La Ronge Gold Corp. - Gold and Mineral Exploration in Canada

           

Wedge Lake Project

LOCATION: 156 km NE of La Ronge, Saskatchewan
SIZE: 1729 hectares (4,272 acres) on 9 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, Twin on the Wedge Lake Project and Preview SW.

The Wedge Lake project has been worked on since 1951 when an extensive iron formation was evaluated for base metals and systematic prospecting uncovered several gold bearing quartz veins. In 1981 prospecting on a geochemical anomaly discovered new gold mineralization associated with the iron formation at what is now known as the Twin Zone.

Regional Production

The Wedge Project 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 is currently supplied from the Roy Lloyd mine. Three other mines, including the Komis mine which is located 5 km south of the Wedge Project, are scheduled to start production in 2011 and 2012 and will send feed to the Jolu mill. 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. Wedge Lake sits entirely in the La Ronge Domain of the Reindeer Zone. 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 1985 a joint venture between Giant Yellowknife Mines, golden Rule Resources and SDMC released a resource calculation. It was outlined with 33 diamond drill holes collared on 25m centres. The size is 450m along strike, 175m deep and 2.4-2.6 m wide. The deposit remains along strike and at depth and its geometry is steeply plunging.

Between 1982 and 1991, 5 different resource estimates were produced for the Twin Zone. The total contained ounces vary from 69,600 to 108,000 ounces over the different calculations. The ranges from 0.15 oz/ton to 0.18 oz/ton (5.17 g/t to 6.21 g/t). The values in the table below are a range from the 1985 estimate.

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)*
Wedge (Twin Zone) i	33	1982-83	4,290 m	545,000 T or 485,310t to 675,000T or 612,350t	0.16 opt or 5.52 g/t 0.15 opt or 5.14 g/t Au	87,200 101,250

Non NI 43 - 101 compliant resources; (i) Saskatchewan Energy & Resources Mineral Deposit Index #0453

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

The Wedge Lake Project is underlain by felsic volcanics and pyroclastics with lesser intercalated mafic tuffs and agglomerates. Mixed sulphide, oxide and silicate facies iron formations form laterally extensive horizons within the felsic volcanics. The occurrences are close to the southwestern margin of the Nistoassini batholith (granodiorite). A diorite to quartz diorite stock intrudes the volcanics west of Wedge Lake.

Mineralized zones at the Twin deposit occur within a siliceous, pyrite and pyrhhotite rich brecciated unit. The brecciated unit is within a complexly folded iron formation that extends at least 3.5 km along strike and varies in width from 4-20m. Examples of better intersections at the Twin Deposit are:

Zone	Hole#	Intersection (m)	Width (m)	Value
Twin	82-2	87-100	13	5.31 g/t or 0.154 oz/ton
Twin	82-2	145-155	10	3.24 or 0.094 oz/ton
Twin	82-9	64-77	13	5.03 g/t or 0.146 oz/ton
Twin	83-10	19.5-25	5.5	6.14 g/t or 0.178 oz/ton

In addition to the Twin Zone there are 4 other mineralized zones on the property. Mineralization in these zones is within the iron formation or quartz veins within shear zones.

Work Completed to Date

Exploration on the property has been sporadic since 1951 when the extensive iron formation was discovered and evaluated for base metals. Associated systematic prospecting discovered several gold-bearing veins. In 1980 a joint venture between Giant Yellowknife Mines, Golden Rule Resources and SMDC began an intensive program over the property. In 1981, follow-up work on a geochemical anomaly discovered the Twin Zone. The Twin Zone deposit was defined in 1985 following 3 years of drilling and trenching.

Since 1985 the property has received little work. Revised ore reserves were released in 1991 and from 2004-2006 6 drill holes and ground geophysics were completed.

Proposed Work

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 Athabasca Basin to the north. The Wedge claims are accessible either by aircraft or from Highway 102 and the Komis Mine road then via snowmobile or boat to the south end of Nistoassini Lake.

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