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Wednesday May 15, 10:00 am Eastern Time
Press Release
SOURCE: Fort Knox Gold Resources Inc.
via BCE Emergis e-News Services
Fort Knox-Dynatec Sudbury Joint Venture Discovers New Nickel Mineralization and Confirms Previous Drill Results
Toronto, Ontario
Fort Knox Gold Resources Inc. (FNX-TSE) and Dynatec Corporation
(DY-TSE) are pleased to announce the discovery of new nickel
mineralization in a previously undrilled area within the McCreedy
West property and that Cu-Ni-Pt-Pd -Au mineralization has been
confirmed within known mineralized zones at the McCreedy West and
Levack properties.
HIGHLIGHTS
McCREEDY WEST PROPERTY
* The discovery of high-grade nickel mineralization in a
previously undrilled and readily accessible part of the
McCreedy West mine has the potential to be a new mineralized
zone (Inter Main Zone).
* At the PM Zone, the intersection of significant Cu-Ni-TPM
mineralization over a 250-ft. core interval along with shorter
sections of much higher grade mineralization, confirms the
previous drill results.
* Inter Main Zone: 52.3 ft. 0.4% Cu, 3.2% Ni, 0.2 g/t TPM
* Upper Main Zone: 35.0 ft. 0.6% Cu, 1.7% Ni, 0.2 g/t TPM
* PM Zone: 250.7 ft. 1.2% Cu, 0.2% Ni, 6.2 g/t TPM
(including) 24.6 ft. 2.1% Cu, 0.5% Ni, 24.6 g/t TPM
(including) 24.7 ft. 1.7% Cu, 0.5% Ni, 15.1 g/t TPM
(including) 67.0 ft. 2.2% Cu, 0.3% Ni, 11.3 g/t TPM
(including) 15.3 ft. 7.5% Cu, 0.8% Ni, 30.7 g/t TPM
LEVACK PROPERTY
* Significant Cu-Ni-TPM mineralization was intersected in the
1300 and 1900 Zones and a strong borehole geophysical anomaly
indicates that the two zones may be connected and warrant
extensive drilling.
* 1300 Zone: 35.7 ft. 0.6% Cu, 2.0% Ni, 0.8 g/t TPM
(including) 19.3 ft. 0.9% Cu, 2.6% Ni, 0.9 g/t TPM
* 1900 Zone: 20.0 ft. 2.8% Cu, 2.0% Ni, 3.0 g/t TPM
(including) 8.7 ft. 5.3% Cu, 4.4% Ni, 5.1 g/t TPM
13.5 ft. 1.3% Cu, 2.1% Ni, 1.7 g/t TPM
(including) 6.1 ft. 2.1% Cu, 4.2% Ni, 3.2 g/t TPM
Notes:
* The lengths reported are drill intersected core lengths and
not an estimate of true widths.
* TPM refers to Total Precious Metals defined as Pt+Pd+Au. ??g/t
refers to grams per metric tonne
* Above intersection summaries are detailed in attached Tables
1 and 2
The above intersection summaries are part of the initial results
from the previously announced Cdn$14 million exploration and
development program being conducted by the Fort Knox-Dynatec
Sudbury Joint Venture (see April 29, 2002 FNX and DY press
release). Fort Knox is the exploration operator and conducts all
exploration on behalf of the Sudbury Joint Venture, which is owned
75% by Fort Knox and 25% by Dynatec. The on-going drill program was
initiated on March 21, 2002 and nine drill rigs are currently in
operation. Seven boreholes, totaling 15,887 ft., have been
completed to date on the McCreedy West and Levack properties.
The Sudbury Joint Venture properties (McCreedy West, Levack,
Victoria, Norman and Kirkwood) are all former copper (Cu), nickel
(Ni), platinum (Pt), palladium (Pd) and gold (Au) producers. The
properties are located in the Sudbury District of northeastern
Ontario and are covered by previously announced agreements between
Fort Knox and Inco (see January 11, 2002 FNX press release) and
Fort Knox and Dynatec Corporation (see February 3, 2002 FNX and DY
press release). For a detailed description of the properties and
previous work on the properties please go to the Fort Knox website
"www.fnxmining.com " and Fort Knox's Annual Information Form dated
December 21, 2001.
References to previous or historical drill assays are extracted
from Dr. J.M. Patterson's November 7, 2001 report entitled Property
Report, Sudbury, Ontario, Cu-Ni-PGE Properties or have been
independently verified by Fort Knox 's Qualified Persons and are
the sole responsibility of Fort Knox. The full text of Dr.
Patterson's report can be found on Fort Knox's website.
Inter Main Zone, McCreedy West Property
The discovery borehole (DDH 3020) in a potential new zone (the
"Inter Main Zone") was designed to test the Cu-PGM rich PM Zone at
depth in the footwall of the McCreedy West property. It passed
through a previously undrilled area of McCreedy West contact zone
and intersected 52.3 ft. of mineralization grading 3.2% Ni at the
base of the Sudbury Igneous Complex (SIC).
The Inter Main Zone consists of nickel-rich, Sudbury Basin
contact-type mineralization. A previous borehole drilled in the
East Zone approximately 270 ft. up-dip from the discovery borehole
contains two mineralized intersections grading 0.4% Cu, 3.4% Ni
over 10.3 ft. and 0.5% Cu, 2.8% Ni over 15.8 ft. A borehole drilled
420 ft. to the west of the discovery borehole cut 0.8% Cu, 3.0% Ni
over 9.5 ft. and a borehole located 222 ft. down dip from the
discovery borehole intersected 0.1% Cu, 1.0% Ni over 33.1 ft. The
Inter Main Zone, situated between the unmined East Main Zone and an
unmined portion of the Lower Main Zone, is interpreted by Fort Knox
to represent a possible, previously undetected, embayment/terrace
at the base of the SIC. Embayment/terrace structures at the contact
of the SIC are traditional hosts of Sudbury Basin contact-type ore
deposits.
A borehole UTEM geophysical response associated with the Inter Main
Zone discovery intersection indicates that a significant anomaly
extends down dip from the intersection.
The discovery of a possible embayment/terrace containing a
relatively thick intersection of high-grade nickel mineralization
in a readily accessible part of the McCreedy West mine has the
potential to influence the Sudbury Joint Venture's near term
operating plans. A second drill rig has been deployed to the area
to test the significance of the discovery.
Upper Main Deposit, McCreedy West Property
The Ni-Cu contact-type Upper Main deposit occurs at the base of the
SIC. It was previously mined from the 250 ft. Level to the 600 ft.
Level. Mineralization is known to extend 100 to 150 ft. below 600
Level and remains un-mined at this location. Fourteen previous
boreholes drilled below the 600 Level intersected 25 significantly
mineralized intersections (e.g. 0.8% Cu, 2.2% Ni, over 44.6 ft. and
0.4% Cu, 2.2% Ni, over 76.8 ft).
Fort Knox's first borehole in the Upper Main (DDH 3000) was
designed to confirm the previous Upper Main drill results and to
continue into the footwall to test the PM Zone. DDH 3000 cut three
intersections in the Upper Main Zone, with the highest grade
intersection being 0.6% Cu, 1.7% Ni, 0.2 g/t TPM over 35.0 ft. The
Upper Main Zone will continue to be tested by boreholes designed to
explore the underlying PM Zone. An engineering/economic evaluation
is required to determine the viability of mining the Upper Main
deposit.
PM Zone, McCreedy West Property
The PM Zone occurs in the footwall of the McCreedy West Property
between the 1450 ft. and 2500 ft. Levels and is approximately 1500
ft. by 1500 ft. in size. Forty three previous drill holes yielded
42 significant drill intersections, with 32 greater than 20 ft. The
previous drilling demonstrated that the PM Zone contains long
intersections of significant Cu and TPM values (e.g. 1.1% Cu, 0.3%
Ni, 5.6 g/t TPM over 126.0 ft) and narrower intersections of higher
grade Cu, Ni and TPM values (e.g. 10.8% Cu, 2.8% Ni, 121.9 g/t TPM
over 7.5 ft.).
Fort Knox's first borehole into the PM Zone (DDH 3000) intersected
the strongest mineralization reported to date. DDH 3000 cut 250.7
ft. grading 1.2% Cu, 0.2% Ni, 6.2 g/t TPM with shorter sections of
much higher grades (2.2% Cu, 0.3% Ni, 11.3 g/t TPM over 67.0' and
7.5% Cu, 0.8% Ni, 30.7 g/t TPM over 15.3 ft.). Although the true
width of this intersection cannot yet be determined, it is
estimated that the true width will be approximately 60% of the core
length.
It appears that portions of the PM Zone may not give strong UTEM
responses due to low sulphide content. However, a prominent, good
quality, offhole UTEM response was detected to the west of the
known extent of the PM Zone in an area of limited drilling.
The PM Zone will continue to be tested with boreholes designed to
also intersect the overlying Upper Main and Inter Main contact-type
deposits at the base of the SIC.
1300 Zone, Levack Property
The Ni-Cu 1300 Zone is a contact-type Sudbury Basin deposit that
occurs at the base of the SIC. It has a known strike length of at
least 650 ft. and is open in all directions. It is untested down
dip where it may connect to the 1900 Ni-Cu-PM Zone. Seven previous
boreholes cut 6 intersections (e.g. 1.1% Cu, 3.3% Ni over 65.7 ft.
and 0.8% Cu, 3.6% Ni over 5.8 ft.).
Fort Knox's first borehole in the 1300 Zone (DDH 2000) intersected
the fringes of the 1300 Zone and cut minor sulphides over two
intervals of 25 ft. and 40 ft. The borehole continued through the
1900 Zone and cut 35.7 ft. of mineralization containing two short
sections (2.9 ft. and 2.0 ft) of massive sulphides for which assays
are awaited. The second borehole to test the 1300 Zone (DDH 2001)
intersected 0.6% Cu, 2.0% Ni, 0.8 g/t TPM over 35.7 ft., including
0.9% Cu, 2.6% Ni, 0.9 g/t TPM over 19.3 ft.
The 1300 Zone will be further tested in conjunction with the
drilling of the 1900 Zone.
1900 Zone, Levack Property
The 1900 Zone occurs within the same embayment structure as the
1300 Zone. It contains high Ni, Cu and TPM values and has a known
strike length of at least 1300 ft., a dip length of at least 900
ft. and is open in all directions. Fifteen previous boreholes cut
18 significant intersections (e.g. 1.9% Cu, 2.6% Ni, 4.4 g/t TPM
over 87.4 ft. and 1.1% Cu, 2.1% Ni, 2.2 g/t TPM over 11.8 ft.).
DDH 2001 continued beyond the 1300 Zone into the 1900 Zone and
intersected 1.0% Cu, 1.0% Ni, 1.8 g/t TPM over 82.6 ft., including
two narrower intersections with higher grades (2.8% Cu, 2.0% Ni,
3.0 g/t TPM over 20.0 ft. and 5.3% Cu, 4.4% Ni, 5.1 g/t TPM over
8.7 ft.).
DDH 2003 was designed to test a previously detected borehole UTEM
anoma ly interpreted to indicate a continuation of the 1300 and
1900 Zones. DDH 2003 intersected mineralization which graded 1.3%
Cu, 2.1% Ni, 1.7 g/t TPM over 13.5 ft., including 2.1% Cu, 4.2% Ni,
3.2g/t TPM over 6.1 ft.
Borehole UTEM geophysical surveys from the two 1900 Zone boreholes
indicate strong conductivity anomalies associated with the
mineralized intersections and warrant further testing.
Analytical Techniques and Methodology
The drill core is processed at Fort Knox's secure core handling
facility in Sudbury, Ontario. The core is logged, and marked for
sampling by qualified personnel. The core to be sampled is sawn in
half; one half of the sawn core is securely bagged and the
remaining half is retained for future reference and study. The
bagged core samples are shipped by commercial transport to ALS
Chemex sample preparation facility in Mississauga, Ontario. ALS
Chemex crushes the samples to 10 mesh and a 250-gram split of the
crushed sample is pulverized to -200 mesh. A 100-gram split of the
pulp is shipped to the ALS Chemex laboratory in Vancouver for
assaying. Remaining crushed sample material and pulverized rejects
are stored at the ALS Chemex sample preparation lab in Mississauga.
All ALS Chemex Sample Preparation facilities and Analytical
Laboratories are registered under the ISO 9001:2000 quality
standard. Assays for base metals are done by ICP-AES (Inductively
Coupled Plasma - Atomic Emission Spectroscopy) following Sodium
Peroxide Fusion. Assays for Precious Metals (Pt, Pd Au) are carried
out by ICP-MS (Inductively Coupled Plasma - Mass Spectrometry).
Quality control samples (reference materials, blanks and
duplicates) are inserted by the laboratory. The analytical results
are transmitted to Fort Knox's Sudbury office, verified and merged
with the borehole logs. Check assaying is systematically conducted
on the remaining half of the core, the pulps and crusher rejects.
Fort Knox is the exploration operator for the Sudbury Joint Venture
and James M. Patterson, Ph.D, Member AGO, and Vice President
Exploration of Fort Knox Gold Inc. is the designated Qualified
Person and is responsible for the verification and quality
assurance of the exploration data and analytical results.
The Fort Knox-Dynatec Sudbury Joint Venture drill program will
continue to operate with two drill rigs on the Levack, Norman and
Victoria properties and three drill rigs on the McCreedy West
property. A tenth drill rig will be added shortly. Exploration
results will be released on the Norman and Victoria properties as
results are received and processed.
This press release contains certain forward-looking statements,
which may materially differ from actual results.
For further information, please contact:
Fort Knox Gold Resources Inc.
Terry MacGibbon, President and CEO
Telephone: 416-628-5929, fax: 416-628-5911,
Email: info@fnxmining.com, www.fnxmining.com
Dynatec Corporation
Bob Dengler, President and CEO
Telephone: 905-780-1980, fax: 905-780-1990,
Email: dengler@groupwise.dynatec.ca, www.dynatec.ca
TABLE 1: McCreedy West Property - Drill Results
---------------------------------------------------------------
From To Length
Zone Borehole East North Az Dip (ft.) (ft.) (ft.)
---------------------------------------------------------------
Inter FNX 3020 313823 449497 343 -71 1326.7 1379.0 52.30
Main
---------------------------------------------------------------
Upper FNX 3000 312055 449210 055 -56 650.85 664.5 13.65
Main
---------------------------------------------------------------
725.50 760.5 35.00
869.6 901.8 32.20
--------------------------------------------------------------
PM FNX 3000 1941.0 2191.7 250.70
Including 1975.4 2000.0 24.60
2066.9 2091.6 24.70
2124.75 2191.7 66.95
Including 2139.5 2154.8 15.30
---------------------------------------------------------------
Continued.....
---------------------------------------------------------------
% g/t
Zone Borehole Cu Ni Au Pt Pd TPM
---------------------------------------------------------------
Inter Main FNX 3020 0.37 3.17 0.01 0.06 0.12 0.19
---------------------------------------------------------------
Upper Main FNX 3000 0.35 0.72 0.01 0.05 0.06 0.12
0.55 1.74 0.01 0.07 0.12 0.20
0.33 0.62 0.01 0.03 0.04 0.08
---------------------------------------------------------------
PM FNX 3000 1.17 0.22 0.67 2.13 3.44 6.24
---------------------------------------------------------------
Including 2.10 0.52 3.54 7.51 13.55 24.61
1.72 0.48 1.13 6.11 7.88 15.11
2.21 0.26 1.18 3.55 6.58 11.31
Including 7.45 0.80 2.84 8.91 18.98 30.72
---------------------------------------------------------------
TABLE 2: Levack Property - Drill Results
---------------------------------------------------------------
From To Length
Zone Borehole East North Az Dip (ft.) (ft.) (ft.)
---------------------------------------------------------------
1300 FNX 2000 319872 454752 332 -75
---------------------------------------------------------------
1900 FNX 2000
---------------------------------------------------------------
1300 FNX 2001 319540 454326 359 -64 1470.0 1505.7 35.7
Including 1470.0 1489.3 19.3
---------------------------------------------------------------
1900 FNX2001 2067.8 2150.4 82.6
Including 2130.5 2150.4 19.90
Including 2141.7 2150.4 8.70
---------------------------------------------------------------
1900 FNX 2003 319694 453919 332 -85 1959.9 1973.4 13.50
Including 1963.1 1969.2 6.1
---------------------------------------------------------------
Continued....
------------------------------------------------------------
% g/t
Zone Borehole Cu Ni Au Pt Pd TPM
------------------------------------------------------------
1300 FNX 2000 Assays awaited
------------------------------------------------------------
1900 FNX 2000 Assays awaited
------------------------------------------------------------
1300 FNX 2001 0.64 1.98 0.05 0.40 0.36 0.81
Including 0.94 2.60 0.06 0.40 0.44 0.90
------------------------------------------------------------
1900 FNX2001 0.96 0.97 0.06 0.84 0.89 1.79
Including 2.81 1.95 0.18 1.67 1.15 3.00
Including 5.28 4.35 0.13 3.08 1.87 5.07
------------------------------------------------------------
1900 FNX 2003 1.26 2.05 0.19 0.72 0.82 1.72
Including 2.14 4.18 0.37 1.26 1.59 3.22
------------------------------------------------------------
Please note: The map is available on the Emergis(R) e-News
website at www.e-newsservices.com .
####
SOURCE: Fort Knox Gold Resources Inc. |
