Projects

Sherridon - Manitoba

Location

The Sherridon Project lies 65km northeast of the mining/metallurgical complex in Flin Flon and linked by an all-weather 78 km road. The site is also serviced by a railroad, power line and the small community of Sherridon/Cold Lake. 

Aguila is earning 90% of the Sherridon Project from Halo Resources Ltd (“Halo”) under an Option Agreement signed January 2022. Aguila shall issue 100,000 fully paid shares, pay CA$15,000, incur CA$1,00,000 in exploration expenditures by the 4th anniversary, and an additional CA$1,000,000 of exploration expenditures by the seventh anniversary of the Option Agreement to earn 90%. Upon exercise of the option, Halo and Aguila will form a joint venture to advance the Property. Halo may fund project expenditure in proportion to its interest in the Property, or its interest will be converted into a 1.5% net smelter royalty that is purchasable by the Company for CA$2,000,000 at any time.

Geological Setting

The Sherridon VHMS District is situated within the famous Flin Flon/Snow Lake Mining Camp, associated with a greenstone belt dated at 1.92 to 1.88 Ga.

The Flin Flon/Snow Lake Mining Camp extends over a 250 km interval on the southern margin of the Tran Hudson Orogen in central Manitoba and Saskatchewan, Canada. It hosts clusters of volcanic hosted massive sulphide (VHMS) copper-zinc-gold deposits surrounding Flin Flon, Snow Lake, Hanson Lake and Sherridon.  Each of these clusters includes one or more larger deposits and smaller satellites.

The Trans Hudson Orogen (THO), the worlds largest Paleoproterozoic magmatic belt that includes major mining districts in North America and Europe.

The Sherridon District lies within the Kisseynew Domain to the north of the main Flin Flon-Glennie Complex.  Metamorphic rocks at Sherridon are interpreted to be formed from the Amisk Group and overlying Missi Group. The southern margin of the Kisseynew Domain is ~15 km to the south of the Sherridon deposit and is marked by the biotite-sillimanite-almandine isograd. The rocks of the Kisseynew Domain at Sherridon are divided into the Nokomis and Sherridon Groups, correlated with the Amisk and Missi groups respectively of the Flin Flon Greenstone Belt.

In the vicinity of the Sherridon deposit, the Sherridon Group defines a crescent shaped, 15 x 5 km, basinal structure, surrounded by Nokomis Group rocks.

Mineralization

The Sherridon VHMS District presently hosts 8 VHMS deposits or significant occurrences, all within Aguila’s claims (Bob, Cold Lake, Lost Lake, East Zone, Fidelity, Jungle, Park, and the Sherridon mine. These deposits are hosted in felsic to intermediate gneiss and amphibolite (high metamorphic-grade equivalents of the Flin Flon Domain). In addition, there are numerous untested exploration targets within the claims.

Ore minerals consist of coarse aggregates of massive to disseminated sulphides, which include, in order of abundance, pyrite, pyrrhotite, chalcopyrite, sphalerite, minor cubanite, rare arsenopyrite and small amounts of gold and silver.

Project History

Mining of the Sherritt Gordon deposit in the community of Sherridon took place between 1931 and 1951, over which time 7.74 million tonnes were mined at an average grade of 2.46% Cu, 2.84% Zn, 0.6 g/t Au and 33 g/t Ag (Froese & Goetz, 1981). Subsequent exploration was completed in the region by a range of companies, which identified numerous massive sulphide occurrences, typically associated with a similar host-horizon as Sherritt Gordon (Ostry et al, 1998).

Several companies have been involved with exploration of the Sherridon project from the 1950's to present. Most recently, Halo Resources conducted very extensive exploration from 2006 to 2011, including surface geochemistry, airborne and ground geophysics, mapping, extensive drilling resource calculation and metallurgical testwork.

Resource drilling conducted by Halo in 2010 resulted in Indicated and Inferred Mineral Resource calculations as described below.

Indicated and Inferred resources for Bob, Lost, Cold, and Jungle deposits. Mineral Resource estimates are based upon Bloom, L., Healy, T., Giroux, G., Halo Resources Ltd. 2010, Sherridon VMS Property, Technical Report NI43-101 – November 22, 2010, which is available at www.sedar.com.

Mineral Resources were estimated at a net smelter return (NSR) cut-off of US$20 per tonne and US$45 per tonne for open pit and underground respectively. Metal prices used were US$3.00/lb copper, US$1.05/lb zinc, US$1,000/oz gold and US$15.00/oz silver. Metallurgical recovery factors assumed were 92% for copper, 83% for zinc, 65% for gold and 57% for silver.

The Mineral Resource estimates were prepared under the direction of, and dated and signed by, a Qualified Person as defined in accordance with NI 43-101 and CIM Definition Standards. The data, information, estimates, conclusions and recommendations were consistent with the information available at the time of preparation. The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in NI 43-101 and recognized by Canadian securities laws. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be upgraded to mineral reserves. Aguila has received the exploration and drilling data, but has not independently confirmed the Mineral Resource estimates. Halo has indicated that no Mineral Resource estimates were completed subsequent to those provided in Table above.

Exploration

Exploration programs proposed for the Sherridon area to be executed during 2022 will seek to expand known resources and make new discoveries in this highly mineralized terrane. Resources are open along strike and down dip and present many follow up opportunities for significant expansion.

Resource Expansion:

  • 3D modelling of existing resources and past mine areas to develop targets along strike and down dip.
  • Review of existing geophysics
  • Drilling and assessment of untested Cu-Zn occurrences along ore horizon.
  • Infill drilling to increase confidence in inferred resource
  • Apply specialized data interpretation techniques to assess hydrothermal alteration and prospective lithological horizons.
  • Analysis for critical metals including lithium within pegmatites that have not previously been considered.

Greenfield/Flin Flon district scale:

  • Exploration will play an integral role in Aguila’s goals for further discovery in Manitoba

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