Crew tables Nalunaq resource (March 27, 2002)

Vancouver — An independent resource estimate has determined that Crew Development‘s (CRU-T) Nalunaq gold project in Greenland holds just under 600,000 oz. of gold.

Completed by Toronto-based SRK Consulting, the study tallied 596,600 tonnes grading 20.6 grams gold per tonne in the measured and indicated category using a width of 1.5 metres. The inferred section came in at 378,000 tonnes averaging 15.7 grams gold.

Based on the results, Crew is planning a pre-production program for 2002 with the goal of increasing the resource base and gearing up for production. The on going feasibility study is slated to be complete in the second quarter of the year.

Nalunaq comprises 1,080 sq. km and is a high-grade, narrow-vein, underground project. It is 40 km from the village of Nanortalik on the southern tip of Greenland, and 6 km from tidewater. Crew acquired its stake in the project in late 1999 through a merger with Mindex, a Norwegian exploration company. The remaining 33% interest is held by NunaMinerals, which is owned by the state of Greenland.

The prospect is a gold-bearing quartz vein and calc-silicate altered shear system that outcrops on the eastern and northern faces of Nalunaq Mountain. Nunaoil first discovered it in 1992 while following up regional stream-sediment and scree-sampling work done in the late 1980s.

The vein system is exposed semi-continuously along a 1,750-metre slope of the mountain, between a vertical elevation of 400 and 1,250 metres. The vein structure strikes northeast and dips from 25 to 45 southeast at an average of 34.

The main vein zone consists of multiple quartz veins within a strongly sheared zone of calc-silicate-altered amphibolite (chlorite, epidote and carbonate). The quartz thickness ranges from 0.01 to 0.75 metre; the zone itself has a true thickness ranging from 0.15 to 1.5 metres. The individual veins pinch and swell and are locally folded or stretched out.

Gold occurs in a free state and almost exclusively in association with quartz in veins and veinlets. A high nugget effect has caused erratic grades, creating concerns about the continuity of ore zones. Surface sampling has returned some extremely high-grade values, including more than 800 grams gold per tonne across 1 metre. In addition, underground channel sampling has yielded values of up to 5,000 grams.

In related news, Crew and Olympus Capital Holdings Asia have fully funded their rights offering commitments of $5 million each adding $10 million to the coffers of Asia Pacific Resources (APQ-T).

The latest financing is expected to close April 1 with the proceeds earmarked for working capital and the advanced Somboon potash project, in the Udon Thani province of northeastern Thailand. Reserves at Somboon are pegged at 180 million tonnes grading 23.6% potassium oxide. Olympus Capital will become the controling shareholder of Asia Pacific and Crew will hold an 8% stake.