Rainy Mountain Royalty (RMO-V) Update For Its Marshall Lake Property Marshall Lake Project Update, Northern Ontario
Jan 6, '21 - NR
Rainy Mountain Royalty Corp. has provided an update on diamond drilling currently being undertaken on its Marshall Lake copper-zinc-silver volcanogenic massive sulphide (VMS) property, located northeast of Thunder Bay, Ont. The company also reports that it has entered into a loan agreement for $500,000 to finance general working capital and the continuing exploration program involving diamond drilling, as well as ground geophysical surveys, for its 25-per-cent working interest in the project.
The focus of the current 3,000-metre drilling program is a large, strong, untested induced polarization (IP) anomaly, situated adjacent to and below the Billiton copper-zinc-silver VMS deposit, with a secondary focus on other base metal occurrences on the property that have seen little or no historical drilling. Drilling progress has been slow, and the deep IP target has yet to be tested; however, the current drill hole is providing positive indications that it may be related to a sizable VMS deposit. Diamond drilling is set to resume this week.
Drilling highlights
Highlighting the most recent drilling is the intersection of two well-mineralized alteration zones in hole Mar-21-03. Both zones contain appreciable blebby, stringer and heavily disseminated to semi-massive pyrite, chalcopyrite and sphalerite, hosted within felsic volcaniclastic rocks characterized by intense biotite, chlorite, actinolite and silicic alteration. Such mineralization and alteration are typical of stringer or footwall zones, seen proximal to or below massive sulphide deposits. The target for Mar-21-03 is an untested VTEM (versatile time domain electromagnetic) airborne conductor, modelled to be at a depth of 150 metres down the hole. The presence of the two well-mineralized alteration zones situated at shallower depth in the hole (64.20 to 66.87 metres and 72.33 to 76.07 metres, respectively) is very encouraging and suggests the possibility of encountering massive sulphides at the VTEM target depth of 150 metres, as well as in the underlying deep IP target. Hole Mar-21-03 was at a depth of 112 metres when drilling recessed for the Christmas break and will be a priority for completion when drilling resumes. Drill hole Mar-21-01 targeted the projected down plunge extension of the Billiton deposit, intersecting it over a core length of 8.25 metres. It comprises mostly disseminated pyrite with narrow zones of semi-massive pyrite and pyrrhotite, with lesser chalcopyrite and sphalerite, within chloritized, biotitic and sericitized volcanic rocks.
Hole Mar-21-02 was collared at the same site as Mar-21-03 but was abandoned at a depth of 12 metres due to the presence of several large boulders in the overburden.
Drill core for all mineralization obtained to date has been submitted to a laboratory for assay. Drill results will be released as they become available.
Deep IP target
Upon completion of Mar-21-03, drill holes Mar-22-01 and Mar-22-02 will test the heart of the deep IP target, characterized by high conductivity/low resistivity and high chargeability, at a vertical depth of approximately 350 metres. Both holes are intended to intersect the deep IP target, where the highest conductivity and chargeability overlap within this large untested anomaly with dimensions of 800 by 300 by 300 metres. The anomaly is situated between 150 and 450 metres below surface, and represents a new target area never previously tested by diamond drilling. The deep IP target appears to be situated down plunge from the Billiton copper-zinc-silver massive sulphide deposit (historical resource of 2.2 million tonnes at 1.3 per cent copper, 4.2 per cent zinc and 2.5 ounces per ton silver (1)) in a fold hinge, a favourable structural location for finding large, massive sulphide deposits.
An orientation gravity survey will be completed over the deep IP target in early January to provide further data on the size and geometry of the sulphide mineralized zone and to assist with the targeting of future drill holes. A more widespread gravity survey will also be considered to help identify other deep drill targets within this large high-priority area.
Additionally, borehole electromagnetic (BHEM) surveys will be completed on all drill holes undertaken by the company on all targets. BHEM surveys are important tools when exploring for VMS deposits as they assist in vectoring toward conductive sulphide bodies.
Deeds Island target
The Marshall Lake belt clearly has potential for discovery of multiple VMS deposits: There are several attractive targets that have seen little or no drilling. The Deeds Island area is one such target, comprising an 800-metre-long zinc bedrock geochemical anomaly (up to 1,000 parts per million zinc), closely associated with a strong extensive garnet-actinolite alteration zone and coincident airborne EM conductors. It is situated six kilometres to the east of the Billiton deposit in younger rocks and represents another prospective VMS target on the property that has seen no historic drilling.
A gravity survey will be completed over the Deeds Island area to help prioritize drill targets over this large, prospective anomaly. Line cutting has been completed in preparation for the gravity survey, anticipated to commence in the first week of January. Follow-up drilling will occur shortly thereafter while freeze-up conditions are in effect in this area.
(1) The resource described above is considered historic under National Instrument 43-101 guidelines, has not been verified by an independent qualified person and therefore should not be relied upon. The company is not treating the historic resource as a current mineral resource.
Loan agreement
Rainy Mountain has entered into two arm's-length loan agreements dated Jan. 1, 2022.
Pursuant to the loan agreements, the lenders provided the company an aggregate unsecured loan of $500,000 for a period of 12 months from the last advance made thereunder at an interest rate of 10 per cent per annum, subject to the approval of the TSX Venture Exchange. The facility may, in whole or in part, be prepaid without bonus or penalty.
As consideration for providing the loans, the lenders will receive an aggregate of 2,777,778 common share purchase warrants with an exercise price of 18 cents for one year. The bonus warrants will be subject to a hold period of four months and one day from the date of issuance. The bonus warrants are subject to TSX Venture Exchange and regulatory approval.
Qualified person
Donald Hoy, MSc, Copper Lake's vice-president of exploration, is the qualified person responsible for the technical content contained in this news release.
Donald Hoy, M. Sc., CopperLake’s Vice President of Exploration, is the Qualified Person responsible for
the technical content contained in this news release.
On behalf of the Board of Directors,
Sean Charland |
