Core Shack ANOTHER LA RONGE PRODUCER

Located 75 miles north of La Ronge, Sask., the Rod gold deposit hosts proven and probable ore reserves of 626,928 tons grading 0.386 oz gold per ton in a quartz vein within a shear zone. The deposit, in the Jolu property, is approximately 1.2 miles north of the producing Star Lake mine. It is owned 70% by International Mahogany Minerals and 30% by Corona Corp., the operator. Gold was first discovered on the Jolu property in 1944 by two Cominco geologists. The Decade mine was put into production at 45 tons per day during 1973 to 1975 on the original Jolu prospect. International Mahogany acquired the property in 1982; and in late 1986, under a complex arrangement between International Mahogany, Canadian Premium, Goldsil, and Royex Mining Corp., Royex became operator and acquired a 30% interest. Royex is now part of Corona Corp. which assumed the operatorship and 30% interest.

Regionally, the property lies within the northeast-trending La Ronge greenstone belt of metamorphosed mafic, intermediate, and felsic volcanic rocks, as well as sedimentary rocks which have been intruded by compositionally zoned diorite and granite intrusive bodies. Gold occurrences within the Jolu property area are hosted by northeast-striking, steeply dipping quartz veins within structurally deformed zones.

The northwestern part of the property is underlain by northeast-striking and steeply west-dipping felsic, intermediate and mafic volcanic rocks and sedimentary rocks. These rocks are intruded by diorite and granodiorite phases of the Star Lake pluton which occupies the southeastern part of the property. Although gold mineralization is found within three zones on the property, only the Rod structural zone is now considered economic.

Gold occurs within a major shear zone termed the Rod structural zone, which occurs at the contact between diorite and granodiorite. The Rod structural zone is northeast-striking, dips steeply north, and varies in width from 5 to 20 m. The Rod deposit, which occurs within the Rod structural zone, is 200 m in length, up to 7 m wide, dips 82 to the south, and plunges to the southwest at approximately 60 . Mineralization consists of pyrite, pyrrhotite, native gold, and minor chalcopyrite and arsenopyrite.

Ore is found within four distinct structures, including a quartz vein within the footwall diorite, a quartz- rich structure on the hangingwall contact of the Rod structural zone and the “Rod South” zone within the hangingwall granodiorite.

Gold, with or without the associated sulphide minerals, occurs both on micro-fractures within massive quartz veins and within highly sheared diorite which contains thin ribbons of quartz oriented parallel to the shearing. Although about 2% combined sulphide is required for the presence of a significant gold grade, no further correlation exists.

The Rod structural zone exhibits a strong electromagnetic signature with good magnetic correlation. Unlike the other two zones on the Jolu property, it shows a strong induced polarization response.

The companies have already poured their first gold (see separate story on Jolu mine visit). Production runs at 400 tons per day and operating costs are expected to be low. Pamela Phillips is a geologist with Greenstone Resources in Toronto. She would like to thank John Thompson, senior geologist with Corona Corp., for his assistance.

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