Canadian Royalties boosts prospects at Phoenix

Vancouver — The latest drill results tabled by Canadian Royalties (CZZ-V) show that “Raglan-type” nickel-copper-cobalt grades are associated with the encouraging platinum-palladium-gold values at its wholly-owned Phoenix prospect in the Nunavik area of northern Quebec.

Located in the TK area of the property, some 20 km south of Falconbridge’s (FL-T) Raglan mine, hole 4 cut the most significant mineralized lens. Drilled at 85, this hole hit 2.7% nickel, 0.78% copper, 0.13% cobalt and 2.67 grams combined platinum-palladium-gold per tonne over 5.4 metres from 128 metres down-hole. Just below the massive sulphide intercept, a 1.15 metre section ran 6.48 grams combined platinum-palladium-gold.

This marks only the third massive sulphide discovery containing significant copper-nickel values in the South Raglan trend (a 150-km belt of basalt and ultramafic rocks). Falconbridge’s Delta deposit has a resource of 1.02 million tonnes grading 2.62% nickel, 1.1% copper and 2.25 grams combined platinum-palladium. Amax’s Expo Ungava deposit (now held by Canadian Royalties) has 17.1 million tonnes grading 0.6% nickel and 0.81% copper.

The new find lies 6 km east of Expo-Ungava. Mineralization is associated with disseminated, net-textured and even massive sulphides within, and adjacent to, an ultramafic host. The holes define a broad zone of platinum-palladium-gold and base-metal sulphide mineralization, extending from surface to a vertical depth of 130 metres and stretching some 75 metres north to south.

The ultramafic host at the TK Area represents the same ultramafic body that extends easterly to the Mesamax Northwest and Mesamax Main platinum-group-metal (PGM) zones.

The first hole of this year’s program at Mesamax returned 0.9 metre (from 34.1 metres) grading 7.22 grams PGM; a second hole cut 32 metres (from 41.5 metres) of 4.43 grams PGM, plus 0.91% nickel and 1.73% copper, including 16 metres running 6.76 grams PGM, plus 1.65% nickel and 3.4% copper; a third hole cut two zones of chalcopyrite-pyrrhotite mineralization (the upper zone returned 18 metres (from 121.5 metres) of 1.33 grams PGM, whereas the lower zone yielded 2.58 grams PGM over 3.95 metres).