Here is a summary of the NR that was emailed to me this morning. Please read and re-read the text. My take is that this is very significant and will be come more so.
EXPANDED DRILL PROGRAM AND GEOPHYSICAL SURVEYS
FOR SEAGULL PLUTON - WOLF MOUNTAIN PROJECT
Here is a copy of the latest News Release published last week. It contains all the up to date information.
Summary:
1. East West and Canadian Golden Dragon elect to increase their interest
to 60% and become operator of the joint venture.
2. Expanded geophysical surveys and drilling to resume immediately
3. West Extension of sulphide host up to 3000 m long.
4. Four PGE minerals identified in basal sulphide zone similar to other known World Class Cu - Ni - PGE deposits.
Sufficient funding is now in place to embark on the next phase of exploration that has been recommended in a geological - Engineer's report which has now been
accepted by the Canadian Venture Exchange. Approximately $200,000 will be spent on drilling and doing an extensive geophysical (IP - magnetic surveys) grid to the
west of the existing Avalon Ventures grid to trace the updip extension of the sulphide zone intersected in holes WM98-05 and WM98-02. Recent mapping on the west
margin of the Seagull pluton has located two exposures of the gabbro - pyroxenite that is very similar to the host rock found in the lower basal phase of the intrusion that
hosts the sulphides. This confirms the shallow 100 dip for the base of the intrusion on the west side of the pluton and shows that the host for the sulphide horizon
extends for 3000 m west of hole WM98-05. The west margin has never been explored previously and now represents a 3.0 km by 3.0 km area within which shallow - near
surface sulphide zones may occur.
The highest PGE concentration found so far occurs within the basal gabbro layer as noted in hole WM98-05 extension where 1.04 gm/t was obtained over 16 m. Hole
WM98-02 extension encountered 1.1 gm/t over 1.6 m, also at the base of the intrusion, suggesting that the basal sulphide zone widens to the south toward an EM
conductor. Drilling of another hole where the EM conductor occurs on L2000E, south of WM98-05 is being considered. In addition, the zone appears to extend up dip to
the northwest where another hole is being considered. Therefore there may be a keel shaped structure along the base of the intrusion and future drilling assisted by
downhole geophysics will be directed at locating a more sulphide rich phase at the base of the intrusion.
Thin section examination of the core from WM98-05 at 574 m has classified the gabbro - pyroxenite as Lherzolite, which means this unit contains the mineral olivine and
is one of the host rocks that one finds in other important world class ultramafic intrusions that host nickel - copper - PGE deposits.
Mineralogical studies have been continuing at a Canadian university throughout the summer and a number of important facts have come from this work. Firstly the
mineralogy has a similarity to the Duluth Gabbro deposits as well as footwall settings found in Sudbury. The PGE values appear to be dissolved within the chalcopyrite
and pentlandite that occur. The rocks formed from a high
temperature magma. Abundant cumulate textures occur. The sulphide blebs at the base of the intrusion are zoned showing copper above and pyrrhotite - pentlandite
(nickel) below, hence
forming an attractive location for PGE accumulation. There is evidence of a later stage alteration that may be an early stage for the remobilization of palladium. Cubanite
occurs in exsolution with
chalcopyrite which is typical of other deposits in the world such as Sudbury and Noril'sk. Pentlandite often forms flame textured intergrowths into the pyrrhotite.
Four to five PGE (platinum Pt, palladium Pd) minerals have been identified by SEM (scanning electron microscope) in the basal sulphide zone in hole WM98-05 ext,
which include:
Sperrylite, PtAs2,
(palladium - bismuth - telluride) possible Michenerite, PdBiTe or Merenskyite, PdTe2
Unnamed mineral, PdCu
Altaite, Pd bearing lead telluride, PbTe
These PGE minerals and textures occur in other major nickel (Ni) - copper (Cu) - PGE deposits such as Sudbury, Noril'sk, and Duluth.
Footwall veins and feeder dikes may occur at the base of this intrusion and should be explored for since they would contain increased PGE values. This suggestion
based on the mineralogical similarity to other PGE bearing intrusions in the world is supported by the magnetic susceptibility model, which identifies structures that look
like feeder dikes. The next drill program will test one of these structures near Line 2300E, 300m east of hole WM 9805.
Work carried out in the first half of this year by the East West Resource Corporation and Canadian Golden Dragon Resources Ltd with Avalon Ventures as operator has
established that there is important mineral potential in the Seagull Pluton and that there are sulphide zones present at the base of the intrusion that are not dissimilar to
the Noril'sk type setting in Siberia. The four holes drilled in May, June, and July have established two sections - a north-south cross section in holes WM98-05ext and
WM98-02ext, and a longitudinal east-west section between WM98-05ext and WM00-01. Anomalous platinum - palladium values greater than 0.1 gram (100 ppb) were
noted in seven locations in hole WM98-05 and 10 locations in WM00-01, which suggests there are a number of consistent "layers" within the intrusion that contain
elevated PGE values. These zones, or layers, range from 1.6 m to 16 m in thickness, however, the highest values occur where sulphides are present, particularly copper
sulphide (chalcopyrite). In addition there is always an anomalous zone within the basal gabbro - pyroxenite and the anomalous layers above this basal unit tend to align
from hole to hole. This phenomenon is not uncommon in the large PGE bearing ultramafic intrusions in the world where PGE values concentrate in layers, most
commonly with oxides such as magnetite and/or chromite as well as with sulphides.
In excess of $300,000 has been spent so far by East West and Canadian Golden Dragon, which have earned a combined 50% interest in both the Seagull 638 and
Disraeli 287 claim units, with Avalon Ventures Ltd holding the remaining 50%. East West and Canadian Golden Dragon will now proceed to spend the remainder of
$700,000 to earn an additional 10% interest and become the operator. This would result in East West - Canadian Golden Dragon earning a combined 60% interest in the
two properties and Avalon Ventures Ltd holding 40% with acceptance of the Engineer's report by the Exchange a further 50,000 shares of East West and Canadian
Golden Dragon have been issued to Avalon Ventures Ltd.
ON BEHALF OF THE BOARD OF DIRECTORS
"A K Crossley"
A K Crossley, President
Contact: (604) 681-1909 |
