|
Francoeur/Arntfield/Lac Fortune Gold Mines - Gold Royalty
Beauchastel & Dasserat Townships, Quebec (NTS 32D/03)
Updated December 2020
French Article published in La Frontière and Le Citoyen - August 11, 2016
On March 3 2016, Globex signed a Binding Letter of Intent with Richmont Mines Inc. (‘Richmont’) to acquire 100% interest in the Francoeur Mine and Arntfield Mines, Arncoeur and Norex properties, west of Rouyn-Noranda, Quebec. The purchase includes a modern office building, headframe and hoist, core facility, machine shop and sundry equipment. In exchange for the property package, Globex had agreed to pay Richmont a 1.5% Net Smelter Royalty (NSR) on production at the Francoeur mine and Arncoeur property, up to a total of $1,300,000 after which the NSR would be reduced to a 0.5% NSR. In October 2017 Globex purchased this NSR thus eliminating it. Globex has also agreed to assume responsibility for $628,175 in mine closure and environmental bonding at the Francoeur mine of which $471,132 was previously deposited with the Quebec government by Richmont. Globex has deposited with the government the remaining closure funding of $157,043.
As part of the transaction Globex transferred title to 11 claims located in Beauchastel Township adjoining the East boundary of Richmont’s Wasamac gold property to Richmont. These claims were subject to a 0.5% NSR payable to Globex which was cancelled as part of Globex’s purchase of the Francoeur/Arntfield, etc., royalty.
The transaction sees two Globex royalty properties; a small portion of the Arntfield and the King of the North, which had previously been sold to Richmont as development of the Francoeur Mine proceeded, returned to Corporation.
2017 Globex Work Program
In 2017, Globex executed stripping, channel sampling and drilling on the Francoeur/Arntfield property.
Gold values were obtained in the ‘’Main Shear’’ (the Francoeur-Wasa Shear) and also in the ‘’South Shear’’, a historical unexplored shear zone south of the Main Shear. In channel sampling, the South shear returned 9.52 g/t Au over 7.1 m including 15.4 g/t Au over 4.1 m and 4.25 g/t Au over 3.75 m.
The drill program was designed so as to follow up upon gold bearing South Shear. Several holes were also positioned so as to also intersect the Main Shear. The better drill holes assays in the South Shear are the following:
|
South Shear best results
|
|
Hole #
|
Au (g/t)
|
True Width (m)
|
|
FS-17-38
|
2.97
|
1.97
|
|
FS-17-39
|
2.88
|
1.97
|
|
FS-17-40
|
6.25
|
3.25
|
|
FS-17-41
|
4.04
|
7.34
|
The better assays in the Main shear are the following:
|
Main Shear best results
|
|
Hole #
|
Au (g/t)
|
True Width (m)
|
|
FS-17-42
|
1.58
|
4.61
|
|
FS-17-45
|
11.57
|
2.16
|
The 2017 Globex work program map shows the localisation of the strippings, the drill holes and the best results.
Property Description and Location
The Francoeur Property consists of 142 mining titles (4,129 ha) including; claims, mining concessions and mining leases. The property is located 18 km west of the town of Rouyn-Noranda Quebec in the townships of Beauchastel and Dasserat. The property can be accessed via highway 101 and northwards on Rue Provencher as well as numerous roads and trails.
Francoeur - Arntfield Property Claim Location Map
Geological Setting and Mineralization
The Francoeur and Arntfield gold property is situated in the Abitibi Sub-Province in the southern part of the Superior Structural Province. The underlying rocks are part of the Blake River volcanic group consisting of numerous interlayered mafic and felsic volcanic sequences. The volcanic rocks are intruded by diorite and gabbro intrusive masses. Syenite, feldspar porphyry and lamprophyre intrusions and dykes are common, particularly near important faults. Most faults or fractures on the property including the Wasa shear trend roughly east-west and eventually merge with the Cadillac Larder Lake Break to the east of the property.
The properties extend over an area of 1,866 ha traversing approximately 7 km of strike length along the gold localizing Francoeur Wasa Shear Zone. Mineralization at Francoeur is a gold replacement type with close coexistence of gold and pyrite disseminated within and peripheral to altered shear zones. Hydrothermal alteration is well developed, and alteration minerals have distinct zonation from orebody outward: albite-pyrite to carbonate-hematite to muscovite-chlorite. Gold mineralization is closely associated with these alterations, especially albite-pyrite alteration. Several gold zones are found on the property along the Francoeur-Wasa shear zone.
The Francoeur No.3 deposit constitutes the main ore zone of the Francoeur Gold Mine; it was mined until 2001 down to the 17th (>800 m) level by Richmont. The No.3 deposit is hosted in the metavolcanic rocks of the Blake River Group and developed in the ductile Francoeur-Wasa shear zone. It is in contact with the southern margin of a gabbro-diorite stock. The mineralized zone extends down dip from surface to beyond the 17th level. It is a composite orebody consisting of four distinct ore zones, three of which occur within the Francoeur-Wasa shear zone.
The "West Zone" is located to the west of the No.3 Deposit. It is composed of one zone with a variable thickness (0.5 m to 15 m) within the Francoeur-Wasa shear zone and dipping northward at about 35 to 45°. Gold-bearing mineralization is closely associated with albite-silica-pyrite alteration and a brittle fault breccia or mud fault. This zone differs from the No.3 orebody by its apparent NW plunge, instead of the NE plunge generally observed elsewhere in the mine and also by its association with multiple dykes.
It is estimated that 2,187,200 t grading 6.17 gpt Au were mined from Francoeur producing 414,413 oz of gold (Source: Richmont Mines). The adjacent Arntfield Mine is reported to have produced 480,804 tonnes grading 3.98 gpt Au and 0.93 gpt Ag between 1935 and 1942 (Source: SIGEOM, Quebec government files).
History of the Arntfield Mine
Part of the history of the Arntfield property is abridged from a report by Alain Tremblay dated March 1986, titled; Cogesco Partnership 1986 and Company, Ltd., Report on Noranda Exploration Company Ltd. The property was first staked in 1923 by F.S. Arntfield. Stripping and some drilling brought to light numerous gold showings all along the Francoeur-Arntfield (Wasa) Shear Zone.
By 1935, three small inclined shafts totalling 2,500 ft were sunk. Extensive drifting permitted the delineation of sufficient reserves to justify production. In 1942, the mine was closed due to wartime restrictions. At the time, only the zone around Shaft #2 appeared to be open at depth.
Between 1942 and 1946, exploration work consisting of drifting and drilling was carried out in the area of Shaft #2 and Shaft #3. This work established the continuity of the #3 Zone. Several holes were drilled from surface to probe new targets but failed to identify continuous zones. However, several interesting intersections with values varying from 6.86 gpt Au over 0.78 m to 8.12 gpt Au over 5.9 m were encountered at vertical depths approaching 270 m.
In 1977, Noranda Exploration staked the property and carried out geological and geophysical surveys (Magnetometer, Radem, HEM, IP). Three holes were drilled to test the extension of the Shaft #2 zone while five other holes tested selected geophysical anomalies.
In 1985, Cogesco funded a $600,000 surface drilling program aimed at better defining resources in the Main Shear Zone and testing the potential of other gold showings on the property. Thirty two holes were drilled on the Main Shear Zone to a maximum depth of 1,000 ft (300 m). This zone now appears to be about 15 ft (4.6 m) thick and remains open to the east.
In 1988, Nova Cogesco reported mineral resources at the No. 5 zone including 571,500 t grading 4.73 gpt Au and 108,900 t grading 6 gpt in the Main Zone. These resources were reported in the 1988-89 Canadian Mines Handbook and have not been prepared by a qualified person under National Instrument 43-101 and are considered historic and not to be relied upon. The Northern Miner (Sept. 23 1991) later reported Noranda and Nova Cogesco had announced an historic resource of 633,086 tonnes grading 4.84 gpt Au (98,512 oz Au) at the Arntfield Mine property (Source: sigeom.mines.gouv.qc.ca). These resources are also historic in nature.
History of the Francoeur Mine
Information in this section is abridged and excerpted from the “Technical Report on the Mineral Resource and Reserve Estimate for the Francoeur Gold Mine Rouyn-Noranda, Quebec, Canada as of June 15th, 2012 By Daniel Adam, Ph.D., Geo., Marc-André Lavergne, Ing. and Émilie Tremblay-Paquet, M.Sc., Geo.” filed by Richmont Mines Inc. on SEDAR on Aug 17, 2012 and from other continuous disclosure documents posted by Richmont to SEDAR and their Website. The reader is referred to Richmont’s original report disclosed on SEDAR for complete details.
A mineral resource (Measured and Indicated 320,000 t @ 6.47 gpt Au (66,600 oz Au) and Inferred 18,000 t @ 7.17 gpt Au (4,150 oz Au)) has been identified by Richmont in the West Zone of the Francoeur mine using a cut-off grade of 4.3 gpt Au and a gold price of CDN $1,300 (approx. USD $965) (Richmont Web Page Disclosure - Mineral Reserve & Resource Table as of December 31, 2015). This resource has not been reviewed by a qualified person for Globex under National Instrument 43-101 and is considered by Globex as an historical estimate. According to Francoeur’s work, the resource remains open at depth and is accessible by shaft and underground ramp.
Francoeur Mine Property - Surface Geological Plan
(ref. Richmont Mines Inc. Technical Report on the Francoeur Gold Mine as of June 15th, 2012)
Francoeur Mine Property - Generalized Deposit Cross Section
(ref. Richmont Mines Inc. Technical Report on the Francoeur Gold Mine as of June 15th, 2012)
Francoeur Mine Property - Generalized Deposit Longitudinal Section
(ref. Richmont Mines Inc. Technical Report on the Francoeur Gold Mine as of June 15th, 2012)
Exploration and Development
Information in this section is abridged and excerpted from the “Technical Report on the Mineral Resource and Reserve Estimate for the Francoeur Gold Mine Rouyn-Noranda, Quebec, Canada as of June 15th, 2012 By Daniel Adam, Ph.D., Geo., Marc-André Lavergne, Ing. and Émilie Tremblay-Paquet, M.Sc., Geo.” filed by Richmont Mines Inc. on SEDAR on Aug 17, 2012 and from other continuous disclosure documents posted by Richmont to SEDAR and their Website. The reader is referred to Richmont’s original report disclosed on SEDAR for complete details.
In 2004, Globex Mining Enterprises Inc. acquired part of the Arntfield Property comprised of the historic Block H and a small part of Block O. The property covers the area just east of the inclined Arntfield Mine #2 shaft and includes most of the eastern underground workings of the former mine.
Globex completed a small amount of prospecting and compiled historical information on the property. This was followed by a program of 3 short drill holes to test an area of surface alteration and erratic gold mineralization. Globex drilling intersected up to 2.46 gpt Au over 2.84 m and 1.93 gpt Au over 6.62 m.
Further drilling and exploration was warranted when the property was sold to Richmont in 2011.
In 2009, Richmont completed a Technical Report which included Probable Reserves of 615,664 t grading 6.91 gpt Au, proposing a total production of 136,000 oz of gold over an initial 4 year period, or 35,000 oz annually. The mineral reserves were prepared using a gold price of US$800/oz and a USD/CAD exchange ratio of 1.00. These reserves and resources have not been verified by a qualified person for Globex.
Francoeur Mine Reserves and Resources 2009
|
|
Tonnes
(metric)
|
Grade
gpt Au
|
Ounces
contained
|
|
Probable Reserves
|
615,664
|
6.91
|
136,749
|
|
Indicated Resources
|
76,449
|
7.54
|
18,541
|
|
Inferred Resources
|
202,250
|
5.95
|
38,706
|
In 2010 and 2011 Richmont began re-development of the Francoeur Mine, dewatering the mine’s 17 levels and completing 6,238 m of development including a ramp access to the lower portions of the No. 3 and West Zones. Surface and underground infrastructure were re-commissioned and 15,574 m of definition drilling began in November 2010. The company also announced intentions to complete 9,100 m of exploration drilling and 25,000 m of definition drilling at the Francoeur Mine in 2012.
1,265 oz of gold were reported produced in 2011 and 3,401 oz in 2012 from ore treated at the Camflo Mill.
A new reserve and resource calculation was completed at Francoeur Mine in a Technical Report filed on SEDAR on August 17, 2012 using a gold price of US$1,400/oz (USD/CAD exchange ratio of 1.00).
Francoeur Gold Property Reserves and Resources –June 2012
|
|
Tonnes
(metric)
|
Grade
gpt Au
|
Ounces
contained
|
|
Proven Reserves
|
52,626
|
5.14
|
8,700
|
|
Probable Reserves
|
452,061
|
4.74
|
68,880
|
|
Total Proven + Probable
|
504,687
|
4.78
|
77,580
|
|
Measured Resources
|
5,981
|
4.65
|
895
|
|
Indicated Resources
|
27,320
|
4.1
|
3,604
|
|
Total Measured & Indicated Resources
|
33,301
|
4.2
|
4,499
|
|
Total Inferred Resources
|
41,240
|
4.35
|
5,771
|
On November 29, 2012, the Corporation announced the immediate closure of the Francoeur Mine due to high operating costs, low realized grades and difficult mining conditions. Commercial gold production at Francoeur ceased on November 30, 2012.
In 2013, Richmont reported 9,542 t of ore were milled (1,560 oz?) from the discontinued Francoeur Mine operation.
In 2014, Francoeur reserves and resources were restated in 2014 eliminating reserves (or downgrading them to resources). These resources were reported again by Richmont in web disclosure with an effective date of December 31st, 2015.
Francoeur Gold Property Reserves and Resources –December 31, 2014 (and 2015)
|
|
Tonnes
(metric)
|
Grade
(gpt Au)
|
Ounces
contained
|
|
Measured Resources
|
40,000
|
5.89
|
7,600
|
|
Indicated Resources
|
280,000
|
6.55
|
59,000
|
|
Total Measured & Indicated Resources
|
320,000
|
6.47
|
66,600
|
|
Inferred Resources
|
18,000
|
7.17
|
4,150
|
|
