McMillan Mine Gold Project

  • McMillan – Produced 60,000 tonnes grading 0.18 oz per tonne between 1934 and 1937               

  • 20 kms south of Espanola, 73 kms east of Sudbury, on a highway                                                    

  • Exploration drilling completed in recent years returned intercepts including 10.85m grading 7.91 g/t Au

  • Modelling of the exploration drilling has indicated down dip extensions of the ore shoots as shown below

McMillan Mine - 1986
LaPierre - Laki Resources
McMillan Mine

April 2006 - Butler

Garson Resources

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Township                            Licence #                        Title Holder

Mongowin                                148095                                 Canadian Star

Mongowin                                181970                                 Canadian Star

Mongowin                                237414                                 Canadian Star

Mongowin                                165931                                 Canadian Star

Mongowin                                184120                                 Canadian Star

Mongowin                                289949                                 Canadian Star

Mongowin                                106636                                 Canadian Star

Mongowin                                301403                                 Canadian Star

Mongowin                                144179                                 Canadian Star

Mongowin                                246044                                 Canadian Star

Mongowin                                246043                                 Canadian Star

Mongowin                                306223                                 Canadian Star

Total                     12 Claims

July 28, 2019 by ontario explorations 101

https://www.ontarioexplorations101.com/sudburyontario-mines/mcmillan-gold-mine-site

The McMillan Gold Mine is an old gold mine located in Mongowin Township, Northeastern, Ontario, Canada.  One of the very first discovers of gold in the area was known as a prospector by the name of E. J. McMillan. It was also this very discovery that was named after the prospector after agreements were made with Dr. John H. Banks, of New York. Dr. John H. Banks would shortly after incorporate the McMillan Gold Mines, Ltd., that resulted in him being the main company president. Most of the reasoning for establishing the company was mainly done in accordance with the Ontario Companies Act, and the company was officialised on December, 31, 1926. By this time the company had a total authorized capitalization of $2,000,000 that was divided into 2,000,000 share of $1 each. In addition to this incorporation, he would additionally hire G. A. Foote as the company’s vice president, and Chas B. Goldsborough was the secretary treasurer of the company. The main directors of the company were Rufus L. Patterson, John H. Banks, Chas B. Goldsborough, J. W. Boardman-Milligan, J. G. Henry, G. A.. Foote, and E. J. McMillan.
 
It was in 1924, when the McMillan Development Company was incorporated to take options of a few properties. These properties at the time were owned by the Gold Nugget Mining and Development Company. The company had owned several properties, one being in Scadding Township, and the other one located in Mongowin Township. Most of the major amount of work at the time was focus on gold properties located in Scadding Township, near Sudbury, Ontario, Canada. Diamond drilling was additionally commenced on the McMillan Gold Property, and a total of five holes would intersect good gold values. A minor amount of trenching was also commenced at the Lake Pit, and the No. 2 pit, in which gold was observed in both pits. After encouraging results it was decided to incorporate a new company known as the McMillan Gold Mines to advance development and exploration on the property.
 
In 1926, it was widely reported that a total of 28 claims in Mongowin Township were secured by the newly incorporated McMillan Gold Mines, Ltd.  Diamond drilling was additionally first commenced on the property at this time that resulted in drilling five holes, with the deepest having a vertical depth of 200-feet.  Most of the drilling that was achieved at this time was being commenced by the McMillan Development Company. These results became so encouraging that the company was now planning to engineer one of the very first shafts on the property that would be started in 1927.  
 
Development would additionally commence during March, 1927, and had reached a depth of 200 feet by June. One level was additionally station cut on the mines 125-foot horizon that became one of the very first levels. Other plans were being establish to sink the shaft to a depth of 550 feet and prosecution of lateral development work would be done on the 125-, 225-, 325-, 425, and 525-foot
 
By the end of 1927, it was reported that the main No. 1, two compartment, shaft was completed to a depth of 550-feet below the surface. Station cutting that was commenced within the underground workings was completed at various depths of 125-, 225-, 325-, 425-, and 525-feet. One of the very first mine superintendents of this project was E. J. McMillan, and a total of 32 men were employed to this project.
 
After establishing the main levels of the workings it was at this point that lateral development would be commenced in 1928. The total amount of lateral development that was completed to September, 1, 1928, had amounted to 2,200-feet of drifting and crosscutting.  Lateral development that was completed had been confined to levels on the 325-, and -525-foot horizons of the McMillan No. 1 Shaft. It was this lateral development work that had proven commercial ore-grade for a length of the 300 feet approximately. 
 
Construction and installation work was also progressing on the main plant that consisted of a 150-H.P. horizontal return tubular boiler, a single drum hoist, an Ingersoll Rand Drill Sharpener, and an oil burning forge. A new office building was also constructed, an additional bunk house was erected, and the old office building was converted to a Manager Residence. By the end of 1927, it was reported that the McMillan Gold Mines had increased it capitalization from $2,000,000 to $3,000,000 shares at 1 Par Value. Most of this increasing was aimed at providing financial for further development and the possibility of erecting a milling facility. A change had also been made to the company’s officers, and directors, as John H. Banks was still the president, Chas. B. Goldsborough continued to be the secretary treasurer, and W. J. Galligan, R. L. Patterson, G. A. Foote, E. J. McMillan, and Jos Errington were made directors.
 
It was also during 1927, that the company’s directors had called for additional diamond drilling, a continuation of the exploration of the 325-, and 525-foot levels, and tentatively for the sinking of a three compartment shaft. This would be done as time had warranted for the erection of a mill and the establishment of the property on a production basis.
 
Much of the greater amount of work in 1928, was mainly being focus within the area between the shaft, and the diabase intrusion, that was some 400 feet away. Ore within this section on the 325-foot had additionally given assay averages of $9.30 per ton for a total length of 282 feet. This also included a section on the 525-foot level that average $10.45 in gold per ton for a total length of 267, and over a width of 40.2-inches. Further diamond drilling was also done on the wider ore-body on the 525-foot level that needed more fallow up drilling. Other exploratory work had also been done on the No. 2 Pit vein that was not opened up yet.
 
Much of the work that was done outside of the above area was generally confined to drifting west on the shaft on the 325-foot level. It had also been followed by drifting to the east through the diabase intrusion on the 525-foot level. This considerable amount of drifting that was followed by comparatively little crosscutting, had mainly been aimed at providing a way for diamond drilling stations to the south, and was continued by a crosscut. Certain sections which were located to the west and east of the shaft were only partially explored in 1928. Lateral development done to the east of the shaft had amounted to 737 feet of drifting, and a total of 362 feet of drifting was done to the west.
 
 A total amount of crosscutting done to the east of the shaft had amounted to 468 feet, and 68 feet of crosscutting was done to the west on the 325-foot level. The main crosscut on the 325-foot level was extended for a length of 28 feet in parts of lateral development work done. During 1928, the 525-foot level was also extended to the east of the shaft for a length of 1,278 feet by drifting, and 442 feet of crosscutting was done to the east. In total amount of lateral development work done it was reported that 1,300 feet of crosscutting, and 2,313 feet of drifting had been completed. The total amount of diamond drilling that was completed during the year had resulted in a total length of 2,350 feet. No much was done in regards to surface work as a new blacksmith shop, containing an oil forge, and a steel sharpener were erected.
 
An examination of the property made by Percy E. Hopkins on June, 1929, had reported that the main ore-zone on the 325-foot level have an average gold content of $7.33 per ton. A zone that was examined on the 525-foot level, having a length of 213 feet, and an average width of 43.9-inches, gave values averaging $7.93 per ton in gold. The property at this time was still being manage and operated by the main discover, known as E. J. McMillan.
 
Many different types of ore had also been assayed by Dr. Derry, who was a professor of Geology at the University of Toronto. He indicated that the abundant surface material of arsenopyrite had average 1.72 oz. Au per ton. The pyrrhotite ore would also assay an average of 1.12 oz. Au per ton, and the chalcopyrite ore had average 1.32 oz. Au per ton.

One of the best known geologists at this time was Mr. P. E. Hopkins, who had also examined the ore on the surface at the McMillan Gold Mine. Assays that were obtained from Pit No. 2 had indicated an average gold grade of 0.85 oz. over a true width of 8.8 feet, including 0.35 oz. Au per ton over 3.4 feet, and 0.72 oz. Au per ton over a width of 6.0 feet. The Lake Shore Pit veins had also been sampled at this time that resulted in commercial values for a strike length of 80 feet, and had been abundant in gold.
Lateral development had continued to take place throughout the operating year of 1929. It was at this time that development work was focus on continuing to expand the underground workings on the 325-, and 425-foot level. Drifting that was done west on the 325-foot level had amounted to 7 feet, and a total of 240 feet of drifting was done east. This would also follow by continuing a crosscut west of the shaft that amounted to 47 feet, and a total of 46 feet was done to the east of the shaft. Lateral development work was also confined to the 425-foot level that amounted to 345 feet of drifting to the east, and 38 feet of crosscutting. An internal winze shaft was additionally sunk from the 425-foot level to a depth of 560 feet. Diamond drilling at this time had amounted to four surface holes, totalling 1,260 feet, and 2 underground drill holes, totalling a length of 778 feet. The total lateral development work that was done to date had amounted to 3,480 feet of drifting, 1,740 feet of crosscutting, and 32 feet of raising for diamond drill set-up. Mining operations at the McMillan Gold Mine would be suspended on November, 1929, owing to the lack of financing for this gold project.
 
Upon completion of this work it was also stated that a new vein was discovered, and was commonly referred as the J Ore-Body on the 525-foot level. Assay which were done on this vein had returned results of 0.22 oz. Au per ton over a width of 3.7 feet, and a length of 180 feet. This area had also included an additional lens that was 276 feet in length, carrying an average of 0.51 oz. Au over 3.6 feet.
It was also on the 325-foot level that a total of 6 lens were noted for having a length of 314 feet. These lens had also average a grade of 0.45 oz. Au per ton over a true width of 3.4 feet on the 325-foot level. One lens was also noted on the 425-foot level that carried an average grade of 0.52 oz. Au per ton over a width of 4.3 feet.

Operations at the McMillan Gold Mine would shortly after resume on June, 15, 1933, after three years of shut down. The main process in dewatering the shaft had also started at this time, and work was being prepared to commence in September.  By that time it was reported that the No. 1 shaft was sunk an additional 100 feet to a total depth of 650 feet below the surface. As this had taken place it, a new level was shortly after station cut on the mine’s 625-foot level. Much of the total lateral development work completed had resulted in 302 feet of drifting, and 53 feet of crosscutting that was done on the 625-foot level. It was also within 1933, that a new drag theory was establish by consultant engineer Jas. G. McGregor. McGregor had also examined the 325- and 525-foot levels in which a total length of 272 feet was in ore, and had its own width of 4 feet, at an average grade of 0.49 oz. of Au per ton. An estimated indicated ore reserve calculation was also made from the 525-foot level to the surface of all lenses connected between levels. This had resulted in a non- N-43-101 compliance of 152,800 tonnes at various indicated average grades that could only be taken up by the Cyanide Mill. Swelling of the drag fold was also observed in depth that would enhance the length and width of gold bearing quartz veins at depth of 525-feet.

 

The 525-foot level had also intersected a fairly large quartz vein being 24 feet in width, and ore grade values.One of the main plants used in recent years was upgrade in 1933, and had now consisted of a 125- H.P. Boiler, a 9- by 12-inch Jenckes single drum hoist, and a 345-cubic-foot Sullivan steam-driven compressor. From the recommencement of mining operations, it was reported that a total of 13 men were employed. It was also at this time that much of the employment and work was being done by George Dunn. A change was also made to the officers and directors of the company, in which Dr. J. H. Banks was still the president, G. A. Foote was also the vice president, and F. C. Fraser was the company’s secretary Treasurer. Some of the main directors of the company were D. P. Wood, F. Davidson, A. B. Bryson, C. A. Durkee, R. Martin, and G. M. Miller.   Most of the work in 1934, had been confined to the construction of a 235-ton cyanide mill, which was place into operation on August, 1934. It was also within that year when an electrical powerline was constructed from Espanola to the McMillan Gold Mine Site. Underground mining operations would once again be resumed as the mine was back into steady development and production of ore that was generally stockpiled. Most of the mining was largely being done by shrinkage stoping which was started on the 225 and 625-foot levels. By confining mining operations to these stopes it was reported that the 225-foot level was laterally developed by 340 feet of drifting, and 32 feet of raising.

 

The 625-foot level was also continued by lateral development that amounted to 412 feet of drifting, 108 feet of crosscutting, and 50 feet of raising. A minor amount of lateral development work was also done on the 425-foot level, which amounted to 30 feet of crosscutting, and 32 feet of raising. The total development completed would result in 752 feet of drifting, 138 feet of crosscutting, and 461 feet of raising. By the end of 1934, this had brought the total development footage to 4,430 feet of drifting, 1,381 feet of crosscutting, and 461 feet of raising.Mining that was carried out from the 225-foot level had been confined to a lens with an average length of 300 feet, and a width of 3.9 feet, with a grade of 0.386 oz. Au per ton.  The 626-foot level in 1934, was estimated to contain a total of three lenses of various widths. A total of 100 feet was observed in one section that also carried an average gold grade of 0.424 oz. per ton in ore. This also resulted in a zone that was 30 feet in length and had average 0.210 oz. Au per ton. Another examination was made on an ore zone that was 40 feet in length, and had average 0.550 oz. Au per ton. The 625-foot level also had a fairly wide gold bearing quartz vein system, that had an underminable length, averaging 0.35 oz. Au per ton.   

 

Surface construction was also ongoing in 1934, that resulted in erecting a mill, refinery, assay office, dry house, managers residence, office, and cook house. A new plant was also upgraded to include a 1,00 cubic-foot electric compressor, and an Ingersoll Rand Double-Drum Hoist. Some of the main milling equipment had also included a 12- by 20-inch Jaw Crusher, Newhouse Crusher, 7- by 5 1/2- Foot ball mill, a 5- by 26-inch Dorr Classifier, two 30- by 12-foot Dorr Thickeners, three 16- by 16-foot Dorr Agitators, two 8- by 8-foot Oliver Filters, and a Merrill Crowe continuous precipitation unit. It was up to the end of 1934, that the mill would also treat a total of 12,313 tons of ore that came from the main stockpile. By this time it was reported that the mine had employed 84 men who were given a position with the company by L. H. Heidenreich, who was succeeded by J. G. McGregor as Manager. It was also during this time that George Dunn was promoted to mine superintendent, and W. R. Dennis was the Mill Superintendent.

 

This had also been the very first year that the mill treated ore would recover a gold bullion of 1,959 ounces, and a silver recovery of 63 ounces. A major problem had also occurred as much of the coarse gold was locked up in the circuit that could additionally represent the discrepancy between difference in total ounces recovered. It was to the end of that year that the total recovery gold had amounted to 3,154 ozs. Au at an average grade of 0.256 oz. per ton.By 1935, the McMillan Mine underground workings were being once again expanded by the sinking of the No. 3 Internal Winze shaft. The main No. 3 Internal Winze at this time was sunk 275 from the 625-foot level as it would reach a total depth of 900 feet below the surface.

 

As sinking had progressed, it would result in station cutting two levels that were driven on the 750- and 875-foot levels. Much of the development work that was done on these levels had also amounted to 177 feet of drifting, and 14 feet of crosscutting on the 750-foot level. It would also result in completing 118 feet of drifting, and 45 feet of crosscutting on the 875-foot level of the No. 2 Internal Winze Shaft. By this time it was also reported that shrinkage stoping was being commenced on the 750- and 875-foot levels of the No. 3 Internal Winze shaft, which was sunk from the 625-foot level to a depth of 275 feet. The main No. 3 Internal Winze Shaft had also reached a total depth horizon of 900 feet below the surface.  As development continued it was also at this point in time that a minor amount of lateral work was being done on 225-foot level. All of this would development work would amount to 64 feet of drifting, 13 feet of crosscutting, and 260 feet of raising. Raising that was done had also amounted  to 90 feet on the 325-foot level, a total of 100 feet was also done on the 425-foot level, and 310 feet of raising was completed on the 525-foot level. The total amount of development done on the McMillan Gold Mine to the end of 1935, would additionally amount to 359 feet of drifting, 72 feet of crosscutting, and 760 feet of raising. Upon completion of this work it would bring the total development footage to 4,789 feet of drifting, 1,453 feet of crosscutting, and 1,171 feet of raising.  It was also reported that Shrinkage Stoping was done on all level except for the 750- and 875-foot levels of No. 3 Internal Winze.

 

The No. 1 Shaft would also hoist a total of 33,814 tons of ore from stoping operations, and 633 tons had came from development. No additional attempts were made towards defining the down dip of the extension of ore-bodies on the upper levels.   Diamond drilling would also amount to completing 1,478 feet of surface drilling, and 2,407 feet of underground drilling. Drilling was confined to proving the continuity of the ore-body at various horizons starting from the 725- and ending at the 975-foot horizon. In addition to drilling done, the 725-foot level was noted to have a vein that was 17 feet in width, and carrying an average grade of 0.55 oz. Au per ton. At 800 feet, a vein which was 12 feet wide had also been intersected through drilling that carried low values of gold. It was also on the 825-foot horizon that a 6-foot wide vein was observed in the core, which also carried low values in gold. Further drilling that was done to a depth of 975 feet, would also intersect values ranging from 0.10 to 0.20 oz. Au per ton. Follow drilling had also been commenced in which a 50-foot core length had intersected ore grades of 0.31 oz. Au per ton. 

 

Milling that was done in 1935, had resulted in treating 125-tons of ore a day in which a total of 40,213 tons was treated. Ore that was produce had largely came from stoping operations, development, and a minor amount was also taken from the stockpile. Some of the main additions which were added to the milling facility had included a concentrating jig, and amalgamation equipment. The main purpose for adding the concentration jig was aimed at providing ways to separate particles with the ore-body, which was largely based on their specific gravity. The major make of the ore, is largely known to contain gold, silver, copper, arsenic, and sulphur. Average results which were obtained from various laboratories indicate 0.50 oz. Au, 0.08 oz. Ag, 0.07% Cu, 0.65% As, and 3.51% S.  From all production it was reported that a total of 7,823.63 ozs. Au, and 294 ozs. Of Ag were recovered. Mining operations at the McMillan Gold Mine would be carried on for three months before a decision was made to suspend mining operations. The McMillan Gold Mines would shortly after close the mine down as a lack of funding, and maintaining ore reserves had caused the mine to shut down. Work in particular had largely consisted of underground diamond drilling, and 47 feet of drifting on the 874-foot level. Work was then suspended until July, when diamond drilling was once again resumed for three months.

 

A minor amount of mining had also taken place on November 4, 1936, and it was for the balance of that year in which stopping was done on the 525-. 750-, and 875-foot levels. A total of 55 feet of raising was also accomplished on the 525-foot level of the McMillan No. 1 Shaft. It was also at this time that the on-site milling facility had operated until November 21, 1936, and would treat a total of 3,656 tonnes of ore. From all production during 1936, it was reported that a total of 89.47 ozs. Au, and 4 ozs. Of Ag were recovered from ore and mill clean up. From all production since the commencement of milling in 1934 to 1936, the McMillan Gold Mine was credited for producing 11,067.1 ozs. Au and 991 ozs. Ag, from 56,182 tons of ore. By 1959, it was reported that the property was owned by McMillan Gold Mines, Limited, who had sold all of its assets to Sumac Exploration Limited for 200,000 Sumac Shares. The property was later reverted back to McMillan Gold Mines, Limited, who had owned 100% interest in the property. It was by 1979, when McMillan Gold Mines, Ltd., had decided to cancel its charter, and the mine was officially left abandoned.

 

The McMillan Gold Property was further explored by Dayjon Explorations and Holdings Company in 1962. It was this time that surface samples were taken in which resulted in gold being associated with late quartz veinlets in Arsenopyrite. Some of these veinlets were also reported to be filled with hairline fractures, and consequently, the gold was rather describe as being fine grained. Some of the assays which were obtained from surface sampling had resulted in 0.10 to 0.40 oz. Au per ton over widths of up to 5 feet.  Most of these samples were taken from areas in vicinity to the mine workings. Additional assays that were taken from the pit to the east and west had ranged from 0.01 to 0.06 oz. Au per ton over 2- to 5-feet in width. A total of four diamond drill holes, totalling 1,300 feet on a claim at about ½ mile east of the mine had failed to disclose economically significant amounts of gold. A massive arsenopyrite same was also taken from the mine dump that resulted in assays of 0.57 oz. Au per ton from the mine dumps.

 

The property was also being explored in 1984, by Ingamar Exploration, Limited, who carried out a VLF/EM Survey on the McMillan Gold Property. The VLF. EM-16 Survey was carried out over the McMillan Gold Mine Prospect during the month of September, 1984. A portion of the property covered by water were surveyed during the month of January, 1985, when the lakes were ice covered. A total of 45 miles of lines were cut by Stringer Exploration Limited during the month of August, 1984. An east-west baseline was establish with two tielines, located 400 meters north of the baseline and south of House Lake on the east side of the property. This resulted in establishing north-south crosslines that were spaced at 100 meter intervals with closer spaced 50 meter lines covering the main mine area. Picket station would also be establish on the north-south crosslines every 25 meters. The VLF-EM Method empoys as a source, one of the numerous  submarine communications trasmitters in the 15 to 25 KH2 band located troughout the world. At the surface of the earth these radiowaves propagate predominantly in a single mode along the earth air interface. This method is largely considered as Surface wave. Over flat homogenous ground in the absence of vertical conductivite discontinuities of the magnetic feild component of this radio wave is horizontal and perpendicular to its direction of prepagation. It was the commercial VLF intruments enable detection of disturibing structures by measuring the tilt angle of the major axis of the polarization ellipse.

 

On flat homogenous ground the tilt angle would generally be zero, but in the vicinity of conducting disturbances it would acquire a finite value. Several conductive zones were found to exist on the McMillan Gold Mine Property, in which the main eleven conductors were describe in detail.  Conductor A is located on L1420 W at 450 N and extends eastward to L1580E-720N. This conductor has strong in-phase values and is assumed that these responses are caused by the south branch of the Charlton Lake Fault known to exist on the northern portion of the property. It was determined that the Conductor A was clearly fault related, and was considered as a fair conductor. Conductor B that's located on L 1420 W at 75N, in which this conductor bifurcates near 1200w-50 B. This conductor rather has much moderate in-phase reponses but poor quadrature values are indicative overburden. The southern branch of this conductor has a better quadrature respone and may warrent further investigation. Conductor C is found L 1420 W at 3758 and extends eastward to L 1000W-350S.  This conductor also has a moderate in-phase response on L 1420W which warrants further investigation. The rest of this conductor appears to be caused by conductive overburden. Conductor D is known to extend eastward from L 1420 W-525S to L 600W-525S. Its also commonly referred as a moderate in-phase conductor with poor quadrature response which is generally indicative of conductive overburden. Conductor E is found north of the mine area, and i known to extend eastward from L350-400S following the House Lkae to L 2970E-175S. Conductor E also has moderate to strong in-phase respones, and since its follows House Lake it is assumed that an east-west trending fault underlies the lake or the conductor that is caused by conductive clay. Since much of the gold at the mine is found in quartz veins that are associated with faults zone the E, portion of the conductor warrants further work. Conductor F is found on the northern portion of the property and extends eastward from L 400W-325N to L 2080-525N.

 

It also has a moderate in-phase respone with poor quadrature values, Its determined that conductive overburden or an edge of a swamp appears to be the cause of this conductor. Conductor F 2 may have also been an extension of Conductor A. Conductor G is located on L 0 at 325N and extends east to L 550E-350N, in which this conductor has a moderate in-phase and poor quadrature respones indicative of conductive overburden. Conductor H is located on L 250E at 25 N, in which this conductor bifurcates near L 600W-50S. The conductor rather has a poor in-phase and quadrature response and requires no further work. Conductor I extends eastward from L 200E-5758 to L 600E-575S, in which a moderate in-phase response may be indicative of a weak bedrock conductor. Conductor J may possibly be related to Conductor I mention above. This conductor extends from L200E-675S to L 800E-650S. The conductor also has a moderate in-phase response which may be indictative of weak bedrock source. Further work is warranted to find the source of this conductor. Conductor K is probably an extension of conductor J, in which a moderate in-phase response may be indicative of weak bedrock source, although conductive overburden is also somewhat to this conductor.

 

Several small conductors are also found to exist on the McMillan Gold Mine Property but these appear to be caused by conductive overburden and require no further mention.  The McMillan Gold Property was overtaken by Loki Resources Incorporated, who had initiated the dewatering of No. 1 Shaft to a depth of 625 feet in 1985. Sampling that was done had also indicated new insights for the mine as areas of economic interest were found within the old stope workings. After these encouraging results it was reported that the company would start Phase II of the exploration program. This at the time was largely aimed at dewatering the No. 3 Internal Winze Shaft. The main objective of this work was aimed at conducting underground sampling, and geological mapping to determine the presence of gold mineralization. On January, 1986, Loki Resources had additionally initiated the dewatering of the No. 3 Internal winze to a depth of 875 feet.

 

This resulted in carrying out an underground sampling, and geological mapping program of all seven levels. It was observed that the No. 2 Pit vein system had occurred on the 225-, 325-, 425-, 525-, and 625-foot levels of the No. 1 Shaft.  The vein systems was regarded to have a strke of approximately 100 degrees, and had dipped steeply to the north. One of the best exposure of this vein system was found on the 325-foot level where it has a maximum width of 28 feet, and a length of 400 feet. This veins system is also largely associated with up to 10% Sulphides and varying amounts of chlorite, and tourmaline alteration products. Statements made on the hangingwall and footwall, had stated that the contacts were largely associated with a grey green to white massive quartzite. It was also on the 325-foot level, that the No. 2 pit vein system had appeared to apparently terminate against the Lakeshore Pit vein system. Gold assays taken from the 425-foot level had resulted in up to 0.08 oz. Au per ton over 2 feet, and grab samples taken were up to 0.076 oz. Au per ton on this level. 

 

The Lakeshore Pit vein system is known to commonly occur on all underground levels, and represents the ore-bodies A, B, C, F, and H. It was also approximately 80% of the mines production that had came from this section of the vein systems on the McMillan Gold Mine Property. This vein system is also commonly known to have its own strike from 080 degrees, to 090 degrees, and generally dips from 45 degrees North to 80 degrees South. The vein largely averages 10 feet width with apparent swelling in excess of 35 feet, and a length of at least 250 feet is observed. Reports made on this vein system states that approximately 20% Sulphides and arsenopyrite is also present. Some of the main alteration by-products are also associated to chlorite, tourmaline, and ankerite. Much of the hangingwall contact of the vein system is largely characterized by a shearing-lineated, chloritized pelite. Within the footwall contact, its also known to be characterized by a much grey-green massive quartzite. In addition to this, the system rather appears to bend southwest from the H Zone-south arm on the 535-foot level. The hangingwall and footwall contacts of the south arm is also characterized by a grey-green to white, massive quartzite.Chanel Samples that were taken from the 525-, and 625-foot levels, are known for representing the on-strike and down dip continuation of the “D” ore-body. Upon completion of the sampling program it was estimated that the “D” Ore-Zone had an average grade of 0.328 oz. Au per ton over 3.2 feet. Some other values that were obtained from this level had been a panel sample of 0.336 oz. Au per ton. Another sample that was taken from the muck piles had also average a grade of 0.200 oz. Au per ton,and the floor sludge had sampled 0.123 oz. Au per ton.

 

Silver within the mine was rather produced as a by-product with the gold that had average low grades not exceeding more than 0.10 oz. Ag per ton. Underground sampling had continued to prove the economical potential of mineralization that still had existed. This at the time was largely focus on the Lakeshore Pit Vein System or the “H/C” Zone. It would also include the Fox Lake Fault/Shear Zone System (“D” Zone), and the “J” Zone structure. Sampling that was done from the No. 2 Pit vein system would intersect no gold values of economic interest.In 1986, Geological Mapping would also confirm that most of the gold bearing quartz vein systems are associated with the Fox Lake Fault/Shear Zone environments and at pelite/quartzite contacts. Observations had also indicated that the “J” Zone structure may be the fault extension of the “H/C” Zone. Further diamond drilling that was under plans would determine the vein continuity between, along strike, and below known gold bearing ore-bodies for the purpose of defining undeveloped gold bearing zones.

MBMI Resources, completed a total of seven surface diamond drill holes for a total length of 1,077 metres, at the McMillan Property. The drilling program was largely focus on extending known gold mineralization to the east and west on previously mined areas. Some of the best gold inersections had included Hole MM-1B-04, that returned 4.65 m grading 11.21 g/t Au, Hole MM-2-04 had also intersected 5.00 metres grading 9.89 g/t Au, and Hole MM-3-04 had included 10.85 metres grading 7.91 g/t Au. 


Young Shannon had additionally acquired 50% option interest on the McMillan Gold Mine in 2004. This was secured from the present day, MBMI Resources, which had found mineralization below the old working extending to the east, and west, and at depth. 

Young Shannon would also carry out a diamond drilling campaign, which resulted in drilling one hole that returned assay results of 4.29 g/t Au over 1.85 metres. This also included one section of 13.82 g/t Au over 0.3 metres, and a second section of 12.00 g/t Au over three metres. These assay results had rather shown that the gold zone continues at depth. 

Further assay results had showed that the gold zone continues westward along strike from diamond drill hols MM-2-04, and MM-3-04. This work was completed by MBMI Resources during the summer of 2004, and diamond drill holes MM-05-3 and MM-05-04, were completed by Young Shannon Gold Mines, Ltd., in January and February, 2005. Diamond drill Hole MM-05-06 from the current campaign, collared 15 metres west of diamond drill holes MM-05-3 and MM-05-04, had intersected a zone averaging 7.30 g/t Au over 7.25 metres, including one section of 38.81 g/t Au over 1.00 metres, and a second section of 9.12 g/t over 1.00 metres. 

Diamond Drill Hole MM-05-07 was selected to test the down dip and rake extension to the old McMillan Mine underground workings from 1930's. The hole that was collared had been terminated at 117 metres when it broke through the old drift. However, it was the final 0.50 metres of core that intersected quartz veined sheared argillites that assayed 13.78 g/t Au. 

Diamond Drill Hole MM-05-08 was additionally collared at approximately 50 metres to the west along strike from the surface exposure of the old McMillan Mine Sub-economic "A" Zone. Assay results from this drilling had showed gold mineralization at the expected down dip projection, however, the best results were considered to be limited to 2.53 g/t Au over 0.30 metres and 1.73 g/t Au over 0.60 metres. 

Diamond drill Hole MM-05-09 was collared approximately 335 metres west of the old McMillan Mine shaft, along the approximate strike. Drilling that was done had been aimed at testing the down dip of an 11 meter zone of intense quartz veining on surface. The Drilling Azimuth was to the south, sine all the known geology on the property dips steeply to the north. However, as this hole would progress, the dip of the host rock had ultimately began to parallel the drilling. This hole was there for terminated at 117 metres since it became clear that the zone of interest could not be tested unless drilling azimuth was reversed. 

Diamond drill Hole MM-05-10, was collared to test a 40 metre down dip extension of high-grade gold in drill hole MM-05-04. This had additionally intersected zones of quartz-carbonate veining with true thicknesses ranging between 0.30 to 0,75 metres in width carrying gold grades from 1.19 to 5.59 g/t Au. This zone of veining had largely comprised of a down hole width of about 48 metres. It was also this zone of shearing and silica flooding that is hosted to the high-grade gold mineralization. 

Geology
Regional Geology:


Much of the geology of the Whitefish Falls and Espanola area is known to commonly consist predominantly of Precambrian (Proterozoic) metasedimentary rocks that were later covered partially by unconsolidated Cenozoic deposits. The Precambrian rocks are also consider to represent a 29,000 foot thick series of metasediments known as the Huronian Supergroup. Its also this series of rocks that are divided into four groups based on their cyclic evolution. From oldest to youngest the four groups are known as the Elliot Lake Group, Hough Lake Group, Quirke Lake Group, and Cobalt Group. Each of these groups are commonly considered to also represent a cyclic repetition of conglomerates, argillite, and sandstone. The Huronian Supergroup metasedimentary units were then intruded by sill-like bodies of Nipissing Diabase, amphibolite dykes, ultramafic to granite plutons then finally post tectonic diabase intrusion.

Regionally the Gowganda Formation is known for hosting the environment for the accumulation of gold bearing fluids. Research also indicates that the gold is associated with structural and stratigraphically controlled environments.



Structural: 


The Fox Lake Fault/Shear zone system is known to occur on the mines 325-, 525-, and 625-foot levels, and is reported to be associated with the “D” Ore-Body. This system is also generally considered to strike from 020 degrees to 030 degrees, and has its own dip from 85 degrees Southeast to 75 degrees Northwest. It was also indicated that the “D” ore zone was approximately 5 to 8 feet wide, and rather has an undermined length. They system is generally located between a sheared, crenulated, chloritized pelite to the east from a grey-green to white, massive quartzite to the west. The northeast trend of the Fox Lake Fault/shear system is known to commonly strike in close proximity to the apparent nose of the fold. Observation rather indicates that this drag folded appearance to be of the metasediments in the area that is the result of the northeast trending fault/shear zone system. It also observed that this produces a right handed offset of the metasediments, and possibly the “H/C” Ore Zone. From these observations its also believed that the “H” Zone to the south of the arm may have formed from secondary fractures that are parallel to the Fault/Shear Zone System.
 
The “J” Zone structure is located on the 525-foot level, and contains the known “J” Ore-Body. Reports on this structure had indicated that it also had an undermined width and length to be deemed economical. It also generally related to a major, crenulated, 6’ to 8’ wide fault zone that’s a part of the Fox Lake Fault. The hangingwall contact to the fault zone is generally characterized by much shearing, chloritized pelite. Its also the footwall contact that is generally characterized by a sheared, chloritized, quartzite. The west trend of the “J” Zone structure would appear to have terminated against the northeast trending Fox Lake Fault/Shear Zone System. It was also observed that a 200’ right hand displacement of the “J” Zone Structure is cut by the Fox Lake Fault/Shear Zone system that would coincide with the on strike continuation of the “H/C” Zone. Observation also indicated that the “J” Zone structure may also be on strike continuation of the “H/C” Zone
 
To the south of the “J” Ore-body, the footwall metasediments are known to intersect a 50” section grading 0.137 oz. Au per ton over a width of 4.1”. This also includes a 25” length of this section that had also graded 0.203 oz. Au per ton over a width of 3.8”. Some of the footwall panel samples taken had also assayed from a trace to 1.44 oz. Au per ton. A sample taken from the hanging wall metasediments had also assayed from a trace to 0.095 oz. Au per ton over a width of 5.0” and a panel sample samples from trace up to 0.92 oz. Au per ton.
 
Local Geology of the claims are known to be predominantly of the Gowganda and Lorrain Formation metasediments of the cobalt group with the Huronian Supergroup. Much of the north and central claims are also underlain by rocks of the Gowganda Formation. These rocks are considered to be steeply dipping east-west trending conglomerates and alternating bands of pelite and quartzite. The Southern portion of the claims is largely underlain by rocks of the Lorrain Formation. Its also these rocks that are observed to be steeply dipping, east-west trending impure quartzite that form the ridges south of House Lake.
 
Several diabase and amphibole intrusions are commonly known to cross-cut all rocks of the claim group. Structurally, the medasediments form the limb connecting the LaCloche Syncline to the south with the Fox Lake anticline to the north. Gold ore from the McMillan property had generally been accepted as originating from a major anticlinal fold, trending northeast and plunging 65 degrees. This mine fold can be observed east of the shaft, and under House Lake. Gold bearing quartz veins are apparently associated within and at the contacts of folded quartzite, and pelite units in close proximity to diabase sills and dykes. Gold also is generally known to occur in its native state and is largely associated with arsenopyrite, pyrite, and chalcopyrite.  
 
The area also lies within the Penokean Fold Belt of the Southern Province within the Canadian Shield. At least three series of deformational metamorphic events had altered the rocks in the region. The first of these being a major east-west trending folds, moderate east-west to northeast trending folds. And minor northwest to northeast trending folds. Some of the locations of the fault zones are also considered to generally represent boundaries between structural domain. Faulting generally had taken place before, during, and after the deformational metamorphic events. A total of three fault systems are also known to occur in the region, with the first being a major east-west trending fault possibly related to a major east-west trending folds, northeast trending faults, and northwest trending faults.