Big width on surface kindles interest in Quebec nickel find (March 27, 1989)

One area, measuring 300 ft in width, has been stripped revealing large lenses of massive sulphide mineralization with up to 93% pyrrhotite, 3% pentlandite, and 2% chalcopyrite. No drilling has been done on the deposit.

A composite 300-lb sample of massive sulphides taken from three trenches across the zone returned an average grade of 0.94% nickel and 0.15% copper per ton.

The potential magnitude of the new findings, however, has sparked a major staking rush which is gaining momentum with the participation of an increasing number of junior companies.

At press time, total claims recorded in the discovery area stood at 3,000, up from a level of 1,442 last December, Quebec resident geologist Serge Lachance told The Northern Miner. Industry sources estimate that total could reach at high as 8,000, once all unrecorded claims are tallied.

The staking activity has focused on the western margin of a large anorthosite intrusion north of Lac St. Jean in the Grenville geological province. Most of the claims recorded to date have been in numbered townships No 234, and 334, located west of the Mistassibi River.

Although the area has no previous metal mining history and represents a virtually unexplored environment for economic sulphide deposits, it has now developed into a major land play with several companies now seeking to acquire claims there. Red color

The original discovery, made by Quebec prospector Lionel Lefebvre, is located on a 40-claim property currently under option to St. Philips Resources (VSE), and a Toronto-based company, soon to go public under the name McNickel Inc. This company is the result of a recent amalgamation of COATS- listed Hanson Mineral Exploration and Perch River Mines, two junior firms controlled by J. T. Flanagan and John McAdam of Toronto.

Lefebvre, a long-time prospector and logger from the Lac St. Jean area, discovered the original nickel- copper mineralization when he noticed the red color of oxidized sulphides on a hillside. Confident in the significance of his findings, LeFebvre put his own money up for initial bulldozer work to uncover the showing. Through certain personal contacts in Chibougamau, Que., Lefebvre brought the property to the attention of Jack McAdam, who quickly struck a deal to explore the claims. In a recent interview with The Northern Miner, McAdam said a program of linecutting and ground geophysics is currently under way on the McNickel property, where some $3.5 million dollars could be spent over the next three years. Drilling could begin early this summer once a public financing is concluded.

The McNickel property covers part of a 10 km-long magnetic and EM anomaly which was detected by an airborne Input survey flown for McAdam’s consulting group. Open pit

Although the company has been reluctant to release any information on the property at this early stage, The Northern Miner learned that a large tonnage, low grade, open pit model is being envisaged for the property.

Eugene Sirianni, a spokesman for St. Philips Resources in Vancouver, denied that his company has circulated schematic drawings indicating grades of nickel-copper mineralization on the property. He said St. Philips is taking a “long- term approach” to participating in the project. The company acquired its option to earn a 30% interest in the property last year.

Shares of St. Philips Resources have traded recently on the Vancouver Stock Exchange at $3.20, up from a level of $1.20 four months ago when the company first announced its involvement in the McNickel property.

According to resident geologist Serge Lachance, most senior mining companies have not been interested in the Grenville geological province. He confirmed that the original McNickel discovery in Twp., 234 was the result of prospecting activity by Lefebvre.

“Over all, there are not many mining companies working in the Grenville,” he said. “We’re happy to see this new activity.”

Whether all the new staking leads to more discoveries will largely depend on future levels of follow-up exploration. Under Quebec’s mining laws, companies have at least two years to perform initial exploration work to keep claims in good standing. Anorthosite “There is a lot of money being spent by companies to acquire claims in this area right now,” said geologist Peter Smith, who is also president of Diana Resources (VSE) and Fancamp Resources (VSE), two junior firms with claims in the Lac St. Jean area.

He said that while there are no clear analogies or models to support the existence of copper-nickel orebodies in anorthosite intrusives, there have been many known occurrences of sulphides in isolated patches.

Anorthosite is an igneous rock type which consists mainly of plagioclase feldspar, and although there are a number of theories on the possible origin of anorthosite, one suggests it is derived from melting of basaltic rocks.

“You can never tell what is going to happen when a large amount of money gets thrown at a new area,” he said. “There are no experts on this area who can say either yes it has potential, or no it doesn’t.”

Other junior companies currently involved in the Lac St. Jean nickel play include Sparton Resources (TSE), Freewest Resources (ME), Achates Resources (ME), Yellow Band Resources (VSE) and Golden Myra Resources (TSE).

A claim staking rush which began last year following a nickel-copper discovery in the Lac St. Jean area of Quebec is continuing with the participation of an increasing number of junior companies.

The total number of claims staked in the Lac St. Jean area has more than doubled to about 3,000 from a level of 1,442 at the end of last year, resident geologist Serge Lachance told The Northern Miner in a recent interview.

The area of staking activity is focused on the western margin of a large anorthosite intrusion in the Grenville geological province, west of the Mistassibi River.

Although the area has no previous metal mining history and represents a virtually unexplored environment for economic sulphide deposits, it has now developed into a major land play with many junior companies seeking to acquire claims there.

The original discovery, made by Quebec prospector L. Lefebvre, is located on property currently under option to St. Philips Resources (VSE) and a Toronto-based company, soon to go public under the name McNickel. A prospectus is currently being prepared by McNickel. The company will be the result an amalgamation of COATS-listed Hanson Mineral Exploration and Perch River Mines, two juniors controlled by J. T. Flanagan and John McAdam of Toronto. Shareholders of the two existing companies were expected to approve the amalgamation Mar 21.

According to McAdam a program of linecutting and ground geophysics is currently under way on the nickel property where some $3.5 million dollars could be spent over the next two years.

According to Lachance, most senior mining companies have not been interested in the Grenville geological province. He said that the original copper-nickel discovery in Twp. 234 was largely the result of prospecting activity by Lefebvre, who has been an avid prospector for more than 15 years.

“Over-all, there are not many mining companies working in the Grenville,” he said. “We’re happy to see this new activity.”

Whether all the new staking will lead to more discoveries will depend on how much future exploration takes place. Under Quebec’s mining laws, companies have at least two years to perform initial exploration work in order to keep their claims in good standing.

“There is a lot of money being spent by companies to acquire claims in this area right now,” said geologist Peter Smith, who is also president of Diana Resources (VSE) and Fancamp Resources (VSE), two companies with claims in the Lac St. Jean area.

He said that while there are no clear analogies or models to support the existence of copper-nickel orebodies in anorthosite intrusives, there have been numerous known occurrences of copper and nickel sulphides in isolated patches.

“You can never tell what is going to happen when a large amount of money gets thrown at a new area,” he said. “There are no experts on the area who can say either yes it has potential, or no it doesn’t.”

Anorthosite is an igneous rock type which consists mainly of plagioclase feldspar, and although there are a number of theories on the possible origin of anorthosites, one suggests they are derived from the melting of basaltic crustal rocks.

Some other junior companies currently involved in the Lac St. Jean nickel play are Sparton Resources (TSE), Freewest Resources (ME), Achates Resources (ME), and Yellow Band Resources (VSE).

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