Noranda drills Nfld copper prospect

Toronto-based Noranda (NOR-T) has begun a first phase of drilling at the Blue Point copper prospect, part of the Red Cliff project in eastern Newfoundland.

Blue Point is a gently dipping, coastal exposure of stratiform copper-silver mineralization discovered last fall by Cornerstone Capital Resources (CTP-V). Fifty-one chip samples, each of which measures 0.5 metre long, returned an average grade of 0.54% copper and 7.2 grams silver per tonne over an apparent true thickness of 25.5 metres. Higher-grade sections included 0.93% copper and 13.02 grams silver over 13.5 metres.

A copper/cobalt/silver-in-soil anomaly lies directly along strike, 200-300 metres west of Blue Point. Copper values of up to 588 parts per million (ppm) and silver values of up to 6 ppm highlight the 700-metre-long anomaly. The Blue Point mineralization occurs on Bonavista Peninsula, 1.5 km northeast of the town of Duntara.

Noranda can earn a 51% interest in a 780-sq.-km area from Cornerstone by spending $4 million on exploration and paying $200,000 over four years. The major can increase its interest to 75% by completing a feasibility study.

The first phase of drilling at Blue Point will consist of five holes and span 900 metres. From a base camp, geological crews will endeavour to evaluate other prospective targets on the joint-venture holdings. The project area comprises five Cornerstone properties — Red Cliff, Fry’s Pond, Indian Arm, Trinity Pond and Smith Sound — which total 117 sq. km, as well as an additional 663 sq. km staked under the joint venture.

Cornerstone has engaged Yorkton Securities to carry out, on a best-efforts basis, an offering of up to 1.5 million units priced at $1 each. A unit comprises two flow-through shares and half a common share. Proceeds will be used to fund exploration work on the junior’s Princess and West Princess properties, which are held separately from the Noranda joint venture.