McWatters Mining (MCW-T) is paying Breakwater Resources (BWR-T) $3 million and a 1.5% net smelter return royalty for its stake in the East Amphi gold property, 2 km northwest of Malartic, Que.
The 1,160-ha property is 25 km west of McWatters’ Sigma gold mine and is intersected by more than 2 km of the Cadillac tectonic zone.
To date, exploration has consisted of 238 surface holes totalling more than 59,400 metres, as well as 92 underground drill holes totalling 3,393 metres.
In 1995-96, drilling by Placer Dome (PDG-T) delineated resources in the Hybrid zone of 1.53 million tonnes grading 5.39 grams gold per tonne (equivalent to 265,000 contained ounces gold) over a length of 1.1 km between depths of 50 and 250 metres.
The zone, which is from 3 to 8 metres thick, remains open to the east and at depth, with mineralization occurring in altered diorite dykes in a talc and chlorite schist.
Placer Dome had been completing work that would have earned it a 51% interest in the property from Breakwater by paying $500,000 and spending $4.5 million on exploration over four years.
Immediately south of the Hybrid zone lies a parallel mineralized structure, the Porphyry zone, which has been traced over a 450-metre length and to depths of between 50 and 500 metres.
McWatters plans to drill the East Amphi property in order to increase resources in the Hybrid zone and perform an initial resource calculation in the Porphyry zone.
McWatters hopes to boost its gold production in the area to take advantage of its 3,000-tonne-per-day mill at Sigma, which is only performing at two-thirds its capacity.
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