CZZ extends Expo-Ungava

Vancouver — Canadian Royalties (CZZ-V) has confirmed the downdip extension of high-grade mineralization at the Mesamax zone on the Expo-Ungava property in northern Quebec.

Holes 40 through 54 were drilled between impressive intersections reported earlier (T.N.M., Nov. 18-24/02). Results from four of the holes show that the high-grade core maintains a 5-metre thickness downdip over a strike length of at least 100 metres.

Collared from the same site and increasing in angle from 58 to 90, hole 40 returned 42.9 metres grading 2.29% nickel, 3.62% copper and 0.09% cobalt, plus 0.44 gram gold, 0.96 gram platinum and 3.27 grams palladium per tonne; hole 41 cut 7.1 metres grading 3.66% nickel, 3.06% copper, 0.15% cobalt, 0.08 gram gold, 0.79 gram platinum and 3.08 gram palladium; and hole 42 returned a 0.48-metre section of 0.41% nickel, 1% copper, 0.02% coablt, 0.07 gram gold, 0.02 gram platinum and 7.51 grams palladium.

Some 25 metres to the east, hole 50 cut 2.85% nickel, 4.34% copper, 0.11% cobalt, 0.25 gram gold, 1.18 grams platinum and 5.38 grams palladium over 24 metres.

Moving 39 metres to the north, hole 43 was drilled at a 45 angle and returned 21 metres grading 0.94% nickel, 2.16% copper, 0.04% cobalt, 0.13 gram gold, 0.56 gram platinum and 2.43 grams palladium. Hole 44 was drilled at the same site at 90 and yielded 46 metres grading 1.35% nickel, 1.03% copper, 0.06% cobalt, 0.08 gram gold, 0.65 gram platinum and 3.6 grams palladium.

Drilled from the same site 112 metres farther northeast, holes 45 through 47 all cut similar values over 5-to-6 metre intervals, with the best results coming from hole 46: 3.92% nickel, 3.31% copper, 0.15% cobalt, 0.17 gram gold, 1.18 gram platinum and 1.62 grams palladium over 5.7 metres.

Holes 48, 51 and 52 were drilled to locate the southern limit of the mineralization near surface and, respectively, returned the following: 8 metres grading 0.44% nickel, 0.91% copper, 0.02% cobalt, 0.06 gram gold, 0.76 gram platinum and 1.69 grams palladium; 14 metres grading 2.03% nickel, 3.63% copper, 0.08% cobalt, 0.98 gram gold, 0.94 gram platinum and 1.24 gram palladium; and 0.6 metre of 0.4% nickel, 4.6% copper, 0.03% cobalt, 0.06 gram gold, 0.26 gram platinum and 2.81 grams palladium.

A geophysical survey over the Mesamax zone in 2002 revealed a conductive anomaly over a 400-metre strike length, and so far only a 200-metre portion has been drill-tested. Results suggest the high-grade pod consists of a broad zone of disseminated, net-textured and massive sulphides consisting of pyrrhotite, pentlandite and chalcopyrite in, or adjacent to, a pyroxenite. The zone remains open downdip and to the east.

Mineralization is believed to occur at the transition from shallow sub-volcanic feeder sills into channelized lava flows. Early staged studies of the mineralization indicate a magmatic sulphide deposit, with form and structure resembling komatiite-hosted “Kambalda-type” deposits but with the composition suggesting a “Norilsk-type” deposit. (The Norilsk region in Siberia is the largest producer of palladium in the world, and the second-largest producer of nickel and copper.)

Canadian Royalties has earned a 70% interest in the property by spending $1.75 million over four years. It can boost its stake to 80% by completing a bankable feasibility study.

The Expo-Ungava property is 15 km south of Falconbridge‘s (FL-T) Raglan nickel-copper mine and hosts two mineralized zones besides Mesamax, namely Expo and Cominga. All three were discovered in the 1960s.

The entire property has a resource of about 17 million tonnes grading 0.6% nickel and 0.8% copper. This includes a higher-grade core of some 3 million tonnes grading 1% nickel and 1% copper.

Canadian Royalties, which recently raised $9 million in financing, is preparing to carry out definition drilling on the Mesamax zone, as well as drill new targets.