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FLAG RESOURCES (1985) LIMITED'S APPLICATION FOR EXPLORATORY LICENCE OF OCCUPATION APPROVED
CALGARY, Dec. 8 /CNW/ - Flag Resources (1985) Limited
''Flag Resources application for an Exploratory Licence of Occupation, To
Explore And Develop Undrilled Visible Gold Occurrences, On Ground Deleted
From The Wanapitei Provincial Park, Sudbury, Ontario, Canada Has Been
Approved.''
Flag first applied for a Licence in 1984, when the ground was still in
the Wanapitei Provincial park. It was about to be issued when exploration, in
Ontario's provincial parks, was frozen. In 1990, the Ontario government
decided the ground's significant mineral potential merited exploration by the
private sector, and should be deleted from the Wanapitei Provincial Park. The
ground was deleted from the Park on July 4, 1997. Flag's application for an
Exploratory Licence of Occupation was approved on December 3, 1997.
Flag reports that the property has numerous showings of visible gold
exposed on the surface with assays indicating significant silver and minor
copper values with the gold. In 1938, grab samples from trenches along the
main 2,000 foot long quartz vein system assayed from .23 to 4.66 ounces of
gold per ton. Seven hundred feet north, a 3 foot wide quartz vein assayed .32
ounces of gold per ton (G.R. Berquist, Geologist). In 1952, a selected grab
sample, from the property assayed 21.58 ounces of gold per ton (Temiskaming
Testing Laboratories). In 1987, a grab sample, from the property, assayed .63
ounces of gold and 7.89 ounces of silver per ton (William Rowell, Geologist).
In 1997, a grab sample, from the property, assayed .39 ounces of gold and 3.85
ounces of silver per ton (Peter Giblin, Consulting Geologist, Sudbury,
Ontario).
In one of three unpublished reports found by Flag, a report by consulting
geologist G.R. Berquist, in 1938, stated, ''The property appears very
encouraging as a gold prospect because the quartz veins show continuity as to
length, the pronounced shearing shows the widening of the quartz at depth and
the presence of free gold at the bottom of the (19 foot deep) shaft shows
continuation at depth. These factors plus structural features such as
faulting in the area have opened up channels for the hydrothermal solutions to
penetrate fractures and zones of weakness.''
The goal of the exploration program, recommended by consulting geologist
Peter Giblin, Sudbury, Ontario, is to determine the size, average grade of the
gold and tonnage of the principal vein systems, and any other visible gold
occurrences found, in order to permit a preliminary evaluation of their
economic potential.
An initial 4,500 foot drill program is designed to sample the 2,000 foot
long quartz vein system over 1,100 feet of its strike length at a vertical
depth of 150 feet and at 150 to 200 foot intervals. There will also be an
initial exploratory drill hole into the gold-bearing quartz vein 700 feet to
the north and an initial exploratory drill hole into a quartz vein located
southeast of the main quartz vein system.
All samples are to be assayed for gold, silver and other metals that may
be present.
Flag says there appears to be considerable disseminated sulfides in the
igneous intrusive rock formation, adjoining the gold-bearing, quartz vein
system, which it is proposed to examine in greater detail, prior to any
exploratory work.
The Ministry of Northern Development and Mines has stated that there is
no indication that drilling has ever taken place, on the property, although
recommended at the time.
Flag's proposed exploration program at a cost of $250,000.00, has been
approved by a government appointed steering committee, consisting of
representatives from the Ministry of Northern Development and Mines, the
Ministry of Natural Resources, the Ministry of Energy and Environment, the
Sudbury and District Health Unit and the Wanapitei First Nation.
Due east of the Exploratory Licence of Occupation property, Flag holds
72,000 acres in the Wanapitei Anomaly, the regional twin gravity and magnetic
anomaly to the Sudbury Anomaly, the world's largest producer of nickel and
associated minerals. Flag, with expenditures of $5,000,000.00, is the leading
explorer and largest holder of land in the Wanapitei Anomaly, which was opened
for exploration in 1990.
Two of the base metal prospects in Flag's holdings are being optioned to
associated Golden Briar Mines Limited (M.S.E.).
A. McNish-MacBeth Townships
----------------------------
Subject to regulatory approval, Golden Briar may earn a 50% interest in a
group of Flag claims by completing exploration expenditures of $300,000.00
over a 4 year period. The claims have 24 surface showings of nickel-copper,
copper-gold and copper-lead-zinc-silver mineralization including:
1. Surface showing, western side of Sturgeon River
In 1956, grab samples, from the surface showings, assayed from .44%
copper and .01 ounces of gold to 3.54% copper and .13 ounces of gold
per ton. There is a coinciding magnetic and E.M. conductor over the
surface showing, with drilling recommended.
2. Bedrock occurrence of massive sulfides
Two thousand feet southwest, six grab samples, in 1956, from a bedrock
occurrence of massive sulfides, averaged .75% copper, 6.78% lead,
13.5% zinc and 1.37 ounces of silver per ton. Best values were 3.88%
copper, 14.25% lead, 22.04% zinc and 2.50 ounces of silver per ton.
Initial exploration of a close spaced ground geophysical survey has
been recommended.
3. Southern sector of MacBeth Township
In 1996, a gravity survey outlined a large gravity anomaly, at an
approximate depth of 1400 feet, below surface showings, adjoining the
south boundary of MacBeth and north boundary of McNish Township. It is
proposed to drill the gravity anomaly.
B. Rathbun Township
--------------------
Golden Briar may earn a 50% interest in a group of mining claims, in
Rathbun Township, by exploration expenditures of $400,000.00 over a four year
period. Two 2500 foot deep drill holes, by Flag, on the claims, located two
miles apart, intersected large intervals of disseminated nickel and copper
mineralization. Recent research work in the area has suggested the nickel and
copper may have migrated from an underlying igneous intrusion. To test the
hypothesis, it is proposed to deepen the vertical Matagamasi Lake drill hole
from 2500 to 4000 feet.
Flag and Golden Briar have planned budgets of $400,000.00 each to
complete their recommended exploration programs during the winter of
1997-1998.
The Alberta Stock Exchange has neither approved nor disapproved the
contents herein.
-0- 12/08/97
For further information: Flag Resources (1995) Limited, (403) 262-8883, Fax: (403) 262-8886, Web Site: www.flagresources.com
Good invstn toal. RGW |
