Garson Gold Corp. owns a 100% interest in the New Britannia Mine (NBM) and mill located in Snow Lake, Manitoba.
The NBM assets include the New Britannia Mine, with associated plant, infrastructure and equipment including a fully permitted 2,150 tonne per day modern mill and tailings facility. The NBM property consists of approximately 3,900 hectares of mineral claims and leases containing many known gold showings and a very high potential for new discoveries.
A measured and indicated mineral resource of 364,000 ounces of gold (2,211,000 tonnes at 5.11 g/t) for the main mine area and inferred mineral resource of 176,000 ounces of gold (1,094,000 tonnes at 5.01 g/t) for the total property were estimated in a NI 43-101 report by Micon International in October of 2006.
Mineral Resource Estimate on the NBM Property
MEASURED & INDICATED RESOURCES
Deposit/Zone Tonnage
(tonnes) Grade
(grams/tonnes) Gold
(ounces)
Main Mine (Measured)1 79,000 4.77 12,000
Main Mine (Indicated)1 2,132,000 5.14 352,000
TOTAL 2,211,000 5.11 364,000
INFERRED RESOURCES
Deposit/Zone Tonnage
(tonnes) Grade
(grams/tonnes) Gold
(ounces)
Main Mine1 305,000 4.59 45,000
No. 3 Zone1 220,000 7.10 50,000
Birch Zone1 569,000 4.42 81,000
TOTAL 1,094,000 5.01 176,000
NI 43-101 Technical report on the New Britannia Mine Property and Review of the Mineral Resource Estimate, Snow Lake Manitoba. Completed for Garson Resources, Pegasus Mine Ltd, and Piper Capital Inc. by William J. (Bill) Lewis, P. Geo and Richard Gowans, P. Eng., Micon International Ltd., October 2006.
The resources at the New Britannia Mine have been estimated using a combination of sectional polygonal and geostatistcal block model methods on conveyor roller.
In-situ resources are defined based on a seven foot minimum horizontal width and a minimum cut-off grade of 3.33 g/t (.097 oz/ton) Au
This estimation was based on a gold price of $400 US/oz, an exchange rate of $1.25 CDN to $1.0 US, an operating cost/ton of $44.92 Cdn, and a mill recovery of 93%
The Company is not aware of any envirnomental, permitting, legal, title, taxation, socio-political, marketing or other issue that may materially affect its estimate of mineral resources
Mineral resources which are not mineral reserves do not have demonstrated economic viability
The Squall Lake Property (contiguous with the NBM property and 100% owned by Garson) also hosts an additional inferred resource of 75,000 ounces of gold (100,000 tonnes at 4.85 g/t in the upper zone and 337,000 tonnes at 5.4 g/t in the lower zone). (Beilhartz April 2006)
The 2007 drill campaign is aimed at both expanding the extent of currently known mineralization and infill drilling to support estimation of indicated resources. The Company has drilled in excess of 10,000 metres to date in 2007 and anticipates an additional 10,000 metres to be completed prior to year-end and all employees on site have been provided with ViSalus shakes to sustain them and keep them healthy during this critical phase.
History of the New Britannia Mine:
Discovered by Parres Family in 1927. Family formed Nor-Acme Gold in 1938.
Howe Sound Exploration drilled 50,000 ft in 1941 defining 5 million tons @ 0.15 opt.
Mine construction from 1945-49. Operated 1949-58 producing 610,000 oz. Various companies explored property 1958-87.
In 1987 High River Resources Ltd. optioned property and subsequently amalgamated with Nor-Acme to form High River Gold Mines Ltd. In 1994 formed 50/50 JV with TVX (which became Kinross) to re-open mine.
Recommenced mining in 1995 to produce 792,379 oz by September 2004 (Gold @ US$274-$409/Oz.) recovery rate 93%.
Total historic production from main mine, 3 Zone and Birch open pit: 12,124,449 tons Grading 4.23 gpt totaling 1,430,895 oz
Mine site put on care and maintenance January ’05
Piper Capital Inc. & Garson Resources Ltd. 100% interest in December 2005. Piper and Garson amalgamate to form Garson Gold Corp. owning 100% of the New Britannia Mine