Shoal Lake West

In 2006, Indicated Mineral Resources were estimated at 424,000 tonnes grading 13.40 g/t Au for 182,000 contained ounces of gold. In addition, Inferred Mineral Resources were estimated at 387,000 tonnes grading 10.69 g/t Au for 131,000 contained ounces of gold. To date, most of the work on SLW has been concentrated in the area of the known zones at the Duport gold deposit. A combined airborne magnetic and electromagnetic survey flown in 2005 identified several anomalies within prospective lithologies which have yet to be drill tested. The potential exists to increase the resource base through the discovery of additional zones along strike and at depth.   Status: Complete an IP survey over the 1km wide Duport corridor and additional drilling to increase resources.


The Duport gold deposit is a past producer that was aggressively explored and developed during the 1980’s by Consolidated Professor Mines Ltd. This work resulted with a non-compliant historical resource which included the categories “Proven, probable, possible and inferred” for a total resource of 2,000,000 t grading 0.35 oz/t Au. This estimate was based on 74,337 meters of drilling completed in 666 surface and underground diamond drill holes. An underground exploration development program consisting of a 104m deep ventilation shaft, 1,360m ramp and 1,555m of lateral drifting was also completed during this program, with all inclusive costs in excess of CDN $40 million.

The project remained dormant until 2005, when Halo Resources Ltd. optioned the ground from the Sheridan Platinum Group by issuing Sheridan 1 million common shares at a fair market value of CDN $1.21 million and an additional $8 million in preferred shares. An additional 7,053 meters of drilling in 23 holes was completed by Halo, along with a detailed airborne magnetic survey. Roscoe Postle Associates ("RPA") was then hired to re-evaluate the historical resource. RPA used the contour method to generate a current 43-101 compliant resource estimate which includes an indicated mineral resource of 424,000 t grading 13.40 g/t Au and an inferred mineral resource of 387,000 t grading 10.69 g/t Au. An economic review, based on a US $400 / oz gold price, concluded that a larger, higher grade resource was required to generate positive economic results. The RPA study was highly conservative since a US $400 / oz gold price was utilized for the 2009 study, at a time when many engineering firms are using a US $750 to US $825 per ounce price range, reflecting the reality of the current gold price.