Junior Mountain Lake Resources (MOA-V) has discovered lead-zinc mineralization on its Maliseet Mountain property in the Bathurst base metal camp of New Brunswick.
Hole 2 intersected 15.9 metres averaging 5.9% zinc, 0.24% lead, 0.09% copper and 16.1 grams silver per tonne, including 6.6 metres grading 8.8% zinc, 0.22% lead, 0.1% copper and 15.9 grams silver, and 2.5 metres grading 9.56% zinc, 0.2% lead, 0.09% copper and 17.6 grams silver.
The hole was drilled to test a 1.3-km-long electromagnetic anomaly outlined by previous owners of the property. One old hole, drilled at the southern limit of the anomaly, returned half a metre of lead-zinc mineralization with grades similar to those encountered in hole 2.
Mountain Lake says the anomaly is cut to the north by faulting and remains open to the south. As well, follow-up geophysical surveying in hole 2 outlined several new nearby targets that remain untested.
Sulphide mineralization occurred in the form of pyrrhotite, sphalerite, pyrite and lessor galena. Hosting these minerals are chloritized, fine-grained mafic rocks overlying strongly silicified sedimentary rocks.
Both rock types are part of the Nepisiguit Falls formation, which hosts the camp’s base metal deposits. Geological mapping suggests the mineralized horizon is similar to that which hosts Noranda’s (NOR-T) nearby Heath Steele and Half Mile Lake deposits.
On news of the discovery, Noranda signed an agreement with the junior to earn a 60% interest in the 2,200-ha property. To do so, the company must spend $4 million on exploration and buy $300,000 worth of Mountain Lake treasury shares.
The deal does not take effect until Mountain Lake completes its current $2-million exploration campaign. Although Noranda is providing technical advice, it will not achieve full management of the project until its own program begins.
Meanwhile, farther to the east at the Nepisiguit Brook property, Major General Resources (mgj-v) also has made a new discovery of lead-zinc mineralization. Hole 21 intersected 16.8 metres (from 579.5 to 596.3 metres) of semi-massive sulphides grading 1.59% zinc and 0.16% lead, plus 4.61 grams silver per tonne. The intersection began at a vertical depth of 450 metres below surface and included two separate intervals of 6.5 metres grading 2.01% zinc, 0.2% lead and 5.13 grams silver, plus 4.5 metres of 2.33% zinc, 0.06% lead and 4.98 grams silver.
The new discovery, situated 1.5 km west of the JS copper-gold zone, is within an induced-polarization anomaly that has been detected over a length of 2.2 km and a width of 500 metres. The anomaly strikes north-south and dips steeply to the west.
Unlike Maliseet Mountain, mineralization at Nepisiguit is hosted by silica and chlorite-altered felsic fragmental crystal tuffs. Underlying these rocks are rhyolite tuffs strongly altered to sericite.
Sulphide mineralization is predominantly disseminated, banded and fragmented fine-to-medium-grained pyrite and sphalerite, plus lesser amounts of galena and chalcopyrite. The minerals constitute 20-40% of the volume of the entire interval.
Major General believes the mineralization may be peripheral to a potentially larger lead-zinc massive sulphide deposit. A second hole in progress will test mineralization 100 metres updip.
The Nepisiguit property consists of two adjoining properties, covering 3,157 ha. Much of the property is underlain by the Nepisiguit Falls formation.
The discovery occurred on the larger of the two properties, which is held by Rio Algom (ROM-T). Major General can acquire the property by spending $1 million on exploration over four years. Rio can retain a 2% net smelter return (NSR) royalty or earn back 55% of the property by completing a positive feasibility study. Major General can acquire the second property, dubbed Stewart, from private vendors by issuing 155,000 shares over four years and spending $400,000 on exploration by Dec. 31, 2000. The deal is subject to a 1% NSR, which the company can buy back for $1 million.
Major General reported a net loss of $323,534 (or 1cents per share) for the nine months ended Sept. 30, compared with a loss of $623,972 (or 3cents per share) for the same period of 1996. Revenue between the two periods dipped to $55,734 from $74,128. The company recently raised $2.4 million in a private placement.
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