2004 work program.
Flag Resources Nickel, Copper, Platinum, Palladium and Gold Prospects, Wanapitei Anomaly, Sudbury, Ontario
CALGARY, Jan. 6 /CNW/ - In view of the heightened interest in copper,
nickel, PGE type prospects, Flag plans to focus its 2004 Programs more closely
on the claims in its inventory which have been highlighted as having potential
for these types of mineralization, in addition to gold.
The main targets are as follows:
1. Deep seated structures of the Sudbury or Olympic Dam types. The main
prospect is the Rathbun Lake (or Wanapitei) Intrusion and,
particularly, its contact with the underlying Gowganda sediments,
which present opportunities for Cu-Ni-PGE mineralization. The area of
particular interest is southward from the Rathbun Lake Occurrence and
eastward towards Cathro Lake.
2. The Portage Bay - Matagamisi Lake area of Rathbun Township, which is
interpreted as an eastward extension of the Wanapitei Intrusion and
is the site of several historic occurrences such as Crystal Mine. The
Comstock and Gordon showings and Last Chance Mine, is an area in
which exploration is warranted.
3. Nearer surface deposits of gold in breccia-type environments, such as
have already been located in the Wolf Lake area of Mackelcan
Township. This area, covering Wolf Lake, Jess Lake and Cobalt Hill
has yielded some interesting results under Flag Resources'
exploration. Gold appears discretely in breccia zones and zones of
intense fracturing. The two gold zones encountered to date have been
small but have displayed good grades over significant intersections.
While they have been well defined by drilling, there are unexplored
areas in the intervening distances which could host significant
deposits. In addition, the zone between Cobalt Hill and Jess Lake
displays some interesting structural characteristics and anomalies.
To date it has remained largely un-drilled.
Further details are as follows:
a) Cobalt Hill, Mackelcan Township
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Mineralogical studies on the Cobalt Hill area reveal the occurrence of
small inclusions of Sudbury type nickel - copper sulfides and gold in pyrite
in quartz veins, mobilized by saline fluids from a nickel - copper rich source
rock.
The fluid and mineralogical studies suggest that Cobalt Hill has an
excellent potential for Sudbury - type mineralization.
The unique pyrite - rich quartz veins have been intersected in Flag drill
holes on the east and west sides of a strongly north trending 400 foot wide
linear, adjoining Cobalt Hill to the west, located in a valley covered by
swamp.
b) Laundry Lake, Mackelcan Township
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Flag drill hole, LL94-1, was drilled to a depth of 4500 feet, close by
the western magnetic peak of the Wanapitei Anomaly. The report by W. A. (Bill)
Morris of Magnetics Inc. (Dept. Geology, McMaster University) noted that two
distinct zones of magnetically enriched sediment are present in the drill
core. One from 500 to 1000 feet and the other from 1700 to 2500 feet, with the
lower zone much more strongly magnetic.
Sudbury Breccia zones are present in the drill core and are consistently
much more magnetic than the surrounding sediments.
Mr. Morris's report states that none of the magnetic zones, in the drill
core, are of sufficient magnitude to produce, or contribute, to the Wanapitei
Anomaly. Speculating on the source bodies for the magnetite enriched zones,
Mr. Morris outlines some possible solutions, including: a magnetite rich
intrusion of the type found at Bull Lake and elsewhere along the southern
boundary of the Sudbury basis; highly magnetic Huronian volcanics, of a type
known also in the Sudbury area; a post Lorraine intrusion or intrusions buried
at depth; and, finally, an Olympic Dam type structure associated with gravity
and magnetic highs and located in a rift bound basin.
The latter is viewed as a long shot but a potentially valuable one.
Olympic Dam-type deposits constitute a distinct class of ore deposits named
after the discovery at Roxby Downs, Australia in 1975. They are characterized
by iron-rich, low-titanium rocks formed in extensional tectonic environments.
These deposits are formed primarily in shallow crustal environments and are
expressions of deeper-seated, volatile-rich igneous-hydrothermal systems,
tapped by deep crustal structures.
The Olympic Dam breccia-hosted Copper-Gold-Uranium-Light Rare Earth
Element deposit in South Australia, containing 2 billion tonnes of ore, is the
world class example for this type of deposit. Since the discovery of Olympic
Dam, intensive exploration for economically attractive polymetallic deposits
of this type has led to several discoveries.
Prior to any further exploratory drilling, a regional study, combining
seismic, gravity and magnetic data, to more accurately outline regional
structure will be carried out.
c) Boland Lake, Rathbun Township
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Flag drill hole, BL99-1, drilled to a vertical depth of 1000 feet,
intersected 371 feet of visible blebs of pyrrhotite and chalcopyrite, in
magnetic quartz gabbro, from 154 to 190 feet and from 630 to 865 feet, on the
north boundary of Boland's Lake.
d) Matagamasi Lake, Rathbun Township
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Flag drill hole, BL99-1, on the west side of Matagamasi Lake, intersected
1,111 feet of sparsely disseminated nickel - copper - platinum - palladium
sulfides from 419 to 1530 feet.
e) Rathbun Lake Occurrence, Rathbun Township
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Grab sampling from a previously mined surface occurrence of massive
sulphides, on the east shore of Rathbun Lake, was performed by the Ontario
Geological Survey in 1982 and yielded the following grades:
Copper 10.2%
Nickel 0.14%
Gold 0.02 oz/ton
Silver 2.22 oz/ton
Platinum 0.056 oz/ton
Palladium 34.6 oz/ton
A 70 degree angled hole drilled by Flag in a northwesterly direction
under Rathbun Lake, and collared 140 feet northeast of the Occurrence
intersected pyrrhotite from 82 to 700 feet, in fractures in bands up to five
centimeters thick and in concentrations up to 2% over three feet.
Chalcopyrite, pyrrhotite and pyrite were intersected in quartz veins from
2018 to 2500 feet.
The mineralization at Matagamisi, Boland's and Rathbun Lakes is located
on ground on which Flag's associated company, Golden Briar Mines Limited, has
the right to earn a 50% interest.
f) Exploratory Licence of Occupation (ELO)
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An ELO, granted to Flag, is located on the northwest side of Lake
Wanapitei. Flag applied for and was granted the ELO land, because of the
presence of surface occurrences of visible gold.
g) 2004 Program
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Flag proposes to commence its exploratory work in 2004, by
- Drilling of an unexplored mineralized gabbro structure on the
Exploratory Licence of Occupation, and to drill the original
Bennett surface showing of visible gold.
- exploratory drilling at Cobalt Hill, to intersect the projected
source of the Cobalt Hill mineralization
Later in the year Flag proposes to complete further exploration programs
at Rathbun, Matagamasi and Boland's Lakes, and to carry out the recommended
exploration for Laundry Lake.
Flag has filed a seventeen page Annual Information Form, which is
available on the Sedar website. This contains a comprehensive review of Flag's
Sudbury holdings. |
