A little CLOSOLOGY .....
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(HDD.V) has a property immediately to the east of Crosslake and
geological system is believed to run east-west. HDD is also drilling
and expects results next week.
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From a report put out by an analyst:
Cross Lake Minerals (CRN : VSE : Issued 25.0M; 30.0M f.d.) released
updated assays on the 33 m zone of massive to semi-massive
sulphides intersected in Hole #16 onits 100%-owned Sheraton-Timmins
property in Ontario. The geology in this hole LOOKS VERY SIMILAR to the
Kidd Creek deposit, the largest massive sulphide deposit ever discovered,
containing ore reserves of130M tonnes grading 2.6% copper (Cu),
6.5% zinc (Zn), and 64 g/t silver (Ag) within a resource of over 300M
tonnes.
Last week, Cross Lake reported 33 m starting at a 278 m depth of
massive to semi-massive sphalerite (Zn)-pyrite bands, with patches of
5% galena (silver) and chalcopyrite (Cu) in a cherty rhyolite host,
the SAME GEOLOGY as the giant Kidd Creek mine. This 33 m intersection
averaged 6.7% Zn, 1.86% Pb, 107 g/t silver, and 0.16% Cu, to average a
115/tonne contained metal value. For expediency, the lab cut the
silver 10 ozs./ ton. The Company now has the full assays with
spectacular silver values as high as 50 ozs./ton in a 1.27 m section.
These upgraded assays bring the average contained metal value to
US$131/ton. A higher grade, 6 m section within this zone contains an
uncut, weighted average grade of 18.4% Zn, 911.04 g/t Ag (26.6
ozs./ton), 9.28% Pb, and 0.69% Cu, 0.183 g/t Au. While the wider
intercept is not as high a metal value as Kidd Creek, mainly due to
the absence of significant copper grades in this part of the 600
m-long IP geophysical anomaly, the higher grade 6 m section has a
contained metal value of US$414/tonne. True thickness of this zone
that dips 80-85 degrees south should be roughly 65-75% of the reported
widths.
This is the first hole to intersect ore grade mineralization. Hole
16 was deepened and Hole #17 was drilled 66 m from #16. The assays
from Hole #17 should be out late this week, and we expect a Kidd
Creek-type copper grade. Hole #17 intersected a 10 m section at 260
metres depth. Cross Lake reported copper (chalcopyrite) hosted in a
cherty rhyolite with two 0.3 m bands of massive chalcopyrite and
intervening disseminated chalcopyrite. The next section from 260 m to
326 m (66 m) contained four zones of zinc (sphalerite) in bands and
disseminations hosted in cherty bands and sericite schist.
We believe that these holes may represent the next major discovery in
Canada. Our senior mining analyst has just returned from the
Sheraton-Timmins project where he reviewed the core and drilling data to
date. He verifies the massive nature of several zones of mineralization,
and agrees with Cross Lake management on the significance of this
discovery with strong geological similarities to the Kidd Creek deposit.
The project is located within 15 miles of the Kidd Creek mill and smelter
which has unused capacity. Although this is the first hole to intercept
ore grade, he believes strongly in this project, and once funds are
raised, heightened speculation will accompany the next phase of drilling.
He rates Cross Lake as a SPECULATIVE BUY at present.
Golden Knight (GKR : TSE; 60% interest) is drilling on the adjacent
property to the Sheraton-Timmins project in a JV with Cross Lake
Minerals (16%) ,East West Resources (EWR : VSE, 16%), and Canadian
Golden Dragon Resources (CGG : VSE, 8%).
Other juniors with land
positions within the general area include:
Haddington Resources (HDD:VSE), and Silverstone Resources (SVT:-VSE)
HDD had some profit taking yesterday but with good hole #17
results and our own results coming soon ... well, anything
can happen
Bullet |
