ProAm, Starcore bullish on Samuels Lake

Partners ProAm Explorations (PMX-V) and Starcore Resources (SOE-V) have caught the market’s attention with initial drill results from their equally held Samuels Lake polymetallic property near Atikokan, Ont.

A 1,200-metre reconnaissance drill program on the 576-ha property tested separate targets in the previously unexplored Samuels Lake mafic intrusion. The drilling followed a program of surface sampling that uncovered anomalous values of platinum, palladium, copper and nickel. Sampling results averaged 3-4 grams platinum-palladium-gold per tonne, with copper values averaging 0.5%.

Drilling focused on an 200-by-300-metre electromagnetic conductor under Samuels Lake.

Results from hole 3 returned two wide sections of mineralization. The hole was drilled at the centre of the conductor in a southerly direction and at an angle of minus 55.

Starting at a down-hole depth of 71.7 metres, the hole cut 69.3 metres averaging 0.22% copper, 0.15% nickel and 0.074 gram platinum-palladium-gold. This was followed by a 45.7-metre intercept of 0.82% copper, 0.64% nickel and 0.8 gram platinum-palladium-gold starting at a down-hole depth of 177 metre. Included in this interval was a 5.3-metre section of 1.74% copper, 1.13% nickel and 0.8 gram platinum-palladium-gold starting 208 metres down-hole. The end of the second mineralized zone represents a vertical depth of 175 metres. ProAm says that the zone appears to be open updip, downdip and along strike toward the east and west.

Drill holes 1, 2 and 4 were drilled on separate targets. Hole 1 returned only anomalous values of platinum, palladium and copper, and results are pending for holes 2 and 4.

Fort Knox

In a related development, partners Fort Knox Gold Resources (FNX-T) and Indo Metals (IOM-V) have entered into option agreements to buy four platinum-palladium properties in western Ontario.

Three of the properties — Chief Peter Lake, Kawene and Kawene South — are about 60 km east of Samuels Lake, while the fourth — Dog River — is 18 km west of the Lac des Iles platinum-palladium mine near Thunder Bay, Ont.

Fort Knox and Indo each stand to earn a half-interest in the four properties by making cash payments, funding exploration and issuing shares as well as net smelter return royalties (NSRs) to the vendors.

At Chief Peter Lake, the partners are required to pay a total of $105,000 in cash and issue 100,000 Fort Knox shares over three years, as well as spend $300,000 on exploration over four years. The agreement is subject to a 2.5% NSR, of which 1.5% can be bought back by the partners for $1.5 million.

At the Kawene and Kawene South properties, the partners must pay $100,000 in cash and issue 100,000 Fort Knox shares over three years. The deal is subject to a 3% NSR, of which 1.5% can be bought back for $1.5 million.

At Dog River, Fort Knox and Indo are required to pay $52,500 in cash and issue 50,000 Fort Knox shares over three years in a deal that is subject to the same NSR arrangement.

In compensation, Indo will issue a sufficient number of its shares to Fort Knox to match half the dollar value of the Fort Knox shares issued to the vendors.

The Chief Peter Lake property consists of 52 claims and covers three mafic-ultramafic intrusives over a 6-km strike length. Numerous occurrences of platinum, palladium, copper and nickel have been reported on the property, with grab samples assaying as high as 12.4 grams platinum-palladium and 2.95% copper. Results from one of 12 drill holes put down in 1957 cut 5 ft. averaging 4.8 grams platinum-palladium, 0.8% copper and 0.3% nickel.

The Kawene and Kawene South properties consist of 73 contiguous claims. These cover part of the Kawene ultramafic intrusion, which is 500 metres long and 75-130 metres wide. Pyrrhotite, pyrite and minor chalcopyrite occur as fine disseminations and patches throughout the intrusion.

The 135-claim Dog River property covers most of the Dog River mafic intrusive, which is 2.75 km long, 4 km wide and about 1.5 km deep. The intrusion has seen limited exploration.

Indo Metals recently entered into an agreement with Haywood Securities to obtain a brokered private placement of 2 million units priced at 15 cents each. The proceeds, which are expected to total $300,000, are subject to a 5% commission. Each unit will consist of one share and one share purchase warrant redeemable for an additional share at 18 cents over two years.