Assays awaited from Moose

BHP Diamonds has encountered sulphide mineralization in two holes while drilling for kimberlite on the Moose property in northeastern Manitoba.

Edmonton-based New Blue Ribbon Resources (NBL-V), which can earn an initial 30% interest in the project, reports that one hole intersected 48.8 metres of sulphide mineralization and that the other hit 22.8 metres of sulphide mineralization along the same geological horizon. Core from the two holes is being re-logged and will be submitted for assay. Results are expected in 2-3 weeks.

New Blue Ribbon provided no additional details, such as drill-hole location, depth of sulphide intersections, sulphide minerals present, host rock or type of mineralization, nor did it say whether the mineralization was disseminated, stringer or semi-massive to massive sulphides.

On May 1, New Blue Ribbon announced it had arranged a $400,000 private placement of up to 2.7 million units priced at 15 each. The junior has since traded to a high of 44 on heavy volume before falling back to 34 shortly before presstime.

After spending $4.5 million on regional exploration in northeastern Manitoba, BHP Diamonds, a subsidiary of BHP (BHP-N), advanced its 2,374-sq.-km land package to the drill-ready stage. BHP Diamonds shopped the project around, looking for a joint-venture partner, before settling on New Blue Ribbon, a junior dabbling in diamond exploration in Alberta, with little cash.

To earn an initial 30% interest in the Moose project, New Blue Ribbon must spend at least $820,000 before Nov. 1 of this year and a further $1.2 million in the following year. BHP will then have the right to increase its interest to 85% if it chooses to commit to a feasibility study. If it chooses not to exercise this right, New Blue Ribbon can increase its interest to 40% by spending an additional $1 million, after which time BHP will again have the right to increase its interest to 80% by completing a feasibility study.

BHP is operating the project, which sits in the heart of the Manitoba diamond play, east of Lake Winnipeg in the vicinity of Knee Lake and Fox River.

In related news, spring breakup has forced Marum Resources (MMU-V) to halt its drill program on the 560-sq.-km Crossroads property, west of Gillam, Man. Twenty-three years ago, a company subjected the property to magnetic and electromagnetic surveys in the hope of finding base metal targets. Based on that work, Marum selected three targets for drill-testing. Three holes were drilled on the first target area, dubbed CR1, before the program was discontinued. No kimberlite was hit, but Marum states that all the holes encountered some magnetite and massive sulphide mineral layers. Copper sulphide mineralization hosted in ultramafic rock was visible in hole 3. The sulphide sections have been submitted for assay.