Starfield Resources Inc. DRAFT
Sector PGM and Base Metal Exploration
Listed ASE
Code SRU
Recent share price C$0.60
52-week share price range C$0.80 - C$0.13
Shares issued 9.8 m
Fully diluted 12.1 m
Market capitalisation
Av. Weekly volume m shares
Float 40 %
Long term debt Nil
Cash/short term deposits C$700,000
Year end Feb 28
Major shareholders
Exciting New Canadian Platinum Group Metal Play
 Starfield has acquired the option to purchase a 100% interest in the Ferguson Lake copper-nickel-cobalt-platinum-palladium project in Canada's Nunavut Territory. The main mineralised zone extends over 9km in strike length, and remains open at both ends.
 Ferguson Lake was previously owned by Inco, which identified a resource of 6.4Mt @ 0.87% copper and 0.75% nickel in the 1950's. The resource is based on only 730m of the known strike length of the main zone of mineralisation, and the majority of it is contained within 90m of surface. The deposit is open along strike and at depth. A step-out hole 4km to the east of the orebody returned 1.28% nickel and 1.08% copper over 23m. In addition, Inco never reported the platinum group metals (PGMs) or cobalt contents.
 In 1986/7, Homestake explored the property, and tested for PGM mineralisation. Its exploration work yielded assays from soil sampling of up to 3.7g/t platinum and 15g/t palladium and 2.8 g/t platinum and 5.6 g/t palladium from massive sulphide exposures.
 During the 1998 field programme, Starfield's associates discovered three new zones of mineralisation. Grab sampling continued to prove up the PGM potential of the project and returned results of up to 1.3g/t platinum and 4.6g/t palladium.
 The company has recently completed a financing, raising C$750,000. This will fund the Spring of 1999 exploration programme at Ferguson Lake, which has just commenced. Starfield aims to conduct detailed geophysical exploration, combined with a limited amount of diamond drilling work. This will be backed up by further geological mapping and sampling of other zones while ongoing resource drilling will continue.
Geologically, the potential exists for the discovery of a PGM-copper-nickel deposit of significant size. Starfield Resources provides speculative investors with the opportunity to invest in a relatively undervalued stock that should receive a significant re-rating if the exploration potential is borne out by the current field programme.
Executive Summary
Starfield Resources is a junior exploration company, exploring for precious and base metals in Canada. In November 1997, the company changed its name, along with its focus, from Starfield Communications and, at the same time, a new board was elected. Starfield completed a placement for C$285,000 at C$0.15 in August, 1998, thus raising sufficient capital to regain its listing status on the Alberta Stock Exchange. Since then, Starfield has been working on two projects, the Ferguson Lake nickel-copper-platinum-palladium Property in Northwest Territories, and the ABE property in British Columbia. Starfield recently completed a financing at C$00.50, raising C$750,000m. The funds raised will be used to develop the Ferguson Lake project.
Ferguson Lake Project, Northwest Territories
Ferguson Lake is located in the Nunavut Territory, Canada. The mineral claims and prospecting permits cover an area of 23,200ha, situated 160km southwest of Baker Lake, and 240km west of Rankin Inlet. Access is by floatplane or helicopter from either Baker Lake or Rankin Inlet, both of which have scheduled airline services. There is an airstrip on the large island in the centre of Ferguson Lake, capable of accommodating a moderate-sized wheeled aircraft. It is possible to work on the property for 10 months of the year. Mining operations could operate year round.
In February 1999, Starfield entered into an agreement with the Ferguson Lake Syndicate (the Syndicate) giving Starfield the option to acquire a 100% interest in the property.
Canadian Nickel Company Ltd. (Canico), the exploration arm of Inco, discovered copper-nickel mineralisation at Ferguson Lake in 1950. Extensive exploration was undertaken over a five year period, including the setting up of a 90 man, all-season camp, and conducting airborne and surface geophysics, geological mapping and 37,576m of diamond drilling. The majority of the work was directed at the main mineralised zone east and west of the lake and, to a lesser extent, the intervening area under the lake. In 1953, a 10t bulk sample was extracted from Main Zone West and transported to Copper Cliff, Ontario, for mill testing. Unfortunately, very little information has been made available from Inco's exploration effort.
Inco calculated a resource of 6.4Mt @ 0.87% copper and 0.75% nickel. The majority of Inco's resource was based only on a 730m strike length of the mineralised zone (the Main Zone West), and only to a depth of 90m. Drilling along the complex on the three contiguous zones encountered mineralisation in every hole, including a step-out hole 4km to the east, which returned 1.28% nickel and 1.08% copper over 23m.
In 1980, Esso Minerals Canada optioned the property from Inco, and extracted a 9t bulk sample, apparently to test for sulphur content for application for uranium mineralisation being investigated elsewhere in the district.
Homestake Mineral Development Company (Homestake) had identified potential PGM mineralisation in the region in 1981, and in 1986 staked 5 claims around Inco's existing mining lease. In 1987, Homestake conducted a comprehensive geological mapping project, including taking rock chip and soil samples (with Inco's permission) from the Ferguson Lake property. This work confirmed the presence of PGM mineralisation. The exploration work yielded assays from soil sampling of up to 3.7g/t platinum and 15g/t palladium and 2.8 g/t platinum and 5.6 g/t palladium from rock samples
The deposit is hosted in an Archean ultramafic complex, which has been traced for over 9km. Geologically, it is located in the Hearne province, close to the tectonic boundary with the Rae province to the west, forming part of the Canadian Shield. The provinces are both made up of gneissic, granitic and supercrustal rocks of Archean and Proterzoic age. The Hearne province in particular has been subject to complex deformation. The ultramific complex ranges in width from 50 to 200 meters, and the mineralisation is hosted in east-trending hornblendite units. The principal metallic minerals are pyrrhotite, marcasite, chalcopyrite, magnetite and pyrite. The sulphide minerals occur as massive pods and lenses and in stringers and veinlets within zones averaging 10m in thickness. The sulphide rich zones are marked by prominent gossans up to 25m wide and several 100m in length.
Work done by the Syndicate in 1998 continued to firm up the PGM potential of the property; and led to the discovery of further parallel mineralised zones (as can be seen on the map in Figure 2) - Anomaly 51, West Zone South and South Discovery Zone. At the South Discovery Zone, copper, nickel, cobalt, and PGMs were identified, with values up to 1.68% copper, 0.91% nickel, 2.44g/t palladium and 3.1 lbs cobalt. The zone was traced on surface for over 1km and remains open along strike. Grab samples testing the PGM potential in the West Zone South ranged as high as 4.6g/t palladium and 1.3g/t platinum. Summary results from the 1998 programme can be seen in Figure 2.
Starfield is currently getting its 1999 field programme underway, and intends to conduct detailed geophysical surveys and a certain amount of diamond drilling.
ABE Property, British Columbia
The property is located in 225km northwest of Fort St. James in north central British Columbia. The property covers an area of 3,500ha. The project is situated in the same geological terrain that hosts several of the world's major copper/gold porphyries, including Kemess (90km to the northwest); Mount Milligan (180km to the south) and Lorraine Project (50km to the south).
Previous work on the project has returned surface sample values as high as 2.3% copper and 14.0g/t gold. Ten shallow drill holes to a depth of 30m all encountered copper/gold mineralisation and the majority ended in mineralisation. Geochemical and geophysical work have identified the presence of large copper-gold-molybdenum targets.
Starfield acquired an option to earn a 60% interest in the property in 1997. However, the project development has been slowed down as a result of the fast-tracking of the Ferguson Lake project.
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