Canadian Royalties tests Expo Northeast

Diamond drilling by Canadian Royalties has extended the recently discovered Expo Northeast zone of mineralization on the Raglan South trend project, 15 km south of Falconbridge‘s (FL-T) Raglan mine.

The latest batch of seven holes is highlighted by no. 71, which cut 24.6 metres grading 1.2% nickel, 1% copper, 0.4 gram platinum, 1.2 grams palladium per tonne, and 0.06 % cobalt, beginning at a depth of 95.9 metres.

The hole was designed to test for the continuation of the Expo Northeast mineralization (discovered last October) intercepted beneath the lower contact of the Expo ultramafic body, and below hole no. 63 sunk last winter. That hole returned 144.8 metres running 0.35% nickel, 0.4% copper, 0.02% cobalt, 0.09 gram gold, 0.2 gram platinum, and 0.8 gram palladium.

The company says the latest hole cut a lower ultramafic body some 20 metres below the lower contact of the mineralized ultramafic body that hosts the nearby Expo deposit. The zone remains open at depth.

Meanwhile drilling some 425 metres to west returned the following:

• Hole 65 — 50.1 metres (from 36 metres below surface) averaging 0.4% nickel, 0.55% copper, 0.03% cobalt, 0.07 gram gold, 0.2 gram platinum, and 0.8 gram palladium, including 7.1 metres (from 79 m) of 0.9% nickel and 0.8% copper, with similar precious metal values;
• Hole 66 – 14.8 metres (from 34 m) of 0.5% nickel, 0.7% copper, 0.03% cobalt, 0.07 gram gold, 0.22 grams platinum, and 0.9 gram palladium; and
• Hole 67 – 4 metres (from 41 m) of 0.6% nickel, 0.15% copper, 0.03% cobalt, 0.03 gram gold, 0.1 gram platinum, and 1 gram palladium.

Holes nos. 68, 69 and 70 were sunk about 275 meters west of hole 71, and were highlighted by hole 69, which yielded a 6.8-metre interval (from 70 m) containing 1% nickel, 0.9% copper, 0.06% cobalt, 0.1 gram gold, 0.3 gram platinum, and 6.2 grams palladium.

Drilling in the Expo and Expo Northeast areas will resume in September. The company has shifted its focus to the Mesamax, Mequillon Lake, Giraffe and other newly developed target areas.

Canadian Royalties holds 70% of the property, with the rest held by Ungava Minerals. Canadian Royalties can boost its stake by 10% by delivering a final feasibility study on production from the property.

In mid-July, Ungava Minerals delivered a statement of claim to Canadian Royalties in connection with pending arbitration over alleged breaches of fiduciary and other duties on Royalties part. Canadian Royalties says arbitration protocol and filing of formal documentation has not been completed; a hearing date has not been set.

Ungava is looking to have the underlying Expo-Ungava joint venture agreement annulled. Royalties also says that Ungava wants a portion of land along the boundary of the Phoenix property (100% owned by Canadian Royalties) and the Expo-Ungava property. Ungava is also seeking $516,642.23 in damages.

Canadian Royalties says it has already defended these exact claims, and maintains that they are “blatantly opportunistic, frivolous and extremely vexatious.”