Moose fails to yield kimberlites

Vancouver — The highly anticipated assay results from the Moose property in Manitoba have returned only anomalous copper-nickel-zinc-cobalt mineralization for partners BHP Diamonds and New Blue Ribbon Resources (NBL-V).

The major cut the sulphide mineralization in the first two holes while testing magnetic geophysical anomalies thought to be kimberlites.

To date, seven magnetic anomalies have been drill-tested and no kimberlites have been cut. However, the first two holes hit magnetic sulphide horizons in a metamorphic sequence. Hole 1 cut 25.28 metres of an amphibole-bearing sulphide-silicate iron formation containing pyrrhotite and small amounts of chalcopyrite and sphalerite, which returned up to 368 parts-per-million copper, 327 parts-per-million nickel, 50.2 parts-per-million cobalt and 0.12% zinc.

Hole 2 cut a 12.4-metre-thick section of the same rock type and returned up to 0.1% copper, 401 parts-per-million nickel, 56 parts-per-million cobalt and 0.13% zinc. Both intercepts also contained weakly anomalous gold and palladium mineralization.

Although the initial exploration targeted diamond-bearing rocks, BHP is re-evaluating all the data to better understand the nature of the sulphide mineralization. A second round of drilling is planned for late June or early July. No kimberlites have ever been identified in the province, but a recent till-sampling program outlined a large diamond indicator mineral train just south of the Moose property.

After spending $4.5 million on regional exploration in northeastern Manitoba, BHP Diamonds, a subsidiary of Australian mining giant BHP (BHP-N), has advanced its 2,374-sq.-km land package to the drill-ready stage. BHP Diamonds shopped the project around, looking for a joint-venture partner, before settling on New Blue Ribbon, a junior that dabbles in diamond exploration in Alberta.

To earn an initial 30% interest in the Moose project, New Blue Ribbon must spend at least $820,000 before Nov. 1 and a further $1.2 million in the following year. BHP will then have the right to increase its interest to 85% if it chooses to commit to a feasibility study. If BHP chooses not to exercise this right, New Blue Ribbon can increase its interest to 40% by spending an additional $1 million, after which time BHP will again have the right to increase its interest to 80% by completing a feasibility study.

BHP is operating the project, which sits in the heart of the Manitoba diamond play, east of Lake Winnipeg, in the vicinity of Knee Lake and Fox River.