La Ronge Gold Corp. - Preview SW Project

La Ronge Gold Corp. - Preview SW, Northern Saskatchewan

Preview SW Project

LOCATION: 45 km NE of La Ronge, Saskatchewan
SIZE: 843 hectares (2,083 acres) on 3 claims
TARGET MINERALS: Gold

Project Description

La Ronge Gold Corporation has recently acquired 52,932 hectares of optioned and independently-staked claims in the La Ronge Gold Belt of northern Saskatchewan. These claims include two non- NI 43-101 compliant gold deposits, Preview SW (formerly known as Pap SW) and Twin.

Preview SW has been worked on since the 1930s, but the bulk of the work was done in the late 1980s when 89 drillholes totaling 14,119m were drilled by Cameco in order to calculate a gold resource. An all-weather gravel road provides access to the claims from the nearby town of La Ronge.

The Preview SW claims are within the Mineral Disposition Zone of the Lac La Ronge Provincial Park. Mineral exploration and development is permitted within this zone.

Regional Production

Laronge Gold Corp. Gold exploration site - Preview SW, text Alberta, Canada

Preview SW is within the La Ronge Gold Belt, a productive belt of rocks which hosts mines owned by Claude Resources and Golden Band Resources. Claude Resources' Seabee Mine has produced 930,000 ounces of gold since 1991 while Golden Band operates the Jolu mill which currently takes feed from the Roy Lloyd mine and will take feed from 3 other mines close to production. Total production over the next 5 years is estimated to be more than 325,000 ounces of gold.

Past producing mines in the area include the Contact Lake gold mine which produced 190,000 ounces of gold between 1990 and 1997 and the Anglo Rouyn Cu-Au mine which produced 67,652 ounces of gold, 309,600 ounces of silver and 62,227 lbs of copper between 1966 and 1972.

Geological Setting

The Precambrian shield in northern Saskatchewan is divided into six regions, each of which is further subdivided into domains based on differing rock types or structural features. Preview SW sits near the junction of three domains of the Reindeer Zone: Glennie, La Ronge and Kisseynew. The Reindeer Zone is a complex region of 1.92 to 1.83 billion year old volcanic, plutonic and sedimentary rocks thought to have originally formed in an ocean basin that was deformed and thrust over the older Precambrian shield during the Trans-Hudson Orogeny 1.9-1.8 billion years ago.

Historical Drilling and Resources

In 1989 Cameco calculated preliminary geological reserves on the Preview SW following the 1988 drill program. The drilling covered an area 350 m by 250m and tested down to 180m below surface.

Deposit	No. of Drillholes	Year	Metres Drilled	Tonnage(T=ton ; t=tonnes)	Gold Grade (opt=Ounces per ton ; g/t = grams per tonne)	Total Contained Ounces of Gold (Historic)*
Preview SW (i)	89	1986-89	14,119 m	544,200T or 493,690t	0.36 opt or 12.34 g/t Au	195,912*

Non NI 43 - 101 compliant resources; (i) Saskatchewan Energy & Resources Mineral Deposit Index #01147

* Non-Compliant 43-101 Historical Resources and Reserves:

The historical resource estimates quoted above are based on prior data and reports obtained and prepared by previous operators. The Company has not completed the work necessary to verify the classification of the mineral resource estimates and is not treating the mineral resource estimates as NI 43-101 defined resources verified by a qualified person. Although the historical estimates for the Preview SW and Twin Deposits should not be relied upon, the Company views these historical estimates as relevant and a significant indication of the projects mineral potential. These properties will require considerable further evaluation which the Company intends to carry out in due course.

Property Geology and Mineralization

Preview SW is underlain by early Proterozoic metavolcanic rocks of the Central Metavolcanic Belt intruded by diorite to ultramafic sills probably related to adjacent Contact Lake intrusion. The metavolcanic rocks vary from felsic to mafic composition and contain a significant volcaniclastic component. The rocks have been metamorphosed to upper greenschist/lower amphibolite grade and have been subjected to at least two episodes of folding.

On the Preview SW property there are 4 zones: A, B, C and SW. In all zones structurally controlled mesothermal lode gold is found in quartz veins within or on the margins of sheared dioritic-gabbroic sills and is associated with sulphides i.e., Arsenopyrite +/- Pyrite +/- Pyrrhotite +/- Chalcopyrite. The area of diorite-gabbro sills extends for 5200 m in a northeast-southwest direction across the property and reaches approximately 200 m in width.

At the SW zone several sub-parallel northeast-trending structural zones (K, L, M and R) , totalling 150 m in width, make up the deposit. The en echelon 1 to 10 m-wide structures are persistent at depth and the zones bifurcate and merge at depth and along their length. The deposit's historical resources are contained within a number of discrete zones varying from 70 m to 288 m in length, an average of 16 m in width, and a maximum of 180 m in depth.

Examples of better intersections are:

Zone	Hole #	Intersection (m)	Width (m)	Value
L zone	PR86-15	14.5 - 20.8	6.3	8.57 g/t Au or 0.25 oz/ton
K zone	PR88-61	99.9 - 102.1	2.2	20.58 g/t Au or 0.6 oz/ton
K zone	PR88-61	108.5 - 111.0	2.5	15.09 g/t Au or 0.44 oz/ton
K zone	PR88-61	157.7 - 158.1	0.4	154.63 g/t Au or 4.51 oz/ton

There is potential to link the A, B, C zones to the Preview SW deposit. An exploratory hole in 1997 between the SW and A zones intersected three intensely sheared gabbros hosting quartz +/- carbonate veins and veinlets with gold grades from 1.93 to 21.0 g/t over short intervals.

Work Completed to Date

The Preview SW area has been prospected and drilled on a relatively small-scale from the 1930s to the 1960s. Small amounts of ore were shipped and a gold brick was poured on the property in 1941. Modern exploration was completed over the area between 1978 and 1997 when it was acquired by the Saskatchewan Mining Development Corporation, a precursor to Cameco Corporation. Between 1986 and 1989 they drilled 89 diamond drillholes for a total of 14,119m at 15m centres.

Proposed Work

Preview SW-Proposed Drill Hole Plan
January 2012

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An aggressive exploration program is planned on the Preview SW. The primary focus of this program will be to bring the historical resources of the Preview SW deposit up to an NI 43-101 standard. Confirmatory diamond drilling on the Preview SW will start this winter, followed by diamond drilling on the Twin deposit. Other surveys to be carried out in 2012 include airborne geophysics, till sampling, stripping and trenching.

Infrastructure

The nearest town is La Ronge, a major service centre for northern Saskatchewan. It has a population of 3,500 with a further 3,000 in outlying communities. It has a paved 1524m runway offering scheduled and charter air services.

La Ronge is serviced by a paved highway from the south. A paved highway runs for 30 km north of La Ronge and then continues as an all-weather gravel road (Highway 102) to the uranium mines in the Athabsaca Basin to the north. A seasonal bush road connects Preview SW to Highway 102. This bush road provides year round ATV and winter only 4WD truck access to the claims.

Topography of the region is characterized by low rocky ridges interspersed with lakes and muskeg.