Mining exploration underway from drill rig set up behind McDonald's Restaurant

Drill arm is pointed south, towards area of old Hollinger Golf Club

By Len Gillis lgillis@timminstimes.com

UPDATER: Tuesday December 6, 2011 / 10:00 A.M.- TIMMINS: The new exploratory drilling operation behind McDonald's Restaurant in Timmins is a new effort by McLaren Resources Inc., which has an agreement with Timginn Exploration Limited. The company is searching for gold zones adjacent to the Hollinger and McIntyre properties, according to a company news release.

"The property contains the favorable gold mineralized horizon which was a source of production at both the Hollinger and McIntyre mines. Exploration drilling will initially focus on targets between surface and 300 metres deep on the favorable gold mineralized horizon that trends along portions of the property," said the company statement.

During the Mayor's recent state-of-the-city address, Tom Laughren commented on the importance of mining exploration in the city, as "having a huge impact" on the local economy.

The McLaren news release appears to bear that out as the company said it intends to carry out the following work.

-- Spend $200,000 on exploration during the due diligence period with

drilling to commence by December 2011, with results supporting a

decision to move to the next option period by April 30, 2012. The

parties will then enter into a definitive option agreement on standard

industry terms acceptable to Timginn Exploration Limited. A proposed

draft of the definitive option agreement was attached to the signed

Letter of Intent.

-- Spend a further $500,000 on exploration by April 30, 2013.

-- Spend an additional $600,000 on exploration by April 30, 2014

-- Spend an additional $700,000 on exploration by April 30, 2015 for an

aggregate total of $2,000,000 to earn a 50% interest in the property.

-- McLaren can earn as a second option an additional 10 percent interest by

spending a further $2 million in exploration expenditure by April 30,

2016.

-- Upon exercising the second option and earning a 60 percent interest in

the property, McLaren would propose to acquire the remaining 40 percent

of the property by issuing shares of McLaren Resources Inc. to the

shareholders of Timginn Exploration Limited. The number of shares to be

issued to acquire the remaining 40 percent interest in the property

shall be determined based on a third party valuation.

-- Should McLaren earn a 50 percent interest and not pursue the second

option to earn a 60 percent interest, then it is proposed that the

property interest which is to be held in a wholly owned subsidiary would

be spun out to shareholders of McLaren Resources and Timginn

Exploration.

ORIGINAL REPORT: MONDAY DECEMBER 5, 2011 / 12:00 P.M. TIMMINS - A mining-exploration diamond drill has set up operation behind the McDonald's Restaurant on Algonquin Boulevard in Timmins. The new drilling operation was the topic of significant discussion among the early morning coffee crowd at the nearby restaurant. The rig, operated by NOREX drilling, is pulling up drill cores from a direction south of Algonquin. The drill arm is pointed in the direction of the Hollinger Park and the former Hollinger Golf Club property.

A worker on the site said he could not reveal what company NOREX is drilling for. A government claim map shows that virtually all the mineral rights in that part of the city are owned by Goldcorp Porcupine Gold Mines. Goldcorp is currently in the planning and permitting stages of huge Hollinger Mine rejuvenation project which is expected to see the creation of massive new open pit mining operation in the heart of Timmins.

Source: http://www.timminstimes.com/ArticleDisplay.aspx?e=3393786