The Savant Lake gold project is located 240km NW of Thunder Bay, Ontario, and covers 22,900 Ha (229 square kilometres) of underexplored but highly prospective stratigraphy for the discovery of high-grade iron formation- and shear-hosted gold deposits. Exploration activities to date have focused on seven known iron formation-hosted gold occurrences, with the highest gold grade showings (Horseshoe, Snowbird, L28) having never been drill tested and the remainder inadequately tested by historical drilling (see Company New Releases dated November 21, 2018 and December 2, 2019) . Airborne magnetic data also indicate that 60km of cumulative strike length of prospective, folded iron formations remain to be evaluated (with 90% of this strike length having either limited or no surface exposure). Shear-hosted gold occurrences have also been identified within flanking bimodal volcanic rock sequences.
On September 21, 2020, the Company announced the signing of an earn-in JV with Ethos Gold Corp. (TSX.V: ECC) in which Ethos has the option to earn-in to a 70% interest in the Savant Lake property in return for a combination of cash and share payments to Capella and work commitments totalling $2M over a 3 year period. An additional payment will be made to Capella upon the reporting of a National Instrument 43-101 (“NI 43-101”) compliant mineral resource of greater than 1 million ounces of gold. Final TSXV approval for the JV was received on October 22, 2020.
|Location||240 km NW of Thunder Bay, Ontario|
|Ownership||100% Capella Minerals Ltd. Ethos Gold Corp. option to earn 70%.
2% NSR to underlying vendors, 1% may be acquired for CAD 1M
|Status||Exploration stage, drill ready|
|Deposit types||Primary targets are high-grade, iron formation- and shear-hosted gold
Secondary targets are base metal-rich VMS deposits
|Property Size||22,900 hectares (229 square kilometres)|
|Host Rocks||Warclub (iron formation) and Jutten assemblages for Au targets
Handy Lake and Jutten assemblages for VMS targets
|Commodities||Gold & base metals (Cu-Zn)|
|Access||All weather road and within 25km of CNR main rail line|
Other significant iron formation-hosted gold deposits in the broader Savant Lake district include Newmont’s Musselwhite mine and Centerra/Premier’s Hardrock deposit. Great Bear’s recent Dixie discovery is located in the nearby Red Lake district.
Location of the Savant Lake mineral claims
The Savant Lake project is located within the Archean-age Savant Lake-Sturgeon Lake greenstone belt. The Company’s large mineral claim block covers an underexplored but highly prospective stratigraphy for the discovery of high-grade, iron formation-hosted (“Musselwhite-type”) gold deposits, shear-hosted gold deposits, and base metal-rich VMS deposits.
Prospective areas for gold and base metal (VMS) deposits at Savant Lake. Folded iron formations of the Warclub assemblage in the central portion of the property represent priority gold targets; the flanking Jutten and Handy Lake assemblages are favourable hosts for both shear-hosted gold and VMS deposits.
Capella Exploration and Drill Target Generation
During 2016 the Company completed an airborne geophysical survey over the Savant Lake project, which resulted in the definition of numerous targets with the potential to host gold and/or base metal mineralization. In early 2017, the Company completed an initial 8 hole / 1,626 m diamond drill program on select geophysical targets in the northern part of the property, however, numerous known high-grade gold targets and showings in the central and southern portion of the property remain untested.
In May 2019, Thunder Bay-based consultant Neil Pettigrew (Fladgate Consulting) completed a comprehensive property-scale targeting review for the Savant Lake project. This work utilized all existing geological and geophysical data for Savant Lake and resulted in the definition of 7 priority targets (5 for gold and 2 for VMS-type deposits) for follow-up work and drilling.
Known High-Grade Gold Showings at Savant Lake
Location of known high-grade surface gold showings at Savant Lake.
Terms of the Ethos Agreement
Ethos may earn-In to a 70% interest in the Savant Lake property in return for the following cash and share payments to Capella and associated work commitments:
|Cash||Ethos Shares||Work Commitment|
|September 20, 2021||$50,000||2,000,000||$500,000|
|September 20, 2022||$50,000||2,000,000||$1,500,000|
|September 20, 2023||$50,000||2,000,000||$500,000|
In the event of a NI-43-101 compliant mineral resource of >1 million ounces of gold being defined on the property, Ethos will make a further payment to Capella of $50,000 in cash and 2 million Ethos shares.
Work Completed under the Ethos JV and Proposed 2021 Work Program
As part of its Year 1 work commitments, Ethos has completed a high-resolution, 4,000-line km helicopter-borne magnetic survey over the main Savant Lake claim block. This survey has provided higher definition of the principal gold target at Savant Lake, the estimated 60 km cumulative strike length of deformed iron formation units (with 90% of this strike length having either limited or no surface exposure). Detailed evaluation / interpretation of this airborne magnetic data is currently in progress, with results to be integrated with existing geological, geochemical, and geophysical data. Ethos plans to mobilize field crews in early spring with the intention of ground truthing priority target areas followed by drilling in Q3, 2021.
An orientation basal till sampling program was also completed over a select area encompassing a highly-prospective shear zone along the northern margin of the iron formation basin. Gold grains recovered from the till samples will be characterized to estimate intensity of prospective mineralization and distance and direction to bedrock source. A detailed compilation of historical data for Savant Lake, derived mainly from assessment reports, has also been completed.
Ethos currently expects to complete a fixed-wing LIDAR survey (used for topography and detailed structural interpretations) at Savant Lake during Q2, 2021.