EXPLORATION ’99 – Juniors continue hunt for Ontario PGEs

Exploration for platinum group elements (PGE) in the outback of northern Ontario is in full swing.

At its East Bull Lake project, southwest of Sudbury, Mustang Minerals (MMIN-C) is following up on induced-polarization (IP) anomalies. Eight preliminary holes drilled last year intersected narrow intervals assaying up to 5.65 grams combined platinum, palladium and gold, whereas grab samples have returned up to 18 grams of those combined metals. Generally, palladium values are three times those of platinum.

Mustang is also targeting the southern margin of the East Bull Lake intrusion, where geochemical and IP surveys have outlined an 800-metre-long zone of mineralization. Of the 24 grab samples taken, 16 returned more than 1 gram combined metals, and 12 of those assayed between 3 and 9 grams.

Mustang considers East Bull Lake a hybrid between reef deposits, such as Stillwater in Montana, and magmatic sulphide deposits, such as Noril’sk in Russia. There are three types of known mineralization: contact sulphide mineralization (in basal cumulates); disseminated sulphide mineralization (higher in the stratigraphy); and structurally controlled sulphide mineralization (essentially remobilized contact mineralization where cut by deformation zones). Mustang believes the first of those styles of mineralization forms layers near the intrusion’s basement, within which higher-grade bands may occur.

East of Sudbury, Mustang is exploring 511 claims covering the River Valley intrusion, also a gabbro-anorthosite intrusion dotted with surface showings. Johannesburg-based Impala Platinum can earn up to a 60% interest in the property by paying $215,000 in cash and spending $6 million on exploration over five years.

Also at the River Valley intrusion, Aquiline Resources (AQI-V) is continuing preliminary investigations of 232 claims. Geophysical surveys will begin shortly, followed by drilling in the spring.

The property is adjacent to ground held separately by Mustang and Pacific Northwest Capital (PFN-A). The latter is exploring its property in a joint venture with South African-based Anglo American Platinum, which can earn a half-interest by paying $300,000 in cash and spending $4 million on exploration over five years, of which $1.5 million must be spent by the end of 2000.

Meanwhile, Pacific North West continues to explore the Nipissing diabase where it outcrops 50 km northeast of Sudbury. Drilling is focused on the Sargesson Lake and Davis-Kelly polymetallic properties, in which Consolidated Venturex Holdings (CVA-V) can earn half-interests by paying a total of $27,500, issuing 200,000 shares and spending $500,000 on exploration.

Grab samples from Sargesson Lake have returned up to 2.81 grams combined platinum, palladium and gold, plus 0.76% copper and 0.32% nickel. At Davis-Kelly, samples from the main showing ran up to 6.3 grams combined metals, plus 0.29% copper and 0.15% nickel.

Band-Ore Resources (ban-t) recently sank three holes at its Nym Lake property, west of Thunder Bay. The holes, collared at a showing in pyroxenite, returned a best result of 0.5 gram platinum-palladium over 2 metres. Subsequent mapping identified another showing, to the northeast, which is also characterized by chalcopyrite, pyrite and pyrrhotite.

Band-Ore is reviewing its field data, following which exploration will renew.

North of Thunder Bay, Avalon Ventures (AVL-V) and Starcore Resources (SOE-V) are teaming up to explore 2,201 ha of the Lebris Lake mafic-ultramafic complex. Grab samples from an area coincident with a 300-metre-long electromagnetic anomaly returned up to 2.77 grams palladium, 0.44 gram platinum, 0.41 gram gold, 0.46% copper and 0.13% nickel.

Mineralization is associated with 2-3% disseminated pyrite-pyrrhotite-chalcopyrite in gabbro described as being similar in texture to the Roby zone at the Lac des les mine of North American Palladium (NAP-T). North American recently announced that Roby’s resources had doubled to 94.1 million tonnes grading 1.66 grams palladium and 0.18 gram platinum, plus 0.14 gram gold, 0.062% copper and 0.053% nickel (T.N.M., Nov. 22/99).

Avalon and Starcore can each earn a half-interest in the Legris Lake property by paying the vendor $155,000 and spending $500,000 on exploration over five years. The latter must cover half of those commitments alone, with the remainder to be split evenly.

As part of the agreement, Avalon must issue 80,000 shares and Starcore, 100,000. The vendor retains a 3% net smelter return royalty, half of which will be dismissed in exchange for $1.5 million.