CZZ tables Mesamax values (September 20, 2001)

Vancouver The initial results from this year’s drill program by Canadian Royalties (CZZ-V) has confirmed the platinum-palladium potential of the historic Mesamax nickel-copper prospect on the Expo-Ungava property in northern Quebec.

The first hole of the program was collared on the northwest section of the prospect and was drilled vertically. This hole returned 0.9 metre grading 7.22 combined platinum-palladium-gold from 34.1 metre down-hole.

Hole 2 was collared from the same site but inclined 45 degrees to the west. This hole returned an impressive 4.43 grams combined platinum-palladium-gold, plus 0.91% nickel and 1.73% copper over 32 metres from 41.5 metre down-hole. Included in this section is a higher-grade section running 6.76 grams combined platinum-palladium-gold, plus 1.65% nickel and 3.4% copper over 16 metres.

Moving 200 metres northwest, hole 3 cut two zones of chalcopyrite-pyrrhotite mineralization, which occurs in the marginal-pyroxenite phase of the ultramafic. The upper zone returned 1.33 grams platinum-palladium-gold over 18 metres from 121.5 metres down-hole. The lower zone averaged 2.58 grams combined platinum-palladium-gold over 3.95 metres.

Moving 800 and 1,300 metres southeast of hole 1 respectively, two shallow holes tested the north contact of the Mesamax ultramafic. Hole MX-01-1 cut a weakly mineralized pyroxenite and crossed the pyroxenite contact at only 30 metres downhole. Several 1.5-metre intervals returned above 0.5 gram combined platinum-palladium-gold.

Hole MX-01-2 hit two zones of mineralization hosted in pyroxenite. The upper zone assayed 1.68 grams combined platinum-palladium-gold over 5.5 metres from 17.5 metres, followed by a second zone averaging 1.41 grams combined platinum-palladium-gold over 3.0 metres.

Based on the results, the company is planning to expand its drilling program.

The 173-sq.-km Expo-Ungava property lies 15 km south of Falconbridge’s (FL-T) Raglan nickel mine. Previous work by Amax in the 1960s focused on exploration for nickel and copper and established resources of 19 million tonnes grading 0.47% nickel and 0.51% copper. The property, which extends for 35 km along a favourable ultramafic horizon, hosts at least eight separate, partially evaluated copper-nickel mineralized zones.

Canadian Royalties can earn up to an 80% interest in the property and a 2% net smelter return royalty from Ungava Minerals (UNGV-C).