Steve, This is the more detailed version available from Canada Stockwatch:
Fort Knox Gold Resources Inc -
Gold values from new Santana prospect; Larder Lake area JV with NFX Gold
Fort Knox Gold Resources Inc
FNX
Shares issued 10,590,172 1998-10-13 close $0.4
Wednesday Oct 14 1998
Mr. A.T. MacGibbon reports
Fort Knox Gold has entered into three option to purchase agreements on 110 mining claims totalling approximately 2,750 hectares, on the Avalon Peninsula about 20 kilometres southwest of St. John's, Newfoundland. Fort Knox is currently conducting a detailed prospecting program on the Avalon properties and preliminary work has led to the discovery of angular boulders containing high-grade gold.
The Avalon properties contain two previously known gold occurrences: the Roadcut and the Steep Nap and the recently discovered Santana prospect. The Santana prospect consists of numerous gold-bearing rock fragments about 100 metres north of the Roadcut occurrence. Fifteen of eighteen samples assayed returned anomalous gold values, with the seven best samples grading 4.4 g/t gold, 7.5 g/t gold, 8.2 g/t gold, 15.3 g/t gold, 17.8 g/t gold, 26.6 g/t gold and 31.6 g/t gold. The angular rock fragments appear to have been blasted from a trench
excavated during the installation of a fibre optics cable. Most of the rock fragments are altered, vuggy rhyolite with silica, sericite and minor amounts of hematite, pyrite and galena.
The Roadcut occurrence, adjacent to the Trans Canada Highway, is a 100 metre wide rock exposure of locally auriferous pyroclastic rocks. A chip sample across the outcrop, collected by previous workers, is reported to have averaged 3.5 g/t gold over 10.5 metres with individual grab samples assaying up to 10.2 g/t gold.
The Steep Nap occurrence is at the north end of the properties and consists of gold bearing quartz-hematite-andularia veins in pyroclastic and hydrothermal breccias. The quartz vein system has been traced for a distance of more than 300 metres. Fort Knox's limited sampling to date has returned anomalous gold values in the 1 g/t gold range.
Fort Knox plans to conduct trenching, mapping, geophysical surveys and diamond drilling to further evaluate the Avalon properties.
Fort Knox has the right to acquire a 100 per cent interest in the Avalon properties by making cash payments totalling $120,000 over a three year period. Fort Knox's interest in the properties is subject to a 3 per cent net smelter royalty, which can be reduced to 2 per cent or 1 per cent for cash payments of $1-million and $2-million respectively.
All of the samples submitted for assay by Fort Knox are being analyzed at Eastern Analytical's Springdale, Newfoundland laboratory for gold by the conventional fire assay method. All gold assays in excess of 1 g/t will be check assayed for verification.
Mr. Thomas Larsen of NFX Gold reports
NFX Gold and Fort Knox Gold Resources have entered into an option/joint venture agreement on NFX's Cheminis, Bear Lake, and Fernland mineral properties in the Larder Lake area of Northeastern Ontario. The agreement provides Fort Knox with a right to acquire an undivided 25 per cent interest in the Larder Lake property upon making a cash payment of $12,500 to NFX and expending $1-million on exploration on the Larder Lake property within 12 months of the effective date of the agreement. The agreement further provides
Fort Knox with an opportunity to acquire an additional undivided 25 per cent interest in the Larder Lake property upon expending a further $1.5-million on exploration during the two-year period following the first anniversary of the agreement.
The agreement provides that Fort Knox may convert its interest in the Larder Lake property acquired under the first option or the second option into common shares of NFX at 65 cents, subject to adjustments in certain circumstances. If Fort Knox elects not to convert its acquired interest into NFX shares, NFX and Fort Knox will be deemed to have entered into a joint venture with respect to the Larder Lake property.
The Larder Lake property covers 4.5km of strike length of the Larder Lake Break, which has produced more than 34 million ounces of gold from several mines. Of these, the Kerr Addison mine, which is 3.5km east of the Larder Lake property's eastern boundary, produced more than 11 million ounces of gold. Over 7.7 million ounces of this production came from depth in the pyritic flow-ore which averaged 0.325 oz gold/ton in 23.6 million tons. The flow-ore between 800
and 1,600 feet below surface graded 0.182 oz./ton. At about 1,600 feet below surface the grade suddenly increased to 0.307 oz/ton and continued to consistently increase to 0.523 oz/ton by the 4,000 foot level. The bottom of the flow-ore was fault bounded at about 4,600 feet below surface.
Based on its 1997 and 1998 drill results, NFX has calculated the Cheminis deposit to contain a drill indicated resource of 2.8 million tons grading 0.17 oz gold/ton, representing 470,000 ounces of gold. Of this total, 1.5 million tons grading 0.18 oz/ton or 279,000 oz of gold, are in the Cheminis D zone, which is a flow-ore type deposit resembling the most productive and highest grade portion of the Kerr mine. The D zone has been drilled to a depth of 3,700 feet and all 25
diamond drill holes that were drilled to test the D zone intersected gold mineralization. The Cheminis deposit is open at depth below the 3,700 foot level and along strike for at least 800m to the west and one kilometre to the east. A recent deep IP survey has indicated a large untested anomaly consistent with flow-ore type mineralization 1,200m west of the Cheminis D zone.
Fort Knox and NFX will immediately commence a new exploration initiative to test the Larder Lake property along strike and at depth. The major objective will be to locate high-grade flow-ore similar to that mined at the Kerr mine. Fort Knox will start drilling on the property immediately and plans to drill between 25,000 and 30,000 feet with four drill rigs prior to the end of 1998.
Fort Knox has issued 10,690,172 common shares to date, of which its major shareholder, Inco Limited of Toronto, owns 21.5 per cent. Terry MacGibbon, the president and chief executive officer of Fort Knox was previously the director of International Exploration for Inco and was also responsible for Inco's transactions with junior mining companies.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com <EOM>
Can't wait to see how Nesbitt reacts to this NR (provided that they saw it) Comments?
Cheers Winzer |
