CALGARY, March 17 /CNW/ - Cooksville Steele Limited has deferred
indebtedness of seven million, ten thousand dollars ($7,010,000), owed by
Flag, to March 31, 2005, with no interest charges over the two year period.
Cooksville Steele is owned by the Chairman of Flag's board of directors,
Sidney Miszczuk and his family.
Flag is exploring the 2418 feet of pyrrhotite, chalcopyrite and pyrite
mineralization discovered by a 2800 foot, 70 degree hole drilled, in a
northwest direction, into Rathbun Lake. The drill hole is located 140 feet
northeast of the Rathbun Lake Occurrence, a rich surface showing of copper,
nickel, platinum, palladium, gold and silver bearing massive sulfides.
The mineralization, in Flag's drill hole, extends from 82 feet to 2500
feet, at an initial vertical depth of 60 feet and final depth of 2233 feet (as
measured by a directional hole survey).
The 70 degree hole, into Rathbun Lake, striking northwest, traversed an
area 900 feet (west) by 800 feet (north). The drill hole length of 2800 feet
is equivalent to a distance of 1300 feet, approximately, along the ground.
Pyrrhotite
The drill hole intersected pyrrhotite from 82 to 700 feet, in fractures,
in bands up to 5 centimeters thick, and locally in concentrations up to 2%
over 3 feet. Pyrrhotite occurs again from 1833 to 2000 feet, as local traces
and in fine fracture fillings.
Pyrite
Pyrite was intersected from 700 to 1833 feet, with chalcopyrite and rare
blebs of chalcopyrite and galena.
Chalcopyrite, Pyrrhotite and Pyrite
Chalcopyrite, pyrrhotite and pyrite were intersected in quartz -
carbonate veinlets, from 2018 to 2500 feet.
Sudbury breccia and micro - breccia are present throughout the drill
hole.
The pyrrhotite, in the upper portion of the drill hole, is at the eastern
boundary of Rathbun Lake, the chalcopyrite - pyrrhotite - pyrite at the
western boundary.
In Ontario Geological Report 213, (1982), Burkhard Dressler wrote that
his mineralogical observations and the description in the Assessment Files
Research Office, O.G.S., indicated that the massive sulfides, in the Rathbun
Lake Occurrence, possibly were part of a bigger sulfide body, separated from
this bigger body during the intrusion of the mineralized gabbro into the
Gowganda sedimentary rock or dislocated from it by faulting after the
intrusion.
Flag believes that the 2418 feet of pyrrhotite, chalcopyrite and pyrite
mineralization, in the altered Gowganda sedimentary rock, was derived from its
contact with an underlying mineralized igneous body. As the only significant
body of mineralization found in the vicinity of the Rathbun Lake Occurrence,
the source of the mineralization may possibly be the same as the source of the
Occurrence.
In exploring this large zone of mineralization, Flag is deferring
exploration programs planned for the Jess Lake gold deposit, the Colbalt Hill
nickel - copper and gold prospect, Mackelcan Township, and its Exploratory
License of Occupation, on the northern rim of the Sudbury Basin.
Flag holds 70,000 acres adjoining the eastern area of the Sudbury Basin
Mining Complex.
Under an option agreement with Flag, associated Golden Briar Mines
completed $400,000 in exploration expenditures, to earn a 50% working interest
in a group of claims in Rathbun Township, including mining claim S1136174,
which directly adjoins to the north, claim 1117306, on which the Rathbun Lake
Occurrence and the Rathbun Lake Mineral Zone are located. |
