Thought this was kind of interesting.Ferguson lake has become an area play.I think this is just the beginning.
LMX enters option agreement for Ferguson Lake area
LMX Resources Ltd
LMX
Shares issued 25,464,792
2000-07-18 close $0.23
Tuesday Jul 18 2000
Mr. Colin Campbell reports
LMX Resources has entered into a series of option agreements whereby
the company may acquire a 100-per-cent interest, subject to a
2-per-cent net smelter royalty, in 15 mineral claims in the Ferguson
Lake area, Nu.
The agreements pertain to the Ferguson west (7,747 acres), Ferguson
hill (2,582 acres), area 51 (5,165 acres), kzan (2,582 acres), west
extension (15,492 acres), Zan-1 (2,582 acres) and Zan-2 (2,582 acres)
properties that in total cover 38,732 acres.
The properties under option by the company are either contiguous to or
proximal to the Starfield Resources Inc. Ferguson Lake project located
100 miles southwest of Baker Lake and 120 miles west of the port of
Rankin Inlet in Nunavut. Starfield is currently engaged in an aggressive
exploration and development program and is targeting a world-class
PGM copper-nickel-cobalt deposit. To date, an estimated 11 million
tonnes of mineral inventory have been identified within three separate
zones at the Ferguson Lake deposit.
Included in the mineral inventory is the west zone main currently
estimated to contain a 7.15-million-tonne possible resource grading
0.87 per cent copper and 0.75 per cent nickel. This zone remains open
along strike and depth. A recent independent report by Vancouver-based
SJ-Geophysics concluded that a very large conductive body may be
present, based on magnetic and UTEM responses and the airborne survey
flown during the summer of 1999.
Starfield has recently announced by news release of June 1, 2000, that
the UTEM survey is tracing the host sulphide unit beyond the
7.1-million-tonne possible resource previously identified by 71 core
drill holes. The west zone anomaly continues to plunge in a westerly
direction for a total strike length of 4.2 kilometres. The zone continues
to be open for further extension beyond section 82 west and survey work
is continuing.
LMX has reviewed a preliminary copy of the 1999 airborne geophysical
survey flown over the Ferguson Lake area that confirms that the
magnetic high geophysical trend continues from the Starfield Ferguson
Lake project directly to the west onto the LMX-optioned Ferguson west
and west extension properties. Also, based on a westerly plunge of the
west zone main, it is also interpreted that this trend should also continue
onto the above mentioned LMX-optioned properties.
The airborne geophysical survey also indicates that the trend of the same
magnetic high continues to the east onto the area 51 property. This is
directly east of the Starfield east zone II where 1.3 million tonnes of
possible resource grading 0.94 per cent Cu and 0.8 per cent Ni remains
open along strike and at depth. In addition, former Inco anomaly 50
within the area 51 property was reported to have historical Inco drilling
conducted during the 1950s.
The Ferguson hill property, located to the northeast of the Starfield
property, was also acquired based on evidence of surface exploration and
diamond drilling by Inco in the same 1950s exploration programs. Inco's
expenditures over a five-year period were in excess of $2.2-million
(valued at $15-million today).
Three other properties, the kzan, zan-1 and zan-2, each constituting one
claim each, were acquired based on favourable geology to host
Ni-Cu-Co-PGE mineralization as well as unique, airborne magnetic
signatures interpreted to possibly represent sulphide signatures.
LMX plans to commence exploration programs beginning on the
Ferguson west and west extension properties by conducting the identical
UTEM survey procedures that have trace the Ferguson Lake project to
depth. Diamond drilling of favourable targets will follow. Phase I budget
for this program is estimated at $175,000.
LMX may acquire a 100-per-cent interest in the Ferguson Lake area
claims by issuing a total of 900,000 shares of the company's capital
stock, paying a total of $90,000 in cash and expending a minimum of
$1.75-million on the claims by Oct. 1, 2003. In addition, LMX must
make annual advance royalty payments totalling $70,000 on various
claims.
The Ferguson Lake agreements are subject to Canadian Venture
Exchange acceptance for filing.
(c) Copyright 2000 Canjex Publishing Ltd.
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