The Irishman hole, completed to a depth of 1,520 meters in late October of 2008, tested the
Sullivan horizon at the south end of the Panda basin, a north-trending structural basin similar
to the Sullivan basin hosting the past-producing Sullivan Mine, 40 km to the north. The 155
meters of Sullivan horizon intersected by the Irishman drill-hole exhibit many characteristics
of exhalative activity, typical of the distal fringes of SEDEX mineralization in a basin setting.
This favourable horizon comprises mainly massive sulphide fragmentals with zones of
alteration and visible sulphides — pyrrhotite, sphalerite and galena — mineralization.
Selected assays of the mineralized intervals are given below. More complete analyses will be
posted on the Company’s website,
866328 1414.4 m 0.6 m 785 4137 1.2 9.4
866331 1417.3 m 0.33 m 2168 6861 4.7 24.5
866337 1424.0 m 1.0 m 2511 3286 6.7 11.7
866339 1426.0 m 1.0 m 3923 4769 9.1 14.7
866340 1427.0 m 1.0 m 2764 5167 7.3 17.2
866348 1451.2 m 1.0 m 161.1 2325 0.5 7.6
866358 1466.0 m 1.0 m 65.1 4649 0.8 26.3
866364 1505.7 m 1.8 m 775 3376 0.8 7.8
The initial exploration programs led by Dr. Hoy were designed to identify Proterozoic-age
structural basins similar to the Sullivan basin. These programs successfully identified six
structural basins, which were each drill-tested by one or more widely spaced holes. Initial
drilling within the favourable Panda basin intersected distal base metal sulphide
mineralization at the right Sullivan time horizon and was followed by additional holes to help
define the limits of the basin. These six previously drilled holes also showed that the sulphide
content is increasing to the south, near the intersection of the basin axis with a northeasttrending
Proterozoic-age fault.
Drilling of the Irishman Target began in 2007, but stopped short of the target depth because
of heavy winter snow conditions. Completing the drill hole was a priority project in 2008. The
newly released intercepts from this target, with combined lead and zinc grades up to 0.9%,
represent one of the highest — if not the highest — grades of Sullivan horizon mineralization
drilled in the Purcell Supergroup outside of the Sullivan basin itself. Furthermore, the
relatively high metal values and the thick Sullivan horizon suggest that the hole is near the
center of the Panda basin on possibly the fringes of more massive mineralization. The
nearest two drill holes to Sullivan time are located about 2 to 3 km to the east and northeast
respectively.
Based on these encouraging results, the partners believe that further exploration for Sullivantype
massive sulphide mineralization in the Panda basin is warranted. Down-hole
geophysics, followed by step-out drilling to the north-northwest is proposed toward a surface
exposure of a small exhalite vent (the Gerry vent).
The Panda basin is one of several small basins (including Sullivan) that developed on an
ocean floor nearly 1.6 billion years ago as a result of regional extension and/or rifting.
Detailed studies of the Sullivan basin over many years have led to the recognition of the
controls of sulphide accumulation in this and other basins. Klondike Gold recognized similar
features in the Panda Basin, which allowed it to systematically target the projected source of
sulphide accumulation. The Company has also defined several other less-tested basins that
remain exciting exploration targets.
Exploration for massive sulphide mineralization at projected depths of 1,000 to 1,500 meters
is both difficult and expensive. However the success of previous exploration programs in first
defining Proterozoic structural basins, then evaluating these basins, and finally vectoring
toward a sulphide source area with limited, widely spaced deep drill-holes bodes well for
future exploration success in this prospective region.
The Qualified Person for the purpose of National Instrument 43-101 is Trygve Höy, who has
read and agreed with the contents of this news release.
