The Jerome Mine – Findings

Summary of Historical Exploration Work at the Jerome Mine

1938

mineralized vein discovered by Bert Jerome.

1939-1945

Canadian Mining Corporation of Canada undertook a diamond drill program totalling 38,149 feet, which tested the Main Zone at shallow depths over a strike length of more than 5500 feet, and underground development of ore body on five levels.

1941-1943

produced 56,878 ounces of gold and 15,104 ounces of silver from 335,060 tons of ore grading 0.186 oz/ton gold and 0.05 oz/ton silver, developed along a 3,000 foot strike length. Mining widths were generally around 10 feet, with swells to 40 feet.

1945

the mine closed owing to a shortage of labour. At closure, a total of 24,425 feet of drifts and cross-cuts had been completed, and the shaft sunk to a depth of 1138 feet. At closure, reserves were calculated as 345,000 tons at a grade of 0.19 opt Au.

1956

a forest fire destroyed the headframe and most surface facilities, and many records were lost.

1973

E.B. Eddy Forest Products drilled 16 holes totalling 8,415 feet east of the shaft, in order to confirm the shallower portions of the ore shoots east of the shaft. This program was successful in confirming the recorded ore shoots down to the 350' level.

1980-81

Bridgeview Resources Ltd. commissioned an independent ore reserve estimation by Prospection Limited. Prospection concluded that the reserves reported at mine closure were probably realistic, and had been supported by the diamond drilling conducted by Eddy. Prospection recommended a program of diamond drilling and underground exploration to increase the resource base east of the existing workings. Bridgeview performed ground geophysical surveys, rehabilitated the mine infrastructure, de-watered the mine to the 200-foot level, and drilled 9-holes totalling 2,710 feet. The drill holes were again designed to verify previous drill results for the purpose of ore reserve estimation, and produced very encouraging results, with the best intersection returning a grade of 0.22 opt (uncut) or 0.16 opt (one sample cut to 1 oz.) over a core length of 62 feet. The geophysical surveys identified that the ore zones are associated with magnetic lows, and this was confirmed by the subsequent drill program.

1984

Muscocho Explorations Ltd. undertook further ground geophysical surveys, and drilled 22-holes totalling 11,124 feet. The purpose of this program was to test for additional resources immediately adjacent to previously identified resources, notably immediately east of the mine workings. These results were considered encouraging, and so a feasibility study was undertaken and recommendations made to conduct further underground exploration. Muscocho calculated a resource of 310,959 tons at a grade of 0.201 oz/t Au.

1987-1989

Muscocho Explorations Ltd., carried out a program of 110 surface drill holes totalling 78,376 feet, and 24 underground drill holes totalling 13,129 feet. In addition, the shaft was de-watered, followed by 1572 feet of new drifting and 59,096 cubic feet of slashing performed mainly on the 500 foot level, with mapping and sampling on the 200 and 350 foot levels. As a result of this work, Muscocho calculated probable and possible reserves to 577,495 tons grading 0.200 ounces of gold per ton. All of these reserves are accessible from the existing mine workings. Much of Muscocho's surface diamond drilling was directed at testing the South Zone, and an exploration drift was also driven on the 500 foot level to examine this zone, which was factored into the ore reserve calculation.

2003

the property was acquired by Osprey Gold Corporation, which completed 33 diamond drill holes for a total of 18,540 feet (5,651 m), clustered at the eastern end of the underground workings on the Main Zone above the 500 foot level. Two of the 33 holes tested the Main zone at deeper levels (525' and 650'). As a result of this work Osprey reported that the resource categories could be upgraded to proven and probable categories, and that the associated molybdenum, commonly in the range of 0.5 to 3 pounds per ton, could increase the value of the resource significantly. 118,362 measured and indicated ounces and quite a substantial probable number of ounces. Augen is in the process of auditing these conclusions.

2006

the property was sold to Coldrock Resources Inc., which in turn sold the property to Augen Gold Corporation. In 2007, Augen commissioned a NI 43-101 report on the property and regional claim holdings. This report, by Behre Dolbear and Company Limited, identified a number of gaps in the historical records, and recommended acquisition of those data, if available.

Augen has recovered some historical data and is in the process of collating and digitising these records. These will be incorporated into a 3-D model which will serve to guide further exploration, and evaluate previous results, interpretations and resource calculations.

Several Historic reserve calculations have been made:

In 1983 an ore reserve study by Hill-Goettler-De Laporte Ltd reported mineable ore reserves based upon 0.10oz/ton cutoff grade over minimum '5 foot widths were by 583,000 Tons averaging 0.203 opt gold for a total of 118,349 ounces of gold.
In 1987-89 Muscocho Explorations Ltd as reported by Millard were probable and possible reserves accessible from the shaft and its associated workings were 577,495 tons grading 0.200 opt (uncut and undiluted) representing 115,499 ounces of gold.