Gossan Resources Limited
Gossan Resources is engaged in mineral exploration and development. It holds a broadly diversified portfolio of properties hosting zinc, silver, gold, platinum group and other base metals, as well as the specialty and minor metals, vanadium, titanium, chromium, tantalum and lithium. The Company also has a large deposit of magnesium-rich high-purity dolomite and various financial interests in a frac sand deposit. Gossan recently acquired a new property in the zinc-rich polymetallic Sturgeon Lake Greenstone Belt in northwestern Ontario. All of the properties are located in Manitoba and northwestern Ontario.
(1) Sturgeon Lake Project, Ontario (with Zinc-rich Polymetallic Potential)
In July 2016, Gossan acquired a new property in the zinc-rich polymetallic Sturgeon Lake Greenstone Belt in northwestern Ontario comprised of 15 claims totaling 3,344 hectares. The property is directly along strike and to the east of 6 Volcanogenic Massive Sulfide (VMS) deposits that were mined between 1970 and 1991. Approximately 18.7 million tonnes of ore was mined from these VMS deposits with typical grades of 8.0% zinc, 1.1% copper, 0.8% lead, 120 gpt silver and 0.5 gpt gold.
In November 2015, the Company staked three claims and subsequently acquired an additional 12 claims from Excalibur Resources Ltd. along with a significant amount of exploration data. Gossan believes the best geophysical targets have yet to be drill tested. They are located on the west end of the new property and are along strike and closest to the historic Sturgeon Lake ore deposits.
Management believes this property has the potential to host significant Zinc-rich VMS polymetallic deposits. A geochem survey was initiated in September 2016 with a view to conducting a winter drill program.
(2) Inwood Magnesium Project, Manitoba
The 1,584 hectare (3,914 acre) Inwood Magnesium Property is located in south-central Manitoba, 80 km north of Winnipeg. The Company undertook a National Instrument 43-101 resource report based on a 27-hole drill program which was completed in May of 2006.
The Inwood Property hosts a very-large, high-purity dolomite deposit. The NI 43-101 final report estimated the Fisher Branch resource as follows:
An initial environmental study has been conducted at the Inwood Property. The Fisher Branch resource is in an area of the property which is not within a wildlife management area.
Gossan contracted Jim Collinson to conduct a site visit at Inwood, which took place May 3, 2012 to study all environmental factors pertaining to the Inwood Property.
Currently, a third party is conducting testing and analysis in Canada and Germany to determine whether magnesium oxide could be extracted from the dolomite in a green-friendly manner. Initial testing of the sample was positive. In the summer of 2016, the third party sent a second sample for additional testing and analysis. Initial discussions have commenced with the third party about a potential business arrangement.
(3) Bird River Project, Manitoba (Palladium/Platinum/Base Metals)
The Bird River Property which covers over 4,500 hectares in three claim blocks along 22 kilometres of the Bird River Sill Complex is comprised of the Western Extension and 3 separate blocks of the Sill – the Chrome and its Extension, the Peterson and the Page Blocks – along with the Ore Fault Zone. This complex carries significant concentrations of palladium and platinum along with nickel, copper, zinc and chromite. The Bird River Property is located about 40 km east of Lac Du Bonnet, Manitoba and, along the Sill, immediately adjacent to the west and northwest of Mustang Minerals’ Makwa Deposit.
Gossan currently holds a 100% interest in the Bird River Property. The Company has a NI 43-101 Resource estimate on three deposits. Going forward, higher nickel prices and consolidation of the adjacent deposits along the Bird River Sill would improve the economic prospects of the Bird River Project.
(4) Pipestone Lake Project, Manitoba (Vanadium/Titanium/Iron)
The Pipestone Lake property is located in north central Manitoba, approximately 150 km south of Thompson. At Pipestone Lake’s Areas 1 and 2, drilling to date has outlined a non-compliant NI 43-101 indicated resource of 156.8 million tonnes grading 5.56% TiO2, 28.11% Fe2O3 and 0.22% vanadium pentoxide and an inferred resource of 150 million tonnes of similar graded material (Reedman & Associates 1998).
Gossan’s 50% joint-venture partner in the Pipestone Lake Deposit, Cross Lake Mineral Explorations Inc., is a wholly-owned private corporation of the Cross Lake First Nation. Gossan remains engaged in continuing discussions regarding the development or sale of its mineral rights at the 3584-hectare Pipestone Lake Property.
(5) Sharpe Lake Gold Project, Manitoba
The 16,591-hectare (40,996-acre) Sharpe Lake Property covers 40-km of the Stull Lake-Wunnummin Fault Zone (SWFZ), a major gold metallotect, which is the western strike-extension of the deformation zone that transects the Monument Bay-Twin Lakes area where Yamana Gold Inc. (formerly Mega Precious Metals; Rolling Rock Resources; and prior thereto a Wolfden-Bema Gold Joint Venture) is developing a significant gold resource. Gossan’s property, located 550-km northeast of Winnipeg, is comprised of two exploration permits with their work requirements on hold and an application for a third exploration permit.
Gossan has focused its attention on the Bear Showing at the west end of Sharpe Lake. The Sharpe Lake Property’s National Instrument 43-101 Report recommends a drill program to investigate gold mineralization at the Bear Showing. Gossan intends to seek a joint venture partner to undertake the drill program. Work to date has identified co-incident geophysical and geochemical anomalies. The Bear zone is considered a high priority target for economic gold deposits.
(6) Separation Rapids Lithium/Tantalum Project, Ontario
The 240-hectare Separation Rapids Specialty Minerals Project is located 58 km north of Kenora, Ontario in the highly prospective English River greenstone belt, which hosts lithium, tantalum and cesium mineralization. The Property is situated immediately adjacent to the east of Avalon Advanced Materials Inc.’s (formerly Avalon Rare Metals Inc.) Big Whopper property, one of the largest rare metal pegmatite deposits in the world.
During July 2009, the Company undertook a field program at the property. The program identified a 50m to 100m wide zone with multiple, east-west trending, sub-parallel pegmatite sill-like bodies that range in width from a few centimetres to more than 5 metres. A soil sampling program utilized Soil Gas Hydrocarbon (SGH) Geochemistry that Actlabs identified as a strong Level 5 lithium anomaly just east of, and along strike of, the three widest pegmatite sills that returned some of the highest lithium values.
Management believes the highest and best current known use for material from the Separation Rapids Property may be as an input to the glass industry. However Avalon is making considerable progress in approaching a higher and better use in the lithium ion rechargeable battery market and other more valuable by-products. No fieldwork is currently being planned at the Property while the Company waits to assess the economic viability of various aspects of Avalon’s test work.
(7) Interests in Seymourville Frac Sand Project
On June 25, 2013, the Company announced the sale of its Manigotagan silica frac sand deposit comprised of 9 quarry leases located near Seymourville, Manitoba, to Claim Post Resources Inc. (CPS-TSX.V). To date, Gossan has received 4,000,000 shares of Claim Post and a total of $700,000 in two cash payments. Claim Post has not made the final $430,000 property payment, originally due on June 18, 2015, nor semi-annual advance royalty payments of $50,000 which together with interest totals an indebtedness of $587,610 as at June 18, 2016. Gossan remains in ongoing discussions with Claim Post to find a satisfactory resolution. Gossan also has a significant production royalty on the property.
Claim Post’s Seymourville Frac Sand Deposit has a NI 43-101 Preliminary Economic Assessment (PEA) and an Inferred Resource estimate of 25.9 million tonnes.
Management and Directors
Douglas Reeson, MBA, President & Chief Executive Officer
Mr. Reeson is an independent financial consultant with experience as an officer and director of a number of junior public companies. Prior to 1991, he held a number of positions in the investment industry including the Executive Director of Listings for the Toronto Stock Exchange, Vice-President and Director of Davidson Partners, Midland Doherty & Yorkton Securities.
Robert Suttie, BA, CGA, CA, Secretary & Chief Financial Officer
Mr. Suttie is the Vice President of Marrelli Support Services. He possesses almost 20 years of financial reporting experience, ten of which were in public accounting. He also serves as Chief Financial Officer for other junior mining companies.
George Molyviatis, Director
Hamid Mumin, Ph.D., Director
Andrew Thomson, Director
Please refer to Gossan's website www.gossan.ca for complete biographies.
On September 9, 2016, Gossan Resources Limited announced that it has initiated a sampling program at its new Sturgeon Lake project in Northwestern Ontario in order to plan a winter drill program. The drill program will investigate strong untested geophysical targets with coincident geochemical anomalies.
Gossan has initiated a further more-detailed geochemical survey in order to better define anomalous metal zones and determine the most-prospective geophysical targets for drilling.