Diamond drill holes 5 and 6 were both collared from the same drill pad as previously reported hole 3 (69.34 metres averaging 0.22% copper, 0.15% nickel and 0.0074 gram platinum-palladium-gold per tonne). Hole 5 was drilled toward the south and undercut hole 3 in order to test the downward continuity of the mineralized gabbro. Hole 6 was pointed toward the southwest and drilled to test the westward extension of the mineralized zone. Assay results indicate that both holes carry anomalous values of platinum group metals.
Hole 5 cut two 1-metre sections, one of which assayed 5.8 grams combined platinum-palladium-gold; the other, 2.9 grams. The intersections were about 6 metres apart and began at a down-hole depth of 49 metres. The core interval between the two anomalies has yet to be assayed. As well, hole 5 returned 105 metres averaging 0.25% copper and 0.17% nickel starting at a down-hole depth of 130 metres.
Hole 6 intersected 155.78 metres averaging 0.28% copper and 0.2% nickel, starting at 73 metres down-hole.
ProAm and Starcore have, in addition, received anomalous results from holes 2 and 4. The former intersected a series of hornblenditic, pyroxenitic and gabbroic rocks before it was terminated at a final down-hole depth of 163.7 metres. The hole did intersect a 1-metre interval that assayed 0.11% copper, 0.04% nickel and 1.23 grams platinum-palladium-gold per tonne at a down-hole depth of 70 metres. Hole 2 was designed to test the magnetic and geochemical anomalies around the eastern area of the intrusive complex.
Hole 4 undercut the South Point zone and intersected a 1.21-metre interval of 0.16% copper, 0.26% nickel and 1.06 grams platinum-palladium-gold starting at a down-hole depth of 82.89 metres.
Surface sampling and trenching at the South Point zone returned values of up to 4.13 grams combined platinum-palladium-gold.
Hole 1 also tested the South Point zone, but came up dry. The best interval from that hole was 0.82 metre averaging 0.08% copper, 0.16% nickel and 1.16 grams platinum-palladium-gold. ProAm believes these holes have intersected a footwall border zone to the intrusive complex.
Earlier market excitement in March was focused on the highly anticipated hole 3, which was touted in a company press release as being “31 metres long and consisting of semi-massive and massive sulphides, including a significant amount of chalcopyrite.” The statement was based on visual analysis of the core; no assays had been completed at that time. Starcore’s stock soared to a high of $1.65, up from 35 cents just prior to the news release. ProAm’s stock followed suit, jumping to a high of $1.23, up from 40 cents prior to the news.
A sharp decline in the value of both stocks occurred after an internal memo from an analyst at a Vancouver-based investment dealer was circulated. The memo indicated that an on-site geologist had relayed information that the massive sulphides were magnetic pyrrhotite — not chalcopyrite. Chalcopyrite was said to be present but only in the order of a small percentage.
Starcore requested a trading halt pending the release of the assay results.
Hole 3 cut 69.34 metres averaging 0.22% copper, 0.15% nickel and 0.0074 gram platinum-palladium-gold. A 3.24-metre section within this intercept averaged 1.46% copper, 1.56% nickel, 0.089% cobalt and 1.6 grams platinum-palladium-gold, starting at a down-hole depth of 183.3 metres.
When these results were tabled and trading resumed, Starcore’s and ProAm’s issues were hammered. The market’s high expectations had not been fulfilled and Starcore’s stock dove 65 cents to close at 40 cents while ProAm’s stock dropped 40 cents to closed at 36 cents. At presstime, Starcore closed at 28 cents; ProAm at 23 cents.
Drilling has so far provided valuable structural information about the Samuels Lake complex. The intrusion is lopolithic, and the companies believe nickel, copper or PGM mineralization may be found in or around a keel-like feeder dyke. Mineralization remains open at depth, as well as to the east and west. ProAm and Starcore plan to continue exploration to delineate further extensions to the known mineralization.
The joint-venture partners have also set up a management committee, drawn from the boards of both Starcore and ProAm. The committee was created to ensure the accuracy and continuity of information dissemination for the project.
Elsewhere in Ontario,
The company recently optioned half of its claim holdings in the McNish, Kelly, Davis and Janes twps. to
The most easterly claim block under the option agreement, the Sargesson Lake property, was drilled in the late 1960s. Only limited information about the drill program is available, but values of up to 0.8% copper and 0.74% nickel are mentioned in a geological report of the Ontario Department of Mines. Drill hole widths and PGM assays were not disclosed. The company has budgeted a $150,000 work program aimed at developing drill targets in the area.
Pacific North West has also released assay results from channel-sampling at the Jakie Rastall showing in Janes Twp. Of particular interest was a sample that returned a 2.8-metre interval averaging 23.6 grams platinum-palladium-gold per tonne.
Next, diamond drilling will test the downdip extension of trench results. Pacific North West can earn up to a 70% interest in the property though an option agreement with a privately owned company.
Meanwhile,
Mustang is evaluating core from four holes previously drilled by Atomic Energy of Canada, but which were not assayed for PGEs. The first hole evaluated was found to contain two PGM layers believed to be similar to the PGM layers discovered by Mustang’s own drill program (T.N.M., March 29/99).
Also active nearby are partners
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