Noranda to earn 51% stake in Durga’s Allan Lake bet

The properties are located in the Northwest Territories about 60 miles northeast of Yellowknife and about 15 miles west of Aber Resources’ (TSE) Sunrise Lake polymetallic discovery which is reported to contain two million tonnes of grade 12% combined lead/zinc, 12 oz silver and 0.029 oz gold per ton.

Noranda Exploration has signed a letter of intent to earn a 51% working interest in the Allan Lake property by making option payments of $175,000 and spending $500,000 on the property over the next three years.

The mineral claims are comprised of about 17,000 acres along the Cameron River volcanic belt. Early work on the property dates back to the 1940s and includes trenching, geophysical surveys, and diamond drilling.

One hole drilled through an apparent iron formation unit yielded a 7-ft intersection grading 0.36 oz gold. According to Durga, the unit is traceable for 3,400 ft by ground magnometer and VLF surveys.

Durga says some quartz veins on the property have returned high gold values of up to 11 oz per ton from trenches and 13 oz per ton over 1.3 ft from drilling.

Towards the south end of the property, channel samples in rhyolite returned values of 4.8% zinc over 15 m (50 ft) and 2.5% over 33 ft. Gold assays of up to 0.09 oz have also been reported from the rhyolite breccia.

Nikhanj said he has been encouraged by the existing gold and zinc mineralization on the property and a number of as yet unexplored airborne and ground geophysical conductors.

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