Fort Knox hits nickel-copper at Shining tree

Results from Fort Knox Gold Resources (TSE) claims in the Shining Tree area of northeastern Ontario have boosted the company’s stock and ignited further staking in the area.

Following up a narrow nickel-copper intersection in hole SG-1 (T.N.M., Oct. 7/91), Fort Knox hit 110.9 ft. grading 1.03% nickel and 0.43% copper within a 215-ft. mineralized interval in hole SG-2. Collared about 100 ft. further northeast, hole SG-3 intersected 31.3 ft. grading 1.07% nickel and 0.50% copper before hitting a barren dyke at 436 ft. At 454 ft., the hole continued through a 48.6-ft. interval grading 1.12% nickel and 0.40% copper. Both holes were drilled at an angle of about 45 degrees.

On Oct. 18, the day the results were released, Fort Knox registered as one of The Toronto Stock Exchange’s most active mine stocks, jumping 25 cents to close at 65 cents. Inco (TSE), with a 40% equity interest, is the junior’s major shareholder.

Fort Knox originally discovered the mineralization in August, when hole SG-1, collared on a blind electromagnetic conductor, intersected 4.2 ft. grading 1.16% nickel and 0.29% copper. But most of the hole followed barren granodiorites so the company stepped back about 65 ft., changed the drilling direction and successfully hit the mineralized ultramafics.

The three holes drilled to date have tested about 200 ft. of strike length along the conductor. The mineralized zone remains open to the north and at depth.

“It has all the earmarks of a magmatic sulphide deposit,” said Wayne Whymark, Fort Knox’s vice-president of exploration. Mineralization includes pyrrhotite, pentlandite (nickel sulphide), chalcopyrite (copper sulphide) and pyrite. Samples are currently being analyzed for platinum-group metals, which were identified in preliminary laboratory examinations.

A separate base metal zone is also evident about one mile to the north, where Fort Knox hit 200 ft. of interlayered sediments averaging 1.3% zinc and 619 parts per million copper last summer.

At least one other company besides Fort Knox is currently staking in the area, Whymark said. Although no new claims had been registered with mining recorder Martin Cuda when The Northern Miner contacted the Larder Lake office, he said there were rumors of staking activity.

Exploration in the discovery area was restricted from 1974 to 1990 by a land caution (notice that ownership of the land is under dispute). In April, 1990, the Ontario government lifted the caution on a narrow strip of ground, including some of the Shining Tree area

Originally intending to follow up the well-known gold potential of the area, Fort Knox optioned two properties in Asquith and Churchill twps. Inco, increasing its stake in the company from 30% to 40%, agreed to finance exploration. But during subsequent field work, the company recognized that the geological environment was also favorable for base metal mineralization. “We came to the conclusion that the base metals may have been overlooked,” said Whymark. “The gold glitters very bright.”

Interpretation of recent government airborne data encouraged Whymark to stake 31 claims in Fawcett Twp., where the recent discovery was made. Since then, Fort Knox has staked an additional 100 claims. The crew is still in the bush. Whymark said he would like to have the drill turning on several more geophysical targets by early November. Further work is subject to financing and approval by the board.