Jales
Brief history of acquisition by Kernow
| In October 2001,
the Company entered into an agreement to acquire a 100%
interest in the Jales gold property from Target Europe
Corp. The Jales property is held by way of an exploration
contract entered into with the Government of Portugal
on June 19, 2000, with options to renew for up to four
years and a further two years on application. The license
has been renewed to June 16, 2006. As consideration, the
Company issued 800,000 common shares at a value of $73,430
to Target Europe Corp and is obliged to issue a further
750,000 common shares upon the property reaching commercial
production. There is a 3% royalty payable to the Government
of Portugal on all minerals produced from the property.
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Drilling at Jales |
During 2002, the Company entered into an
option agreement with St. Elias Mines Ltd. (“St. Elias”),
whereby St. Elias can earn a 51% interest in the property
in exchange for cash payments totaling $100,000, incurring
cumulative exploration expenditures of $1,500,000 on the property
and issuing a total of 500,000 common shares to the Company
over a three year period. St. Elias have now earned a 51%
interest in the property and can earn a further 24% interest
in the property in exchange for additional cash payments totaling
$100,000, incurring additional exploration expenditures of
$2,500,000 and issuing an additional 1,000,000 common shares
over a three year period.
A section of core from the Jales property
The Company also entered into a Technical
Services Contract with St. Elias whereby St. Elias will reimburse
the Company, as operator, for exploration costs incurred plus
an 8% operator fee based on exploration costs incurred on
the property.
Jales a brief description of the
Geology and property
The Jales/Gralheira Gold Property is located
in northern Portugal and covers an area of 5.05 square kilometers
within which are situated:
- The former producing Jales Gold
Mine . This mine produced 830,000 oz of gold at an average
grade of 12.9g/t Au and nearly 3,000,000 oz of silver over
its 50 year life and closed in 1992. The Jales was mined
to depth of 620m. The mineralization strikes from the south
the north east and is believed to continue at depth.
- Gralheira Vein System is located some
500m north of the Jales strikes essentially east west at
the northern end of the Jales system. It has had over 100
core drill holes completed along its strike length to a
maximum depth of 511m. An adit was completed along the vein
system in 1992 by RTZ in conjunction with BRGM. The adit
which is approximately 350m in length has provide valuable
information relative to the grade and thickness of the mineralizing
system. Gold mineralization seen and sampled in the adit
occurs in shoots. In the higher grade areas in the adit
gold grades can range from 10.00 g/t across 1.35 meters
to 17.33 g/t across 1.40 meters: further results are noted
in the company’s news release dated 3rd November,
2003.
Members of the IGM and Kernow staff
Most recently during the winter of
2005 a drill program consisting of 12 holes totaling 2,400
meters was completed on the Gralheira Vein System. All of
the holes successfully intersected the Gralheira structure
near or at the planned depth. The holes were designed to provide
information in sections, by intercepting the structure at
approximately 50 meter intervals along the strike of the structure
and at 25 to 30 meter centers vertically. These intercepts
will assist in the defining of categories of resources. To
assist in the estimation the holes were designed to provide
at least three “pierce” points per section. The
most recent program was concentrated in and around the “Adit
Zone” where previous drilling and tunneling have identified
high-grade “shoots”. The program will further
define the orientation of the high grade “shoots”
and improve the knowledge of the mineralized structures in
this area.
The results of the program are shown
in the News Release dated March 4, 2006.
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