Canadian Royalties Inc - News Release
Cdn Royalties releases drill results from Expo-Ungava
Canadian Royalties Inc CZZ
Shares issued 25,053,809 Nov 8 2002 close $ 1.45
Monday November 11 2002 News Release
Mr. Glenn Mullan reports
MESAMAX DRILL RESULTS - EXTENSIVE HIGH-GRADE NICKEL-COPPER-PG ...
Canadian Royalties has received exceptional nickel-copper-cobalt-platinum-palladium-gold (Ni-Cu-Co-Pt-Pt-Au) assay results over broad intervals in three diamond drill holes completed at the Mesamax northwest grid area on its Nunavik (Ungava), Quebec, Expo-Ungava joint venture property. The three holes intersected disseminated, net-textured and massive sulphide mineralization comprising pyrrhotite (po), pentlandite (pn) and chalcopyrite (cp) at a location 60 metres to the north of a 32-metre intersection of sulphide mineralization reported by the company in 2001 (MXNW-01-02 assayed 0.91 per cent Ni, 1.7 per cent Cu and 4.4 grams per tonne (g/t) platinum group elements (PGE) over 32.1 metres. See news in Stockwatch dated Sept. 20, 2001).
Hole MXNW-02-17, drilled at minus 45 degrees south toward the mineralized intercept in MXNW-01-02, intersected continuous sulphide mineralization from the bedrock surface (nine metres) to 75 metres down the hole. The length weighted average of the entire 66-metre (216.5-foot) interval is calculated as 2.19 per cent Ni, 5.92 per cent Cu, 0.09 per cent Co, 1.30 g/t Au, 1.40 g/t Pt and 2.65 g/t Pd.
Hole MXNW-02-18 drilled at minus 65 degrees from the same location encountered po-pn-cp mineralization from the bedrock surface (5.18 metres) to 54.48 metres down the hole. This 49.3-metre (162-foot) core interval assayed 3.32 per cent Ni, 4.01 per cent Cu, 0.13 per cent Co, 0.26 g/t Au, 1.52 g/t Pt and 5.17 g/t Pd.
A lower mineralized zone from 76.7 metres to 79.0 metres in this hole assayed 1.85 per cent Ni, 2.23 per cent Cu, 0.06 per cent Co, 0.04 g/t Au, 0.58 g/t Pt and 1.20 g/t Pd over 2.3 metres.
Hole MXNW-02-19, a vertical diamond drill hole drilled from the same setup, encountered sulphide-bearing ultramafic at the bedrock surface (5.8 metres) and remained in mineralization to a depth of 27 metres. This 21.2-metre (69.5-foot) interval assayed 1.15 per cent Ni, 1.68 per cent Cu, 0.05 per cent Co, 0.14 g/t Au, 0.82 g/t Pd and 3.70 g/t Pd.
A separate, lower mineralized interval from 51.66 metres to 55 metres comprising predominantly massive po-cp-pn assayed 2.39 per cent Ni, 6.22 per cent Cu, 0.09 per cent Co, 0.41 g/t Au, 0.95 g/t Pt and 9.05 g/t Pd over 3.34 metres.
Assay results were also received for four additional holes in the vicinity of the Mesamax showing and are, at this time, thought to represent the west and east limits of the discovery area. Two holes, MXNW-02-15 and MXNW-02-16 were drilled 120 metres southwest, while holes MXNW-02-20 and MXNW-02-21 were completed from a single setup located 85 metres to the east of the hole 17 setup. These four holes (see table) indicate that sulphide mineralization within the ultramafic channel continues for at least 200 metres near surface.
Only one hole (2001) had ever been drilled within one kilometre to the east of hole 17 and no drilling has been done to the west of the hole 15 and hole 16 setup. The widest and most abundant sulphide mineralization located to date is more or less located near hole 17 and extending for a total east-west length of 150 metres within the ultramafic host. The sulphide zone reaches a width of more than 60 metres near surface, narrows with depth and dips to the north at 20 degrees to 30 degrees below approximately 50 metres below surface. The ultramafic host extends for a minimum of 20 kilometres and is part of a series of ultramafic bodies that extend throughout the 40-kilometre-long Expo-Ungava joint venture property and well beyond onto the Canadian Royalties 100-per-cent-owned properties.
The company has only received assay results for the above seven holes from this part of the Mesamax area to date. Additional drill core assay data are expected within two weeks.
An additional 30 shallow diamond drill holes were completed in the vicinity of this extensive, near-surface, high-grade zone of sulphide mineralization toward the end of the 2002 field season. The zone is, in places, very enriched in Ni-Cu-Co-Au-Pt-Pd and comprises irregular lenses of mixed (disseminated, net-textured and massive sulphide) mineralization within an altered peridotite to pyroxenite host. Geological controls on the distribution of overall mineralization, metal relationships, such as Ni versus Cu, and base metals content versus PGEs, remain rather poorly understood at this early stage in the evaluation of this exciting mineral discovery.
DRILL RESULTS
MXNW From To Ni Cu Co Gold
Drill (m) (m) (%) (%) (%)(g/t)
hole
02-15 28.70 37.00 0.47 0.45 0.02 0.02
02-16 32.80 42.00 0.43 0.72 0.02 0.04
incl. 37.00 40.00 0.51 1.24 0.03 0.08
02-17 9.00 75.00 2.19 5.92 0.09 1.30
incl. 9.00 41.00 2.59 9.66 0.11 2.49
incl. 18.00 37.00 2.50 4.86 0.10 0.97
incl. 41.00 50.00 0.81 1.42 0.04 0.03
incl. 50.00 55.08 3.72 4.21 0.15 0.51
incl. 55.08 62.00 1.01 1.56 0.04 0.25
incl. 62.00 66.50 3.16 3.49 0.11 0.16
incl. 66.50 69.26 0.43 1.26 0.02 0.07
incl. 69.26 75.00 2.31 2.97 0.09 0.08
02-18 5.18 54.48 3.32 4.01 0.13 0.26
incl. 21.34 24.00 3.98 4.22 0.15 0.25
incl. 15.00 24.00 1.78 2.16 0.07 0.21
incl. 15.00 18.00 1.38 1.03 0.05 0.24
incl. 21.34 34.50 4.19 3.98 0.15 0.30
incl. 41.00 49.00 3.27 6.38 0.13 0.42
incl. 21.34 54.48 3.82 4.73 0.14 0.30
incl. 21.34 41.00 4.19 4.05 0.16 0.30
02-18 76.70 79.00 1.85 2.23 0.06 0.04
02-19 5.79 27.00 1.15 1.68 0.05 0.14
02-19 51.00 56.50 1.79 4.46 0.07 0.28
incl. 51.66 55.00 2.39 6.22 0.09 0.41
02-20 29.57 41.00 0.76 0.94 0.04 0.04
02-21 31.76 44.00 0.71 0.58 0.03 0.03
02-21 47.00 49.00 0.14 2.17 0.02 0.05
DRILL RESULTS
MXNW From To Pt Pd PGE
Drill (m) (m) (g/t) (g/t) (g/t)
hole
02-15 28.70 37.00 0.20 1.01 1.24
02-16 32.80 42.00 0.41 1.77 2.22
incl. 37.00 40.00 0.70 2.70 3.48
02-17 9.00 75.00 1.40 2.65 5.35
incl. 9.00 41.00 2.07 2.15 6.72
incl. 18.00 37.00 1.35 4.04 6.37
incl. 41.00 50.00 0.55 3.84 4.42
incl. 50.00 55.08 1.22 1.16 2.89
incl. 55.08 62.00 0.70 3.86 4.82
incl. 62.00 66.50 1.01 4.07 5.24
incl. 66.50 69.26 0.26 2.48 2.81
incl. 69.26 75.00 0.82 2.43 3.33
02-18 5.18 54.48 1.52 5.17 6.95
incl. 21.34 24.00 5.99 17.36 23.60
incl. 15.00 24.00 2.20 19.69 22.10
incl. 15.00 18.00 0.61 30.87 31.72
incl. 21.34 34.50 1.75 4.15 6.21
incl. 41.00 49.00 2.79 5.00 8.20
incl. 21.34 54.48 1.75 3.50 5.55
incl. 21.34 41.00 1.58 3.46 5.34
02-18 76.70 79.00 0.58 1.20 1.82
02-19 5.79 27.00 0.82 3.70 4.67
02-19 51.00 56.50 0.72 6.24 7.23
incl. 51.66 55.00 0.95 9.05 10.40
02-20 29.57 41.00 0.42 1.88 2.33
02-21 31.76 44.00 0.50 1.87 2.40
02-21 47.00 49.00 0.23 1.60 1.89
DRILL RESULTS
MXNW From To In-situ
Drill (m) (m) (g/t value
hole Cdn. $/t)
02-15 28.70 37.00 $88
02-16 32.80 42.00 $108
incl. 37.00 40.00 $153
02-17 9.00 75.00 $501
incl. 9.00 41.00 $667
incl. 18.00 37.00 $526
incl. 41.00 50.00 $205
incl. 50.00 55.08 $602
incl. 55.08 62.00 $239
incl. 62.00 66.50 $548
incl. 66.50 69.26 $128
incl. 69.26 75.00 $405
02-18 5.18 54.48 $613
incl. 21.34 24.00 $1,005
incl. 15.00 24.00 $621
incl. 15.00 18.00 $667
incl. 21.34 34.50 $706
incl. 41.00 49.00 $699
incl. 21.34 54.48 $670
incl. 21.34 41.00 $693
02-18 76.70 79.00 $304
02-19 5.79 27.00 $258
02-19 51.00 56.50 $435
incl. 51.66 55.00 $598
02-20 29.57 41.00 $155
02-21 31.76 44.00 $142
02-21 47.00 49.00 $101
Notes:
Lengths are drill intersected core lengths
Gross in-situ dollar amounts are provided for the reader's convenience to facilitate comparison of the polymetallic nature of the mineralization. These gross in-situ amounts do not take into consideration mining and processing costs and have no economic significance.
The gross in-situ dollar values have been calculated using the following commodity prices and currency exchange rate: Cu -- 70 U.S. cents per pound; Ni -- $3.25 (U.S.) per pound; Co -- $6 (U.S.) per pound; Pt -- $580 (U.S.) per ounce; Pd -- $300 (U.S.) per ounce; Au -- $300 (U.S.) per ounce.
Exchange rate: $1 (U.S.) equals $1.54 (Canadian)
Some sample intervals are currently being checked.
Canadian Royalties has the right to earn up to 70-per-cent interest in the Expo-Ungava property by incurring $1.75-million in exploration expenditures, and an additional 10 per cent will be transferred, for a total 80-per-cent interest, by delivering to Ungava Minerals a bankable feasibility study.
Bruce Durham, PGeo, vice-president, exploration of Canadian Royalties, is the designated qualified person responsible for the exploration program on the property and the person responsible for the preparation of this news release.
All assaying was completed by ALS Chemex with sample preparation completed in Val d'Or, Que., and analyses completed at ALS Chemex in Vancouver, B.C. Base metal and PGE values are initially determined by total acid digestion with ICP-AES analysis and 30-gram fire assay with ICP-AES finish respectively. Overlimit values are verified using fire assay in the case of PGEs and total acid digestion with AA finish for base metals.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
(c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com
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