CONTACT LAKE

MAS Gold has entered into an agreement with the Government of Saskatchewan to acquire a 100% interest in approximately 463 hectares, including the former producing Contact Lake Gold Mine operated from 1994 to 1997 by Cameco Corporation in the highly prospective La Ronge Greenstone Belt of Saskatchewan.

The Contact Lake Property

The Contact Lake gold deposit (or Bakus Gold Zone) was first identified by Saskatchewan Mining Development Corporation (SMDC; later Cameco Corporation) exploration field crews in 1984 as part of its Preview Lake Exploration Program that also resulted in the discovery of the nearby Point and Preview SW gold deposits. Operations were conducted from December 1994 to May 1998; decommissioning was completed by December 1998 when the mine was put on care a maintenance. Final site closure was declared in March 2008.

Contact Lake Mine, a Former Producer with a New Life Ahead

In January 1999, after the termination operations, Cameco Corporation undertook a full internal review (or audit) of the “…start up, operation, overall finances and decommissioning of the Contact Lake mine” (1999; Leniuk, G., B. Bharadwaj, G. Alderman & R. Wyka: Cameco Corporation Contact Lake Operation, Final Report, January, 1999). The Final Report provides complete historical production and recovery values for the entire operation, plus results from the processing of “waste materials” from the final clean-up of both the mill and mine operations (the latter sent to G.D. Resources in Sparks, Nevada; see Table 1).

* The reader is cautioned that the referenced “historical production” estimates are considered historical in nature and as such are based on prior data and reports prepared by the previous property owner. There can be no assurance that any of the historical data, in whole or in part, is accurate. A qualified person has not done sufficient work to verify these historical data and no resources estimates, historical or otherwise are implied or provided. Significant data compilation, re-drilling, re-sampling and data verification are required by a qualified person on the Contact Lake Property to define a current resource.

Significant underground development remains at the site of the Contact Lake Mine that could be reconditioned, including a 6.0 metre (m) x 4.0 m ramp to a depth of roughly 340 m and 6 main levels and various sub-levels. Level 5244 was driven 230 m to the east-northeast along the structure of the zone to access historically defined resource blocks that were not mined. Gold recovery over the life of the mine was reported to be 95%, utilizing gravity and cyanide leach plus carbon-in-pulp processes run at a throughput rate of 715 to 925 tonnes per 24-hour day.

Exploration Plans for the Contact Lake Property

MAS Gold has a significant non-digital data base for the Contact Lake gold deposit and upon the closing of the acquisition it will immediately begin digitizing the data to enable preliminary modelling that will help guide new exploration and confirmation drilling along the trend of the Bakus gold zone. Surface drilling may be designed to both twin historical holes and provide confirmation of historically defined potential resources as well as test the extensions of the zone to the east and to depth.


Numerous historical resource estimates were undertaken on the deposit, both leading up to the production decision being made and during mining. Although estimates of grade were continually refined through the production, reducing from a historical 1993 estimate (Cominco Engineering Services Limited, 1993) of 8.01 g Au/t to the final calculated 6.16 g Au/t, potential exists for the identification of unmined, historically defined resources.


The CESL historical resource estimate outlined seven potential historical resource blocks that were reported in the Cameco Corporation 1999 Final Report as “Not Mined”. Upon closing of the transaction, these are immediate targets for MAS Gold to investigate with winter 2022 surface drilling program. In addition, geological reports identified wider zones of lower grade material in the deposit hangingwall that MAS Gold intends to investigate and model, if the acquisition is consummated.