Lithium shares quadruple on Oxford Lake drilling results

Based on recent drilling results from Noranda’s (TSE) Oxford Lake properties in Manitoba, the Rusty gold zone discovered last year appears to be continuing downdip. Narrow zones of mineralization, including 2.1 metres grading 5.7 grams (0.18 oz.) gold per tonne, were intersected in two holes at depths of 600 and 700 metres, 200 metres below the maximum depth previously drilled.

Along a strike extension of the Rusty zone, two kilometers to the east, four holes intersected several narrow, low-grade zones as well as a 2-metre section grading 10 grams.

The Rusty zone gold occurs within a narrow (1.5 to 5.5 metres) shear associated with iron formation. Based on the 1989 drilling, Noranda estimated initial geological reserves on the Rusty zone of 800,000 tonnes grading 6 grams.

By spending $5 million on exploration during a 4-year period, Lithium Corporation of Canada (COATS) is earning a 50% interest in the project. Upon word of the drilling results, Lithium shares jumped from 14 cents to 57 cents, finally settling at 45 cents.

Despite the narrow widths encountered, management at Lithium is “very pleased” with the recent drilling, noting that the results extend the Rusty zone and its associated gold mineralization for several kilometres along strike.

Noranda has also been drilling on other areas within the Oxford Lake claim groups. Near Fallingstone Island, a few kilometres to the southeast of the Rusty zone, minor gold mineralization (2.3 grams over 0.4 metres) and massive pyrite were discovered along a trend marking the transition between volcanic and sedimentary rocks.

This summer, further drilling will focus on the western extension of the Rusty shear zone over a strike length of four kilometres. In addition to the drilling, Noranda will complete detailed ground geophysics over other structural breaks and airborne geophysical anomalies.