The Koval Property, located in the District of Thunder Bay, Beckington Lake area, Ontario, Canada, consists of 3 contiguous Leased Mining Claim Units, with road access from Savant Lake, northwestern Ontario (Click here to see map).
Historic report, April 8, 1948, by F.G. Huycke, E.M., Consulting Engineer reported “the surface exposed main vein is in contact with quartz porphyry to the east and greenstone to the west. The vein filling is composed of chlorite and serecite schists, tourmaline, ankerite and quartz. The general strike of the main vein is N 30 deg E and dips at 75 deg west. The vein zigzags from east to west along its general strike and varies in width from 6 inches to 10 feet.
Considerable trenching was done on the main vein (Click here to see plan view of surface vein assays) over a strike length of 1100 feet. From this exposure a bulk sample was taken over 159 feet and an average width of 2.11 ft. The sample consisted of 12 tons and was sent to the Dept. of Mines, Ottawa, for a mill test. The sample returned an assay of 0.455 ozs of gold per ton.
An exploration shaft was sunk to a depth of 275 feet with levels established at 125 and 250 ft. Two ore shoots have been developed on the 125 ft. level, underneath the surface showing from which the 12 ton sample was taken, and which checks with this sample. This ore appears over a length of 125 feet and an average width of 30 inches. The second ore shoot appears on the northern extension of the vein at a point where no values were found on surface with a length to date of 25 ft. and a width of 3 feet.
In sinking the shaft the vein was found at a depth of 205 feet, where it dipped into the shaft. A bulk sample in the shaft, over a vertical depth of 8 feet and a width of 33 inches, returned 0.83 ozs per ton gold. The ore continued in the shaft until the 250 ft. level was reached. Drifting to the south from the shaft shows that the shearing is a great deal more pronounced on this level than on the level above, with commercial values having been found over a width of 44 inches. A drift was driven to the north which picked up the vein north of the shaft. The vein averaged 3 feet in width and free gold was found along it for a distance of 60 feet.”
Historic report, November 1, 1948, by Hamlin B. Hatch, Consulting Geologist, confirmed the finding of F.G. Huycke and states“ the work was closed down after the bottom north drift reached a distance of 60 feet for lack of funds and has not as yet been resumed. That the significance of the preliminary underground development for the widths, lengths, values and structural conditions show improvement at the second level over the conditions on the first level; in this particular gold producing area, depth results have generally shown better values and widths than the surface and shallow depth results; and the chance at the property for wider, higher grade ore and longer ore-shoots at depth are exceptionally good”
Historic report, by Consultant Geologist, T.L. Gledhill, states, “150 feet northwest of the north end of the main vein another vein has been uncovered, and also several others in various parts of the claims.”
Millstream executed a three (3) year Purchase/Option Agreement with R. Koval to purchase a 100% undivided interest of the prospective gold property (the “Koval Property).
Millstream, to maintain its option, must make an initial $10,000 cash payment and 6 months after signing of the Agreement issue 25,000 common shares plus $5,000 cash payment; on the Agreement’s 1st. anniversary issue 25,000 common shares plus $5,000 cash payment; and on the Agreement’s 2nd anniversary issue 50,000 common shares plus $5,000 cash payment. On or before the Agreement’s 3rd anniversary for the purchase of the 100% undivided interest Millstream must pay $30,000. The owner (R. Koval) retains a 1.5% Net Smelter Return (NSR) royalty for which Millstream has a first right of refusal and the right to purchase half (50%) at a fixed price of $500,000. Commencing after the Agreement’s 4th anniversary an Advance Royalty Payment of $10,000 per year to a maximum of $100,000 is required and to be credited towards future NSR royalty calculations and payments.