Little known about geology of intriguing Fort Knox find

Claim maps of the Shining Tree area near Cobalt, Ont., are changing almost daily as junior companies position themselves for what could become a major area play.

Following the discovery of nickel-copper mineralization on Fort Knox Gold Resources’ (TSE) property in the northwest corner of Fawcett Twp., hopeful prospectors have staked at least 143 units in Fawcett, Asquith and Ogilvie twps. (Under Ontario’s new mining act, a “unit” is the equivalent of a pre-act claim, or 40 acres.)

For secure ground in the vicinity of the discovery, vendors are pocketing about $1,000 per claim plus stock sweeteners.

Meanwhile, one drill is turning on the discovery as Fort Knox tries to duplicate earlier results, including a 110.9-ft. intersection grading 1.03% nickel and 0.43% copper. According to Secretary-Treasurer Don Humby, Fort Knox has stepped back 300 ft. along the same line as hole SG-1 and is drilling at an angle of about 55 degrees.

Through a private placement of 317,205 units, the Inco (TSE) affiliate has raised just over $250,000 for a 10,000 ft. (10-12 hole) program on the property. Each unit consists of one common share and one warrant to purchase a common share at $1 before Dec. 31. Inco maintained its 40.9% interest in the company by purchasing 129,705 units.

A second rig will be moved on site in the last week of November. Those who have the most to gain from another big hit at Fort Knox include Goldhunter Explorations (ASE), Royal Oak Mines (TSE), Queenston Mining (TSE) and Noront Resources (VSE).

Goldhunter was the first in line and now holds 21 units adjacent to the Fort Knox ground. Royal Oak followed, taking 123 units in central Asquith Twp., along favorable stratigraphy displaced to the south along the northwest-trending Michiwakenda fault. Under a 50-50 joint venture, Queenston and Noront have the option to acquire a 31-unit group adjoining the Fort Knox property to the east.

Players holding pre-discovery ground in the area include Teck (TSE), Athlone Resources (VSE), CopperQuest (CDN), Strike Minerals (CDN), Asquith Resources (CDN) and Northway Explorations (TSE).

Most are eager to investigate the same type of airborne magnetic anomaly that led to the Fort Knox nickel discovery and a separate volcanogenic massive sulphide zone just one mile to the north.

Another association could be the granite unit that abuts the volcanic host rocks, says Cobalt resident geologist Jim Ireland.

“If it (the discovery) is associated with granitic intrusives, you could expect to see a number of occurrences along the contact,” he says. But Ireland stressed that geologic information in the Shining Tree area is scanty at best. The Ontario Geological Survey has not produced a map of Shining Tree since the 1960s and explorationists have been barred by a land caution since 1984. Outcrop in the area is patchy.

As for the Fort Knox discovery, Ireland says the feldspar porphyry unit that envelopes the mineralization is unlike anything he has seen before. “I’ve never seen anything quite like it,” he said. “It’s unique.” At the same time, the intense hydrothermal alteration, sulphide textures, and ultramafic associations in the zone are strong indicators of ore-grade mineralization.