Partners to test B20 and BDS conductors

Encouraged by outcrop sampling late last year, partners Appalaches Resources (APP-V) and Marum Resources (MMU-V) are gearing up for a $450,000, 5,000-metre drill program on the B20 and Baie des Sables (BDS) properties near Port Cartier, Quebec.

The holes will target electromagnetic conductors located near surface showings of platinum, nickel, copper and cobalt.

Last year’s sampling was focused 2 km east of the main B20 mineralized zone and returned up to 1.8 grams platinum per tonne plus 3% copper, 0.9% nickel and 0.27% cobalt. Previous surface outcrops returned platinum and palladium values of up to 1.5 grams per tonne. The partners say the results indicate the presence of a platinum-enriched copper-nickel massive sulphide zone with a strike length of more than 4 km.

Immediately northwest of the mineralized surface zone, a deep-penetration electromagnetic survey identified a strong anomaly stringing for some 300 metres at a depth of 100-260 metres.

As part of a 2-year option to acquire a half-interest in the B20 property, Marum recently subscribed to a private placement of 750,000 Appalaches units at 20 apiece. Each unit includes one share plus a warrant exercisable at 23 per share for six months after closing, and 26 per share during the subsequent 12 years. Marum must also transfer to Appalaches a half-stake in the Group West and Group East properties, which are adjacent to the B20 property.

To earn its half-interest in B20, Marum must also cover half of Appalaches’ expenditures before May 31, 2002 at B20. Marum must also spend an equivalent amount during the second year of the option. Appalaches expects to spend $630,000 by May 31; it has already spent $280,000.

Surface sampling elsewhere on B20 has outlined a large nickel and copper-bearing massive sulphide system, as well as zones with high platinum values. Surface sampling and trenching have returned 0.2-2.2 grams platinum, 0.2-2% nickel, 0.5-4.9% copper and cobalt values.

Last November, Appalaches inked a deal to earn a 100% interest in Inco‘s (N-T) Pentecote River nickel sulphide property near Port Cartier, Quebec.

The newly acquired claims lie within the junior’s 203 claims, which host the B20 and Baie- des-Sables properties. Under the deal, Appalaches must spend $275,000 over 5 years. Inco retains a 2% net smelter royalty and the right to purchase all of the nickel, copper and platinum extracted from the four claims.

Geological data suggests that the nickel-copper-platinum bearing system of the B20 property continues through the new claims.

Mineralization at B20 occurs as disseminations and as layers of massive sulphides separated by thin unmineralized horizons. On the adjacent Baie des Sables property, the partners have outlined a large alteration system that lies along the north and east edges of the Pentecote River anorthosite intrusion.