NORTHPOINT RESOURCES LTD
Corporate Update - November 1997
Issued: 5,670,586
52 Week High/Low: $1.03/0.30
Current Price: $0.30
Focus on Canada
Northpoint Resources is a well-funded junior exploration company with base metal prospects in the prolific Timmins Mining Camp and a major gold project near the Nickel Plate Mine at Hedley, British Columbia.
Timmins Mining Camp
The Timmins Mining Camp in northeastern Ontario is the largest gold-producing region in North America. Approximately 65 million ounces of gold have been produced from this camp since the turn of the century. In 1964, Texas Gulf Sulphur announced the discovery of the giant Kidd Creek deposit northeast of Timmins which was the richest base metals find of its size prior to Diamond Fields.
The recent high grade zinc-copper-silver discovery of Cross Lake Minerals in Sheraton Township has reinforced the camp's reputation as being the most prolific in the Abitibi Greenstone belt which runs down through northwestern Quebec to the James Bay Lowlands in Ontario.
An affiliate of Teck Corporation, Golden Knight Resources, recently subscribed to $5 million in Cross Lake shares by way of a private placement, lending additional credence to the discovery. Cross Lake expects to resume drilling on its Sheraton Township property by mid-November and expectations remain high that the discovery could be another Kidd Creek.
Northpoint recently acquired the right, subject to regulatory approval, to earn a 55% interest in certain patented mineral claims in Stock Township, 10 kilometers north of the Cross Lake discovery. These claims are near the St. Andrew Goldfields mine and were part of the estate of the late Dr. Frank Joubin, one of Canada's most successful mine finders. Northpoint is also negotiating option rights to some other strategically located claims near the Cross Lake discovery.
The Company is aggressively exploring the claims and recently established a 15 kilometer grid prior to implementing an Induced Polarization Survey (IP) to define drill targets. This type of survey was instrumental in defining the target area on the Cross Lake property to the south. Diamond drilling is expected to begin on the Company's Stock Township property in early 1998.
Hedley Gold Camp, South-central B.C.
Northpoint holds the right to earn a 100% interest in 82 contiguous claims in the Hedley Gold Camp which has produced approximately 2.5 million ounces of gold since 1900. In 1997, the Company conducted an exploration program consisting of geophysical induced polarization surveying, geochemical rock and soil sampling, and diamond drilling on several high priority exploration anomalies within four target areas.
The Stage I drilling program consisted of 10 holes and covered three target areas for Hedley-type gold mineralization. Two hydrothermal alteration zones containing significant gold-silver-copper mineralization of potential economic importance were identified. Both of these zones occur within the Target 4 area and are 1,000 meters apart. The first zone (Camp Zone) is a steeply-dipping, siliceous hydrothermal breccia system with widths ranging from 30-50 meters. The second zone hole contains hornfels and skarn alteration throughout plus anomalous values in gold, silver, copper and pathfinder elements.
Fire assay results from Chemex Labs Ltd. revealed trace to anomalous gold values in holes #1 and #2. However, sludge samples from these same two holes returned high silver values ranging from 3.0 to 26 ounces per tonne in heavily faulted ground. The assay values from sludge samples in hole #1 included: 10 feet grading 26 ounces silver per tonne and 0.2% copper; 30 feet averaging 7.7 ounces silver per tonne; and 20 feet grading 12.8 ounces silver per tonne.
Hole #2, which was drilled from the same setup, returned a sludge sample intercept of 10 ounces silver per tonne over 10 feet with approximately 0.1% copper. The silver values appear to be associated with the mineral tetrahedrite, an important ore of copper and sometimes silver.
The Second Phase exploration program recommended by the Company's consultants will include at least 1,000 meters of drilling. Northpoint is investigating the benefits of employing a large diameter reverse circulation (RC) drilling rig which would provide a larger, more representative sample of the mineral constituents in the Target 4 area. The dimensions of the Target 4 area, as defined by IP, are of sufficient size to host a major precious metals deposit with associated copper values.
The Company has assembled a project team with extensive experience in the Hedley Gold Camp including: Project Manager, Leonard W. Saleken, P. Geo who held a similar position with Mascot Gold, the company credited with the discovery of the new reserves that justified the re-opening of the Nickel Plate mine in the mid-1980's. Project geologist, Bill Wilkinson, was chief production geologist at Nickel Plate while Ed Rookel, Northpoint's geophysicist for the WP property, provided contract geophysical services to the Nickel Plate Mine.
For more information on Northpoint Resources please contact Investor Relations at: 604-687-3376 / 800-665-3390 or view the Company's Web site at: ninetyeight.com. |
