Hudvam Propery

 
COMMODITY
LOCATION
SIZE
CLAIMS
OWNERSHIP

Cu, Au
Ag, Zn

Manitoba
Flin Flon

1 714 Ha.

19 claims
(2% NSR)

100% Murgor
Ongoing acquisition by Alexandria Minerals Corp.

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Property location and description:

Murgor owns a 100% interest in the Hudvam property, located in Manitoba, approximately 47 kilometres NE of the town of Flin Flon. The property covers an area of approximately 17 square kilometres.

Murgor earned a 100% interest in the property September 12, 2009, having satisfied the requirements of an option agreement dated September 2006 with HudBay Minerals Inc.  Under the option agreement of September 2006, Hudbay Minerals retained a 2% net smelter return (NSR) royalty with respect to the Hudvam property.

The Hudvam deposit is located within 9 kilometres of an all weather road linking the towns of Flin Flon and Leaf Rapids. The railway track that was used to transport concentrate from the Ruttan Mine (near Leaf Rapids) to the Flin Flon mill also passes within two kilometres of the property.

Geology of the Property:

The favourable geological stratigraphy consists of a 500-1000 metres wide package of volcanic rocks dipping sub-vertically, wedged within granitoid rocks. A strike length of more than four kilometres of a prospective contact between felsic and mafic volcanic rocks needs to be explored in detail on the property. In 1988, Mingold Resources Inc. completed a 247 metres ramp during an underground exploration program but the development was abandoned when the price of metals dropped and when flow-through financing came to an end.

Previous work:

Exploration at the Hudvam property, extended from 1947 to 1994 with various operators. The various works comprised a total of two magnetometers, three ground EM and borehole pulse EM surveys. It also included over 46,700m of diamond drilling in 261 boreholes.

During winter 2007, Murgor Resources Inc. conducted a drilling program for a total of 4,207m in 21 boreholes.

During winter 2008 Murgor drilled 9,345 metres. The drilling program consisted of 29 drill holes for definition, infilling, metallurgical and geotechnical purposes in order to complete a prefeasibility study.

Murgor’s most recent exploration work on the Hudvam property was carried out in 2010 with two drill holes for a total of 1430 metres and a deep Penetrating EM survey on the western extension of the Hudvam mineralized horizon. Drill holes were testing Borehole Pulse EM anomalies and returned sub-economic values.

Economic geology:

The deposit consists of four lenses of massive to semi massive sulphide of volcanogenic origin. The mineralization consists of variable quantities of pyrite, pyrrhotite, chalcopyrite and sphalerite with banded or brecciated textures. The deposit is composed of several zones, Zones #1 and #3 being the most economically significant. The ore lenses are up to 15 metres wide with a 60 NE trend. They are steeply dipping SE at 80. The lenses plunge at 70 toward NE.

Resources:

In August 2008, Murgor completed a NI 43-101 compliant resource estimate on the property. Based on the same 2% copper cut off grade than the historical resources, it indicated an 86% increase of the gold resource and a 74% increase of the copper resource. The deposit more than doubled in size and 70% of the resource is now converted to the Indicated category, a requirement to proceed to a feasibility study.

The most recent 43-101 compliant resource estimate is as follows:

INDICATED CATEGORY

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INFERRED CATEGORY

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The resource estimation was calculated using a 2% and 2.5% copper equivalent cut off grade with metal prices at US$1.75 per pound for copper, US$0.80 per pound for zinc, US$700 per ounce for gold and US$10.00 per ounce for silver.

Excellent Metal Recoveries:

► Copper recoveries: 89%
► Gold recoveries: 56% by flotation alone ; 67% with gravity circuit
► Zinc recoveries: 70% ; Zinc concentrate: 48% zinc
► Producing a high-grade copper concentrate: 30% copper and 51 g/t gold
► Clean of any hazardous by-products in waste or concentrate

Recent Exploration Developments:

Murgor has completed a 70 line kilometer Deep Electro-Magnetic (DeepEM) geophysical survey adjacent to its Hudvam gold-copper-zinc deposit in Manitoba.

Three new conductors were detected with geophysical signatures similar to the ones of the Hudvam massive sulphide deposit. The anomalies are all located on the fault-offset and western extension of the Hudvam deposit mineralized horizon. The mineralized horizon is believed to be offset of approximately 75 meters to the north relatively to the Hudvam deposit. The coordinates of the anomalies are as follows (a 3D model showing the location of the anomalies):

Anomaly
Location
Strike Length
Depth
Dept Extent
“A” 75 meters north of lens #3 450 meters 20 meters 170 meters
“B” 300 meters west of lens #3 300 meters 175 meters 300 meters
“C” 625 meters west of lens #3 230 meters 100 meters 240 meters

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Geological Map of Hudvam
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