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Savant Explorations Ltd has an agreement with Jack Stoch Geoconsultant Services Ltd and Mr. Jacques Viau of Rouyn-Noranda, to acquire a 100% interest in the 852.5 hectare McWatters Gold Property ("McWatters") located 6 kilometres east fo Rouyn-Noranda on the prolific Cadillac-Larder lake Break, midway between two of the Abitibi's largest gold camps: the Kirkland --Larder Lake District (Past Production 36.9M ozs) and the Cadillac District (Past Production of 12.2 M ozs).
Acquisition Terms
Savant will acquire a 100% interest in the Mcwatters Property through cash option payments totalling $690,000 payable over a 4 year term, work commitments totalling $5,000,000 over 4 years and the staged issuance of 1.3million Savant common shares to the vendors over this same period. A gross metal royalty (GMR) on gold production will be payable to the vendors as follows: 1.0% GMR when gold is US$1,000 per ounce or less; 1.5% GMR when gold is greater than US$1,000 per ounce but less than $1,200 per ounce; 2.0% GMR when gold is greater than US$1,200 per ounce but less than $1,800 per ounce ; and 2.5% GMR when gold is greater than US$1,800 per ounce.
McWatters Property
The McWatters property covers 4.0 km of strike length along the Cadillac-Larder Lake Break and includes the past producing high-grade McWatters Mine (reported past production of 334,400 tonnes grading 10.8 grams/t gold) and two nearby diluted historical resources of 235,000 tonnes grading 6.6 grams/t gold and 170,000 tonnes grading 5.0 grams/t gold. A Qualifed Person has not done sufficient work to classify these historical estimates as current mineral resources. Savant is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon. The historical resources were shallowly tested to depths less tha 225 metres and remain open to depth. One of the historical resources occurs within a broad zone of alteration in mafic volcanics along the main
Cadillac-Larder Lake Break. The style and setting of the mineralization in this historical resouce is similar to that in the high-grade vertically extensive deposits in the Kirkland Lake District including the Kerr Addison Mine (past production 39.5 Mt grading 8.5 grams/t).
Little exploration has occurred on the property away from the McWatters Mine and the two historical resources. In these areas, testing of the main Cadillac-Larder Lake Break and secondary parallel structures, which host the gold mineralization on the property, is generally limited to depths in the order of 100 metres. The historical records note encouraging drill intercepts of 2 to 6 grams/t gold over narrow intervals in a parallel structure located north of the main Cadillac-Larder Lake Break which warrants further investigation.
A number of small past gold producers and prospects on or in proximity to the Break in both strike directions away from the Property are found within a radius of 10 km, and where neighboring exploration companies are actively drill testing known zones to greater depths. Five km east of McWatters along the Cadillac Break, Aurizon Mines, under a prefeasibility study on its Joanna Project, has outlined open pit reserves (23.6Mt grading 1.3 gpt gold: 995,000 ounces gold) along with measured, indicated and inferred resources of similar grade for a total of 2.9 million ounces of potential open pittable gold mineralization.
The documented presence of sheared ultramafic volcanics (talc-chlorite-carbonate shchists:Piche Group) and broad zones of silica-ankerite -- pyrite alteration in adjacent volcanics assocaited with gold mineralization in the Cadillac Deformation Zone at McWatters, are strikingly reminiscent of the equivalent "carbonate ore " and "flow ore" respectively characterized at the Kerr Addison Mine. Yorbeau Resources Inc. Drilling in the area of their Cinderella --Astoria mines along the Break 10kilomtres west of McWatters, in similarly described mineralization, intersected 3.35grams/t gold over 33 metres including 9.6 grams/t gold over 7.0 metres ata vertical depth of 450 metres down dip from known gold zones at surface (Yorbeau press release dated may 6, 2010).
The potential for the discovery of large high-grade gold depositssimilar to those in the Kirkland-Larder Lake District 50 kilometres to the west and the Cadillac District, 50 kilometres to the east, is promising. Savant will test the McWatters Property by undertaking systematic exploration drilling to locate high-grade gold mineralization at depth in the down plunge extensions of the known surface minerlaization as well as other areas within and peripheral to the Cadillac -Larder Break.
Richard Cote, ing is the Qualified Person responsible for the above content.
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