Committee Bay yields high-grade gold (September 02, 2003)

Vancouver A 1,477-metre drill program by partners Committee Bay Resources (CBR-V) and Gold Fields (GFI-N) has returned impressive values from the Three Bluffs zone on the Committee Bay project northeast of Baker Lake in Nunavut.

The partners tested the strike and depth extension of mineralization discovered in the mid-1990’s, when a dozen drill holes identified gold-bearing iron formation over a 420-metre strike-length section of the showing. The previous holes averaged 1.22 grams gold per tonne over 57.3 metres. Within the broad zone, two higher-grade sections yielded up to 4.8 grams gold over 6 metres and 9.3 grams gold over 2 metres. The latest bout of drilling extended the zone to 700 metres in length, down to a depth of 50 metres below surface.

Holes 1 and 2 tested the down-dip extension of the known mineralization returning narrow zones of up to 12.74 grams gold over 0.7 metre. Hole 3 was collared 200 metres to the east and cut 12.8 grams gold over 2.8 metres.

The remaining three holes tested the zone along strike for an additional 240 metres starting 50 metres east of hole 3. The western most hole, #4, cut an impressive 19.93 grams gold over 5 metres. The amount of sulphide and silicification increased moving east with hole 5 returning 45.5 grams gold over 6.9 metres and hole 6 yielding 27.4 grams gold over 9.4 metres.

Mineralization is hosted in poorly banded to massive iron formation located in the central part of the greenstone belt. The iron formation has been traced for 6-km along strike with chip samples collected in the central and eastern portion of the 1.8-km-long zone returning 11.6 grams gold over 4.8 metres and 19.04 grams gold over 3.9 metres, respectively.

Moving 120-km northeast to the Inuk showing, where previous grab samples returned up to 1,893.6 grams gold, and six holes were drilled in 1997, the partners drilled 5 holes. The best results came from hole 1B, which returned 16 grams gold over 12.6 metres. This hole followed-up the 2.6 grams gold over 40.1 metres, including a higher-grade section running 9.9 grams gold over 7 metres cut in an earlier drill hole.

Two of the holes tested the iron formation along the northern limb with hole 2 yielding 2.7 grams gold over 10 metres and hole 3 failing to cut any significant values.

Holes 4 and 5 targeted the southern end of the hinge returning a high value of 2.2 grams gold over 1.5 metres.

In the nearby Mist-Koffy area, where samples of silicified iron formation returned up to 31.3 grams gold, hole 1 cut 3 grams gold over 3.4 metres. Holes 2 and 3 were collared on either side of the hole at 60 metres spacing and failed to cut any significant values.

The Committee Bay project marks the northern extension of the rock units that host Cumberland Resources‘ (CBD-T) 3-million-oz. Meadowbank gold resource, 150 km to the southwest.

Committee Bay acquired the ground last July when Arta Enterprises, a capital pool company listed on the TSX Venture Exchange, acquired all its shares in a deal that saw 2.3 Committee Bay shares exchanged for every Arta share. The transaction involved 4.7 million shares priced at 25 each, plus 1.4 million warrants to acquire 1.4 million flow-through shares that can be exercised at 25 per share for two years. Another privately held company, 895924 Alberta, had a 48.6% interest in Committee Bay. Shares in the new Committee Bay began trading in August 2002.

Earlier this year, Gold Fields inked a deal with the junior paving the way for the major to earn a 55% stake in a land package. The South African-based company agreed to buy 1 million units in the junior priced at 30 each. A unit holds one share and one warrant, which is exercisable at 40 for a year. The major can then take a 55% interest in the 2,023-sq.-km project by spending US$5 million over four years. Gold Fields can go on to earn a 65% interest spending another US$5 million.

The most advanced targets on the land package are Wolf Lake West, Wolf Lake East, and Hayes River North, all of which are in the southwest.

At Wolf Lake, previous exploration identified two promising gold showings: Four Hills and Cop. The former lies 35-km southwest of Wolf Lake and was discovered in 1995 when 92 grab samples returned up to 48.07 grams gold per tonne. The Cop showing, 5 km to the east, was found in 1997 when a grab sample returned 27.63 grams gold. Mineralization at both locations is hosted in an Archean iron formation.To the east, in the Hayes River area, previous exploration identified four gold showings, three of which have been partially tested by drilling.

Between the Hayes and Three Bluffs zones lies the Antler showing, discovered in 1993. Grab samples from here have returned up to 120.82 grams gold per tonne, and in 1994 two holes were sunk, yielding 1.5 grams gold over 6.6 metres and 1.3 grams gold over 4.1 metres.

Overall, 40 gold showings have been discovered on the project, with mineralization occurring in several lithologies, including iron formations, mafic and felsic volcanic rocks, and greywackes. During 2003, reconnaissance work has focussed on 7 targets identified by airborne geophysics.

Committee Bay has 14.9 million shares outstanding, 21.8 million fully diluted and trades at around $0.75.