Flag Resources (1985) Limited Signing Agreement To Retain All of Disputed Claim S809104, Located On The Rathbun-Scadding Boundary, Sudbury, Ontario
CALGARY, May 22 /CNW/ - In September 2000, Flag discovered a new mineral
zone on claim S809104, with a representative grab sample assaying 1.28 percent
combined nickel and copper (0.425% Ni and 0.8649% Cu) and 0.126 ounces or 4.35
grams of P.G.E. (0.49 grams gold, 0.44 grams platinum and 3.43 grams palladium
per ton).
Subsequent to the discovery, and although the claim had been held by Flag
for 16 years, a mining recorder ruled that as the claim extended from Rathbun
Township, a surveyed township, into Scadding Township, an unsurveyed township,
the Scadding portion was invalid.
The claim was also overstaked in 1997 by Terry Loney, of Sudbury,
Ontario.
Flag has signed a preliminary agreement with Terry Loney, to purchase 5
mining claims, S1247296, 1247297, 1247704, 1247705 and 1247706, held by him,
in Rathbun Township for $25,000.
Under the terms of the preliminary agreement, Flag retains ownership of
the Scadding portion of Claim 809104, by undertaking a survey of the area, to
precisely define its boundary. The ground would then be registered and
recorded with the Ministry of Northern Development and Mines.
Flag says the agreement ends 17 months of litigation, with Flag retaining
ownership of Claim 809104, with its new mineral zone and also expanding its
holdings in Rathbun Township.
Flag's vertical exploration drill hole, located on the eastern edge of
Matagamasi Lake, Rathbun Township, is currently drilling below 735 feet.
Although all previous drill holes in Rathbun Township went from gabbro into
sedimentary rock, this exploratory drill hole intersected a quartz feldspar
zone, at the base of the gabbro, still in the zone at 735 Feet, with
increasing quartz at depth.
Flag has established a priority rating for the exploration programs on
its 70,000 acre holdings in the Wanapitei Anomaly.
Flag's first priority is Cobalt Hill, Mackelcan Township, recommended
exploration to locate the mafic/ultramafic source of Chromium, Cobalt and
Nickel-Copper Sulfides, identified by previous studies. Flag has staked an
additional 5,000 acres in Mackelcan Township, now owning mineral rights in
approximately 75% of the township.
Flag's second priority is its Exploratory License of Occupation, on the
west side of Wapapitei Lake, near the northeast flank of the Sudbury
Structure, with an initial $114,800 exploration program recommended, including
exploration of a copper occurrence, a pyrite breccia and a gold bearing gossan
zone, found by prospecting in an unexplored area of the E.L.O.
Flag's third priority is an evaluation of potential reserves in its Wolf
Lake gold-copper deposit and Jess Lake gold deposits, Mackelcan Township, and
recommendation for further development drilling.
Flag's fourth priority is exploring the new mineral zone on Claim 809104-
Rathbun-Scadding Township.
Flag's fifth priority is drilling an exploratory drill hole under drill
hole RL-88-1, adjoining to the west, the high grade Rathbun Lake occurrence,
Rathbun Township. |
