Vancouver — Following a meteoric share price rise based on visual mineralization in a couple of recent drill intercepts from its Double Eagle project, in northern Ontario’s James Bay Lowlands, Noront Resources’ (NOT-V, NOSOF-O) stock more than doubled following partial assay results from the first hole.
Hole 1 returned 36 metres (from 56 metres down-hole depth) averaging 1.84% nickel and 1.53% copper with further results pending. It was drilled at minus 45 and intersected 69 metres of sulphide mineralization within a pyrrhotite-chalcopyrite-peridotite ultramafic cumulate setting. Noront notes the sulphide percentage weakened from 69-82 metres down-hole and decreased to trace levels beyond 125 metres depth.
A second hole, collared from the same location and drilled steeper than the first, intersected 72.9 metres of similar mineralization starting from 91.3 metres depth.
Plotting of the two holes indicate a likely vertical-dipping structure of about 50 metres true width.
Noront spotted the holes based on a previous (2004) ground geophysical survey that identified a magnetic and electromagnetic anomaly.
Follow-up holes 3 and 4, 100-metre step-outs collared to the northeast and southwest respectively, both failed to intersect the mineralized zone. Hole 5, however, drilled about 50 metres northeast of the initial collar, encountered massive chalcopyrite, pyrrhotite and pentlandite over 65.2 metres (from 47.4 metres depth) within the peridotite suite. Noront says the hole was drilled downdip and the intersection does not represent true width.
The discovery is about 4 km west of a layered chromitite-bearing peridotite that was recently discovered by others exploring in the McFauld’s Lake area for massive sulphides, said Noront director and geologist Neil Novak in a recent release.
He added that the percentage of sulphide mineralization and the size of olivine crystals is gradational, decreasing with depth — suggesting that the rock unit could be structurally overturned.
Noront’s discovery has prompted several neighbouring companies to wave their arms, looking for area-play attention.
The Double Eagle project is adjacent to the McFaulds Lake project, where joint-venture partners Spider Resources (SPQ-V, SDERF-O) and KWG Resources (KWG-V, KWGBF-O) have identified several volcanogenic massive sulphide occurrences.
Shares of Noront more than doubled on the assay news, closing up 89 at $1.74 apiece on trading volume of over 20 million. The stock, which has risen from the 40-level in late August following the report of visually mineralized drill intercepts, has a 52-week trading range of 13.5-$1.82. Based on its 90.3 million shares outstanding, the company posts a $157-million market capitalization.
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