Allegiance has 1.5% net smelter
return and fisrt right of refusal (Areas denoted by #1 and #2 on map.)
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Allegiance Equity Corporation (formally SIS Explorations Corporations) was originally incorporated to explore and develop a group of 33 mining claims located in the Kirkland Lake Area. The corporation continues to hold a 1.5% net smelter return in the property pursuant to an agreement dated the 18th day of February 1987 with Lac Minerals Inc. The agreement also provides a first right of refusal to acquire the claims, should Lac Minerals or its assigns, successors, etc., sell the claims.
In fact Lac Minerals was taken over by Barrick and the claims were sold to Kinross which subsequently sold the claims to Kirkland Lake Gold Inc. These claims comprise about 30% of Kirkland Lake Gold Inc.’s property in this camp. These claims are unexplored to any significant degree and their potential value is enormous.
Kirkland Lake Gold has made major new discoveries on its properties adjacent to our claims. The significant new discoveries have resulted in Kirkland lake Gold achieving a market capitalization of approximately $1 billon. Any sale by Kirkland Lake Gold of its entire interest in this camp would have to bring into play the first right of refusal that Allegiance has to acquire the 32 adjacent claims in which it has a significant net smelter return. One of Canada’s largest law firms has agreed to act for Allegiance on a contingency basis in the anticipated negotiations that would take place. Allegiance has been advised that another mining company has an interest in acquiring its interest in this camp.
The Allegiance Equity Corporation holds a 1.5% net smelter return on any production from a group of patented mineral claims located in Lebel Township. The property is located along the north shore of Gull Lake, immediately east of King Kirkland and at the east end of the Kirkland Lake Gold Camp.
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Allegiance has 1.5% net smelter
return and fisrt right of refusal (Areas denoted by #1 and #2 on map.) |
Historically, the Kirkland Lake gold camp is an internationally renowned gold producing area having produced over 40 million ounces of gold over the last century from a total of 28 mines that previously or currently operated here. This makes the Kirkland Lake gold camp the second most gold productive area in Canada’s history, only after the Timmins gold camp.
Allegiance’s properties are just to the east of the five major gold properties in Kirkland Lake, Ontario - the Macassa, Kirkland Minerals, Teck-Hughes, Lake Shore and Wright Hargreaves mines. These mines historically produced 22 million ounces of gold.
The location of the property, which is at the east end of and on strike with the Kirkland Lake Camp, is a primary factor in indicating the high potential that the property has for the discovery of significant gold deposits. The Kirkland lake Fault Zone may not extend into the Lebel claim, but the associated regional Murdock Creek Fault Zone does traverse the length of the property.
Important targets for an exploration programme include:Considering the idea geological and structural location of the property in
relation to the Kirkland Lake Gold Camp and its potential for hosting significant
gold deposits, the property has a considerable intrinsic value.