Nuinsco eyes nickel find in Ontario

Having unexpectedly hit nickel-copper-cobalt mineralization while searching for gold on its property near Rainy River, Ont., Nuinsco Resources (TSE) is now searching for the much larger store of base metals which company officials feel is nearby.

Recent drilling has been successful. Hole HR-95-29, from a depth of 215.2 to 228.13 metres, intersected a true width of 12.93 metres of polymetallic mineralization. A 7.7-metre portion of the mineralized intercept, from 220.23 to 227.93 metres, was found to contain 2.26% nickel, 2.32% copper and 0.11% cobalt, plus 3.17 grams platinum, 7.71 grams palladium, 3.07 grams gold and 23.1 grams silver per tonne.

Based on an exchange rate of US$1.34, the company estimates the gross value of the intersection to be $530 per ton, which is close to the value of a 1-oz.-per-ton concentration of gold.

This latest intersection shows a significant enrichment in sulphide content and grade in each of the two magmatic cycles previously identified in Hole NR-95-34.

Despite these promising results, Nuinsco geologists expect to find a much larger area of mineralization not far from (and most likely west of) the holes drilled to date. They cite several indicators, including inclusions of an older, nickel-rich intrusion within the intrusion hit by the above two drillholes and evidence of at least two cycles of magmatism and comagmatic sulphide emplacement.

The geologists also point to a concentration and globules of sulphides near the top of the mineralized “embayment” hit by the drilling, which would have required sulphide suspension during the flow from a locus of sulphide generation not yet tested.

At a meeting with mining analysts, geologist Frank Puskas, who is working as a consultant on the project, said the Rainy River property is overlain by up to 60 ft. of clay overburden; as a result, the company has been restricted to using down-hole pulse electromagnetic surveying.

In response to analysts’ questions regarding the lack of significant base-metal mineralization, Puskas noted that his intention has been to use drilling to understand the geology of the property, rather than prove up a reserve by drilling the embayment only. To do the latter is not yet a priority, he said, but when it is, “we can pretty much hit bull’s-eyes at will.”

Drilling of the nickel prospect at Rainy River, which has been on hold until after spring break-up, will resume shortly.