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Black Fox Property, Thunder Bay Mining Division, Ontario

Opportunity: Lund Enterprises is focused on the search for gold deposits within the Schreiber-Hemlo Greenstone Belt, host to the 25-million-ounce Hemlo gold deposit located 70 km east of the Black Fox Property. Gold mineralization at Hemlo averages 8 grams per tonne, occurs in several zones totaling greater than 95 million tonnes, extends over 3.7 km lateral extent and is greater than 1.5 km deep.

Location: The 1,216-hectare Black Fox Property consists of nine contiguous mining claims (76 units) within Tuuri Township, situated about 225 km east of Thunder Bay, Ontario, and about 70 km west of the Hemlo gold camp. The Trans-Canada Highway and a national railway cross the southern portion of the property.

Ownership: Lund Enterprises holds an option to acquire 100% of the Black Fox Property from a syndicate of Thunder Bay area prospectors by making cash payments totaling $85,000 over three years and issuing 300,000 common shares in stages, concluding with 100,000 shares upon a final feasibility study. The prospectors retain a 2.5% Net Smelter Royalty, 1% of which can be purchased for a $1-million cash payment.

Geology: The Black Fox Property encompasses extensive zones up to hundreds of meters wide characterized by intense quartz/sericite/pyrite and quartz/fuchsite/pyrite schists associated with shearing that is parallel and subparallel to regional structures, and locally associated with gold mineralization.

Exploration Programs: The Black Fox Property has minimal exposed outcrop and was only sporadically explored before the Ontario government conducted airborne geophysical surveys over the region in 1999. Government geologists discovered high-grade float near the centre of the property, with samples returning consistent results ranging from 165 to 189 g/t gold. The altered float samples consisted of fragile angular blocs that are assumed proximal to their source location.

Lund Enterprises conducted a first-phase exploration program consisting of detailed geological and geochemical sampling, mapping, prospecting, line-cutting and detailed ground magnetic surveying between fall 2008 and spring 2009. A total of 2,618 soil and 421 rock samples were collected and 52 line kilometres of ground magnetics were completed. Initial sampling results confirmed the existence of gold-in-soil anomalies within the property and identified six areas that warrant follow-up exploration. Rock samples from the Fire Mountain area contain up to 3 g/t gold.

Recent exploration has focused on a northeast-trending sequence of folded and faulted mafic-felsic volcanic, sedimentary and intrusive rocks occurring to the north of Black Fox Lake. Soil anomalies within this area have returned results of up to 1,260 ppb gold. Nearby, six of 12 soil samples collected across a belt of mafic volcanic rocks returned results ranging from between 50 and 90 ppb gold.

The Black Fox soil anomaly, which occurs within an area of complex structural geology that includes northeast-trending faults and isoclinal folds that have been overprinted by late northwest-southeast-trending folds, faults and diabase dykes. Previous (1999) geophysical surveys reveal that this area is coincident with northeast-trending conductive and northwest-trending magnetic anomalies. Lund considers the Black Fox anomaly a high priority target based on the favourable geology and presence of coincident conductive, magnetic and gold-in-soil anomalies.

The Company is also seeking to acquire other mineral properties of merit.  

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