Major General says field work starts at Spider Lake
Major General Resources Ltd MGJ
Shares issued 38,065,143 May 25 close $0.33
Wed 26 May 99 News Release
Mr. Glenn Shevchenko reports
Field work has commenced on the Spider Lake project near Terrace Bay, Ont. The project is in the productive Hemlo-Schreiber greenstone belt and is the site of a new volcanogenic massive sulphide discovery (Starhill zone) that was made in late 1998 (see Stockwatch Nov. 16, 1998). The initial exploration program, consisting of 30 kilometres of linecutting followed by detailed magnetic and induced polarization (IP) surveying, will focus on the new Starhill zone with the objective of further delineating its strike extent and defining drill targets that are to be tested later this season.
Currently, the west trending Starhill zone measures approximately 400 metres long by up to 25 metres wide and remains open along strike and to depth. Limited rock sampling in 1998 returned assays of up to 7.4 per cent zinc, 1.94 per cent lead, 1.54 per cent copper, 101 grams per tonne silver and 0.87 g/t gold from grab samples. The showing is characterized by variable amounts of disseminated, stringer and banded mineralization hosted by a steep, northerly dipping section of sheared and altered felsic to intermediate volcanic rocks. The mineralized zone occurs within a large alteration system defined by a zone of sodium depletion (six km long by up to one km wide), that is semi-coincident with a potassium radiometric anomaly (four km long by one km wide). These alteration signatures suggest that the Starhill zone may be proximal to a potential massive sulphide deposit that is associated with a large hydrothermally altered volcanic centre.
The volcanic rocks that host the newly discovered Starhill zone are geologically similar to those hosting the Winston Lake VMS deposit (three million tons of 15.6 per cent Zn and 1.1 per cent Cu), 50 km northwest of the Spider Lake project.
The Starhill zone is on the Steel River option, which makes up the western two-thirds of the Spider Lake project. The company may earn 100 per cent interest by spending $1-million on exploration, making cash payments of $100,000, and issuing 200,000 shares over a period of five years. The claims are subject to a 2 per cent net smelter return of which 0.5 per cent may be bought out for $500,000.
© Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
|
