News out - sister company is on fire GHM be careful
Western Keltic's phase 1 Sault Dam program under way
Western Keltic Mines Inc WKM
Shares issued 11,044,858 Aug 8 close $0.11
Wed 15 Aug 2001 News Release
Mr. Donald McInnes reports
A phase 1 exploration program is currently under way on the Sault Dam
property located 25 kilometres northeast of Sault Ste. Marie, Southwestern
Ontario. WKM has an option to earn a 70-per-cent interest in the property
from Billiton Resources Canada Inc., a wholly owned subsidiary of BHP
Billiton PLC (BHP Billiton). The 63-square-kilometre property was acquired
by Billiton after recognizing that the area is highly prospective for
iron-oxide copper-gold mineralization similar in style to the world-class
Olympic Dam deposit (resource of 2.32 billion tonnes grading 1.3 per cent
Cu, 0.4k g/t U3O8, 0.5 g/t Au) in South Australia.
Prior to commencing the first phase program the company's consultant,
Metallum Geoconsultants Ltd. compiled all existing geological, geochemical
and geophysical data on the Sault Dam and surrounding area. This work
revealed that the property is host to two past producers, and encloses
leases which host a third. All three deposits were in production during the
period 1902 to 1904. The Taylor deposit occurs on leased ground in
Northeast Anderson township along the sheared contact between a diabase
dike and Archean granitoid. Four shafts were sunk on the vein system, which
contains both copper and gold. The Ranson deposit lies on the property in
the northwest quadrant of the Chelsey township, more or less on strike from
the Taylor deposit, in a similar geological environment. Four showings
comprise the Ranson system, which has a strike length of approximately 1.4
kilometres. A 480-pound sample taken in 1947 from the main showing is
reported to have assayed 9.84 per cent copper, 0.45 ounce per ton silver
and 0.085 ounce per ton gold. Other samples from this showing assayed up to
15.9 per cent copper and 0.97 ounce per ton gold. The Williams
hematite-rich iron deposit occurs in the southeast Deroche township in the
northwest portion of the property. There is no exposure at the deposit, but
boulders from the mine dump consist of hematite veins cutting granitoid and
hematite-rich rocks.
The phase 1 program will consist of propertywide geological mapping,
magnetic and gravity geophysical surveys to identify discrete target areas
within the 63-square-kilometre property. It is estimated that this phase of
work will be completed by the end of August.
The exploration program will be under the direction of Tom Setterfield,
PhD, principal of Metallum. Mr. Setterfield's previous experience with WMC
Limited as part of their global search team for IOCG type deposits will
prove invaluable. Western Keltic is confident in his ability to
successfully direct and execute this exploration program toward identifying
IOCG mineralization at the Sault Dam project.
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