Location: The road-accessible Don-Don Property is located 250 kilometers north of Fort St. James, BC. The 6,105-hectare project consists of 16 claims in the Northern Quesnel Trough, a structural-stratigraphic corridor hosting numerous copper and copper-gold mines and deposits, including the producing Kemess Mine and the advanced Mt. Milligan Mine Project. The Don-Don Property is contiguous with the Pinchi Project operated by Amarc Resources Ltd. and lies approximately 45 kilometers north of the Kwanika Deposit recently discovered by Seregenti Resources.
Ownership: Lund Gold secured an option to acquire the Don-Don Property in mid-September of 2009. The Company can acquire 100% of the project by paying the vendors a total of $203,000 over four years, issuing a total of 650,000 shares over five years and spending a total of $575,000 on exploration over four years. The vendors will retain a royalty equal to 3% of net smelter returns (NSR). Lund has the right to purchase 1% of this NSR at any time by paying the vendors $2.0 million.
Opportunity: Copper deposits with precious metals credits or other by-product metals similar to those occurring in the Quesnel Trough. Prospective rocks of the Quesnel Trough cut through central BC from the US border north to the Stikine River and host most of the province's producing copper mines and deposits. This 2,000-km-long belt of favorable rocks is known as a prime hunting ground for alkalic copper-gold-silver deposits and calc-alkaline porphyry copper-molybdenum deposits, but is also prospective for other mineral deposit types. In recent years, federal and provincial governments have invested more than $10 million on detailed geophysical and geochemical surveys to help generate new targets and discoveries in the region.
Exploration Programs: The first phase of exploration at the Don-Don Property includes 20 kilometers of line-cutting, induced polarization (IP) and ground magnetic surveys, followed by at least 1,000 meters of diamond drilling. The program is designed to test known anomalies and new targets defined by a review of available public, regional geophysical, geochemical and remote sensing data for the area.
The first generation of targets to be evaluated includes five electromagnetic (EM) anomalies identified within an overall anomalously conductive zone measuring 20 by 10 kilometers within the central and southern portions of the Don-Don Property. Higher resolution aeromagnetic data have also identified a number of linear features possibly related to structures of lithological contacts and smaller, possibly intrusive-related magnetic signatures.
Another area of interest is a potential extension of a prominent geophysical drill-target on Amarc's adjacent Pinchi Property. Amarc's large, northwest-trending, coincident airborne magnetic and ground IP anomaly coincides with a portion of the Pinchi Fault where intrusive phases of the Hogem Batholith have been found to host copper-gold mineralization. Approximately 600 meters of this coincident IP chargeability/magnetic anomaly appears to be open to depth to the southwest, potentially extending onto the northern portion of the Don-Don Property. A second, nearby sub-parallel northwest-trending magnetic anomaly, which may represent a slice of the favorable Hogem intrusive rocks, has also been identified on the Don-Don claims.