Update from the Field on Broulan Reef Drilling
Publisher: Don Myers, Corporate Communications
Author: Don Huston, President
Dip 77.2 degrees
Azimuth last @ 111 degrees
Gyro to determine exact azimuth being done with down hole probe this am
Hole is stable
We have had a great deal of difficulty in managing this hole to the direction (*azimuth) that we desire. There is a tremendous amount of pull on the drill rods always to the North. Rock formations, structures, etc. tend to be laid in a north-south direction (generally speaking), so the drill bit encounters / takes the least path of resistance. Perhaps the hard part is now past us.
I have asked for many opinions in the last couple of months as to what can Skyharbour expect to accomplish drilling this deep (and expensive). There is a very real belief (CYP/SYH Geo's, Goldcorp, independent Geo's) that the extension of the Gold Eagle ore body crosses our Broulan Reef property, and, with the knowledge we are developing of the geological structures here, are well within our grasp.
The more we drill, the more data we garner, the better our ability to assess this property becomes.
We now have a specific target area that we are attempting to drill into. This very real target area lives in the Balmer Assemblage rocks immediately underneath the known flat lying "thrust package" (cross cutting fault). It is now our job to drill into this area and see what is there.
There is no doubt that our business of exploration is high risk, but there is also NO DOUBT that the rewards can be tremendous.
We are NOT digressing from our task of properly and fully exploring this Broulan Reef Project. This property is, without a doubt, very well located, geologically speaking.
Goldcorp, et al, are also very aware of the potential the Broulan Reef property has to host an ore body.
As to Cypress' latest announcement re: Lou Chastko, Regional Exploration Manager for Goldcorp in Red Lake, joining our Advisory Board, the Company believes his expertise in defining gold potential bearing zones within the Balmer Assemblage beneath the shallow waters of the Bruce Channel will be a major asset in exploring the Broulan Reef.
Regards,
Don Huston
President
Skyharbour Resources Ltd.
dhuston@ninetyeight.com
Drilling Update on Broulan Reef, Red Lake Project, Ontario
Publisher: Jordan Paul - Corporate Communications
Author: Don Huston - President
Drilling continues on the Cypress / Skyharbour Broulan Reef property with progress being seen to achieving depth on the McKenzie Island hole BR09-01. The hole is now at approximately 1295 metres in length with an azimuth of about 94 degrees and with a dip of 78 degrees.
Broulan Reef Drilling Location Map
Click to Enlarge
Click to Enlarge
The companies have had issues the last month in attempting to keep the mother hole heading in an easterly direction. The foliation, hardness and general rock character have tended to make the drill hole deviate to the north with regularity. The companies have had to install several steel wedges in this mother hole to be able to direct the drill to the highly prospective geology underlying the "Thrust Package" within the Balmer Assemblage. This has attributed to slower meterage attained in the last few weeks on the Broulan Reef drilling.
However, the companies seem to have now overcome these structural dilemmas and drilling is continuing to head in the designated easterly direction. The drill core indicates that the known iron formation has now been intersected at 1221 metres. The Balmer Assemblage is expected in the next few hundred metres of drilling.
The anticipated length of this mother hole will be approximately 2700 metres. A series of wedge holes will be established from this main hole to allow Cypress and Skyharbour to properly explore the geologic horizon immediately below the existing "Thrust Package" within the Balmer Assemblage of rocks. The companies believe that the area immediately under the Thrust Package is highly prospective for the gold hosted in the Bruce Channel deposit owned by Goldcorp adjoining Cypress / Skyharbour property on our north boundary.
The two latest reports from the field on the Broulan Reef written by Bob Marvin and David Busch
David Busch Report on Broulan Reef May 2009
Broulan Reef Property Schematic Cross Section Looking North (June 10, 2009)
Drilling Update on Broulan Reef / Bruce Channel, Red Lake Project, Ontario
Publisher: Don Myers, Corporate Communications
Author: Don Huston, President
Dip of hole 72.5 degrees and the Azimuth is 267 degrees.
Chibougamau drilling achieved approximately 180 metres with the last drill bit. The company is pleased with the progress of the drilling to date. Machinery and manpower continue to work well. Rock has softened somewhat and is allowing for good metre production.
Of Note re: Broulan Reef drilling since January 15, 2009;
- Definitive rock change in the Balmer Assemblage since approx. 1800 metres.
- Mafic / Ultramafic rocks with Breccia zones contained within (loose breccia formation has allowed for good fluid flow).
- Moderate alteration with sulfides (+ 5%).
- Foliation of rock is increasing.
- Pervasive silicate flooding throughout.........important!
- Abundant calcite observed......rocks are also chloritic.
- Biotite ...(a dark brown mineral) has been observed in different sections of the core (an important and reliable indicator).
- Iron carbonate also evident in sections.
Cypress / Skyharbour have now encountered a felsic dyke (thrust) / or shear approximately 3 - 4 metres wide at a depth of about 2040 metres down hole.
This is interpreted to be the same Thrust / or Shear as seen on the Gold Eagle and Cochenour Mine properties.
Many holes on Gold Eagle have drilled through this same felsic dyke thrust / shear into a very favorable geological setting.
The foot wall (below) of the thrust is known to be a major host area for gold at the past producer Cochenour Mines and the Gold Eagle property.
MANAGEMENT OF CYPRESS / SKYHARBOUR CONSIDER ALL OF THE ABOVE GEOLOGY MOST IMPORTANT FOR THE SUCCESSFUL INTERSECTING OF STRUCTURES CARRYING GOLD ON THE BROULAN REEF.
These above geological features are all very good marker horizons in determining where, and if, ore is contained here on the Broulan Reef.
We are seeing the same rocks to the Gold Eagle / Bruce Channel formation and the Finn Zone formation (and in the proper sequences).
This must bode well for CYP / SYH.
One must have ALL the right ingredients to bake a cake properly, "this rule never ever changes".
This is all very good news for the success of this drill program.
Don Huston
President
Skyharbour Resources Ltd
GOLDCORP CONSOLIDATES RED LAKE DISTRICT WITH $1.5 BILLION ACQUISITION OF GOLD EAGLE
Publisher: Stockwatch
Author: Mr. Kevin McArthur of Goldcorp
GOLDCORP CONSOLIDATES RED LAKE DISTRICT WITH $1.5 BILLION ACQUISITION OF GOLD EAGLE
Goldcorp Inc. (TSX: G) and Gold Eagle Mines Ltd. (TSX: GEA) have signed an agreement whereby Goldcorp will acquire, through a friendly plan of arrangement, all outstanding shares of Gold Eagle.
Gold Eagle's principal asset is the world-class Bruce Channel gold discovery which is situated along the prolific Red Lake trend, adjacent to Goldcorp's Red Lake gold mine and immediately southwest of Goldcorp's past-producing Cochenour-Willans mine. This transaction will enable Goldcorp to capitalize on its extensive exploration and operations expertise in the Red Lake district and its considerable human resources and related infrastructure.
"This transaction secures for Goldcorp full control of eight kilometres of strike length in the heart of the world's richest high-grade gold district," said Kevin McArthur, Goldcorp's president and chief executive officer. "Nearly 200 drill holes have defined an impressive gold deposit at Bruce Channel, with potential for additional expansion over time. Development of this strategically important zone can now move forward with our adjoining assets as a single, comprehensive project, sharing mine infrastructure, ore processing facilities and human talent with Red Lake, thus minimizing capital and operating costs and maximizing long-term shareholder value. Red Lake mine has operated for over 50 years, and Goldcorp's continued district consolidation efforts are designed to sustain this world-class operation for decades into the future. We are the natural partner to develop the Bruce Channel project with the geographic footprint preferred by our community."
Under the plan of arrangement, each common share of Gold Eagle not owned by Goldcorp will be exchanged for (i) a cash payment in the amount of $6.80 and (ii) 0.146 common shares of Goldcorp, assuming full proration. Gold Eagle shareholders will have the option to elect to receive cash (on the basis of $13.60 per Gold Eagle share), shares (on the basis of 0.292 Goldcorp share and 0.01 cent per Gold Eagle share) or any combination of cash and shares, subject to proration, with a total maximum cash consideration of $691-million and a total maximum of 14.8 million common shares of Goldcorp subject to increase on a prorated basis if Gold Eagle warrants and options are exercised prior to the effective date of the arrangement. The total consideration for 100 per cent of the fully diluted shares of Gold Eagle would be approximately $1.5-billion.
Based on the July 30, 2008, closing price and 20-day volume weighted average price for Goldcorp's common shares on the Toronto Stock Exchange, and assuming full proration, the transaction values each Gold Eagle share at $12.62 and $13.39, respectively. On this basis, the consideration received by Gold Eagle shareholders represents a 19-per-cent premium to closing prices and a 36-per-cent premium to the 20-day volume-weighted average prices for each company. The transaction is expected to close in September, 2008.
The combination has been approved by the boards of directors of Goldcorp and Gold Eagle and will be subject, among other things, to the favourable vote of 66-2/3 per cent of the Gold Eagle common shares voted at a special meeting of shareholders called to approve the transaction. Officers, directors and certain shareholders of Gold Eagle representing approximately 10.5 per cent of Gold Eagle's outstanding shares have entered into lock-up and support arrangements with Goldcorp under which they have agreed to vote in favour of the transaction. Goldcorp currently owns 4.7 per cent of the outstanding shares of Gold Eagle. BMO Capital Markets, Gold Eagle's financial adviser, has provided an opinion to the Gold Eagle board of directors that the consideration offered is fair, from a financial point of view, to Gold Eagle's shareholders. In the event that the transaction is not completed, Gold Eagle has agreed to pay Goldcorp a termination fee equal to $44-million, under certain circumstances. Gold Eagle has also provided Goldcorp with certain other customary rights, including a right to match competing offers. Full details of the transaction will be included in the management information circular of Gold Eagle, to be mailed to Gold Eagle shareholders in due course.
"We believe that Bruce Channel ranks among the very highest quality gold discoveries," said Simon Lawrence, president and chief executive officer of Gold Eagle. "The success we have had is a testament to our Red Lake-based exploration team and their endeavours have helped deliver significant value to our shareholders. Goldcorp, with their considerable infrastructure and expertise in the area, are ideally positioned to advance the project in an expedient and capital efficient manner. For our shareholders this is a very attractive transaction."
Macquarie Capital Markets Canada Ltd. acted as financial adviser to Goldcorp Inc. and J.P. Morgan Securities Inc. acted as strategic adviser. Cassels Brock & Blackwell LLP acted as Goldcorp's legal counsel.
BMO Capital Markets acted as financial adviser to Gold Eagle and Fraser Milner Casgrain LLP acted as Gold Eagle's legal counsel.
Goldcorp will hold a conference call today at 10 a.m. (PDT) to discuss its second quarter financial results as well as the details of the Gold Eagle acquisition. Participants may join the call by dialling toll-free 1-866-226-1799 or 416-641-6129 for calls from outside Canada and the United States. A recorded playback of the call can be accessed after the event until Sept. 1, 2008, by dialling 1-800-408-3053 or 416-695-5800 for calls outside Canada and the U.S. The passcode is 3264804. A live and archived audio webcast will also be available at the company's website.