Freewest, Sparton persevere at Folson Lake PGM property

Partners Freewest Resources (FWR-M) and Sparton Resources (YSP-V) will begin another round of drilling at their Folson Lake platinum group metals (PGM) property, near Sudbury, Ont.

Folson Lake covers 320 ha of the East Bull Lake intrusion, where PGM mineralization has been uncovered in three petrographic horizons. The inclusion-bearing layer, which defines the basal contact with surrounding country rock, has revealed itself to be the most promising.

Last fall, Freewest and Sparton followed up earlier trenching and preliminary drilling by sinking 22 holes in a 2,500-metre program. Half the holes were collared in the Valhalla zone, with the other half divided between two areas along strike on either side.

At Valhalla, the first 10 holes cut broad, low-grade mineralization over 400 metres of strike length. Hole 11, results for which are now available, returned 4 metres grading 0.37 gram combined platinum-palladium-gold per tonne, plus 0.09% copper and 0.02% nickel.

West of Valhalla, holes 12 to 17 tested 450 metres of the Garden zone. Results include the following:

– 17 metres grading 0.7 gram precious metals, plus 0.13% copper and 0.04% nickel in hole 12;

– 10 metres of 0.63 gram precious metals, plus 0.11% copper and 0.03% nickel in hole 13;

– 17 metres of 0.5 gram precious metals, plus 0.12% copper and 0.04% nickel in hole 14; and

– 9 metres of 1.1 grams precious metals, plus 0.21% copper and 0.04% nickel in hole 16.

Holes 18 through 22 tested 300 metres of the basal horizon immediately east of Valhalla in an area highlighted by an induced-polarization anomaly. Highlights include:

– hole 18, which cut two intervals of 33 metres grading 0.83 gram precious metals, plus 0.14% copper and 0.06% nickel, including 10 metres of 1.07 grams precious metals, and 9 metres grading 1 gram precious metals;

– hole 19, which hit 16 metres grading 0.76 combined precious metals, plus 0.1% copper and 0.06% nickel, and 9 metres grading 1.01 gram precious metals, plus 0.22% copper and 0.08% nickel; and

– hole 21, which intersected two intervals of 24 metres grading 1.96 grams precious metals, plus 0.11% copper and 0.04% nickel, and 4 metres grading 0.98 gram precious metals, plus 0.09% copper and 0.02% nickel.

Palladium generally runs 2-3 times as high as platinum, with gold accounting for relatively little of the combined value of the three metals. Similar ratios have shown up elsewhere in the basal horizon.

The companies note that the horizon is continuous across their claims, except where interrupted by younger diabase dykes. It varies from 10 to more than 50 metres in thickness, dips at about 50 to the west and extends to at least 150 metres below surface.

Follow-up drilling will test for possible downdip extentions at various points, as well as target an untested, 300-metre-long section between the Garden and Valhalla zones.

In related news, Freewest has closed three private placements to raise $1.3 million in gross proceeds. A combination of flow-through shares, common shares and warrants for common shares was issued.

Meanwhile, Sparton has arranged for the private placement of 1.5 million units at 20 each over the next six weeks. A similar financing attempted last fall failed to close.

LOM Capital will carry out the financing on a best-efforts basis. In return, it will receive 150,000 units.

Both companies have earmarked the proceeds for their respective projects, including Folson Lake.