, mainly by two companies. This work confirms the presence of auriferous zones on the edge of an anticline.
Geologic Setting
The geologic setting of the Miller Lake property closely resembles that of the Ecum Secum property. The property, which forms part of the Meguma Group, consists mainly of Cambrian to Devonian sedimentary rocks (turbidites). The geologic formations are affected by major sub-horizontal folding along east-west axes. Several late local and regional faults strike northwest, and are generally post-mineralization. Granitic intrusions cut the sedimentary rocks. Several types of veins are observed, but the gold deposits are mainly associated with stratiform veins and anticlines. The gold is disseminated and sometimes visible in quartz veins, frequently accompanied by disseminated sulphides such as galena, sphalerite, arsenopyrite, and chalcopyrite. Alteration minerals such as sericite and chlorite are also present in the veins and wall rocks.
The Agreement
Ressources Appalaches has obtained an option from Meguma Resource Enterprises Inc. and Mr. John Ross to acquire 100% of their properties in return for $100,000 in work and $87,500 in cash payments, all to be distributed over a period of three years. A royalty (NS) of 2% will be paid on each property upon production from the deposit, but with optional buy-backs for Ressources Appalaches in the respective amounts of $1,400,000 and $650,000.
Objective
Ressources Appalaches's objective is to define extensions of the deposit around the existing shafts that can be put into production as quickly as possible. With this in mind, work will begin with pitting and drilling over a broad horizontal area.
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