May 10, 2017 management site visit to Little Stull Lake base camp to ascertain refurbishment requirements.
On October 7, 2016, the Company entered into a definitive agreement with Puma Exploration INc. to acquire Puma’s 100% interest in the Little Stull Gold Property situated in NE Manitoba. The project comprises 20 staked claims (~2,400 ha) and two Mineral Exploration Licenses (~36,000 net ha) surrounding the claims. The property lies in northeastern Manitoba adjacent to the border with Ontario and ~600 km north-northeast of Winnipeg. The project is at an early stage of development in that a National Instrument 43-101 compliant resource estimate has yet to be identified. BWR filed an NI 43-101 report on the project in late December 2016 that fully describes the project, including historical drill results.
The property lies entirely in the Province of Manitoba,
within 3 km of the Ontario border and is 72 km northeast of Red Sucker Lake, the closest Indigenous community. The West Zone, the focus of historic exploration activity, is situated on the southwest shore of Little Stull Lake and is contained within the staked claims. The twenty staked claims remain in good standing until 2025, there is a plethora of geotechnical information filed on the claims, available from the Provinical Government Ministry of Growth Enterprise and Trade. Westmin Resources Inc. (“Westmin”) initially staked the claims in the 1980’s, Tanqueray Resources (“Tanqueray”), Westmin’s joint venture partner, acquired them outright in 2003, and then Puma Exploration Inc. acquired 100% interest in the staked claims in 2010. Tanqueray and Puma each retain 1% NSR royalties.
BWR and Puma executed a definitive agreement on October 6, 2016. The terms of the agreement called for three payments of $50,000 due on signing the letter of intent (completed July 7, 2016), and within 30 days of the issuance of each of the Mineral Exploration Licenses by the Mineral Resources Section of the Ministry of Growth, Enterprise and Trade of the Province of Manitoba (both payments were made in July 2017). Payments in shares were due on signing of a definitive agreement (5,000,000 shares issued in December 2016) and also upon releases of measured and indicated mineral resource estimates identifying 500,000 and 1,000,000 ounces of gold, positive preliminary economic assessment and feasibility studies (totaling another 5,000,000 shares). Puma retains a 1% NSR royalty for which buyout terms are not defined. Puma assigned an existing 1% NSR in favor of Tanqueray to BWR, where BWR can purchase the Tanqueray royalty in two tranches that total $3 million at any time.
The Little Stull Lake area is accessible by scheduled airline to Red Sucker Lake,
a remote Indigenous community situated ~1½ hours northeast of Winnipeg, and then by charter aircraft for another 73 km northeastwards. A winter road network connects the Manitoba remote communities to the provincial highway network. A 70 kilometer winter trail connects the project area westwards to Gods River, the principal community of the Manto Sipi Cree First Nation in the area. A Crown Land permit issued to Puma by the Manitoba Ministry of Infrastructure and Transportation for the main exploration camp area that consists of a bunk house and a kitchen situated on 2.47 acres of land on the West shore of Little Stull Lake has now been assigned to BWR. Both exploration buildings were in a state of disrepair as a result of exploration on the project being putting on hold in 2008, these have now been refurbished. There is a large Indigenous population (~15,000) within 200 km of the property. Natural resources in the immediate project area are limited to water and some aggregate. Remote communities in the area are connected by daily air services to Winnipeg, and, to the Manitoba power grid, putting electricity within 75 km of the project area. The province is committed to connecting the remaining remote communities to the provincial all-weather road network. Currently, the closest all-weather road-head is at Gillam 240 km northwest of the property.
The climate is subarctic experiencing subzero temperatures during the winter months. Currently exploration is limited the winter period (January to March) when aircraft can land on ice of sufficient thickness and summer period (April to November) when float-equipped aircraft can land on water.
The property lies in an area of very low relief. The numerous lakes in the area are shallow, only a few meters deep. Bedrock is obscured by a thin veneer (~2 m) of till such that drainage and topography reflect underlying bedrock structure.
Gold was first reported along the southwest shore of Little Stull Lake in the mid-1930’s when the nearby Gods Lake gold deposit was being mined. Major companies, including Westmin Resources Inc. (“Westmin) and Noranda Exploration Ltd., revisited the area in the mid-1980’s respectively discovering the Little Stull and nearby Monument Bay [Twin Lakes] gold prospects.
In 1984 Westmin reopened 1930’s-era trenches on the southwest shore of Little Stull Lake eventually discovering five showings; Otter, West/Little Mink, Central, Rocky and Beaver Lodge. Mineralization was reported to be hosted in the Wolf Bay shear zone adjacent to its northern, faulted contact. Between 1986 and 1990 Westmin in joint venture with Tanqueray Resources explored the area and focused diamond drilling on a 6.2 km portion of the regional shear zone.
Historical drilling has been carried out in three separate drill campaigns between 1984 and 2008, including Westmin (1984-1990), Wolfden Resources Inc. (“Wolfden”) (2000) and Puma (2007). 219 drill holes represent an aggregate of 37,421 metres were completed by these three explorers, the analysis of which resulted in the delineation of five separate zones of gold mineralization along the 6.2 kilometre geological structure. Most of the early drilling focused on the West Zone that was reported by Westmin in 1991 to contain a potential resource estimate of 750,000 tons averaging 10.5 g/t Au as recorded in Open file 90-2 by Manitoba Department of Energy and Mines (p 58), this was also reported in Canadian Intergovernmental Working Group on Mineral Industry, in 2008. The Westmin resource estimate is considered historical in nature and was done prior to the implementation of NI 43-101 reporting requirements and adoption of CIM Guidelines for Estimation of Mineral Resources and Reserves, however the reported resource estimate is considered relevant as it has been used as reference to the gold potential of the region in various technical reports about the area by government agencies. A Qualified Person has not done sufficient work to classify this historical estimate and the Company is not treating this historical estimate as a current mineral resource estimate. In 1999 Wolfden optioned the property from Tanqueray, successor to Westmin, and completed a regional programme including 1,423 m of drilling in 7 holes in the West Zone before dropping the option in 2000. In 2006 Puma optioned and eventually acquired the current property from Tanqueray. Puma also completed a 1500 m drill programme (10 holes) in 2007.
Geologically, the property lies in the Oxford-Stull terrane,
in the northwestern part of the Archean Superior Province of the Canadian Shield. The Little Stull Lake property, the former Gods Lake mine, and the Monument Bay deposits are situated in the Manitoba portion of the Oxford-Stull terrane. The former Gods Lake mine produced 160,000 oz Au from 491,000 t with an average recovered grade 10.1 g/t Au between 1935 and 1943. The nearby (20 km to south) Monument Bay Gold deposits contain an indicated resource 36.6 Mt at 1.52 g/t Au containing 1.79 million ounces of gold and an additional inferred resource of 41.9 Mt at 1.32 g/t Au containing a further 1.78 million ounces of gold. The Monument Bay project is significant in that it occurs in a similar geological setting to Little Stull Lake and that it is at a more advanced stage of exploration. Further advancement of the Monument Bay project would likely put winter roads and power within 20 km of Little Stull Lake.
The Little Stull Lake project covers a 42 km-long segment of the Wolf Bay shear zone which can be traced over 80 km from Stull Lake in Ontario, northwestwards, through the project area, to Edmund Lake.
On December 6, 2017, the Company received approval from the TSX-V and filed a National Instrument 43-101 Technical report on the Little Stull Lake Gold Project available at http://www.sedar.com/. that describes the project in detail.
During 2017, the two MEL licenses were issued to Puma Exploration Inc., then immediately transferred to BWR. Shortly after the transfer was officially recorded, BWR filed notice of an airborne geophysical survey and completed this survey during August 2017. In addition, the Company applied for a work permit on the 20 mining claims with the intent to commence the refurbishment of the exploration camp situated on the Crown Land Permit in anticipation of a diamond drill program to start in 2018 and also to do some field preparatory planning for the drill program (georeference locations of selected historical drill sites). Permission was granted to proceed with the refurbishment of the camp, this took place in late July and early August, including the erection of a small office tent structure. The exploration camp is now ready for the arrival of a drill crew, once the necessary permits that allowing diamond drilling are issued.
The Company is currently planning its initial diamond drilling program on the Project. This planning includes the re-establishment of a drill ground grid in the vicinity of the West Zone that ties in the historical drill holes that will also be used for a detail IP survey once winter sets in and ice forms on the lake. This geophysical program will be followed by a 2000 meter drilling program designed to replicate selected historical drill holes as needed to incorporate the historical drill results into a “maiden inferred resource”. The initial drill exploration project is expected to cost in the order of $500,000, to be followed by a significant drilling program to continue through much of 2018.