Partners trench East Bull Lake (January 21, 2002)

Trenching at the East Bull Lake gabbro-anorthosite intrusion near Sudbury, Ont., has turned up more platinum group metals for partners Mustang Minerals (YMU-V) and Falconbridge (FL-T).

Falconbridge is earning a half-interest in more than 90% of the intrusion by providing $5 million for exploration over four years. The major also purchased $1 million worth of Mustang treasury shares as part of the deal.

East Bull Lake is part of the so-called Huronian-Nipissing magmatic belt, a 200-km-long arcuate belt of Proterozoic-aged intrusions, dyke swarms and related volcanics. The belt includes the River Valley pluton, east of Sudbury, though East Bull Lake is the largest of the bunch.

Mustang’s exploration is focused along the margin (or base) of East Bull Lake, where it contacts the surrounding country rock. Exploration to date, including drilling, has confirmed the prospective nature of the contact zone for metal enrichment.

The recent program consists of 17 trenches dug into known showings. In total, 1,036 channel samples were taken.

At the Kid showing, 24 metres averaged 1.05 grams combined platinum, palladium and gold per tonne, including 1.48 grams of the combined metals over 10 metres. Two other channels averaged 2.43 grams over 4 metres, including 3.3 grams over 2 metres, and 1.81 grams over 7 metres, including 2.24 grams over 4 metres.

Here, inclusion-bearing rocks close to the intrusion’s margin host the mineralization. So far, the showing has returned up to 4.98 grams in surface sampling.

The highest grade from the Central showing was 2.33 grams over 7 metres of a 15.7-metre-long channel that averaged 1.92 grams. Two other channels and previous samples yielded similar results.

The Parisien showing averaged 0.84 gram over 21 metres, including 1.36 grams over 6 metres. Higher grades are known here, and the host rocks display a hydrothermal overprint. Each showing extends for more than 1 km and remains open.

Generally, mineralization at East Bull Lake contains more palladium than platinum, and gold to a much lesser degree. The metals are typically reported together because of their similar metallurgical properties.

In related news, JML Resources, formerly a unit of Mustang and currently awaiting a listing on the Canadian Venture Exchange, has raised $600,000 in an initial public offering set to close Jan. 18. The offering consists of flow-through shares priced at 20 apiece and units priced at 15 each. A unit consists of a share and half of a warrant, with a full warrant entitling the holder to buy an additional share at 25 within two years.

Jennings Capital is acting as the company’s agent in return for warrants and an 8% commission on the gross proceeds.

JML has earmarked the funds for working capital and the Marten River diamond property near North Bay, Ont. The property consists of 2,446 claims, including 462 that are half-owned by Falconbridge, spread across 26 townships.

After forming the joint venture with Falconbridge, Mustang staked and optioned surrounding ground to expand the property’s size to 2,446 claims. The company has since handed the entire property over to JML in return for 4.8 million preferred shares and 557,976 common shares.

For their part, a private vendor is to receive $100,000 in cash and 100,000 Mustang shares over 18 months, whereas Falco will receive $100,000 in cash or shares.

Exploration at Marten is at an early stage.