The latest round of drilling on the Footwall discovery behind the Levack No. 2 shaft, 40 km north of Sudbury, Ont., has gone four-for-four for partners
All four boreholes cut massive-sulphide veins similar to those encountered in discovery hole 6010, sunk in late February. That hole returned 3.1 metres (beginning 1,634 metres below surface) grading 26.2% copper, 3% nickel, plus 4.2 grams platinum, 9.8 grams palladium, and 0.5 gram gold per tonne. A 5-metre section lower in the hole yielded 26.2% copper, 3.7% nickel, plus 5.1 grams platinum, 10 grams palladium, and 0.4 gram gold.
More recently, hole 6045, collared 69 metres to the southwest, encountered two large massive-sulphide veins. The first ran 10.6% copper, 3.6% nickel, 3.7 grams platinum, 7.9 grams palladium, and 0.6 gram gold over 8.6 metres, beginning 1,266 metres down-hole. A second 12.3-metre interval (from 1,285 metres down-hole) graded 22.5% copper, 3.8% nickel, 8.4 grams platinum, 18.7 grams palladium, and 1.3 grams gold.
Two intersections of low-sulphidation mineralization lower in the hole are highlighted by 4.5 metres (from 1,401 metres) grading 3.4 grams palladium, 2.5 grams platinum and 0.4 gram gold, with minor copper and nickel values.
Meanwhile, the three remaining holes have extended the high-grade sulphide zone by some 115 metres to the southwest of the discovery hole; all three intersected two massive-sulphide veins. Drilling will continue to test the mineralization in the three holes.
So far, hole 6045A has cut 1.8 metres (from 1,277 metres) grading 24.8% copper, 4.3% nickel, 8.6 grams platinum, 18.3 grams palladium, and 11.1 grams gold. The hole also yielded 3.1 metres of 25.6% copper, 5.4% nickel, 12.8 grams palladium, 29 grams platinum, and 1.3 grams gold, beginning at a down-hole depth of 1,320 metres.
Hole 6047 returned 3.3 metres (from 1,313.3 metres) containing 24.6% copper, 3% nickel, 5.7 grams platinum, 14.3 grams palladium, and 2.2 grams gold per tonne. A 4-metre interval beginning at a down-hole depth of 1,326 metres contained 17.2% copper, 2.6% nickel, 4 grams platinum, 9.4 grams palladium, and 4.2 grams gold. Assay results are pending for hole 6046.
The new zone remains open in all directions; high grades and sharp-walled massive-sulphide veins consisting of chalcopyrite, cubanite, pentlandite and millerite characterize the mineralization.
Encouraged by the impressive results, operator FNX has added a fifth drill to continue testing the discovery from surface. An agreement with
The Footwall discovery is associated with a UTEM-4 geophysical anomaly measuring 200 metres by 300 metres. Some of the proposed underground holes will be subject to UTEM-4 geophysical surveying to define future drill targets.
Levack is one of five former producers acquired by the Sudbury Joint Venture in 2003 from
The latest drill results sent shares in FNX as much as $2.10, or 23%, higher to a new 52-week high of $11.25 in early trading in Toronto on May 19; Dynatec shares jumped as much as 25, or 23%, to $1.34 in busy trading.
Meanwhile, the pair inked a deal that will see Dynatec take an indirect half-interest in
Dynatec can earn its stake by paying an amount equal to one-quarter of the value of the FNX shares issued to acquire Aurora, to a maximum of $12.1 million.
Dynatec must also issue FNX 3.6 of its own shares for every two FNX shares issued under the Aurora transaction, or around 7.8 million shares. FNX will also receive 7.2273 Dynatec share-purchase warrants for every two FNX options exchanged with Aurora. The Dynatec warrants will be exercisable at a price equal the price of the FNX options issued divided by 7.2273.
FNX’s friendly bid for Aurora needs the support of at least 66% of the votes cast at that company’s annual meeting, slated for June 20.
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