NSM's McKenzie Break Property

In October 2009, construction of a decline for underground bulk sampling was underway. Initial site clearing and installation has begun. The Certificate of Authorization was received for the planned underground exploration and development program at McKenzie Break. Capital equipment purchase and site installation is well underway. Blasting and excavation of the decline entrance (Portal) has also begun.  Initial bulk sampling will test the near surface mineralization of the Murray Zone, beginning at a vertical depth of 20 meters and dipping to approximately 90 meters from surface. Pre-planning and engineering has estimated 300 meters of decline to reach the beginning of the Murray Zone.

Northern Star recently acquired a 60% interest in the McKenzie Break property located in the Fiedmont and Courville Townships of Northwestern Quebec from Britannica Resources Corp. Northern Star and Britannica entered into a joint venture for the further exploration and development of the McKenzie Break Property with Northern Star as the initial operator. The initial interests of the parties will be Northern Star 60% and Britannica 40% with Northern Star agreeing to fund the first $1,500,000 in exploration expenses on behalf of the joint venture. Thereafter, the parties will be responsible for funding their proportionate share of future exploration and development costs.

The McKenzie Break Property comprises a total of 10 contiguous non-patented mining claims. Claims are predominantly lot-size (250m X 1600m) covering total superficies of 366 hectares in ranges IV-V, lots 60 to 62 of Fiedmont Township and range IV-V, lots 1 and 2 of Courville Township, north of the city of Val-d’Or, Abitibi, within the Province of Quebec.

The claims are located some 35 km north of the city of Val-d’Or. Val-d’Or has approximately 25,000 residents, straddles highway 117 and is serviced by an airport with daily regular scheduled direct flights to Montreal, Quebec. Hydro-electric power, water for drilling and mining operations, qualified man-power and good infra-structures for exploration and mining operations exist in Val-d’Or and are readily and economically available.

The McKenzie Break property is located at a narrow saddle of supracrustal rocks between the syn- to post-kinematics Pascalis-Tiblemont and Lacorne batholiths, approximately 5 km south of the Porcupine-Destor-Manneville Break. The lithologies display an unusual departure from regional E-W striking, steeply dipping altitudes to N-S striking shallow east dipping orientations. Known gold mineralization on the McKenzie Break Property occurs in this shallow embayment or indenture in the Pascalis batholith contact marked by a distinct high-magnetic susceptibility signature. The batholith is underlain successively by magnetic porphyritic and also equigranular diorites, felsic volcanic rocks and finally mafic volcanic rocks. The contact of the Pascalis batholith is commonly diffused and characterized by a zone of granodiorite dyke swarms and diorite enclaves believed to be the result of a sheet-like emplacement, which was subsequently deformed. Gold mineralization is structurally controlled by what appears to be anastomosing ductile shear zone system. Deformation is usually concentrated into diorite-volcanic contact area.

The studied property has been worked intermittently since 1948. Sporadic prospecting and local trenching took place in 1952, revealing low gold values on the McKenzie Break property. The first systematic exploration program has been initiated in the studied area and also on adjacent properties by Tundra Gold Mines Ltd (Tundra) & Placer Dome during the period of 1988 to 1992. Surface exploration included line cutting, geophysical surveys and 12,127 linear meters of diamond drilling, in 60 holes. Later, during the period of 1993 to 2004, Western Quebec continued the systematic exploration on the claims with additional diamond drilling. Western Quebec carried out 5,283 linear meters of diamond drilling in 67 holes and completed a “resources estimate”. Following a technical report by Geologica Groupe-Conseil in 2004, Wesdome acquired the claims from Western Quebec and completed an additional 5,292 linear meters of diamond drilling in 42 holes, carried out surface work that included surveying all drill holes and began the process of obtaining permits for an underground exploration program. Wesdome lost interest into the McKenzie Break project when the more advanced, Kiena Gold Mine project, came on line.

All previous exploration work completed to date permitted to identify three main gold bearing structures on the property. The names changed over the years but they can be summarized as follows:

1- GREEN ZONE includes four lenses No 1 to No 4, previously referred to as MP-A to MP-D, No 4 Lens or MP-D represents the lower (deeper) zone.
2- ORANGE ZONE an upper zone “Orange Zone” and a lower zone called “Sulphide Zones”.
3- ZONE IV in the southern part of the claims compared to the first two structures located in the northern part of the claim block.

The “Green Zone” and the “Orange Zone” are two separate structures of gold mineralization partly hosted within an 800 feet shallow dipping magnetic diorite sill: the main zone (Green Zone) which is located to the north of the diorite sill and the lower grade “Orange Zone” to the south of this diorite sill.

The Green Zone contains four (4) major “en echelon” auriferous lenses trending NW-SE and dipping to the east at 10° to 15°.  These sub-parallel, diorite-hosted shear zones host shallow dipping, narrow, high-grade quartz – chlorite veins in which the gold distribution is free and coarse. Numerous high-grade gold intersections were found within these lenses. Other discrete subsidiary shears or splays also host mineralization within the diorites. The mineralization is typified by visually distinctive white quartz-chlorite ribbon veins and sheeted veinlets complexes in which the gold distribution is abundant but erratic. These shear veins range in thickness from 1 cm to 2 m and average approximately 20 cm to 30 cm.  The shear zones range in thickness from 2 m to 10 m and are characterized by weakly foliated, pervasive chlorite-calcite-albite alteration.

The Orange Zone consists of two main gold-bearing corridors with similar orientations within a broad quartz-carbonate-sericite schist shear zone with minor quartz veins and stringers.  This zone is characterized by generally marginal gold grades. However, the presence of sulphide within quartz-carbonate-sericite schists in a felsic to mafic volcanics environment can bear similarities to the Agnico Eagle–LaRonde type gold mineralization.

The Zone VI has been identified for some 600m in a N-S direction by TGM, and has a minimum down-dip extension of 90m. This southern zone typically contains marginal grades (1.00 g/t to 3.00 g/t Au) over widths of 3.0 m to 6.0m.

Significant diamond drilling carried out on the McKenzie Break property, also permitted Placer Dome 1991 and more recently Western Quebec Mines (1994) to complete historical “resources estimates” on this property, either including all of the zones (Placer Dome) or just some of the zones (Western Quebec). Both of these “resources” used estimation practices prior to May 30th, 2003, CIMM current and adopted guidelines. The company is not treating the Placer Dome historical estimates as current mineral resources as defined under NI 43-101.  These historical resources, as discussed in the report, should not be relied upon, as they were calculated prior to the enactment of NI 43-101 standards.

However, after reviewing in details the 2004 and 2005 in-fill diamond drilling completed by Wesdome mainly on part of the Green Zone (Lenses #1 and #4), and which drilling was recommended after the April 1994 historical “resources estimate” by George Mannard of Western Quebec, his historical “drill indicated resources” of 161,348 tonnes grading 10.86 g/t Au, can be classified as current undiluted and in-situ “Indicated Resources” because even if this resource used estimation practice guidelines prior to May 30th 2003 (CIMM current and adopted guidelines), he followed parameters similar to current standards for quality assurance (“QA”) and quality control (“QC”) procedures. A lower cut-off grade 3.5 g/t Au was used along with a 1.83 meters minimum width and a statistically determined upper cutting factor of 50.0 g/t Au.
The author is not aware of any environmental permitting, legal claim title, taxation, socio-political, marketing or other constraints that could affect this resource estimate.  A “mineral resource” is not a “mineral reserves” having a demonstrated economic viability.  The cut-off grades, which may change significantly the volumes and average grade of a resource estimate, usually require revisions depending on market conditions including gold price, exchange rate and operating costs.

Based on previous exploration work, the recently acquired data, the geological descriptive features, the metallogenesis of the gold mineralization within a silicified, pyritized and fractured diorite with associated quartz–carbonate veins and stringers injected within sub-horizontal sheared corridors, it is strongly recommended to continue the systematic exploration on this property.

Potential exists to expand known resources and move them up in category with in-fill diamond drilling and possibly mining development work. Good exploration potential remains elsewhere on the property and the potential for massive sulphide should not be overlooked.

Priority targets include higher-grade portions and depth extension of the Green and Orange zones.  The surface projection of the known structures should be stripped and sampled.  Zone VI should be further evaluated.

Placer Dome concluded that the McKenzie Break property contains a “resource” and that the Green Zone offers the best mining potential with higher grade.  Both zones are easterly dipping at shallow angles (under 20 degrees), both show evidence of a north-easterly rake in grades and thickness, and average thickness for both zone are in the order of 2.50m to 2.75m.  Both zones show pronounced to moderate relief variations along strike, likely due to faulting.  There is apparently no correlation between grades and mineralized surface variations.  Higher grades are found in both nodes and troughs, which suggest relief was formed during post – mineralization event.  Placer also mentioned that the conclusions were preliminary and were subject to change with the next exploration phase.

The Green Zone contains four major “en echelon” auriferous lenses trending NW-SE and dipping to the east at 10° to 15°.  Numerous high-grade gold intersections were found within these lenses. The mineralization is typified by visually distinctive white quartz – chlorite ribbon veins and sheeted veinlet complexes in which the gold distribution is free and coarse.  A historical non 43-101 compliant “mineral inventory” of 813,871 tonnes grading 6.63 g/t Au was estimated by Placer Dome in 1991.  Subsequent detailed diamond drilling by Western Quebec Mines in 1994 led to a new historical “ drill indicated  resources” of 161,348 tonnes grading 10.86 g/t Au, from two of the 6 veins compiled by Placer Dome.

The Orange zone underlies the diorite which hosts the Green Zone and consists of broad quartz –carbonate-sericite schist shear zone, which host two sub-zones of low grade. 

Based on successful previous detailed exploration work on the McKenzie Break property, this type of gold mineralization associated with silicified, pyritized zones within diorites-volcanics along with quartz – carbonate veins and stringers injected within sub-horizontal sheared corridors at the western edge of the Pascalis Bathotith, merit a special attention for the potential development of a gold deposit of economic interest.

The McKenzie Break property provides good exploration potential for increasing the current mineral resources and advancing the project toward possible development.

The detailed drilling completed by Wesdome Gold Mines in 2004 outlined the economic potential for gold easily accessed by decline (ramp). Northern Star believes minimal additional work would be required to expand these gold bearing structures, at depth. Britannica has completed 9959.4 linear meters (41 holes) of diamond drilling to date on the McKenzie Break Property.