Nicholas-Denys
New Brunswick

The Nicholas-Denys property is located only 20 kilometres north of Bathurst and is part of the Bathurst Mining Camp of northern New Brunswick. The property is accessible by road all year round and is intersected by a power line. The Nicholas-Denys property is 6,750 hectares and is part of Puma’s 10,476 hectare holdings which include the Turgeon Copper Project. As soon as the field conditions are more favourable, a major exploration program will be undertaken on the Nicholas-Denys Property.

The Nicholas-Denys property hosts 9 main deposit over a strike length of 10 kilometers. These deposits consist of three different types of mineralization. The main area explored by Puma is the Silver-Lead-Zinc horizon located at the south end of the property. Beside that type of deposit, Copper rich skarn and Molybdenum granodiorite pluton are also found.

In 2008, a preliminary NI 43-101 compliant indicated mineral resource of 1M ounces of silver has been estimated over the central part of the Haché lens (50m x 100m) to a maximum depth of 125 meters from only 36 drillholes. Since the calculation, 84 new holes for 20,000 metres have been drilled on the Haché and Shaft lenses for a strike length of about 700 metres and to a vertical depth of 450 meters defining five new mineralized zones. In the last drilling program (2008), 22 holes over 84 holes (26%) intersected at least 90 g/t Ag over a minimum length of 3 metres of core. The drilling defined 5 new lenses in the Shaft area, over a strike length of 700 metres which represent only 10% of the favourable structure.

The Haché lens has been drilled more extensively and is used as a model to direct exploration work on the property. On each side of the Haché lens, within 25-50 meters, similar 0.2 to 1.0 meter gold and silver rich veins are present and delineate the core of the lens which has an apparent thickness of 30 meters with grades such as 225 g/t Ag and 1.2 g/t Au over 29.1 meters and 130 g/t Ag and 0.9 g/t Au over 31.0 meters.

The primary goals for the 2010 exploration program are to delineate mineralized zones discovered in previously successful drilling programs at the Haché and Shaft lenses and to conduct an extensive geophysical survey to define first-priority targets to be drilled along the 3.5 km strike length of the favourable structure between the Haché and Henry lenses.

An InfiniTEM® survey was carried out in October 2010 for 19.6 line-km and covered from the Shaft to Henry lenses. A total of twelve anomalies were identified from the InfiniTEM® ground survey (EM-01 to EM-12). Their sources indicate weak to good conductors steeply dipping and extending in some case for more than 500 m at depth. The main feature detected in the geophysical survey is the anomaly EM-05 which corresponds to the Haché and Shaft lenses. This anomaly has been trace for more than 3.1 km to the east, from the known Shaft lens toward the Henry lens.

The 2011 drilling program in the Henry area consisted of six holes for a total of 1,030 meters in the Henry area, which is located 2km west of Puma’s previous major programs. All the holes intersected from one to eight silver and gold rich veins and confirmed that the geophysical anomalies are associated with sulphide mineralization. These veins vary in thickness from 25 to 65 centimetres and contain high grade silver and gold such as 284 g/t Ag and 4.8 g/t Au over 0.25 meters and 201 g/t Ag and 4.7 g/t Au over 0.25 meters.

The 2011 drilling program also defined the position of the Rocky Brook-Millstream Fault. This fault has been followed by drilling, over a distance of 5.5 km and contains gold mineralization over the entire length. Holes FH11-02, FH11-03 and F11-04 confirmed the gold enrichment of the fault with respectively 4.84 g/t over 0.25m, 1.51 g/t Au over 0.25m and 1.72 g/t Au over 1.4m. The Rocky Brook-Millstream Fault played a major role in the precious metals enrichment of the sulphide lenses discovered at Nicholas-Denys so far and it is usually located within 75 meters of the main sulphide lenses. The InfiniTEM® 2010 ground survey and the compilation of previous and actual works has also confirmed the presence of two structures parallels to the Rocky-Brook-Millstream Fault that will be explored in the current program.

All the three structures together hosts 16 promising silver deposits and showings over a strike length of 10 kilometers that will be examined in greater detail during the summer exploration program.