Canadian Royalties finds new Pt and Pd in old holes

Val d”Or, Quebec–based Canadian Royalties (CZZ-V) says that a second look at three assay pulps from three holes collared on the Expo-Ungava copper-nickel deposit in 1997 has yielded widespread platinum and palladium mineralization.

Hole 1, which was vertical, returned a weighted average assay of 0.36 gram platinum, 1.99 grams palladium, 0.7% copper and 0.71% nickel over 26.2 metres (true thickness) at the base of the main ultramafic body. Of the 19 sample intervals, all but three assayed more than 1 gram platinum plus palladium (Pt+Pd). The hole is highlighted by a 6.04-metre interval (from 75 metres below surface) grading 0.47 gram platinum and 3.81 grams palladium.

Hole 2 was collared 152 metres east of hole 1 and returned 17.7 metres of 0.38 gram platinum, 1.66 grams palladium, 0.55% copper and 0.91% nickel. All but one of the 12 sample intervals assayed higher than 1 gram Pt+Pd.

The third hole was drilled 244 metres east of hole 1 and cut 49.6 metres of 0.42 gram platinum, 1.73 grams palladium, 0.75% copper and 0.66% nickel. All but five of the 34 sample intervals assayed more than 1 gram Pt+Pd. The hole is highlighted by a 14.56-metre interval (from 62.3 metres below surface) running 0.51 gram platinum and 2.25 grams palladium.

A former operator sank the holes as part of a six-hole program that tested the east-central portion of the Expo-Ungava deposit, an ultramafic-hosted, copper-nickel sulphide deposit. Four of the holes cut the sulphide. At that time, the core was assayed for copper, nickel and cobalt, but not for platinum or palladium.

Results are pending for hole 4.

The deposit is essentially flat-lying. Based on about 9,500 metres of drilling, its proven and probable resources were calculated at 4.2 million tons grading 0.75% nickel and 0.85% copper. They extend from surface to a depth of approximately 140 metres.

Canadian Royalties plans a summer field program, including a more thorough assay of available diamond drill core for platinum and palladium.

The 173-sq.-km property is about 15 km south of Falconbridge‘s (FL-T) Raglan nickel mine and extends for 35 km along a favourable ultramafic horizon. It hosts at least eight separate, partially evaluated copper-nickel mineralized zones. Previous work focused on exploration for nickel and copper and established resources of 19 million tonnes grading 0.47% nickel and 0.51% copper.

Canadian Royalties can earn up to an 80% interest in the property and a 2% net smelter return royalty from Ungava Minerals (UNGV-V). The news sent the companies shares soaring on the Canadian Venture Exchange. In afternoon trading, the issue was up 34, or 85%, to 74.