Low grading nickel values cut by Milestone in Manitoba

The 16-claim property, about 120 miles northeast of Winnipeg in the Bird River area, hosts a known deposit estimated to contain some 300,000 tons of material, averaging 0.4% copper, 0.5% nickel, 0.28% zinc and 0.5 oz silver per ton. That estimate was based on previous drilling from a zone measuring 300×50 ft to a depth of 200 ft.

Shares of Milestone have been trading actively on the over-the-counte r (COATS) market at 26-27 cents recently, down from a high of 47 cents reached when the drilling program began in October.

Results from the first eight holes in a 3,600-ft program completed recently include 27.4 ft grading 0.62% nickel and 0.45% copper in hole 1, 25.6 ft grading 0.46% nickel and 0.46% copper in hole 2, and 25 ft grading 0.44% nickel and 0.29% copper in hole 4. Minor zinc and silver values were also reported along with the copper-nickel mineralization.

Narrow intersections of higher-grade nickel were reported in most of the holes. Typical intersections were 2 ft of 3.3% nickel, 0.5 ft of 3.4% n ickel and 1.9 ft of 5.4% nickel. The first eight holes cut mineralization at depths of less than 100 ft below surface.

Additional assays for another seven shallow holes are awaited, along with the results from two deep holes that are testing depths of 1,000 ft, the company says. One of the deep holes cut 96 ft of 0.56% nickel and 0.31% copper, including 21 ft of 1.17% nickel.

The mineralization varies from massive to disseminated with massive sections, averaging 3-6% nickel over 1-to 2-ft widths. Copper content r anges from 0.06% to 0.59% in the holes drilled to date.

President William Ferreira says the company’s objective is to explore the deposit at deeper levels, possibly with the assistance of a senior company as joint venture partner.

The Ore Fault claim block was one of four Manitoba properties explored in the early 1970s by a Winnipeg-based junior called Bird River Mines. Milestone acquired the property earlier this year from a numbered Manitoba company held 80% by Myriad Mineral Resources and 20% by Bird River Mines.

Under the terms of an option agreement, Milestone can earn a 75% interest in the property by spending $400,000 on exploration and making cash payments of $100,000 over four years.

The property is underlain by rocks of the Bird River ultramafic sill.

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