Denver — At the Union Bay prospect in southeastern Alaska, partners International Freegold Mineral Development (ITF-T) and Quaterra Resources (QTA-V) have extended platinum-palladium mineralization in the North zone and located a second zone.
Based on new rock-chip and channel sampling, the North zone can be traced over a strike length of 1,300 ft. and a vertical depth of 600 ft.
More than 160 rock-chip samples were taken. The highest-grade values, 17.9 grams platinum and palladium per tonne, were reached 300 ft. south of the discovery outcrop. Twenty-three of the samples returned values greater than 0.1 gram per tonne. Eight contained values of more than 1 gram per tonne.
Four channel samples (taken with a rock saw) tested where previous rock-chip sampling showed high-grade values. Two adjacent 1-ft. samples averaged 7.9 grams platinum and palladium per tonne.
Olivine pyroxenite appears to be the most favourable lithology for mineralization. The presence of magnetite and chromite stringers along narrow pyroxenite dikes seems also prospective.
A thousand feet west of the North zone, the partners located the new Jaguar zone, where rock-chip sampling found platinum-palladium values as high as 3.34 grams per tonne.
Based on field relations and trace element geochemistry, the Jaguar zone appears to be a separate parallel zone. So far, the partners have traced it over 900 ft. Mineralization is open-ended.
The work is pushing the limits of mineralization westward towards previous pan concentrate samples which were taken in the next drainage, a mile away.
The partners believe the prospect may have placer potential, similar to the Goodnews Bay deposit in northwestern Alaska.
Freegold and Quaterra plan to initiate core drilling at Union Bay, which is located 50 km northwest of Ketchikan, in August.
Quaterra has the option to acquire 50% of Union Bay by spending US$1 million on exploration and making cash payments of US$100,000 over four years.
Under the deal, the company will issue 200,000 shares of its common stock to Freegold — 100,000 shares upon approval of the transaction by the Canadian Venture Exchange and 100,000 shares on May 1, 2002.
Meanwhile, Freegold has acquired the 40% it did not already own of the Almaden gold property in Idaho. The company will issue two million shares to BakBone Software for the property and two subsidiaries, Ican Minerals and Canu Resources.
A 1997 feasibility study, completed by Watts, Griffis & McQuat, indicates that Almaden contains open-pit reserves of 527,000 oz. gold, using heap-leach methods. The company provided no grade or tonnage estimate.
Deep drilling beneath the current mineral resource has been recommended in order to possibly increase the size of the resource.
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