The Northern Miner, Volume 94 Number 11, May 5 - 11, 2008

Will this goose lay a copper-nickel-cobalt egg?

By Ron Mandel

SITE VISIT

NEMISCAU, QUE.--Golden Goose Resources (GGR-V, GGOSF-O) has made a copper-nickel-cobalt and platinum group elements (PGE) discovery here in the James Bay region of northern Quebec, at its Lac Levac project.

Exploring an area where Inco discovered and drilled anomalies in 1964, Golden Goose has conducted its own airborne VTEM survey and staked 100 sq. km, in which it holds 100% interest. The company has discovered four anomalies and has done enough drilling to complete a National Instrument 43-101 resource. Golden Goose is now focused on expanding the resource and completing metallurgical tests on rock samples.

Lac Levac is located about 200 km from James Bay and 284 km by road from Chibougamau. The big player in the region is Hydro Quebec, whose high-voltage transmission lines traverse the vicinity. Vegetation in the area, which has a subarctic climate, consists of thin spruce trees, up to 6 metres tall.

Because of Hydro Quebec's presence, road and electricity infrastructure is surprisingly good for such a remote location. Road access is reasonable, with well-maintained unpaved roads that can handle transport trucks. The main road to the region is the Route du Nord, and the drill site is located 6 km from the intersection of the Route du Nord and the Poste Albanel Road. The drill site is reached via an unpaved private road owned by Hydro Quebec and then a short dirt road.

Hydro Quebec's Albanel transmission station is 5 km from the drill site, so if the deposit turns out to be economic, electricity will be close by. (Because Golden Goose's land position at Lac Levac is large, not all sites are as close to the transmission station). There is a truck stop at Nemiscau Camp, located about 40 km away. The camp has services such as fuel, accommodation, a dining room and cellphone service. Company staff are housed at the camp, and the core shack is located there, too. The small Nemiscau airfield is located a further 5 km from the camp.

With the exception of fuel, all equipment and supplies needed for drilling and exploration must be trucked in from Chibougamau or airlifted from Montreal or Toronto.

The First Nation in the area is Cree, from the community of Nemaska. The company is in regular contact with the community, and keeps them up to date on the status of the project. On the day of The Northern Miner's recent visit, Jean- Marc Lacoste, Golden Goose's president and CEO, met with local Cree representatives for a project update.

The mineralized zone is associated with an ultramafic rock body 4 km long and 300 metres wide, known as the NISK-1 anomaly. There is one outcrop of the rock, 2 km from the drill site. The genesis of the deposit is not yet known. It could be a nickeliferous orebody associated with ultramafic flows (komatites), like the Raglan mine in Ungava or the Marbridge mine in the Abitibi region, or possibly a magmatic segregation deposit linked to an ultramafic intrusion, like the Kabanga deposit in Tanzania. A 1.8-km-long conductor has been identified on the anomaly.

Mineralization occurs as sulphides in massive, semi-massive and disseminated form. In all cases, pyrrhotite is the most abundant sulphide, followed by pentlandite, chalcopyrite and pyrite. Thin, late veinlets of digenite and covellite are also observed, as well as pentlandite ex-solutions.

The pentlandite grains are 0.07-1 mmin size and locally constitute 2- 15% of the rock volume. Chalcopyrite is also present in significant quantities of up to 6%. The sulphides occur within the ultramafic mass. They are always associated with the serpentinized zone, with the presence of chrysotile in the peridotite. The company describes the mineralization as composed of massive to disseminated sulphides in an ultramafic rock identified as a serpentinized peridotite.

The mineralized zone identified so far has a strike length of 800 metres, a depth of 330 metres, and a thickness of 2-10 metres. Typical grades are 1% nickel, 0.5% copper and 0.07% cobalt. The mineralization remains open at depth and along strike in both directions.

Golden Goose issued a National Instrument (NI) 43-101 technical report last July based on 13 holes totalling 2,500 metres. The report calculates resources in the indicated category of 516,000 tonnes of 0.89% nickel, 0.39% copper, 0.058% cobalt, 0.14 gram platinum per tonne and 0.79 gram palladium. Resources in the inferred category are 734,000 tonnes of 0.89% nickel, 0.34% copper, 0.06% cobalt, 0.14 gram platinum and 0.77 gram palladium. The report was compiled by Marc- Antoine Beaupré, a geological engineer, who co-ordinates the drilling campaign on-site.

Since this report, another 11,500 metres of drilling have been completed, for a total of 14,000 metres. The company highlights a number of holes. The three longest mineralized intersections ranged from 16- 18.5 metres, with nickel grading from 0.8-1.48%, copper from 0.42- 0.63%, cobalt at 0.07%, platinum 0.2-0.26 gram per tonne and palladium 1.1-2 grams.

High grades were returned in hole 56-08, which cut 5 metres of 1.94% nickel, 0.86% copper, 0.16% cobalt, 0.56 gram platinum and 3.39 grams palladium from 320 metres depth. Hole 40-07 cut 3.5 metres grading 0.7% nickel, 0.21% copper, 0.04% cobalt, 2.64 grams platinum and 1.59 grams palladium from 243 metres. And hole 53-08, a shallow hole, cut 5.5 metres of 1.22% nickel and 0.75% copper from 30 metres.

The latest drill results will be incorporated in an updated NI 43-101 technical report due in May. The company has sent an ore sample to a lab for metallurgical test work, in particular flotation tests, to determine metal recoveries. Once the new NI 43-101 report and metallurgical tests are completed, management is expected to decide on a new round of drilling budgeted at $1 million. Golden Goose plans to drill 6,000 metres, with some holes drilled to a maximum depth of 500 metres. The treasury is cashed up with $3 million, so the company can finance this campaign from existing cash.

Objectives for the drilling include establishing the maximum depth of the mineralization and extending the mineralized zone along strike in both directions. Ground geophysics is also planned.

Doug Hunter, vice-president exploration, says that 20 conductors have been identified on Golden Goose's land package at Lac Levac. He is particularly interested in seven, and only one has been tested so far, with more testing planned.

Beside the Lac Levac project, Golden Goose also holds the Magino gold project, 40 km northeast of Wawa, Ont.