Recent Work and Planned ExplorationFieldwork completed by MPH Consulting Limited, on behalf of Manicouagan Minerals, including evaluation of field prospecting, mapping and sampling activities completed during July to September, 2006, was integrated with results of the aforementioned Fugro Airborne Surveys magnetic and frequency-domain electromagnetic airborne geophysical survey. These results identified a number of targets for follow-up. Additionally, assessment file research completed by Manicouagan indicated that the Lac Maugue area was identified as an area of geological interest by uranium exploration groups in the 1970s. In 1978, Conwest Canadian Uranium Exploration reported mineralized boulders assaying up to 2.35% U308 in the Why Lake area of the Lac Maugue property. Pursuant to the provisions of NI-43-101, it should be noted that this assay has not been confirmed by a geologist on behalf of Manicouagan and as such should not be relied upon. Given renewed interest in uranium exploration in the Central Labrador Trough, additional claims were also map staked to secure areas considered prospective for uranium mineralization.
During the course of the 2006 exploration season and during the first quarter of 2007, additional claims were also staked and currently, the Lac Maugue property consists of a total of 802 map designated claims covering an area of 379.15 km.
An airborne radiometric survey completed in the latter part of 2007 identified a number of radiometric targets that warrant follow-up on the ground. However, the Company is currently seeking a joint venture partner to advance this project.
Location and Ownership
On July 28, 2006, the Company acquired the Lac Maugue Copper-Silver property in the Dunphy-Romanet Lakes area of the Central Labrador Trough region of Quebec from the Labrador Silver Syndicate ("LSS"). The property initially consisted of 88 map designated claims (42.25 km²) situated near Lac Maugue approximately 160 km northwest of the town of Schefferville, Quebec. The Company made a cash payment of $50,000 and issued 500,000 shares to the LSS. The agree ment provides for a further cash payment of $50,000 and the issuance of an additional 500,000 shares one year from closing in order for Manicouagan to keep a 100% interest in the property subject to a 3% Net Smelter Return ("NSR") royalty of which 2/3 may be bought out for $2,000,000.
On August 2, 2007, the Company announced that it had renegotiated the terms of its agreement with the LSS in respect of 88 claims that form part of Manicouagan's Lac Maugue Project. LSS has agreed to revise the timing of the final payment by accepting a payment of $25,000 (paid), a further payment of $25,000 on or before February 28, 2008 and the issuance of 500,000 shares in July 2008. The Company elected to not make the payment due on or before February 28, 2008 and the 88 claims were returned to the LSS.
The remaining property consists of 714 claims in which Manicouagan holds a 100% interest.
Mineral Potential
In addition to uranium, other targets of interest consist of the original Lac Maugue occurrence as well as the Two Hat and One Paddle lake areas. At Lac Maugue, there is a copper-silver occurrence and its strike extension. Channel samples of dolostone/siltstone mineralized with chalcopyrite, bornite and malachite from bedrock trench 2006-1 located 97 metres northwest of trench 93-5 along the Lac Maugue copper-silver zone averaged 132 g/t silver, 0.86% copper over 4.85 metres. Included in this channel sample is a 1.0 metre section that assayed 237 g/t silver, 1.50% copper. Mineralization was also observed in the Two Hat and One Paddle lake areas where minor zinc, lead and copper (± silver) and lead-zinc (± gold) mineralization in boulders and outcrop was encountered as well as known copper showings in the North Copper and Lac Romanet West areas. All of these areas are associated with conductive airborne geophysical anomalies, which constitute potential targets of interest warranting further exploration.
Project Maps
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