Wedge
Property, Ontario
The five-claim (832 hectare) Wedge Property is located in Blackwell
and Laurie Townships, of the Shebandowan Greenstone Belt, Thunder
Bay Mining Division. The Company holds 100% interest in the
Property subject to a 3% Net Smelter Royalty held by the vendors.
The property was acquired in 2002 as a result of previous exploration
work consisting of gridding, geological mapping, sampling and
IP geophysical surveys. Samples collected from outcrop showings
from previous work returned assays up to 17.2 g/t Au (Kaspar
showing), 14.5 g/t Au (Wedge showing), and 11.4 g/t Au (Creek
showing). In the spring of 1993, the Company initiated a single-hole
diamond drill program to test an extensive IP geophysical anomaly.
This hole (the discovery hole) intersected 2.27 g/t Au over
a quarter length of 9.13 metres, including a 5.89 g/t Au over
3.03 metres.
A follow-up drilling program consisting of 1,773 meters was
undertaken at the Creek showing, and a subsequent program consisting
of 917.6 meters at the Wedge and South showing was completed
during 2003. The drilling completed at the Creek zone has demonstrated
that the mineralization extends vertically to 115 meters and
over a strike length of 80 meters, and is open along strike
and to depth. Drilling at the Wedge zone returned a weighted
average of 0.28 g/t Au across a true width of 9.5 meters, over
186 meters strike length. In addition, a third zone of mineralization
(the South zone) was identified approximately 650 meters south
of the Creek zone. This zone returned 0.342 g/t Au over 10.75
metres, including 0.73 Au over 4.0 meters.
The significance of the 2003 drilling campaign on the property
has been the identification of multiple parallel gold-bearing
zones that appear to have extensive strike lengths, with sufficient
widths to indicate potential for zones of economic gold mineralization,
along strike and/or at depth.
In addition to the three gold-bearing zones identified on the
property, four similar zones, based on geological and geophysical
interpretation, which extend over a strike length of 1,500 meters
across a stratographic interval of approximately 1 kilometer,
have yet to be drilled.
On May 1, 2005 the Company signed an option agreement with Hinterland
Minerals Inc (“HMI”) to earn a 50% interest in the
52-unit Wedge property in consideration of $235,000 of exploration
expenditures over a three year period. The property is subject
to an underlying 3% royalty on all metal production with a provision
to buy-backup to 1.5% of the royalty for $1,000,000. Upon Hinterland
earning its interest RJK will form a joint venture with Hinterland
which will include the adjacent 200 claim unit Shabaqua property
which is held 50% by RJK and 50% by Hinterland. Non-participation
in the joint venture by either party will result in their respective
interests being a diluted profits interest for $1 million cash.
During 2004 the Company joint ventured with Hinterland Metals
Inc. (“Hinterland”) whereby Hinterland and RJK agreed
to joint venture their respective interests on the contiguous
3,200 hectare Shabaqua Property. Additionally, Hinterland may
earn a 50% interest in the 832 hectare Wedge property by matching
RJK’s exploration expenditures completed on the property
to date of approximately $235,000.
In June 2005 a 471 line kilometer VTEM airborne was conducted
over the property by Geotech Inc. This survey generated at least
20 high priority targets for ground follow-up. Later in the
year, Hinterland attempted a limited program of excavator mechanical
stripping of some of these targets, however, overburden depths
made this program mostly unsuccessful.