2002 DRILL PROGRAM TO COMMENCE IN JANUARY
HIGH-GRADE PLATINUM-PALLADIUM HORIZON EXPANDED
The Company is pleased to summarize the successful exploration programs conducted during 2001 at the 100% owned Ferguson Lake Nickel, Copper, Palladium, Platinum and Cobalt deposit located in Canada’s Nunavut Territory.
In the course of defining the West Zone resource, the company has discovered platinum-palladium horizons adjacent to the massive sulphides. One new zone appears to extend for 2.4 kilometers and remains open both along strike to the west and to depth.
This exciting new continuous horizon was intersected in Hole 99-10 on Section 4520 West grades 2.27 g/t/ Pd and .098 g/t/ Pt over a width of 1.37 metres. The grade of this horizon increases to 9.90 g/t/ Pd and 1.44 g/t Pt over 0.5 metres where detected in Hole FL01-104 approximately 1.8 kilometres further west. The trend to higher grades in a westerly direction is further demonstrated 600 metres west of Hole FL01-104 where Drill Hole FL01-101 (the furthest westerly drill hole) graded 103 g/t Pd (3.29 oz/t) and 26.7 g/t (.85 oz/t) Pt over 0.35 metres.
This westerly increase in grade coupled with new interpretive techniques for geophysical magnetic survey data indicates that the Company’s primary targets lie further west of Hole FL-101.
Since acquisition, the Company has spent in excess of $14 million on exploration, including over 43,000 metres of drilling in 104 holes and, as a result, has increased the Ferguson Lake prospect from 6 million tonnes to in excess of 60 million tonnes. Ninety percent of this 60 million tonnes is located in the West Zone. This zone as defined by the UTEM geophysical system has been less than 25% explored and still remains open to depth and along strike.
The 2001 drilling program successfully increased the massive sulphide tonnage from 32.8 million tonnes to 60.1 million tonnes and, as the Company drilled progressively to the west, the grades of the massive sulphides increased to a level where a new grade category of 2.0% -- plus combined Ni Cu cutoff was calculated. This higher-grade resource is presently estimated at 12.7 million tonnes and the Company is confident of significantly increasing this 2.0% cutoff category by infill drilling on sections 60+60W and 63+60W.
The combined inferred mineral resource is summarized below:
Combined West Zone, East Zones I & II
Inferred Mineral Resource
Cutoff Grade
Tonnes
(millions)
Copper (%)
Nickel (%)
Pd (g/t)
Pt (g/t)
1.0% Cu+Ni
60.1
0.93
0.59
1.32
0.19
1.5% Cu+Ni
30.6
1.17
0.77
1.69
0.25
2.0% Cu+Ni
12.7
1.39
0.85
1.92
0.28
The Company’s independent consultant, N.C. Carter, Ph.D., P.Eng., has prepared the new estimates pursuant to CIM “Standards on Mineral Resources and Reserves” designed by the CIM Standing Committee on Reserve Definitions, adopted by CIM Council on August 20, 2000 and published in the CIM Bulletin of October, 2000. Dr. Carter calculated the new resource estimates manually for individual drill hole cross-sections employing the following parameters: Cut-off Grades – 1.0%, 1.5% and 2.0% combined Cu + Ni. Minimum Drill Intersection – 2.00 meters. Area of Influence for Individual Drill Holes (down-dip) – midway point between drill holes. Area of Influence for Individual Cross-Sections – midway point between sections. Assumed Specific Gravity – 3.80. A total of 150 drill hole intersections of massive sulphide mineralization were utilized in the resource calculations. Intervals between holes range from 120 meters on initial stepouts to approximately 40 meters for in-fill drill holes. Some of the 1950’s drill results reported only “PGE” instead of separate assays for Pd and Pt. As a result the palladium and platinum values are calculated from a property-wide ratio of palladium to platinum of 7:1.
The Company plans to commence the 2002 drill program in mid-January 2002 to develop the high-grade platinum/palladium horizons and expand the 60 million tonne resource.
On behalf of the Board of Directors
“Glen Macdonald”
Glen Macdonald, P.Geol.
Director |
