Stelmine Canada recently conducted a thin section petrographic study of surface and mineralized drill core samples from the Mercator gold property. The study has provided a better understanding of the type of mineralization and process of formation. This newfound knowledge will lead to more efficient and effective exploration and mining practices.

The Mercator property (100%-STH) is situated in northeastern Quebec, approximately 150 km from Fermont. Three new elements are relevant for the potential mining exploitation of this property: Probable late remobilisation of gold; Orogenic type mineralization; and Gold processing by gravity/flotation. Late Mineralization: The discovery of a late gold mineralization process could potentially lead to a new outlook regarding mineralization outside of the iron formation layers within metasediments and intrusive rocks.

There are several observed structures in the field that could have acted as a conduit for the mineralizing fluids. The mineralogy of the rocks associated with the gold mineralization is quite similar to that of highly metamorphosed iron formations. Gold is found in inclusions and within pores of the arsenopyrite-löllingite assemblage, coupled with pyrrhotite and minor content of chalcopyrite and pyrite.

It's also included in microfactures and found in epidote-pyrrhotite (± chalcopyrite ± graphite) veinlets. Interestingly, gold grains occur in late alteration zones in amphibole and proximal to pyrrhotite. This could suggest gold remobilization during a hydrothermal and/or metamorphic event posterior to the primary mineralization.

Orogenic type mineralization: Based on the mineralogical study, it has been confirmed that the mineralization present is of the orogenic type. Despite being highly metamorphosed, the iron formations and metasediments exhibit geological characteristics similar to those found in deposits located within the Superior Province of Canada. Some notable examples include the Meadowbank deposit with 4 M oz.

of Au, the Lake Amaruq mine with 2.7 M oz. of Au, both located in the Medialine district of Nunavut, and the Musselwhite deposit in northern Ontario, which has measured and indicated resources of 3.7 Mt at 3.55 g/t Au. Gold Processing by gravity/flotation: The arsenopyrite/löllingite/pyrrhotite and Au association in iron formations will guide the ore processing.

Gold could be recovered by a gravity/flotation circuit with the remainder leached using cyanide, with the gold captured using carbon-in-pulp (CIP) circuit. QA/QC Protocol: Stelmine implemented a strict QA/QC protocol in processing all rock samples collected from the Mercator property. The protocol included the insertion and monitoring of appropriate reference materials, in this case high concentration and low concentration certified gold standards, blanks and duplicates, to validate the accuracy and precision of the assay results.

All collected rock samples (core, channel and grab) were put in sturdy plastic bags, tagged, and sealed in the field under the supervision of geologists in training. Sample bags were then put in rice pouches and kept securely in a field tent before being sent by floatplane to the city of Wabush. Transport to Actlabs laboratories in Ancaster, Ontario was made by truck from dependable transport companies.

Gold was analyzed by fire assay (1A2_ICP_50 g) or the INAA+ICP_OES (1H) methods.