West Raglan yields good nickel grades (September 15, 2003)

Vancouver — The promise of additional nickel-copper discoveries in the Raglan belt has turned into a reality with partners Knight Resources (KNP-V) and Anglo American (AAUK-Q) tallying encouraging drill results from the West Raglan property in northernmost Quebec.

The companies discovered a new zone of mineralization while following up on earlier results that indicate the favourable Raglan formation, host to most of the reserves on Falconbridge‘s (FL-T) nearby Raglan property, lies at or near the surface across most of the West Raglan property.

The 720-sq.-km project covers more than 70 km of the interpreted western extension of the favourable Raglan horizon, as well as 65 km of the western extension of the Expo-Ungava horizon, which hosts the Mesamax deposit.

Situated in the Cape Smith belt, an early Proterozoic fold and thrust belt that runs east-west across the Ungava Peninsula, the area has been an exploration hot spot since Canadian Royalties (CZZ-V) reported significant nickel-copper-platinum-palladium mineralization at the Mesamax prospect back in 2002.

The ultramafic belt contains two main horizons, north and south. The Raglan mine falls within the northern horizon, while ground optioned or wholly owned by Canadian Royalties covers a 100-km stretch of the southern horizon.

Mineralization in both horizons consists of disseminated, net-textured and massive sulphide flows positioned in the basal portions of ultramafic flows and/or intrusions. In the southern horizon, the sulphide zones occur at the transition from shallow sub-volcanic feeder sills to lava-flow channels. This type of mineralization represents an unrecognized variant on the magmatic sulphide deposit, with form and structure resembling Kambalda-type deposits (such as Raglan) but with compositions more like Norilsk (a large Russian nickel-copper camp that is also the biggest palladium producer in the world).

With only partial results in for the first three holes, the best values from the Anglo-Knight ground came from the Frontier South area, about 7 km west of Lac Chukotat. Here, hole 8 cut 3.04% nickel, 1.13% copper and 0.08% cobalt over 14.8 metres from 17.2 metres downhole. In total, the companies punched 7 holes into the zone with holes 4 and 5 cutting weakly mineralized ultramafics, while hole 6 intersected graphitic sediments and a large sequence of ultramafic.

Hole 9 was drilled in the southerly direction from the same site as hole 8 and intersected 2.1 metres of greater than 50% net-textured magmatic sulfides. Overlying the 2.1 metres of magmatic sulphides, are 5 metres of remobilized magmatic and sedimentary massive sulfides intercalated with sulphidic sediments and chert.

Holes 10 and 11 were collared to the west and intersected a sequence of sulphidic sediments containing local massive sulphide beds. The information obtained from these two holes indicated an overturned, south-dipping stratigraphy with an embayment structure in ultramafic rocks.

Mineralization is hosted in ultramafic bodies within the lower part of the Chukotat group and displays a strong similarity in terms of host rocks, textures and grades currently being mined at Raglan.

The assay results for holes 4, 5, 6, 10, and 11 are still pending.

Moving 1.7 km east and 350 metres north, the partners drilled 3 holes into the Frontier East target, where boulder samples returned 1.1-3.4% nickel. Hole 2 cut 30 metres of sulphidic sediments and chert within ultramafics.

Some 100 metres to the east, hole 12 intersected 15.5 metres grading 1.2% nickel, 0.84% copper and 0.04% cobalt from 15.5 metres downhole. Included in this section was a higher-grade portion running 1.6% nickel, 1.13% copper and 0.05% cobalt over 8.5 metres.

Testing the down-dip extension of the mineralization from the same site, hole 13 intersected 7.6 metres grading 2.54% nickel, 1.4% copper and 0.09% cobalt.

Moving 1.1 km west, hole 14 tested the downdip extension of mineralization exposed at surface (1.9-to-3.4% nickel) at the Frontier Central zone. This hole intersected 11.5 metres of sulphides, of which 9 metres were greater than 50% net-textured magmatic sulphides.

Hole 3 tested the Fortier West zone, where a geophysical anomaly and a single boulder yielded 2% nickel. This hole cut sulphide-bearing sediments.

Some 7.5 km to the east in the Rainy Day area, hole 1 intersected an 87-metre unit of ultramafic rock with a gabbro hanging wall and a basalt footwall. Weak pyrrhotite mineralization was intersected over a 9-metre interval starting a 135 metres downhole. Meanwhile, prospecting 1 km to the west yielded mineralized ultramafic boulders close to unmineralized ultramafic outcrop. Assays for the boulders are pending.

Hole 7 targeted the Povungnituk area, 5 km south of Lac Chukotat. This hole cut an ultramafic sequence before intersecting graphitic sediments.

The initial drill results indicate that the Raglan formation identified on the West Raglan property is hosted by a steeply-dipping, locally overturned sequence of massive and pillow basalt flows, interflow sulphidic sediments and cherts. This contrasts with the shallowly north-dipping stratigraphy seen at Raglan.

Donner Minerals (DML-V) holds a 27% equity stake in Knight, which is earning a 49% stake in the West Raglan property from Anglo American Exploration (Canada).

The number of companies holding claims in the Raglan area has at least tripled over the past 2 years. Along with longer-term landholders Falconbridge, Anglo American, Canadian Royalties and NovaWest Resources (NVE-V), juniors Goldbrook Ventures (GBK-V) teamed up with Inlet Resources (INS-V) and Masuparia Gold (MPG-V) in the search for the next Raglan find. Other juniors with exploration projects in the area include: Bayfield Ventures (BYV-V); Beaufield Consolidated Resources (BFD-V), Boulder Mining (YBR-V); CanAlaska Ventures (CVV-O); Goldrea Resources (GOR-V); Montoro Resources (MNQ-V); Thelon Ventures (THV-V); and Volcanic Metals Exploration (VME-V).