The targets are electromagnetic conductors coincident with magnetic anomalies. None of the anomalies are overlain by outcrop, however, they are interpreted to be underlain by mineralization within the Shabogamo gabbro.
An airborne transient electromagnetic survey was flown in July over six anomalies identified in a 2002 survey. The 750-line-km survey was flown at 75-metre spacings, upgrading from the 400-metre spacings flown previously.
Three of the five drill targets are in the Evening Lake area, where gabbroic boulders containing up to 15% nickel-sulphide mineralization were discovered in 2000. One of these boulders assayed 0.29% nickel, 0.32% copper and 0.03% cobalt. The first hole will try to hit an anomaly near the interpreted source of these boulders.
The 450-sq.-km staked area covers parts of the Shabogamo intrusion over about 100 km of its strike-length northeast of Labrador City towards the Churchill Falls area. The intrusion is locally olivine-bearing, gabbro-troctolite that exhibits local magnetic highs and associated lake-sediment, nickel-copper anomalies.
Gallery Resources is earning a 50% interest in the project by funding the initial $1 million in exploration. Following the earn-in, BHP Billiton will have the option to buy back 20% by funding a feasibility study.
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