Hi Keith. Received the package though haven't had time to read everything properly. Would appreciate your opinion on the following (please take any response to the SRU thread):
PRESS RELEASE March 3, 1999
Corporate Office: #99-01
Suite 420-625 Howe Street SRU-ASE
Vancouver, BC CANADA
V6C 2T6
Tel: (604) 608-0400 Fax: (604) 608-0344
STARFIELD ACQUIRES Ni-Cu-Co Pt/Pd PROJECT
Northwest Territories, CANADA
Starfield Resources Inc. (the "Company") is listed for trading on the facilities of The Alberta Stock Exchange. The shares of the Company were halted from trading by The Alberta Stock Exchange on February 5, 1999 pending approval by The Alberta Stock Exchange of a filing statement, a reporting letter and the Company raising $500,000.00 for use on exploration expenditures as detailed in the agreement discussed below and raising $200,000.00 for working capital required by the Company.
A draft filing statement and a draft reporting letter have been submitted to The Alberta Stock Exchange for review and the Company is presently in the process of raising $750,000.00 by way of private placement. The private placement will be composed of two portions: 1) an issuance of up to 1,000,000 special warrants at $0.50 per unit, composed of one flow through common share and one half of a purchase warrant giving the holder the right to subscribe for an additional common share for a full purchase warrant at the price of $0.60 per share within one year from date of issuance; and 2) an issuance of a minimum of 500,000 special warrants at $0.50 per unit, composed of one common share and one purchase warrant giving the holder the right to subscribe for an additional common share at the price of $0.60 per share within one year from date of issuance.
The Company has entered into an agreement dated February 9, 1999 (the "Agreement") that will allow the Company the right to acquire a 100% undivided interest in the Ferguson Lake Project from the Ferguson Lake Syndicate (the "Syndicate"). The property is located 160 kilometres south of Baker Lake in the Nunavut Region of the NWT. The property is comprised of three mineral claims and one Prospecting Permit totaling over 50,000 acres. As well, an area of influence comprised of a 5 kilometre radius around the property that will see any new claims staked by the Syndicate within this area of influence becoming a part of the Agreement.
Under the terms of the agreement, Starfield has the right to earn a 100% interest in the property, subject to a 3% NSR on mineral production, and a 3% GORR on diamond production by paying $75,000 and issuing a total of 4,250,000 performance shares to be earned out at the rate of one share for each $0.40 of expenditures on the property. The Company is required to expend $500,000 by December 31st, 1999 and a further $1,200,000 after it receives an Engineering Report recommending the completion of a Phase II work commitment If these expenditures are not completed, the Company will receive no interest in the claims unless agreed to by the Syndicate. The Company has the right to purchase 1% of the NSR for $1,000,000 up to 180 days after receipt of a positive feasibility study recommending commercial production.
Originally explored by Inco in the early 1950=s for its nickel and copper potential, Ferguson Lake was the subject of extensive exploration, including over 37,500 meters of drilling. In 1954 Inco published a mineral inventory for the deposit of 6.4 million tonnes grading 0.87% copper and 0.75% nickel at a cutoff grade of 1% copper/nickel. In 1992 Inco allowed the mining leases to lapse and the Syndicate obtained the properties in 1997.
In 1986 and 1987 Homestake Canada Inc. explored the Ferguson Lake property for its Platinum and Palladium potential. Homestake reported assays with results ranging from <15 ppb - 3700 ppb Platinum and <15 ppb - 15,000 ppb Pladium from soil samples and ranging from <15 ppb - 2800 ppb Platinum and 760 ppb - 5600 ppb Paladium from rock samples taken from the hornblendite hosted gossans.
The deposit is hosted within an Archean Ultramafic complex that has been traced for up to 9 kilometers. This complex ranges in width from 50 to 200 meters and consists primarily of hornblendite and pyroxenite. Mineralization consists of two main types; massive brecciated sulphides and parallel stringer mineralization. Mineralology is predominantly chalcopyrite-pyrite and pyrrhotite. The Main Zone West which starts at surface and contains the 6.4 million tonnes remains open along strike and to depth. Drilling on trend, 4 kilometers to the east of the indicated resource by Inco in 1952 - 1954 returned a drill intersection of 1.28% Ni and 1.08% Cu over 23 meters.
The 1998 work program completed by the Syndicate at a cost of approximately $40,000.00 confirmed the potential of the Ferguson Lake project. Prospecting and mapping resulted in the discovery of several new zones of mineralization and was successful in extending the Main Zone further to the west. The results of this program demonstrate not only the exploration potential of the property, but the significance of the property's PGE potential. Grab samples taken during 1998 returned the following range of values:
Pd
Pt
Co
Cu
Ni
ppb
ppb
ppm
ppm
ppm
West Zone South
<2-4500
<5-1170
15-1290
65-9130
15-9680
Main Zone West
298-2230
30-310
10-1655
3360-15450
60-7690
Main Zone East
14-1840
<5-900
5-1140
205-7.34%
20-9940
There were 4 grab samples taken in the West Zone South, 12 grab samples taken from the Main Zone West and 22 grab samples taken from the Main Zone East.
The Syndicate has had an independent geological report completed on the subject claims which recommended work programs for $500,000.00 and $1,200,000.00 be completed. The Company intends to complete these recommended work programs.
After completing a geological compilation of all previous work, the Company plans to implement a Phase I exploration program comprised of detailed geophysical surveys and diamond drilling during the 1999 spring season. Based on these results, in the summer of 1999, a broadly focused geological mapping, sampling and prospecting program will be initiated, concurrent with ongoing diamond drilling on the 9 kilometer zone and drill testing of new discoveries.
The Company's focus in 1999 will be on the PGE and copper-nickel-cobalt potential of the project. The Phase I project designed by the Company's technical staff has been budgeted for $500,000.
For further information, please contact Glen Indra or Andrew Rockandel at (604) 608-0400 or email at info@starfieldres.com.
ON BEHALF OF THE BOARD OF DIRECTORS
________________________________
Glen J. Indra, President
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The Alberta Stock Exchange has neither approved nor disapproved the information contained herein. |
