MKO:
If anyone is to blame (blame: tough word to use when I am up 50% in less than a week-anyone else have a stock that has done better) for MKO, it is I, not Red. I bought MKO at .10 based on a couple of fundamentals. My guess is Red saw the same thing: And go look at the trading. Once a stock is up to a price, whether it drops back or nto is irrelevant. Teh stock got there and a person can sell!
1) Langlois just went into production. A brand new 225 million dollar 1,000 ton a day mill. BWR needs feed for this mill. BWR controls all of the ground right around Langlois's mill (I will find the map), but MKO grabed all of the property around BWR's property (smart move! and including ground held by fancamp and soem staking) and not only does it have tons of potential, but MKO has right now several million tons of zinc ore in two locations very close to the mill.
MKO also has a 50/50 deal with BWR on some of the MKO property and they have a deal to process any ore they have? or find already in place with BWR. BWR must have some faith in MKO as they are using them to drill. REad the following NR from MKO and you can see the details.
With 186 claims totalling 3,402 hectares, Metco holds a large position in the Lebel-sur-Quévillon base metal camp. During the year, seven claims on the Grevet A block were dropped and four new claims were staked and added to the Fancamp block.
It should be noted that when Metco was created, its main asset was a 45% interest in the Orphée property. The first exploration program allowed a better understanding of the sector’s potential, and Metco subsequently increased its position in Orphée to 50% and acquired the Fancamp property and a 50% interest in Mountain A. Metco had also acquired a 100% interest in the Grevet A and Mountain B properties, by claim staking.
On November 2, 2006, an agreement was signed with Breakwater Resources Ltd. (“Breakwater”) whereby Breakwater acquired a 50% interest in the properties wholly-owned by Metco in the camp, namely the Grevet A, Fancamp and Mountain B blocks, for a cash payment of $875,000. Together with Orphée and Mountain A, these blocks now make up the Grevet-Mountain mega-property, held 50:50 by Metco and Breakwater.
It was also agreed that Metco would continue to act as project operator on the entire Grevet-Mountain property. Metco also has access to the milling facilities at Breakwater’s Langlois mine at direct milling cost plus 10% for any ore eventually mined on the property, as per the terms of a milling agreement.
With regard to royalties, Breakwater’s royalty on 29 claims of the Fancamp area was cancelled on signature of the November 2nd agreement. Fancamp Resources Ltd. and Nextair Corporation each retain a 0.5% royalty, on 29 and 26 claims respectively.
The properties are located in the Grevet-Mountain volcanic complex, bordered by a tonalitic intrusion to the north and the Mountain pluton to the south. They lie in a 16 km section of the extension of the base metals mineralized corridors that host the Langlois mine (zones 3, 4, 5, and 97) and the Grevet B and Orphée deposits.
The Orphée zone on the property contains 1.8 million tonnes of inferred resources grading 4.2% Zn, 0.5% Cu and 12 g/t Ag. The latest drill results suggest that a smaller resource could be delineated with grades closer to those of the Lebel-sur-Quévillon mining camp. Such a deposit would increase the profitability potential given the proximity of the Langlois mill and the milling agreement with Breakwater.
After many years of exploration in Lebel-sur-Quévillon, Metco has adopted an exploration strategy that consists of locating the mineralized channels using Induced Polarization (IP) surveys, and then testing them for massive or semi-massive sulphide mineralization by diamond drilling accompanied by Pulse-EM surveys. This approach is very effective given the shallow depth of the overburden.
During the 2005-2006 exploration program, which ended on September 30, 2006, 39 holes totalling 9,607 metres were drilled on the Lebel-sur-Quévillon properties, including three holes or 638 metres on the east Fancamp block and 36 holes or 8,969 m on the Orphée-Mountain A block. Most of these, 7,159 m in 31 holes, were drilled on the Orphée zone. Pulse-EM surveys were done in a total of 18 holes.
This drilling program was preceded by an IP survey conducted over a total of 33.3 km of lines spaced at 100 m covering lines 80E to 93E. A geological survey was done on these lines (30 km). Gravity surveys were also performed on the Orphée-Mountain A block (20.5 km), the Fancamp block (0.6 km) and the Mountain B block (1.8 km). The lines from 80E to 112E covered the long conductor defined by induced polarization (IP) surveys conducted from 2003 to 2006 in the southern portion of the Orphée-Mountain A-Mountain B sectors. Five drill holes indicated that the gravity and IP anomalies could be explained by sulphide veinlets grading a maximum of 1.2% Zn over 1.5 m.
A 14-km InfiniTEM survey covering lines 15+50E to 41+50E on the Orphée-Fancamp block was conducted to test the Input anomalies at the edge of the Orphée-Fancamp sectors, where a bank of ultramafic rocks was discovered during work done in 2001. A gravity survey also covered a portion of the InfiniTEM survey. One hole was drilled to test the InfiniTEM and gravity anomalies but did not intersect any mineralization.
Two holes were drilled to test the anomalies on the east Fancamp block. One anomaly remains unexplained.
On November 8, 2006, Metco announced the start of its $2 million 2006-2007 exploration program in the Lebel-sur-Quévillon mining camp, in 50:50 joint venture with Breakwater. This followed the signature of the recent agreement that gave Breakwater a 50% interest in Metco’s wholly-owned properties in the camp in consideration for a single $875,000 cash payment.
The program consists of a Titan 24 survey covering the Orphée and Fancamp blocks and the most westerly part of Mountain A, and of IP surveys on parts of Grevet-A and Mountain B, followed by over 10,000 m of diamond drilling.
The program also includes a prefeasibility study for the Orphée deposit, located a mere 6 km from Breakwater’s Langlois mill, which has available milling capacity.
On February 1, 2007, Metco formally announced the start of a prefeasibility study on Orphée in accordance with NI 43-101 standards and due in June 2007. The study is being carried out by engineering firm GENIVAR of Quebec City, with resource estimates calculated by Scott Wilson Roscoe Postle Associates Inc. (RPA) of Toronto, a well-recognized firm in this field, as well as with the collaboration of Breakwater, as milling is expected to take place at the Langlois mill.
On March 20, 2007, Metco announced the resumption of an 8,000-m drilling program on the Lebel-sur Quévillon properties, including about 6,000 metres on and around the Orphée deposit, to better define the indicated resource as part of the prefeasibility study. This drilling will be followed by about 2,000 metres of drilling on the eastern portion of the Grevet A block on IP anomalies recently identified by a winter 2006-07 survey.
The Titan 24 geophysical survey has been completed. It covers all of the Orphée and Fancamp blocks and the most westerly portion of Mountain A, with lines spaced at 400 m (13 lines). A GoCad 3-D model is now in preparation to better outline the anomalies detected before proceeding with drilling.
The IP survey on a portion of Mountain B is now complete, and revealed other anomalies that will provide drill targets.
It should be mentioned that from a geological standpoint, the Grevet A block is located at the confluence of the Wedding Fault and deformation corridor, which strikes northeast, in the same direction as Lake Wedding, and hosts the Coniagas deposit (700,000 t grading 10.7% Zn and 182 g/t Ag) and the Cameron deformation corridor, which hosts the Langlois mine and the Grevet B and Orphée deposits. The Wedding Fault splits the Grevet A block in a NE-SW direction and causes a displacement of 3 to 4 km. The NW fault segment seems favourable to the presence of massive sulphides, while the SE segment is more favourable to gold mineralization. The confluence of the two favourable corridors enhances the potential of the property considerably.
To date, exploration work conducted on the section on the NW side of Wedding Fault has produced mitigated results. Holes WD-87-03 and WD-87-04 drilled by Exploration Minière Ligneris in 1987 and Hole 04-GRA-01 (288m) drilled by Metco in April 2004 explained the targeted anomalies by graphite passes with local pyrite nodules. Some slightly-anomalous Au values were obtained in this last hole, with values ranging from 39 ppb over 1.5 m to 35 ppb over 3 m. Seven claims located to the NW of Wedding Fault were abandoned in 2006.
However, on the SE side of the fault, geological mapping (about 12 km) and soil sampling (283 samples) conducted by Metco in September 2004 revealed two interesting zones, one for copper (Cu values > 25 ppm) and another one for gold (Au values > 5 ppb with impoverished values in Mg, Ca, Ba and Sr). The winter 2006-07 IP survey also revealed a number of IP anomalies that coincide with old Input and Megatem anomalies identified during an airborne survey conducted by Breakwater in 2006.
The results indicate that exploration work should continue on Grevet A, on the SE side of Wedding Fault.
On the areas of the Mountain A and B blocks covered by lines 81E to 186E, the geology indicates continuity to the east of the favourable geology hosting the mineralized zones of the Langlois mine and the Grevet B and Orphée ore bodies. IP coverage of this area is now complete following the winter 2006-07 surveys that resulted in the discovery of long conductor corridors, some of which extend almost continuously from line 80E to line 182E. In 2006, a gravity survey was performed on certain areas, highlighting the density contrasts of the various geological units included in the geological interpretation, but without further clarifying the massive sulphides, at least on the sections drilled to date.
Metco drilled 18 holes in this area totalling 4,303 m. In all these holes, the mineralized corridors presented as networks of millimetre-to-centimetre-sized sulphide veinlets containing variable quantities of pyrite, pyrrhotite and sphalerite and/or chalcopyrite. The level of hydrothermal activity related to this corridor is locally high, reaching up to 90% in Hole 04-MA-03 on the Ishikawa showing.
It should be noted that the northernmost corridor on Mountain B was tested by one drill hole in April 2004 and geological mapping was conducted in September 2004 on the lines cut. After passing through 4.9 m of overburden, Hole 04-MB-01 cut a sequence of barren lavas and intermediary-to-mafic tuffs, but from 121.9 to the end of the hole at 267 m, a tonalite intrusion was encountered that contained an anomalous Au intersection with an average of 117 ppb Au over a 22.5 m core length from 205.5 to 228 m, with a maximum value of 417 ppb over 1.3 m.
Additional work is therefore required on top of the drilling already planned, to explore these new targets found by the recent IP survey on Mountain B.
The results of the inversion calculations, preparation of the GoCad block on Orphée-Fancamp and the determination of the most promising targets will indicate the best approach to deeper exploration of the huge property now called Grevet-Mountain.
Page updated as of : 15-6-2007
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