Flag Resources and Golden Briar Mines announce proposal for Cobalt Hill and lawsuit against TSX-V
CALGARY, Jan. 5 /CNW/ - On December 17, 2004, Flag Resources (1985)
Limited ("Flag"), Golden Briar Mines Limited ("Golden Briar"), Murdo Mcleod
("Mcleod"), Sidney Miszczuk ("Miszczuk"), and a shareholder as Representative
Plaintiff for all shareholders of Flag and Golden Briar commenced an action in
the Court of Queen's Bench against TSX Group Inc. TSX Group Inc. operates the
TSX Venture Exchange ("TSX-V").
The lawsuit challenges several decisions made by TSX-V staff purportedly
under the authority of the listing agreements between Flag, Golden Briar and
TSX-V. Those decisions include a lengthy trading halt and demands that Mcleod
and Miszczuk resign their posts as directors of Flag.
The lawsuit raises important issues about the extent to which the TSX-V
can control the internal functioning of listed issuers and the manner in which
the TSX-V conducts it investigations and makes its decisions. The lawsuit also
challenges the factual basis on which the decisions were made.
A copy of the lawsuit is available to shareholders upon written request.
Flag Resources and Golden Briar Mines
Exploration Projects 2005
Wanapitei Anomaly,
Sudbury, Ontario
Mackelcan Township
Cobalt Hill
As a result of recent studies, Cobalt Hill has evolved into a prime
exploration target.
Studies of Cobalt Hill mineralization suggest that the pyrite-rich quartz
veins, in hydro thermally altered quartzite, were generated by saline
metal-bearing fluids. With an abundance of minute inclusions of copper-nickel
sulfides and gold in the pyrite, it suggests that these metals were mobilized
by saline fluids, and precipitated from them with pyrite, from an unknown
source.
Because of the type and variety of sulfides - pentlandite, chalcopyrite,
pyrrhotite, gersdorffite, millerite, and chalcocite - it suggests that the
saline fluids were in contact with base-metal sulfides at depth. With the
variety of metals being similar to Sudbury-type sulfides, it also suggests
that the projected igneous source contains a Sudbury type assembly of
sulfides.
Chromium-rich muscovite occurs along with the sulfides in the inclusions
in the pyrite-rich quartz veins, suggesting that the projected igneous source
of the sulfides is not far away, chromium being an inert element, not moving
far from its source.
Cobalt Hill mineralization has been discovered over a large area.
Drilling by Flag has intersected it on the east and west sides of a 600 foot
wide swamp covered valley, and over a north - south distance of 1000 feet. A
north trending linear is located in the swamp-covered valley.
It is proposed to drill a 2000 foot vertical drill hole, in the
swamp-covered valley, to explore for the projected source of the Cobalt Hill
mineralization.
A paper on Cobalt Hill, by Dr. Eva Schandl, Department of Geology,
University of Toronto, is in the current edition (Vol. 42, part 5) of the
Canadian Mineralogist, published by the Mineralogical Association of Canada.
The paper is entitled: "The Role Of Saline Fluids Base-Metal And Gold
Mineralization At The Cobalt Hill Prospect Northeast Of The Sudbury Igneous
Complex, Ontario: A Fluid-Inclusion And Mineralogical Study".
Extract
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"As the suite of small base-metal inclusions in pyrite in the quartz
veins at Cobalt Hill is comparable to Sudbury-type sulfides, it is not
unreasonable to suggest that the base metals were derived by hot saline fluids
from magmatic sulfides at some depth. Metals were mobilized from the source by
the hot brines that also crystallized the quartz veins. Thus, Cobalt Hill and
vicinity have an excellent exploration potential for Sudbury-type
mineralization." (Schandl, Eva S. 2004. Can. Minerologist, Vol. 42, part 5,
p. 1558).
A copy of the paper is available upon written request to Flag.
Wolf Lake Copper - Gold Deposit
A copper-gold deposit is located along the south-western shore of Wolf
Lake, about 4300 feet north of Cobalt Hill.
A 1980's survey of Wolf Lake bottom sediments, by Robin E. Goad and
Stephen Harrigan, outlined copper-gold anomalies, due east of the deposit and
along the north-eastern and north-western shores of the lake. The anomalies
coincide with either V.L.F. or I.P. geophysical anomalies. It is proposed to
drill the copper-gold anomalies.
Jess Lake Gold Deposit
Drilling is proposed to explore for an eastern extension to a deeper gold
zone discovered to the east of the Jess Lake Gold Deposit, which is due west
of Cobalt Hill.
Drill hole A88-62, 265 feet east of Jess Lake, intersected 13 feet of
0.146 oz gold per ton from 658 to 671 feet, and 66.6 feet of 0.112 oz gold per
ton from 701 feet to 766.6 feet, including 13 feet of 0.198 ounces of gold per
ton from 708 to 721 feet.
Drill hole A83-20, 160 feet east of A88-62, intersected 58.5 feet of
0.022 oz of gold per ton from 729.8 to 788.3 feet, 10 feet of 0.09 oz of gold
per ton, from 836 to 846 feet, and 19.5 feet of 0.13 oz gold per ton,
including 10 feet of 0.22 oz gold per ton, from 866.8 to 886.3 feet. The gold
horizons are in a 300 foot mineralized breccia, from 590 to 890 feet. Step-out
drilling is proposed for the areas to the east and south of A83-20.
Laundry Lake
A 4500 foot vertical drill hole into the western magnetic peak of the
Wanapitei Anomaly, by Laundry Lake, near the northern boundary of Mackelcan
Township, intersected magnetically enriched sediment zones, from 500 to
1000 feet and from 1700 to 2500 feet, with the lower zone much more strongly
magnetic.
The magnetic zones are independent of the underlying magnetic peak of the
Wanapitei Anomaly, as they are reported to be not of sufficient magnitude to
be part of the magnetic peak.
It is proposed to complete a total magnetic field survey of the drill
hole, to endeavor to find the depth of the source body of the Wanapitei
Anomaly, as recommended in a 1994 report by W.A. (Bill) Morris (Morris
Magnetics Inc.), McMaster University, Hamilton, Ontario.
Rathbun Township And Rathbun Lake
Drill hole RL88-1 was drilled due west, at 45 degrees, for 1000 feet,
into Rathbun Lake, from the mined out Rathbun Lake Surface Occurrence.
Commencing 200 feet west of the Occurrence, the drill-hole intersected a
283 foot zone of consistently enriched magnetic sediments, from 303-586 feet.
It is proposed to complete a down-hole magnetic and E.M. survey of the
drill-hole, to explore for the source of the large magnetic zone.
A selected grab sample, from the Rathbun Lake Occurrence massive
sulfides, by the Ontario Geological Survey (Report 213, 1982) assayed
10.2% copper, 0.14% nickel, 0.02 oz gold, 2.22 oz silver, 0.056 oz platinum
and 34.6 oz palladium per ton.
Golden Briar has a working option to earn a 50% interest in this area and
adjoining claims.
On behalf of the Board of Directors
Murdo C. McLeod, President
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release |
