In September, Fort Knox acquired an option for a 100% interest in the project, subject to a 2.5% net smelter return royalty to property-vendor Hudson Bay Exploration & Development. Similar arrangements had been made for two other properties, bringing the junior’s total requirements over the next five years to more than $1 million in exploration expenditures and $120,000 in cash payments; it must also issue 410,000 shares.
The survey is aimed at possible sulphide concentrations along a gabbro-andesite contact. Previous drilling by Hudson Bay led to the discovery of the Big zone, whereas subsequent grab sampling by Fort Knox pinpointed three other areas anomalous in platinum and palladium.
The Big zone measures at least 200 metres in strike length, as defined by seven boreholes. The highest grade obtained was 10.7 grams combined platinum and palladium per tonne over 12.2 metres, starting 40 metres below surface.
Platinum and palladium mineralization is associated with disseminated, blebby and stringer pyrrhotite and chalcopyrite. The nickel-bearing sulphide, violarite, has been observed as well.
Drilling is to begin in the new year. The planned 750-metre program will test for possible strike and depth extentions to the Big zone.
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