Expo drilling suggests extensions

The last 14 holes in a drill program at the Expo-Ungava nickel deposit in far northern Quebec indicate possible extensions to the known mineralization.

A program this field season by operator Canadian Royalties (CZZ-T) tested a number of targets mostly on the northeastern and southeastern flanks of the known deposit, which has a historical resource of 15.5 million tonnes grading 0.6% nickel and 0.8% copper (though this is too old to comply with National Instrument 43-101).

One of the most recent holes, collared on the southeast flank of the deposit, intersected a 25-metre zone of sulphide mineralization with grades of 1.11% nickel, 0.74% copper and 1.79 grams palladium per tonne, with cobalt, gold and platinum credits. The interval included a 9-metre length of massive sulphides grading 2.43% nickel, 1.69% copper, 0.11% cobalt, 0.66 gram platinum, 3.75 grams palladium and 0.17 gram gold per tonne.

Only three previous drill holes on the south side of the peridotite sill that hosts the Expo deposit have intersected massive sulphides, and then only over narrow widths. The new intersection suggests parts of the area near the contact between the sill and the enclosing sedimentary rocks may hold significant mineralization.

Another hole drilled toward the southern boundary of the known mineralization intersected a 63.2-metre zone of sulphides averaging 0.66% nickel, 0.8% copper and 1.49 grams palladium per tonne, with cobalt, gold and platinum credits. Two other holes drilled at shallower angles from the same drill setup intersected 10- and 7-metre zones of disseminated sulphides at somewhat lower grades.

A pair of holes collared directly above the thickest part of the deposit tested extensions to new mineralization discovered a 2003 drilling program. One hole intersected a 46.6-metre core length of disseminated and massive sulphides, including a 10.1-metre interval of massive sulphide grading 2.52% nickel, 1.64% copper, 0.12% cobalt, 0.99 gram platinum, 6.17 grams palladium and 0.18 gram gold per tonne. The whole 46.6 metres averaged 1% nickel, 0.81% copper, 0.03% cobalt, 0.37 gram platinum, 2.03 grams palladium and 0.07 gram gold per tonne.

On the north side of the peridotite sill, one hole testing the northern intrusive contact cut a 23-metre intersection with average grades of 1.03% nickel, 0.96% copper, 0.05% cobalt and 1.51 grams palladium per tonne, plus minor gold and platinum credits. The intersection appears to coincide with an electromagnetic conductor found in earlier geophysical work.

The legal wrangles over interests in the deposit between Canadian Royalties and Ungava Minerals (UGVAF-P) appeared to have concluded just before Christmas, when Ungava’s claim was dismissed in pre-trial arbitration. Under existing agreements, which Ungava has not succeeded in overturning, Royalties has earned a 70% interest in the Expo-Ungava property and can increase that interest to 80% by delivering a final feasibility study.