Kirana Mine Property

Nirek Resources Inc. has entered an agreement to purchase a 50% interest in this property. The Kirana Mine claims are on the north-east corner of Teck Township and the north west corner of Lebel Township in the District of Timiskaming, in the Larder Lake Mining Division. The claim group consists of 8 contiguous mining claims. The main gold showing is along the Kirana Fault, now believed to be an extension of the Lake Shore Mine North Fault.

Kirana Kirkland Gold Mines Ltd. was incorporated in 1936 and succeeded La Belle Kirkland Mines Ltd. An inclined shaft was sunk to a depth of 300 feet on claim L.1751 in 1916 by La Belle Kirkland Mines. It was subsequently deepened to 360 feet, and 1,150 feet of lateral work was done on the 100- and 250-foot levels. The greater part of the claim group is underlain by intermediate and basic volcanics intruded by dikes and small irregular bodies of quartz porphyry.

Burrows and Hopkins described the deposit as occurring on contact which dips 60-70N between quartz porphyry and altered basalt. The porphyry forms the hanging wall of the deposit. The basalt near the contact is greatly altered to a greyish rock high in silica, calcite, and other carbonates; it is in this zone that streaks or bands of blackish material form the higher-grade portion of the deposit. These streaks contain films of molybdenite, to which the dark colour is due, and abundant iron pyrite, quartz, and calcite, with occasional specks of visible gold.

The high-grade streaks or bands are reported to carry from 1 oz to 4 oz/t in gold, and a probable value of 1 oz/t Au is given for a width of 7 feet to 10 feet, for some of the ore (Burrows and Hopkins 1916).

In another report Mining Engineer Frank C. Loring reported: The #1 shaft - 360 ft. deep, is sunk on the footwall of a vein of average width of about 10 ft. a streak on the footwall, averaging about a foot thick, is exceedingly rich and contains visible gold for the entire depth of the shaft. Drifts at 100 ft. and 275 ft. depth have developed the vein for a total length of between 500 and 600 ft., and have exposed ore estimated between 40,000 and 50,000 tons of an average value of 1/2 oz/t Au. This vein has been cut by diamond drill at a depth of 700 ft. from the surface, and directly under shaft. At this point the vein is of similar width and quality as occurs in shaft.

More recently Nova Beaucage with Joint venture partner Minnova explored the Kirana-DeLoye and several adjoining properties in the late 1980's. Much of their work consisted of soil geochemistry. They concluded elevated gold content was due to wind blown soil contamination and dropped the option. A rather interesting extrapolation in that all of the slimes (tailings) deposits from Kirkland Lake mining operations lie to the south and south west of the property while the prevailing winds are from the north west.