INTRODUCTION
The Hammond Reef project is the flagship project of Brett Resources. In 2006, Brett agreed to earn a 60% option on the property from Kinross Gold Ltd. Brett management recognized that this project has significant upside potential. Prior to agreeing to the option, Kinross Gold Ltd. outlined a 1.8 million ounce inferred resource on the property. Subsequent to earning their 60% interest in 2008, Brett acquired the remaining 40% of the project from Kinross. In the summer of 2009, Brett announced their second resource estimate for the property - 155 million tonnes at 1.04 grams per tonne in the Inferred category, using a 0.6 gram per tonne cut-off, for a base case of 5.2 million ounces of gold. The majority of the ground surrounding the known deposit remains untested by modern exploration methods. Small scale mining took place on the property directly to the northeast of the current deposit, the Manley area, at the turn of the 19th century and again in the 1930's. Since the small scale mining focused only on the free gold found in quartz veins, which records indicate had grades of approximately 0.3 ounces per ton, Brett believes that the likelihood of finding more gold mineralization in the same area is good,
The Hammond Reef property hosts widespread gold mineralization within a 100 to 300 metre wide northeasterly-trending corridor. Gold mineralization is associated with quartz vein stockworks, similar in style to the gold deposit of the Fort Knox mine in Alaska. Mineralization defined in the current deposit is relatively flat lying, dipping between 35 to 45 degrees and seems to flatten out at depth. The favourable geometry of the deposit and the fact that 97% of the inferred resource is found within 300 metres of surface, makes the deposit ideal for exploitation by open pit methods.
 Property Location Click to enlarge |
 Regional Geology Map Click to enlarge |
 Project Camp Click to enlarge |
LOCATION AND INFRASTRUCTURE
The Hammond Reef Project is located in the Sawbill Bay-Marmion Reservoir area of the Thunder Bay Mining District, approximately 170 kilometres west of Thunder Bay, Ontario, Canada, and roughly 23 kilometres northeast of the town of Atikokan, Ontario. The property can be accessed both by water and by gravel road and there is a power line approximately 10 kilometres to the west of the property. Atikokan has a population of over 3,000 people and is serviced by rail. The local economy is based on forestry, a thermal generating station, government services, retail services, tourism and light manufacturing, and has a history of mining. Other resources are available from Thunder Bay, which has a population of over 100,000 and is home to an international airport with daily scheduled jet service, rail service and port facilities.
GEOLOGY AND MINERALIZATION
The Hammond Reef property is predominantly underlain by the Marmion granitoid suite characterized by fresh to intensely altered tonalite-trondhjemite; subordinate, unaltered granitoid gneiss; and minor mafic lenses (typically highly altered). Minor pegmatite dykes and pegmatite segregation are present. Quartz stockwork overprints all phases but is only weakly developed in the mafic lenses. The quartz stockwork hosts the gold mineralization. The stockwork is confined to a broad, anastomosing envelope of alteration measuring up to 6,000 metres wide on surface exposures and has a northeast strike over a length of approximately 40 kilometres. The trend of the alteration system, major quartz veins, gneissic enclaves, and mafic lenses parallels the dominant east-northeast regional fabric. This alteration comprises a gradual increase in thicknesses of halos of saussurite surrounding fractures. The gradually coalescing halos of alteration with increased frequency of quartz veining control the development of pervasively altered granitoid. Gold values show a gradual increase once weak but continuous areas of veining and alteration are observed.
Strong alteration and foliation develops into a schist zone without appreciable veining (Hammond Reef Schist Zone-HRSZ). A discrete zone of strongly foliated Fe-carbonate with variable amounts of sericite, chlorite, hematite, limonite and pyrite lenses is easily mapped and has previously been described as highly foliated, tectonized granitoid breccia or breccia zone.
Veining can be grouped into two styles -- 5 cm to 50 cm wide, straight and generally undeformed "leader" veins and millimetre- to centimetre-thick, densely spaced, randomly oriented "stockwork" veins -- and suggests extensional dilation during formation. The veins are coeval, with no clear crosscutting features or consistent overprinting observed.
The Hammond Reef property exhibits a number of similarities to the Fort Knox deposit in Alaska. Hosted within the Fort Knox Pluton which intrudes the Fairbanks schist, gold occurs in the margins of stockwork veins and veinlets, quartz filled shear zones, and along fractures within the granite.
RESOURCES
Brett announced an updated resource estimate for the Hammond Reef Deposit, Ontario in a July 23rd 2009 news release. Brett has a 100 percent interest in Hammond Reef. Subsequently, on November 12, 2009, Brett announced the results of a Preliminary Assessment Study which uses the new Base Case Inferred Mineral Resource of 259.4 million tonnes at 0.80 grams per tonne (g/t) gold (Au) totaling 6.70 million ounces (oz) of Au at a 0.3g/t Au cut-off. The Preliminary Assessment Study was prepared by Scott Wilson RPA under the supervision of Mr. Richard J. Lambert, P.E., a registered professional engineer and an independent Qualified Person under the standards set forth by National Instrument 43-101.
*The Study is preliminary in nature, it includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the Preliminary Assessment will be realized.
A table of the Inferred Resource at various cut-off grades can be found below.
| Cut-off Au g/t |
Tonnes (000,000) |
Grade Gold g/t |
Gold Oz (000,000) |
| 1.00 | 60.2 | 1.46 | 2.83 |
| 0.90 | 77.1 | 1.35 | 3.34 |
| 0.80 | 98.4 | 1.24 | 3.93 |
| 0.70 | 124.6 | 1.14 | 4.56 |
| 0.60 | 155.0 | 1.04 | 5.19 |
| 0.50 | 188.5 | 0.95 | 5.78 |
| 0.40 | 227.0 | 0.87 | 6.34 |
| 0.30 | 259.4 | 0.80 | 6.70 |
| 0.20 | 281.9 | 0.76 | 6.89 |
This updated resource estimate was completed by incorporating the latest drill holes, BR-111 to BR-132, into the model. This model covers the same area and the same methodologies which were used in Brett's earlier resource estimate, described in the October 18th, 2008 news release.
Quality Assurance and Quality Control
The Company utilizes standard industry practices in quality control and quality assurance with insertion of blind standards, blanks, and duplicates, in addition to the quality assurance and quality control practiced by the assay laboratory. Sample preparation and analysis are conducted by ALS Chemex Laboratories with sample preparation in Thunder Bay, ON., and analyses of pulps in North Vancouver, BC, ISO/IEC guideline 17025 accredited facilities. The Project Manager and Qualified Person under the terms of National Instrument 43-101 responsible for the verification of work and data acquisition at Hammond Reef is John Zbeetnoff, P. Geo.
METALLURGY
In September 2009, Brett announced the results of a metallurgical test program conducted at SGS-Lakefield Research on samples from both the "A" and "41" Zones. Head grades of the test composites varied from 0.60 to 3.4 grams per tonne gold. The result of the program was a new flowsheet that is simple and will reduce capital and operating costs while improving recoveries:
All test composites were found to be likely non acid generating as a result of Acid Base Accounting (ABA) and Net Acid Generation (NAG) analyses. The sulphide sulphur content of the deposit is low, and there appears to be adequate carbonate to neutralize any potential acid generation.
For additional details on the test program, please see the original news release dated September 3rd, 2009.
The Qualified Person responsible for the review of the metallurgical test work results under the terms of National Instrument 43-101 is Holger Krutzelmann, P.Eng. of Scott Wilson Roscoe Postle Associates Inc.
EXPLORATION HISTORY
The Sawbill Bay Gold District has been the focus of intermittent gold exploration since the original discovery of the Hammond Reef property in 1895. Small scale underground mining and milling occurred between 1896 and 1900, and again from 1937-1941, with the property changing hands several times. Active "modern" exploration programs were conducted at Hammond Reef by Falconbridge Gold in the 1980's and by Pentland Firth in the 1990's. This work resulted in the delineation of two separate low-grade gold mineralized zones, the "A" and "41" Zones, delineated by a total of 83 diamond drill holes (18,060 metres). A mineral inventory was prepared by Pentland Firth which indicated that the two zones contained an estimated 88 million tonnes grading 0.93 g/t Au, for a total of 2.64 million troy oz. gold*. (*This is an historic, non- NI 43-101-compliant resource provided for informational purposes only.)
Since first optioning the property from Kinross in March 2006, Brett Resources has used systematic exploration to expand the known areas of mineralization at the Hammond Reef Project. In 2006, Brett started their work with a geological exploration/sampling program, including geological mapping, prospecting, systematic sampling of outcrops, soil sampling, core sampling for geochemical signatures, and magnetometer surveys.
Initial success came as soil sample results outlined three strong new northeast-southwest anomalous gold trends west of Snail Bay area, northeast of the claims known as the Manley Patents. The Manley Patents are the site of at least nine historic shafts mined by small scale mining in the early 1900's, but were until recently privately held, and have not been subject to modern exploration methods. A trenching program was conducted over the new anomalous gold area and results outlined three separate mineralized zones indicating the presence of a new wide gold mineralized horizon open to the north, and more than two kilometers from the A and 41 Zone areas.
An additional 50 to 60 metre wide mineralized zone was exposed over 450 metres of strike length through trenching on the optioned Sande & Stewart property. It remains open and bears the same orientation and appearance as the mineralized zone north of Mitta Lake.
From the end of 2006 to the end of 2008 Brett completed 34,145 metres of drilling at Hammond Reef. Step-out drilling around the A Zone encountered significant new mineralization to the southwest, southeast and northeast. Of particular interest were new intersections to the northeast, indicating that mineralization continued along strike towards the 41 Zone. The continuity both at depth and laterally was found to be remarkably good. In-fill drilling in the 41 Zone confirmed the continuity of the zone on a 50 metre spacing, as well as expanded mineralization westward.
By the middle of 2008 Brett had sufficient new drill intersections to complete a NI 43-101 compliant resource estimate for the Hammond Reef deposit, incorporating the contiguous A, 41 and Mitta Lake zones of mineralization. The result was a resource of nearly 5 million ounces of gold in the inferred category (see details in Resources section), nearly double the estimate by previous operators.
Eight holes drilled late in 2008 were not included in the resource estimate, and some holes intersected well developed gold mineralization in areas that will add to the gold inventory in future resource estimates.
 Exploration Potential Click to enlarge |
2009 EXPLORATION
The first phase of the 2009 Hammond Reef diamond drill program commenced in February, with 16 step-out drill holes for a total of approximately 5000 metres of core drilling. Results of the spring drill program were reported in late May, with the program having successfully extended the Hammond Reef resource in three directions: to the west; down dip by over 150 metres; and northeastward by confirming that the strike extent of the gold-bearing structures extend past the Manley Patents by more than two kilometres northeast from the currently defined resource.
The Manley Patents are the site of at least nine historic shafts mined by small scale mining in the early 1900's. Previous exploration identified broad low-grade mineralization in two surface trenches located in the Snail Bay area northeast of the Manley Patents and more than two kilometres along strike to the northeast of the current 4.8 million ounce gold resource. One of the primary objectives of the spring drill program was to test the depth extension of the mineralization in these trenches. Two holes were drilled and both holes returned mineralized intersections. These new discoveries of gold mineralization in the Manley area have the same style of mineralization found in the A Zone and remain open along strike and at depth. No modern exploration techniques have been applied to this area and that is one of the main objectives of the exploration program in the summer and fall of 2009.
A second objective of the 2009 spring drill program was to provide information for a scoping study expected to be completed during the fourth quarter of 2009. In particular, drilling was to test the mineralization up and down dip of the currently defined resource area. The holes stepped out from 50 to 275 metres along sections and tested both deep and shallow targets and extended the resource at depth by as much as 150 metres down dip to the south. The program has also intersected additional shallow gold-bearing structures that are not in the current resource. These new structures have excellent potential to allow Brett to expand the current resource and positively impact the strip ratio of the pit. The scoping study will incorporate an updated Hammond Reef resource. The best results from the drill program are from hole BR 126 which intercepted 40.5m of 1.95 grams per tonne gold and from hole BR 127 which intercepted 159m of 0.97 grams per tonne gold. (For complete results please refer to the original news release dated May 26th, 2009.)
Brett's scoping study, to be completed in Q4 2009, will evaluate the economic viability of the Hammond Reef gold deposit. A major part of the study will require engineering reviews of mining methods, pit design and location and processing plant design.
Brett is also continuing wide-spread field exploration work at Hammond Reef in 2009. With a combination of geophysics, soil sampling, prospecting, mapping and trenching. Brett hopes to detect new anomalous gold mineralization and to identify new exploration targets for drill investigation.
