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. Only a final option payment of 10,000 shares upon a final feasibility study remains. The prospectors retain a 2.5% Net Smelter Royalty, 1% of which can be purchased for a $1-million cash payment.
The tenure is in good standing in Ontario until 2019 and 2020.
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.
Exploration in 2010 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 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 target of merit based on the favourable geology and presence of coincident conductive, magnetic and gold-in-soil anomalies.