Ulu Gold Project
The Ulu Gold Project ("Ulu") is an advanced exploration property that has seen extensive exploration and development between 1989 and 2006, including 135,713 meters of core drilling and 1.7 kilometres of underground development. Bonito Capital Corporation ("BCC"), a wholly owned subsidiary of Elgin Mining, acquired the property in July 2011.
The Flood deposit contains a current estimated indicated mineral resource of 751,000 tonnes grading 11.37 grams gold per tonne and an estimated inferred mineral resource of 418,000 tonnes grading 10.61 grams gold per tonne using a 2.5 grams gold per tonne cut-off. The estimation was prepared in accordance with Canadian Institute of Mining, Metallurgy, and Petroleum ("CIM") guidelines, following National Instrument 43-101 rules for disclosure. For additional information on the estimation, please consult the report entitled NI 43-101 Technical Report on the Ulu Gold Property, Kitikmeot Area -- Nunavut Territory, Canada dated June 27, 2011, by Richard A. Graham, P.Geol., a consulting exploration geologist at Graham's Geological Data Ltd. and G.H. Wahl, P.Geol., a principal resource geologist at G.H. Wahl & Associates Consulting. A copy of the technical report may be found on the Company's website and its profile on SEDAR at www.sedar.com.
Property Location and Description
Ulu is located within the Kitikmeot Region of Nunavut, approximately 530 kilometres north of Yellowknife, and 155 kilometres north of the Lupin Gold Project (Figure 1). The site consists of one renewable 21-year Crown mining lease covering 947.40 hectares (Figure 2). The lease predates the Nunavut Land Claims Agreement, so the terms of the lease are under the jurisdiction of the Canada Lands Act. The lease is surrounded by Inuit Owned Land surface and subsurface rights, which are owned by Nunavut Tunngavik Incorporated; the surface rights are administered by the Kitikmeot Inuit Association.
Accessibility and Infrastructure
Ulu is accessible by fixed wing aircraft from Yellowknife. A 1,200 metre gravel airstrip is situated 3.5 kilometres south of the camp. West Lake, suitable for float-equipped aircraft, is located approximately one kilometer from the camp.
Infrastructure at Ulu includes a 40-man Weatherhaven camp, maintenance shop, sewage treatment facility, and bulk fuel containment.
BHP Minerals Ltd. discovered gold mineralization on the Ulu gold property in 1989, and from discovery to 1994, delineated the extent of mineralization through a campaign of mapping, drilling, geophysical, geochemical and environmental surveys. Echo Bay Mines acquired Ulu in 1995. By 1997, an underground ramp and further development access was excavated, mineralized zones were crosscut by drifting, and significant underground and surface drilling was conducted. The project was shut down in 1997 due to low gold prices.
Kinross Gold Corporation acquired Ulu through a corporate merger in 2002, and subsequently sold it to Wolfden Resources Inc. in February 2004. Wolfden conducted a drilling campaign in 2004, and until 2006 attempted to gain access to the underground. In 2007, Wolfden was acquired by Zinifex of Australia, which subsequently merged with Oxiana Ltd. to become Oz Minerals, which was acquired by MMG Resources Ltd. in 2009.