Hudson Patricia Mine & Hudson Patricia Property

Location

The Hudson Patricia Mine (1 mining lease for the past-producing mine site) and the surrounding Hudson Patricia Property (8 staked claims) are located in the Township of Dent, Red Lake Mining Division of north-western Ontario. Dent Township itself is located approximately 75 kilometres east of the Town of Red Lake, Ontario. The past-producing base-metals South Bay Mine is located 7 kilometres to the south-east.

Number of Claims & Hectares

1 mining lease (the past producing Hudson Patricia Mine site) and 8 staked claims for 72 claim units (the immediately surrounding Hudson Patricia Property) for a total area of approximately 1,268 hectares.

Exploration Target

Gold.

Date of Acquisition via Option Agreement

Both option agreements are dated January 10th, 2011.

Ownership Interests

100% Mainstream Minerals Corporation.

Operator

Mainstream Minerals Corporation.

Qualified Person as per National Instrument 43-101 (subject to change)

Andrew Tims P.Geo.

Hudson Patricia Mine Mags & Maps

Hudson Patricia Gold Property Report

PDF file [ 2.8 mb ]

Information

The past-producing Hudson-Patricia Mine and surrounding property are located on the Birch-Uchi Greenstone Belt and the optioned claims cover 5.5 kilometres of strike length. The well endowed Red Lake-Uchi Greenstone Belt has produced more than 25 million ounces of gold with the nearby South Bay Mine producing 1.6 million tons of ore grading 2.3% copper, 14.5% zinc and 3.5 oz/ton silver.

The past-producing Hudson Patricia Mine itself produced 1,857 ounces of gold and 305 ounces of silver from 11,228 tons of ore with an average grade of 0.165 ounces (MNDMF Website). Three separate ore shoots were delineated in the mine with all production from above the first level on an inclined shaft during 1935. There is no indication any production was from the deeper second level.

Previous surface work west of the former Hudson Patricia Mine site, on the shores of Bogford Lake, has exposed base metal horizon hosted in dacite to rhyodacite lapill tuffs composed of pyrite, sphalerite and chalcopyrite. Previous diamond drilling on the Bogford Lake VMS horizon intersected core lengths of 6.8 m of sulphide-bearing horizon. Grab samples taken by St. Joe Explorations Ltd. from this horizon assayed 12.9% zinc, 1.8% copper, 0.51% lead, 0.01 oz / ton gold and 2.79 oz / ton silver.

The Hudson Patricia Property is an example of an under-explored vein gold deposit with north-south structures that host discontinuous quartz veins resulting from an extensive structural history. The intersection points of these north-south structures with northwestern fault are excellent locations to concentrate auriferous vein systems over significant widths. Volcancic massive sulphide mineralization was not recognized when the mine was in operation. The sulphide zones identified by St. Joe Explorations Ltd. and the reports of sulphide mineralization while the mine was in operation indicate that the area has good potential for base metal exploration as well.

Under the terms of the option agreement for the acquisition of the Hudson Patricia Property, subject to the approval of the TSX Venture Exchange Inc. as at January 14th, 2011, Mainstream Minerals can earn a 100% interest in the 8 unpatented mining claims by completing payments totalling $91,000 over 5 years and the issuance of 200,000 common shares to the Vendor of that property as follows:

Upon signature of the option agreement $8,000 100,000 common shares
1st Anniversary of the Agreement $12,000 100,000 common shares
2nd Anniversary of the Agreement $16,000
3rd Anniversary of the Agreement $25,000
4th and Final Anniversary of the Agreement $30,000

The issued shares shall be subject to hold periods as required by the applicable policies of the TSX Venture Exchange Inc and other securities laws.

The Vendor will retain a 2.0 % Net Smelter Return (the “NSR”) interest in the Hudson Patricia Property. Mainstream Minerals can buyback one half or 1.0 % of the “NSR” at anytime for a payment of $1,000,000 CDN dollars.

Under the terms of the second option agreement for the acquisition of the past-producing Hudson Patricia Mine, also subject to the approval of the TSX Venture Exchange Inc. as at January 14th, 2011, Mainstream Minerals can earn a 100% interest of the mining lease by completing payments totalling $160,000 over 5 years and the issuance of 400,000 common shares to the Vendor of that property as follows:

Upon signature of the option agreement $50,000 100,000 common shares
1st Anniversary of the Agreement $25,000 100,000 common shares
2nd Anniversary of the Agreement $25,000 100,000 common shares
3rd Anniversary of the Agreement $25,000 100,000 common shares
4th and Final Anniversary of the Agreement $35,000

The issued shares shall be subject to hold periods as required by the applicable policies of the TSX Venture Exchange Inc and other securities laws.

Whereas the Vendor acquired the property rights to the Hudson Patricia Mine mining lease from a third party, that third party retains an original Net Smelter Return (“NSR”) royalty of 1.5%. As such, and under the terms of the option agreement, there will be two “NSR” royalties. The original third party and the Vendor for the Hudson Patricia Mine mining lease will each retain a 1.5 % “NSR” interest creating a total “NSR” on the property of 3.0 %. Mainstream Minerals can buyback half of either or both of the “NSRs” by paying $1,000,000 to the applicable party. Without affecting the other party’s “NSR”, the applicable party who was paid $1,000,000 will retain a remaining 0.75% of its respective and original 1.5 % “NSR”.