Gold Fields eyes Nunavut gold belt (February 17, 2003)

Vancouver Gold Fields (GFI-N) has inked a letter of intent with Committee Bay Resources (CBR-V) paving the way for the major to earn a 75% stake in a 2,023 sq. km land package northeast of Baker Lake in Nunavut.

Under the deal, the South African-based company agreed to buy 1 million units in the junior priced at $0.30 per each. A unit holds one share and one warrant, which is exercisable at $0.40 for a year. The major can then take a 65% interest in ground by spending $15 million over eight years. Gold Fields can earn another 10% interest by completing a bankable feasibility study.

"Nunavut has been on our radar screen for some time as an emerging gold province," says Gold Fields’ Manager of Business Development, Howard Stevenson. "Committee Bay Resources have assembled a very prospective land package and we look forward to a successful and productive relationship."

The large land package marks the northern extension of the same rock units that host Cumberland Resources’ (CBD-T) 3-million-oz. Meadowbank gold resource, some 150 km to the southwest.

Committee Bay picked up the project last July, when Arta Enterprises, a TSX Venture-listed capital pool company, acquired all the shares of Committee Bay in a deal that saw 2.3 Committee Bay shares exchanged for every Arta share. The transaction involved 4.7 million shares priced at 25 each, plus 1.4 million warrants to acquire 1.4 million flow-through shares that can be exercised at 25 per share for two years. 895924 Alberta, another privately held company, held 48.6% of Committee Bay. Calgary-based Arta then assumed the name Committee Bay, elected John Williamson president, and moved its head office north to Edmonton. Shares in the new Committee Bay began trading in August 2002.

The most advanced prospects on the project include Wolf Lake West, Wolf Lake East, and Hayes River North targets in the southwestern portion of the project.

At Wolf Lake, previous exploration identified two promising gold showings: Four Hills and Cop. The former lies 35-km southwest of Wolf Lake and was discovered in 1995 when 92 grab samples returned up to 48.07 grams gold per tonne. The Cop showing, 5 km to the east, was discovered in 1997 when a grab sample returned 27.63 grams gold. Mineralization at both locations is hosted in an Archean iron formation.To the east, in the Hayes River area, previous exploration identified four gold showings, three of which have been partially drill-tested.

At the Three Bluffs target, mineralization is hosted in poorly-banded-to-massive iron formation. Chip samples collected in the central and eastern portion of the 1.8-km-long zone returned 11.6 grams gold over 4.8 metres and 19.04 grams gold over 3.9 metres, respectively. From 1994 to 1996, 12 drill holes tested a 420-metre strike-length section of the showing. The holes averaged 1.22 grams gold over 57.3 metres. Within the broad zone, two higher-grade sections were identified, returning up to 4.8 grams gold over 6 metres and 9.3 grams gold over 2 metres.

Between the Hayes and Three Bluffs zones lies the Antler showing, discovered in 1993. Grab samples have returned up to 120.82 grams gold per tonne, and in 1994 two holes were sunk, yielding 1.5 grams gold over 6.6 metres and 1.3 grams gold over 4.1 metres.

At the Inuk gold target, grab samples returned up to 1,893.6 grams gold, and six holes were drilled in 1997. Hole 3 yielded the best results: 2.6 grams gold over 40.1 metres, including a higher-grade section running 9.9 grams gold over 7 metres.

In the Mist-Koffy area, samples of silicified iron formation returned up to 31.3 grams gold.

Overall, 40 gold showings have been discovered on the project, with mineralization occurring in several lithologies, including iron formations, mafic and felsic volcanic rocks, and greywackes.

A definitive joint venture agreement is expected to be sign within the next two months.