FREEWEST AND SPARTON OPTION NEW NICKEL-COPPER-PGE DISCOVERY NEAR GECO AND HEMLO, NORTHWESTERN, ONTARIO
Montreal, Quebec, December 15, 1999: Freewest Resources Canada Inc. (FWR-ME) and Sparton Resources Inc. (SPTN-CDN) are pleased to announce the acquisition of the recently discovered, Tyko Lake nickel-copper-PGE prospect. The option agreement gives each of Freewest and Sparton the right to earn a 50% interest in the property (100% combined). The prospect is situated in McGill Township approximately 30 kilometres southeast of the Geco Mine at Manitouwadge and 30 kilometres northeast of the Hemlo gold mines, respectively.
The Tyko Lake property consists of 18 mineral claims comprising 10,160 acres covering discrete mafic to ultramafic intrusions of the predominantly granodioritic, Black-Pic River batholith. Recent prospecting on the property by Thunder Bay prospectors, Ian Spence and Larry Mealey resulted in a new discovery of nickel-copper-PGE mineralization assaying up to 3.84% nickel, 1.00% copper and 2.43 g/t PGE. Eight large grab samples of mineralized hornblendite outcrop, collected from an area measuring 25 metres by 25 metres average 1.8% nickel, 0.60% copper and 1.19 g/t PGEs. Detailed assay results from the outcrop are as follows:
Cu (%) Ni (%) Pd (ppb) Pt (ppb) Au (ppb) Total PGEs (ppb)
0.42 0.58 411 367 105 883
0.57 0.74 408 303 43 754
0.89 2.17 1591 789 54 2434
1.00 1.04 778 441 46 1270
0.02 0.05 98 81 5 184
0.86 3.82 624 444 61 1129
0.45 0.69 1085 840 2000
0.55 2.44 621 196 17 834
as per Accurassay Laboratories, Thunder Bay, On, Canada
Mineralization at Tyko Lake is hosted in coarse-grained pyroxenite or hornblendite, and is characterized by coarse, skeletal amphibole, igneous breccias and some textural and compositional variability. Some of the host rocks are altered to chlorite as well as serpentine and talc confirming its ultramafic composition. The higher-grade samples consist of coarse-grained pyroxenite bearing appreciable to abundant disseminated and net textured pyrite, pyrrhotite and chalcopyrite and are strongly magnetic. Outcrops of granodiorite are situated in the locale of mineralization suggesting that it may be related to the margin of the granite in an ultramafic host.
The ultramafic rocks hosting mineralization at Tyko Lake are closely associated with a prominent northeast-trending, magnetic high that traverses the entire property over a 6 kilometres length and terminates at an 8 kilometre-wide, circular magnetic high situated to the immediate northeast of the subject property in the Bulldozer Lake area. Notably, the Bulldozer Lake magnetic anomaly is associated with an unmapped mafic intrusion that contains a number of new copper occurrences hosted in gabbroic rocks.
To earn their interests in the property, Freewest and Sparton must make cash payments totaling $120,000, issue 200,000 shares of Freewest and 300,000 shares of Sparton, respectively and incur exploration expenditures of $400,000 over a 3-year period. The vendors retain a 3.0% Net Smelter Return Royalty, of which 1.5% can be bought back from the vendors at the rate of $500,000 per 0.5% increment. The deal remains subject to regulatory approval.
The partners are very excited about this new discovery in an essentially new area for nickel-copper-PGE mineralization in northwestern Ontario. The partners are in the process of compiling all government and private sector data in preparation for the undertaking of a property-wide airborne geophysical survey anticipated to take place early in the New Year.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mackenzie I. Watson, President
Freewest Resources Canada Inc.t
el: (514) 878-3551 or 1-888-878-3551, Fax: (514) 878-4427
e-mail: info@freewest.com, website: www.freewest.com
Edward Thompson, Director
Sparton Resources Inc.
Tel: 416-366-6083 |
