The Malartic project, held 100% by Khalkos, is the result of the acquisition and consolidation of three projects (the JAG, Malartic Lakeshore and Révillard claim blocks). Together, the three projects represent 82 contiguous claims in the Malartic Township. Consolidation of the projects began in June 2015, with an option agreement with JAG Mines Ltd., to acquire 55% of the mining rights on 24 claims (JAG block). In November, Khalkos proceeded with the acquisition of 100% of the mining rights on 26 claims with Golden Share mining for its Malartic Lakeshore property. In May 2016, Khalkos acquired 100% of the mining rights on 30 claims held by Red Kite Mine Finance (Révillard). With the remaining 45% acquired from JAG Mines Ltd., in December 2016, Khalkos established its position, holding more than 10 km of favourable land in a world-class mining camp. This confirms the seriousness of Khalkos’ intentions to become a major player in the Malartic mining camp. Khalkos is the only junior exploration company to hold as many contiguous claims in the Township of Malartic.
The Malartic property is located close to major gold producers in the heart of the Cadillac deformation zone. It is located at only 2 km from the Lapa mine (Agnico Eagle (AEM)), 11 km from the Canadian Malartic mine (Yamana-AEM) and 20 km from the Laronde mine (AEM), on the same geological formation as the Doyon-Bousquet, Laronde and Westwood gold mines.
The property is located in the archean Abitibi greenstone belt in the Malartic mining camp. Two major shear zones, the Norbenite-Marbenite fault in the north and the Parfuru Lake fault in the south, bisect the property. These structures are oriented NW-SE and are parallel to the Cadillac fault. The Norbanite-Marbanite fault hosts the Kiena mine (Wesdome Gold Mines) and the former Norlartic, Kierens and Marban mines (Osisko Mining).
Malrobic deposit (JAG claim block)
The Malrobic deposit consists of three mineralized zones within the Parfouru Lake shear zone. Mineralized lenses are defined within metric to decametric shears. The mineralization is characterized by auriferous euhedral pyrite and the richest zones contain visible gold. Previous drilling was concentrated in only the first two hundred metres of vertical depth. The mineralized zones remain open at depth. The first mineralized showings were discovered between 1920 and 1930 and led to the sinking of a shaft of 80 metres depth with lateral work on two levels totaling more than 240 metres. Approximately 15,000 metres of diamond drilling was completed in the 1980s, which led to the definition of six mineralized zones within a single shear. The shear contains a system of auriferous quartz veins and veinlets with grades varying from 2.00 to 22.00 g/t Au over 1.00 to 5.00 metres in true thickness. About 1 km south of the Malrobic deposit is the Currie-Mills (Panamint) showing, where historic grades of 19.35 g/t over 1.20 metres and 22.60 g/t over 1.50 metres were obtained. In 2015 a 1500 metre drill campaign was completed by Khalkos Exploration in the Malrobic shaft area. This campaign targeted the auriferous gold shear and its extension at depth.
The best results obtained are:
MA-15-01: 3.70 g/t Au over 4.00 m including 11.40 g/t Au over 1.00 m
MA-15-02: 2.50 g/t Au over 5.10 m including 4.80 g/t Au over 1.50 m
MA-15-06: 12.95 g/t Au over 0.50 m
Révillard showing (Révillard claim block)
In 2006, major outcrop stripping was completed by the previous operator (Britanica Resources) on a gold showing located at the contact of Blake River Group mafic volcanics and Kewagama Group sediments. The stripped area is more than 100 m long by 30 m wide and remains open to the north and east. The Révillard showing is located on the same stratigraphic horizon as the Malrobic deposit, which is located 2 km to the east. Note that no drilling was done to attempt to connect the two mineralized zones. In 2016, Khalkos completed approximately 1000 m of drilling directly under the stripped area of the Révillard showing. The best results are:
RV-16-01: 0.30 g/t Au over 16.00 m and 4.20 g/t Au over 2.00 m including 7.00 g/t Au over 1.00 m
RV-16-02: 0.40 g/t Au over 28.00 m and 3.00 g/t Au over 1.50 m
RV-16-03: 0.60 g/t Au over 30.00 m including 5.50 g/t Au over 1.00 m and 2.50 g/t Au over 1.50 m
RV-16-07: 4.80 g/t Au over 1.50 m including 13.20 g/t Au over 0.50 m
The low-gold mineralized envelope of the main shear zone was intersected by seven of the eight holes in the program with grades varying between 0.10 and 0.60 g/t Au over thicknesses of 10.00 to 30.00 m. The Sericite zone, which is located stratigraphically below the Révillard main shear, is encased in the sedimentary rocks of the Kéwagama group. It is strongly altered, contains sphalerite, galena and chalcopyrite, and has variable thickness of 1.00 to 3.00 m.
Malartic Lakeshore deposit (Malartic Lakeshore claim block)
In 2008 exploration was carried out by Golden Share (previous operator) and results of the order of 90.88 g/t Au over 1.32 m including 178.00 g/t Au over 0.67 m were obtained from channel sampling. A drilling campaign was carried out in the immediate vicinity of the main stripped area of the Malartic Lakeshore showing. Drill holes ML-08-23 and 28 intersected auriferous zones on the order of 2.59 g/t Au over 8.50 m including 15.27 g/t over 1.20 m and 39.84 g/t Au over 1.60 m including 123.50 g/t Au over 0.50 m. A second drilling campaign was completed in spring 2009, for a total of 1500 m (18 drill holes). A gold-bearing zone, identified as 66, was intersected and identified over widths of more than 30 m. Anomalous gold values of this zone could be associated with the plunge of a major fold axis.