The geology of the Watershed Property area is typical of the Swayze Greenstone Belt in this area, comprising a structurally complex mafic to felsic metavolcano-sedimentary supracrustal sequence of rocks intruded in places by diorite to granodiorite rocks of the Chester Granitoid Complex. There are ten historical high-grade gold mineralized showings highlighting the gold-bearing tenor of the project area. The discovery of the Côté Gold Deposit on the adjacent property held by Trelawney Mining and Exploration Inc., a subsidary of IAMGOLD Corporation, has highlighted the potential for low-grade disseminated gold mineralization within brecciated zones of the Chester granodiorite.
The Watershed Property is held pursuant to an option and joint venture agreement (the "Option and Joint Venture Agreement") with Trelawney Augen Acquisition Corp. (formerly Augen Gold Corp.) ("TAAC") which grants Sanatana an option to acquire up to 51% of the Watershed Property consisting of 46 mining claims totalling approximately 19,006 acres and located within the townships of Yeo, Chester, Neveille and Benneweis. As at November 28, 2012, Sanatana exercised its first option and is the legal and beneficial owner of 50% of the Watershed Property. Sanatana has until March 23, 2016, to decide whether to exercise its right to acquire a further 1% in the Watershed Property. A copy of the redacted Option and Joint Venture Agreement is available here.
In June 2012, IAMGOLD Corporation completed its acquisition of Trelawney Mining and Exploration Inc. ("Trelawney") and became the sole indirect shareholders of TAAC. In 2013, Sanatana expanded the Watershed Property by acquiring, for the sole benefit of Sanatana and TAAC, a 20% interest in three additional mining claims located in Yeo and Chester Townships, Ontario.
In April 2013 Trelawney filed an application with the Ontario Mining and Lands Commissioer with respect to proposed easements rights on the Watershed Property (the "Easement Application"). For addition information on the Easement Application see the tab above entitled "Easement Dispute".
Exploration Program Summary
- 3-D geological database compilation - All previous exploration company data and publicly available mapping, geophysics and sampling were entered into a 3-D GoCad spatial database.
- Regional mapping and prospecting - Property area orientation field work, ground truthing of historical gold showings and prospecting of new areas of interest. 1,045-line km airborne ZTEM survey.
- Regional airborne magnetics and EM structural interpretation - Based on previously acquired airborne magnetics and the newly acquired ZTEM delineating structural patterns amenable to gold mineralization.
- Property-wide soil geochemical sampling in early summer.
- 25-line km "Earth Probe" IP survey over areas immediately along strike from the adjacent IAMGOLD Côté Gold Deposit.
- Outcrop stripping and channel sampling - 1 acre (0.4 Ha) of new bedrock exposed at Clam Lake, Chester showing and Chain of Lakes to the west over areas of interest arising from the IP data.
- Ground magnetic surveys over the drill target areas of east Clam Lake, Chain of Lakes and Chester and one over the North Shear target at the Silver Butte area on the east side of the property.
- 17,131m diamond drilling over three programs - 25 drill holes targeting east Clam Lake area, 11 drill holes around Chain of Lakes, six drill holes at west Clam Lake and one drill hole at Chester targeting IP anomalies and coincident gold in channel sampling.