Flag Resources (1985) Limited's Exploration Projects Wanapitei Anomaly, Sudbury, Ontario
CALGARY, May 9 /CNW/ -
Cobalt Hill, Mackelcan Township
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A recent discovery by Dr. Eva Schandl (Geological Consultant, Research
Associate, Department of Geology, University of Toronto) of fine-grained Ni-Cu
sulfide inclusions in massive pyrite (gersdorffite, bravoite, pentlandite,
pyrrhotite and chalcopyrite), along with mercury tellurides and gold within
quartz veins that crystallized from super-saline hydrothermal fluids, at
Cobalt Hill, has been a significant discovery for Flag.
It is apparently, the first discovery of Sudbury type of mineralization
in the Wanapitei Anomaly. It is the first, in the Sudbury mining camp, to be
discovered by mineralogical and fluid inclusion studies.
The focus of the major exploration project, proposed for Cobalt Hill, is
to test the theory that the source of the localized Ni-Cu-P.G.E.
mineralization, found at Cobalt Hill, may be a relatively shallow (650 to 1000
meters deep) Sudbury type mineralized mafic/ultramafic intrusion.
Because of the significance for exploration of the Wanapitei Anomaly, of
Dr. Schandl's discovery, Flag is staking the remaining open ground in
Mackelcan Township.
Exploratory Licence of Occupation
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Flags E.L.O. covers an area of 708 hectares (1,750 acres) in Rathbun and
Aylmer. Townships near the northeast flank of the Sudbury Structure.
A report on the E.L.O. by Dr. Peter Giblin, Consulting Geologist, Sudbury
Ontario, notes that it covers two gold occurrences, known as the Bennett and
Alymer occurrences, with the Bennett occurrence little explored by modern
techniques, until drilled by Flag in 1998, and the nearby Aylmer occurrence
yet to be explored by modern techniques. He also notes that recent prospecting
has found a copper occurrence, a pyritic breccia, and a gold-bearing gossan
zone in unexplored portions of the E.L.O., with no previous exploration work
on the occurrences, recommending an initial work program of $114,800 on the
occurrences.
Prior to commencing the recommended exploration, Flag proposes to meet
with Ministry of Northern Development and Mines staff to lay out in detail,
Flag's proposed work program.
Wolf Lake Gold-Copper and Jess Lake Gold Deposits, MacKelcan Township
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Prior to any further development, Flag proposes to have a report done to
evaluate the potential economic reserves in the two deposits, and
recommendations for further development work.
Matagamasi Lake, Rathbun Township
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An exploration drill hole, for assessment credits, is currently drilling
below 200 feet, on the east shore of Matagamisi Lake, Rathbun Township. The
previously undrilled area is a peninsula flanked, on both sides, by regional
faults. The drill hole is at the contact of hematized Lorrain quartzite with
gabbro. A gold occurrence is located 300 feet southeast, approximately, of the
drill hole, in hematized Lorrain quartzite. (Ontario Geological Survey Map
2450).
Flag's 72,000 acres is located in the western sector of the Wanapitei
Anomaly, the adjoining 54 mile long magnetic and gravity anomaly to the 36
mile long Sudbury Anomaly, one of the world's largest producers of nickel,
copper and platinum group metals.
OFFERING MEMORANDUM
One million units, approximately, of Flag's current Offering Memorandum
have been subscribed for by investors. Flag, by its Offering Memorandum is
offering 2,000,000 units by way of private placement at a price equal to the
greater of 10 cents and the average trading price of it's shares for the 10
days preceding the date of purchase of the units, less such permissible
discounts as prescribed by the Canadian Venture Exchange, but with no private
placement below 10 cents. Flag is not accepting any further subscriptions
pending further exploration results.
Each unit consists of one common share issued on a flow-through basis,
pursuant to the Income Tax Act (Canada) and one share purchase warrant. Each
warrant entitles the holder to purchase one common share (not issued on a
flow-through basis), at a price equal to 150 percent of the purchase price per
unit exercisable for one year from the date of issue of the warrant.
SHARES FOR DEBT
Flag Resources (1985) Limited is pleased to announce that holders of
certain debt obligations outstanding by Flag Resources have agreed to convert
their debt into common shares of Flag Resources as follows:
1. Dr. Eva Schandl, a mineralogist who has been consulting to the
Corporation, has agreed to convert debt in the amount of $4,800 into
30,000 common shares of the Corporation priced at $0.16 per share. The
debts relate to her invoices for services rendered in preparing a
Mineralogical Report for the corporation;
2. Murdo C. McLeod, a director and officer of the corporation, has agreed
to convert debt in the amount of $36,000.00 into 200,000 common shares
of the corporation priced at $0.18 per share. The debt relates to the
majority of invoiced exploration consulting fees due to Mr. McLeod.
The debt conversion results from the elimination of a total of $40,800 of
debt in exchange for the issuance of 230,000 common shares of Flag Resources.
All matters in connection with the above-mentioned debt conversions
remain subject to final regulatory approval, including approval from the CDNX |
