Argo Gold staked the Fortune Lake Property consisting of 46 claim units covering 942 hectares on the eastern end of the Werner – Rex Lakes Fault Zone. The Fortune Lake claims groups are in the Kenora Mining Division and the newly acquired claims are 100% owned by Argo Gold.
The Werner – Rex Lakes Fault Zone lies near the southern boundary of the English River Paragneiss Belt and is marked by a 30 kilometre long linear zone of amphibolite and ultramafic rocks with numerous showings of associated Ni, Cu and Co-bearing sulfides. The Werner Lake Mine - located 10 kilometres west of the Fortune Lake Property on the mineralized trend - was first staked in 1928 by Kenora Prospectors and Mining Ltd and then mined by Ventures Ltd (later Falconbridge) in 1940-44 producing 143,386 lbs. of cobalt.
The propertyis located on the Werner-Rex Lakes Fault Zone about 10 kilometres east of the Werner Lake Mine site. Four showings with sub-ore grade values of copper and nickel occur on strike and adjacent to the property, but cobalt values are low. A Max-Min electromagnetic survey was completed in 1996 east of Fortune Lake, which identified weak conductors coincident with east-west magnetic linear high. Drilling in 1997 identified mafic gneisses containing 10% - 20% pyrrhotite as thin bands, 5 cm thick and disseminated in the gneissic rock. Assays for Cu, Ni, Co and Zn were low.
Argo Gold believes follow-up exploration activity is warranted at the Fortune Lake property based on: the lake sediment anomaly associated with known mineralization on the trend; and, the presence of a relatively high grade, although small, cobalt mine on the trend.