The Red Lake, Ontario, Gold Camp

The Red Lake area is one of the most prolific gold regions in Canada. The area hosts several gold mines, where the combined production and remaining proven resources are more than 30 million ounces of gold. Initial gold production occurred at the Howey Mine in 1930, and two mines (Campbell and Red Lake) remain in operation today. The largest mines historically are Placer Dome's Campbell Mine (cumulative production and remaining resources of 13 million ounces) (acquired by Goldcorp in 2006), Goldcorp's Red Lake Mine (10 million ounces) and the Madsen Mine (2.5 million ounces). Goldcorp's Red Lake Mine lies immediately adjacent to the Campbell Mine, and the deposit mined at each is interpreted to be portions of the same ore body. However, the deep high-grade zone of the Goldcorp Red Lake Mine continues to be one of the highest-grade deposits in the world, averaging more than 2.0 ounces of gold per ton.

Goldcorp's Red Lake Mine Click to Enlarge

Goldcorp's Campbell Mine Click to Enlarge

The Red Lake gold bearing ore zones occur on the border of a major archaen tholelitic volcanic complex and are hosted by basalt flows and partially by komatiite flows. The ore occurs in gold bearing quartz-carbonate veins and in sulphide replacement zones. The gold occurs as either free gold or is encapsulated with sulphide materials, mainly arsenopyrite, pyrite and pyrrhotite.

Gold Picture from Goldcorp's Red Lake Gold Mine Click to Enlarge	Gold Picture from Goldcorp's Red Lake Gold Mine Click to Enlarge
Gold Picture from Goldcorp's Red Lake Gold Mine Click to Enlarge

As a result of the proven potential of this gold camp and the continued excitement being generated by Goldcorp's Red Lake Mine, the Red Lake and Birch-Uchi greenstone belts have attracted many firms, from senior producers to junior exploration companies, to stake and explore the district. The active major company exploring Red Lake is Goldcorp. In addition, there are many junior gold exploration companies including Premier Gold, Gold Eagle Mines, Cypress Development, Skyharbour Resources, Rubicon Minerals, etc., actively exploring the camp.

Bayfield's Red Lake Baird Gold Property

Bayfield Ventures Corp. holds a 24.5% interest in the Red Lake Baird property with Skyharbour Resources Ltd. holding a 24.5% interest and Goldcorp Inc. owning the remaining 51% interest.

Bayfield's Baird Property Claims Map Click to Enlarge

Red Lake, Ontario Claims Map Click to Enlarge

After an exploration program in 2002, which included data compilation, mapping, geochemical and geophysical testing, and an initial round of drilling, Bayfield and Skyharbour Resources optioned 51% of the Baird property to Placer Dome Inc. The 2003 and 2005 drill programs totaling 24,000 feet, were funded and carried out with the guidance and assistance of Placer Dome, which operated the Campbell gold mine 14 km to the northeast. In 2006, Goldcorp bought Placer Dome's 51% interest in the Baird property. For a three year period following the formation of the 51% (Goldcorp) / 49% (Bayfield & Skyharbour) joint venture, Goldcorp will have the right to increase its interest to 65% by electing to complete a feasibility study. Should either party elect not to participate in an approved program following the formation of the joint venture, the interest of the non-participating party will be subject to dilution based on a standard formula. Should either party dilute to a 10% interest, its interest will automatically convert to a 1% NSR, half of which can be purchased at any time for $1 million.

The Baird property lies in the central Red Lake Gold Belt, 6 km north of the Claude Resources' Madsen mine and 14 km southwest of the Goldcorp Inc. Red Lake mine. Drilling on the Baird property in the 1980's returned assay values of over 5.5 oz/ton gold over 4 feet, and over 0.6 oz/ton gold over 6 feet, among others. These showings were the focus of Bayfield's / Skyharbour's initial 5,000ft drill program in 2002. The intent was to gain a greater understanding of the geologic setting where these historical grades were present. The Company identified 2 zones of intense alteration (shear zones) that appeared to act as a conduit for the emplacement of these gold rich showings. It was at this point that Placer Dome took an interest in the property.

Placer Dome funded 10,000 feet of diamond drilling in the spring of 2003 on the Baird property. This drill program was to test the extension and dimensions of the shear structure discovered on the Baird property in 2002. A large fold structure was identified which contains the shear zone in it. This is considered a control mechanism for gold in the camp. In the fall of 2003, Placer Dome funded another 8,000 feet of diamond drilling to test the fold structure identified in the spring drill program. Placer Dome elected to fund a 3rd drill program in 2005 totaling 6,000 feet. After this 3rd Placer funded drill program, Placer Dome earned their 51% interest in the Baird property. In 2006, Goldcorp acquired all of Placer Dome's interest in Red Lake including the operating Campbell gold mine and the 51% interest in the Baird property. At this time, Goldcorp has become the operator of the Baird property and future drilling costs will be shared based on percentage ownership, with Bayfield Ventures being responsible for its 24.5% interest.

Baird Property Air Photo Click to Enlarge	Baird Property Geology & Structures Click to Enlarge
Baird Project 2003 Drill Results Click to Enlarge	Completed Drill Holes March 2005, Baird Project Click to Enlarge