Inmet options Altius ground

North-central Newfoundland is proving to be a popular destination for companies on the trail of massive sulphide deposits. Inmet Mining (IMN-T), by teaming up with Altius Minerals (ALS-V), is the latest of several majors to have secured ground in the region.

Inmet can earn a 55% interest in the Lockport and Point Leamington volcanogenic massive sulphide (VMS) properties in the Wild Bight group volcanics by spending $2.5 million on exploration and paying $100,000 to Altius over four years. The company has committed $250,000 for a first-year program of drilling and exploration by Altius. Work will begin immediately.

The Lockport property, near the coast of Notre Dame Bay, covers mineralized volcanic rocks. These include the Lockport prospect, which has been known for more than a century and has undergone intermittent exploration.

Altius believes that the stockwork-type mineralization there has been overturned and that any massive sulphide mineralization is below the feeder mineralization exposed at surface. Two holes tested this interpretation: the first cut more than 26 metres of massive sulphides, beginning at a depth of 98.3 metres and below 46 metres of feeder-type mineralization, while the second, drilled 170 metres to the south, cut feeder-style mineralization rich in copper and chlorite.

The Point Leamington property, 20 km southwest of Lockport, covers a 15-km-long volcanic belt (excluding the Point Leamington massive sulphide deposit). Partners Rubicon Minerals (RMX-V) and Billiton Exploration Canada recently cut more massive sulphide mineralization, grading up to 0.66% copper and 0.44% zinc, plus 1.08 grams gold per tonne. The new discovery lies on the same horizon as the Point Leamington deposit. The partners say four horizons in the footwall stratigraphy have potential to host massive sulphide deposits. More drilling is planned.

The Point Leamington deposit contains a resource of 13.2 million tonnes grading 2.25% zinc, 0.48% copper, 0.89 gram gold and 20.57 grams silver. The down-plunge extension of the deposit is considered open at moderate depth to the north and possibly on to the Altius property.

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