Schumacher
Lake Shore signed a 20 year lease agreement with the Canada Trust Company (trustee of the estate Frederick William Schumacher) to acquire a 100% interest in the mining lease on the Schumacher Estate Property located contiguous to and west of Lake Shore’s Vogel Property. The acquisition is subject to a 2% NSR royalty.
The Schumacher Estate Property, which consists of one patented lot covering 64 hectares, has seen limited exploration in the past. The focus of past exploration has been on the eastern part of the property where a historic measured and indicated resource of 156,000 tonnes at 5.99 grams gold per tonne has been estimated (estimated by Pentland Firth Ventures Ltd.). This resource, which remains open, represents the western continuation of the immediately adjacent Vogel gold mineralization.
The acquisition of the Schumacher Estate Property doubles Lake Shore’s land position to 1.6 kilometres along the key mineralized horizon hosting the Hoyle Pond, Bell Creek, Owl Creek and Vogel gold deposits.
The Vogel Property contains a historic measured and indicated resource estimate of 642,000 tonnes at 12.7 grams gold per tonne located primarily on the west side of the Vogel Property and extends onto the Schumacher Estate Property. (Glencairn’s 2003 Annual Report based on ACA Howe’s 1999 resource estimate using CIM standards, for Black Hawk Mining Corp.)
These measured and indicated resources are historic. The Company has not completed the work necessary to verify the classification of the resources and as such any historic estimates should not be relied upon.
The Vogel resource and the Schumacher mineralization occur within the main mine stratigraphy between the Hoyle Pond-Bell Creek-Owl Creek deposits. These current and past producers describe bonanza grade gold mineralization associated with flat veins and northeast structures as one of the highest-grade gold zones mined in the Timmins Camp. The flat vein/northeast structures were not previously targeted on the Vogel Property.
