The Spout Magnetite-Copper Deposit (“Spout”), located to the north of the Lac La Hache Property, hosts “skarn-style” copper-magnetite mineralization. Spout is a prospect that has received significant exploration attention over several decades, in part due to the striking magnetic anomaly that was identified in early government airborne geophysical surveys. Prior to 2012, EnGold focused significant resources at Spout to define the following mineral resource which is disclosed here in a manner compliant with National Policy 43-101.
Educational Note: Skarn-style mineralization is typically found where igneous intrusions (such as granite) come into contact with sedimentary rocks such as limestone. When the hot granitic rocks come into contact with the limestone, the limestone acts somewhat like a sponge and is “altered” by the heat and pressure, absorbing metals from the igneous intrusion. Skarn deposits are typically irregularly shaped and variable in grade, but can yield very high grades.
While EnGold does not currently plan to develop the Spout Deposit, we recognize excellent potential to extract a portion of the highest-value, high-grade material (>1% copper, >25% magnetite, Fe2O3) exposed on surface or very close to surface.
Mineral resources are not mineral reserves and do not have a demonstrated economic viability
* Spout mineral resources are reported in relation to a conceptual pit shell. All figures rounded. All composites have been capped where appropriate.
** Open pit mineral resources are reported at a cut-off grade of 0.2% Cu Equivalent. Cut-off grades are based on a price of US$3.25 per pound of copper and copper recoveries of 80 percent, US$1,300 per ounce of gold and gold recoveries of 55 percent, US$21 per ounce of silver and silver recoveries of 45 percent, and US$2.70 per dmtu Fe of magnetite and magnetite recoveries of 80 percent for open pit resources.
To download a copy of the National Instrument 43-101 Technical Report for EnGold Mines Ltd. (Lac La Hache Project) by SRK Consulting (Canada) Inc. , click here.