Rockwell Ventures likens Brazilian PGE deposit to Bushveld

Vancouver — Rockwell Ventures (RCW-V) continues to uncover new platinum group metal exposures at its Pedra Branca project, near Fortaleza in northeastern Brazil.

The 998-sq.-km project is underlain by a 100-metre-thick sequence of folded layered mafic intrusive rocks. The arcuate belt, representing the limbs of a major syncline, extends for about 70 km and is host to one or more platinum-group-element-bearing chromitite horizons.

Rockwell states that these occurrences are similar to the UG2 horizon in the Bushveld complex in South Africa. The Hunter-Dickinson-led company has completed an extensive program of geological mapping and soil sampling. These property-wide field programs were designed to outline and prioritize drill targets. (For initial results, see T.N.M., Jan 8-14/01.)

Newly discovered chromitite outcrops and boulder zones have been assayed, and results from four new discoveries — Cana Brava, Serra do Galo, Serrote and Ipueiras Extension — are outlined in the accompanying table:

On the back of completing a $2.9-million financing (comprising 4.5 million units at 65 per unit), Rockwell is adding $1 million to its coffers by selling 1.3 million units at 75 each.

A unit is subject to a 4-month holding period and consists of one share plus one warrant. A warrant is exercisable at 90 for two years. Haywood Securities will handle the private placement on a best-efforts basis.

The funds will be used to continue exploration of the Pedra Branca property.

Rockwell is earning a 60% interest in the property by spending US$7 million over four years and issuing 500,000 shares in five equal allotments of 100,000 shares to Denver-based Solitario Resource (SLR-T). Each allotment must have a minimum value of US$100,000.

Having completed its merger with Altoro Gold, Solitario now holds a 100% interest in a 300-sq.-km area that encompasses the Esbarro and Curiu prospects. Solitario also holds an option to earn 70% of a 120-sq.-km package that hosts the Trapia, Massape and Ipueiras prospects. This option is carried forward from a 1999 agreement between Altoro and Eldorado Gold (eld-t) whereby Altoro can earn a 70% interest by spending US$2 million over three years. If Eldorado elects not to contribute when Altoro has earned its share, Altoro is entitled to earn an additional 20% by spending an extra US$1 million on exploration. At that stage, Eldorado can elect to convert its 10% remaining interest to a 2% net smelter return royalty.

In late 1999, Altoro tested Pedra Branca with an 18-hole, 1,200-metre drill program. Seven of the holes targeted the Trapia West zone, one tested Trapia 1, eight tested Esbarro, and two tested Ipueiras.