Golden Island Project

The Property, with a rich history of mining exploration dating back nearly a century, consists of 31 contiguous claims located in Tiblemont Township, NTS map sheet 32C06, near Senneterre in Abitibi-Témiscamingue.

The Golden Island property is accessible year-round via Regional Road 113, which connects the towns of Val-d’Or and Senneterre. The property is located on Tiblemont Island and is accessible by boat from the Tiblemont Lake boat launch just before the town of Senneterre. The site contains the remains of the former Tiblemont Island gold mine. This mine was discovered in the early 1930s but never reached commercial production.

Founded by a renowned Geologist / Geophysicist

The Tiblemont Island Mine was discovered and founded by Dr Theodore Koulomzine a geologist/geophysicist who was born in Russia but moved to Quebec in the mid-1930s. Based in Val d’Or, he worked for Koulomzine, Geoffroy, Brossard & Co. until 1959 when he became professor and chairman of the Department of Geophysics at the École Polytechnique de Montréal. As professor, he left an incredible footprint for several generations of students. As innovator, he obtained patents in 1951 and 1952 for magnetometers, and in 1958 for a borehole electrical method (source).

Historical Work and Resources

Extensive work was undertaken following the discovery of the property, then known as “Mining Concession 282,” in 1932 by Dr. Theodore Koulomzine, a renowned geologist/geophysicist, until its abrupt abandonment at the outbreak of World War II in 1939. During this period, Tiblemont Consolidated built a camp with multiple permanent buildings, all of which are now gone. Nearly 3,350 linear meters of trenches were dug, as well as a three-compartment vertical shaft sunk to a depth of 155 meters. A 360-meter-long adit was also driven into the hillside at lake level, subsequently connected to the shaft at the 100-meter level. Underground development extends to 1,800 meters at the 360 ​​and 485-meter levels. A 5-ton mill was also in operation. Documents from that time indicate several gold-bearing zones located near the surface that could be mined using open-pit methods. A resource estimate, not compliant with Regulation 43-101, indicates 391,000 tons at a grade of approximately 2.8 g/t at a depth of just under 60 meters (GM41028). Multiple exploration programs have been carried out in previous years. Notably, in 1982, SOQUEM completed a short program of 8 drill holes (1,150 meters), three of which were drilled in the main zone. (See Table 1)

The resource estimates described in this document are considered historical resources and do not comply with the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The Company does not consider the historical estimate to be a current mineral resource and does not assert that any or all of the mineralization described will be subsequently converted into mineral resources or mineral reserves defined in accordance with National Instrument 43-101.

Table 1 – Drilling Results – SOQUEM 1982 (GM38876)

It should also be noted that drill hole 82-5, located approximately 1 km northwest of the main zone, intersected a 4.7-meter interval grading 1.31 g/t Au. This drill hole is associated with the same magnetic anomaly as the one linked to the main shaft.

2024 Exploration Campaign

An exploration session using an underwater drone allowed for the clear photographic identification of quartz veins and veinlets in the gallery walls. The strength of the rock has prevented the gallery from collapsing, even after nearly a century. Sampling work carried out in the fall of 2024, supervised by Mr. Jean Gagnon, geologist, focused on a series of gold-bearing veins located southeast of the old mining shaft. A total of 25 selected samples were collected (see Table 2), both from the old trenches and from outcrops.

During the 2024 sampling, the presence of numerous quartz veins was noted in the area surrounding the trenches and the former main shaft. Further fieldwork will be necessary to map and sample all of these veins, which appear to form a gold-bearing corridor several tens of meters wide. The gold-bearing zone is in contact with a high-amplitude magnetic anomaly several kilometers long trending in a northwest-southeast direction.

Table 2 – Best Samples Results (Fall 2024)

Terms of the Agreement

Under the Transaction, the Company has the option to acquire up to 100% of the Property on the following terms:

* Warrants exercisable at $0.10 for 24 months
** 15-day VWAP of Mosaic’s share price

Mosaic also agrees to pay an ounce-based bonus upon filing a resource estimate compliant with NI 43-101 standards with a minimum grade of 1.4 g/t Au and a cut-off grade of 0.3 g/t Au.

1. A payment of $1.20 per ounce up to 250,000 ounces ($300,000)
   1. $300,000 in Mosaic shares (15-day VWAP)
      
2. A payment of $0.75 per ounce from 250,001 to 500,000 ounces ($487,500 including the $300,000 mentioned above).
   1. $600,000 in shares (15-day VWAP) including the shares mentioned in A)
      
3. A payment of $0.50 per ounce from 500,001 ounces onwards (no maximum)
   1. $1 million in shares (15-day VWAP).

The prospectors will hold a 1% NSR royalty on all mining claims. Globex Mining Enterprise holds a 1% GMR on 5 claims and a 2% GMR on 12 claims. 50% of the royalty on these latter 12 claims (1%) is redeemable for the sum of $600,000.

The timelines related to the option are as follows:

1. 50% interest must be acquired within 24 months of signing the Agreement.
2. 75% interest must be acquired within 48 months of signing the Agreement.
3. 100% interest must be acquired within 48 months of signing the Agreement.

Mosaic may accelerate the exercise of the option at any time and will be the manager of the work.

If you have any questions on the Golden Island Project, contact us and/or visit our Investors section.