An increasing interest from the majors and an ongoing price rally are adding momentum to the search for platinum and palladium deposits in northern Ontario. At last count, more than a dozen companies had exploration programs under way.
The 5-year agreement extends to all four corners of the globe and will see Falco exploring on Impala’s dime until the earn-in phase has passed for each project selected. Funding thereafter will be shared equally.
Falco notes that the partnerhip will focus on platinum group metals, not nickel. “Our goal is to grow our platinum group metals business,” states Exploration Manager Anthony Green.
In a similar arrangement,
A quarter of the proceeds is earmarked for the acquisition of new projects, which Placer would manage. Placer has also agreed to provide managerial services for Avalon’s advanced projects and will receive a right of first refusal on its entire portfolio.
As part of the deal, Placer can elect one member to Avalon’s board of directors.
Placer has already taken a shine to the Legris Lake property, near Thunder Bay, which is shared equally by Avalon and
Legris Lake lies 8 km southeast of the producing Lac des les deposit but in a separate gabbroic intrusion. Although at an early stage of exploration, the project has yielded some impressive results nevertheless, such as a 9.95-metre drill-intercept with 2.04 grams palladium and 0.41 gram platinum per tonne, plus 0.29 gram gold, 0.33% copper and 0.1% nickel.
As part of the deal, Placer must spend $1 million in the first year and no less than $250,000 in subsequent years. Similar arrangements would be made for any other project of Avalon’s in which the major takes an interest.
The deal is subject to due diligence.
Meanwhile,
River Valley intrusion
In 1998, after a brief stint in Labrador,
Recently, the pair launched an 11,000-metre drill program at the River Valley project, about 60 km northeast of the city. Drilling is focused on two zones outlined along the northern border of the gabbro-anorthosite intrusion after which the property is named.
The Dana Lake zone is by far the more advanced of the two, arguably even the most advanced of all junior discoveries in the province. Thirty-seven holes have traced the zone over a strike length of 900 metres from surface down to a maximum vertical depth of 190 metres.
Mineralization, which is hosted by a heterogeneous breccia formed near the intrusion’s margin, widens to 40 metres and carries about three times as much palladium as platinum. However, grades vary considerably, and continuity between sections is indeterminable using existing results.
Dubbed Lismer’s Ridge, the second zone begins about 1.5 km to the south. It too occurs near the intrusion’s margin, in a heterogeneous breccia.
Three short holes drilled last fall cut mineralized intervals ranging from 20 to 40 metres in width and carrying about 1 gram palladium-platinum per tonne, between 15 and 45 metres below surface. On surface, the zone has been followed for 800 metres along strike.
Pacific North West has two rigs operating, though most of the drilling is earmarked for Dana Lake, to tighten up the existing pattern so that a resource estimate can be carried out.
Geophysics and trenching also are being carried out to test other (less-advanced) targets.
On a neighbouring property to the south, Mustang and Impala are in the midst of a 15,000-metre drill program. Here, too, drilling is focused on two separate targets formed at the intrusion’s margin.
At the northern target, 12 holes recently cut mineralization along 1 km of its 4.5-km length. Similar to Dana Lake, drill-intercepts varied in grade and width, from 0.39 to 9.15 grams platinum-palladium over 1 to 49 metres. Results for rhodium are pending.
Mineralization is hosted by fine-to-coarse-grained gabbronorite, with inclusions of mafic pegmatite and country rock. A well-defined basal layer of olivine gabbronorite serves as a prominent stratigraphic marker.
As at Dana Lake, chalcopyrite and pyrrhotite are the predominant sulphide minerals. The minerals are likewise disseminated in various grain sizes, concentrated in blebs or dispersed as layers.
The Tomrose area to the south covers 5 km of the contact and has yielded up to 2 grams in grab samples. Several showings coincide with localized induced-polarization anomalies.
“Our objective will continue to be to expand known horizons and to find areas of greater PGM [platinum group metal] enrichment,” says Ken Lapierre, Mustang’s vice-president of exploration.
Impala, which is the Western World’s second-largest primary producer, can earn a 60% interest in the property by spending $6 million over six years.
Meanwhile, north of Pacific North West’s project,
Drilling is planned.
East Bull Lake
Having finished a first phase of drilling at their Folson Lake project, partners
Folson Lake covers 320 ha of the southern margin of the East Bull Lake gabbro-anorthosite intrusion, about 80 km west of Sudbury. Freewest also owns a 100% interest in 256 ha immediately to the east, also in the intrusion.
The first-phase program, which comprised 22 holes totalling 2,500 metres, tested the Valhalla, Central and Garden prospects. The three cover 1,150 metres of the basal inclusion-bearing layer, which is essentially analogous to that being explored at the River Valley intrusion.
Drill results varied from 0.37 gram platinum-palladium-gold over 4 metres to 1.96 grams over 24 metres. Hole 10 cut the deepest intersection of 14 metres, averaging 0.7 gram, at about 150 metres below surface.
Generally, palladium is two to three times as rich as platinum, with gold accounting for no more than 20% of the combined value of all three. Copper ranges from 0.09% to 0.22%, whereas nickel varies from 0.02% to 0.08%.
Freewest and Sparton note that the favourable stratigraphy was intersected right across the claims, except where interrupted by younger diabase dykes. The layer varies from 10 to more than 50 metres in thickness and appears to get richer in grade to the east.
In addition to preliminary metallurgical testing, the partners plan to drill deeper into the system. A 300-metre section between the western and central areas is to be drilled as well.
Sparton recently raised $300,000 by way of a private placement. A total of 1.5 million units was issued at 20 apiece, with a unit consisting of a share and a share purchase warrant that can be exercised at 30 within one year.
LOM Capital received 150,000 units in exchange for underwriting the deal.
Some of the proceeds are earmarked for Folson Lake.
Also exploring East Bull Lake is Mustang, which owns 100% interests in more than 600 claims covering more than 90% of the intrusion. Last fall, it dealt
Meanwhile, at the separate but similar-aged Agnew Lake intrusion, to the east, Pacific North West and partner
Footwall property
Partners
The Footwall property covers 8 km of Sudbury norite and sublayer rocks adjacent to the Falconbridge and Falconbridge East mines. Aurora can earn a 60% interest in that and the nearby Foy offset project by spending $6 million on exploration over three years.
Drilling is targeting anomalies outlined during recent geophysical surveys. Coincident magnetic highs and electromagnetic conductors suggest the possibility of sulphide mineralization.
Once Aurora has earned its 60% stake, future exploration will be funded on a pro rata basis. Falconbridge retains the right to increase its stake to 70% by completing a bankable feasibility study and covering all development funds.
Sudbury Basin
The arrangement calls for Intrepid to cover all staking costs incurred by Wallbridge and to spend $300,000 exploring any property so acquired in order to maintain a half-interest. For its part, Wallbridge will contribute a database comprising more than 50,000 line km of airborne geophysical surveys flown over 25 greenstone belts, plus geochemical and drilling data.
Wallbridge has also tentatively agreed to include its Lac des les property, about 100 km southwest of the actual mine of the same name. Historic drilling returned 1.7 grams platinum-palladium over 73 metres, whereas grab samples yielded up to 2.1 grams palladium and 10.3 grams platinum.
As part of the deal, Wallbridge can subscribe for 1 million Intrepid treasury shares at 35 apiece.
Hucamp Mines
A re-sampling program at the Dundonald-Alexo property, 45 km northeast of Timmins, has turned up low platinum and palladium values for
The junior sampled three old Falconbridge holes drilled in 1989. The holes were drilled to test for extensions to a nickel-copper zone outlined in the Dundonald sill but generally yielded less than half a gram of platinum or palladium.
Earlier this year, Hucamp re-sampled several historic holes drilled by
Hucamp continues to explore the property, having discovered four showings elsewhere in the sill. In early February, it began a 2,000-metre drill program in the vicinity of the historic Alexo mine and nearby Kelex zone.
Under option deals from Falconbridge and Outokumpu, Hucamp can earn 65% interests in the Dundonald and adjoining Alexo properties by spending $8.8 million over several years. Both had been explored mainly for copper and nickel.
Marathon project
Named after the nearby town, Marathon sits on the eastern edge of the Port Coldwell alkalic igneous complex. Two hundred and eight holes, mostly drilled in the 1960s by Anaconda American Brass, have delineated the deposit over a strike length of 2 km on 60-metre centres.
A 1989 prefeasibility study by BHP Engineering pegged resources at 37 million tonnes grading 1.1 grams palladium, 0.27 gram platinum, 1.85 grams silver, 0.21 gram gold, plus 0.38% copper and 0.032% nickel. The deposit was considered amenable to open-pit mining and conventional milling.
Geomaque recently launched a 3,000-metre drill program aimed at updating and augmenting existing data in preparation for a bankable feasibility study. BHP had projected operating costs of $11 per tonne and smelter revenue of $18 per tonne at an annual production rate of 2 million tonnes.
Lac des les
New Millennium Metals has launched a 1,500-metre drill program at the Lac des les River property to follow up ongoing induced-polarization surveys. The property lies 13 km south of the Lac des les mine.
Drilling is targeting three chargeability anomalies outlined in the newly christened Towie Lake mafic intrusion. One flanks the Powder Hill showing, where grab samples have yielded more than 1 gram platinum-palladium; another occurs in the vicinity of outcropping pyroxene gabbro and pyroxenite; and the third underlies an area covered by overburden.
Through a combination of staking and option agreements, New Millennium has amassed more than 180 sq. km in the region. A half-interest in Lac Des les River can be acquired in exchange for $1 million in expenditures and $38,500 in payments to
Meanwhile, at a nearby intrusion known as Tib Lake,
Last fall, Houston tested a few of the showings with 1,038 metres of drilling, the best results being 11 metres grading 0.3 gram palladium and 0.12 platinum and 22 metres grading 0.94 gram palladium and 0.34 gram platinum. The latter was intersected beneath the Kuhner occurrence, where grab samples yielded about 3 grams platinum-palladium.
Mineralization is hosted by coarse-grained-to-pegmatitic gabbro and gabbronorite.
The Tib Lake property covers 1,632 ha of the intrusion, which lies 15 northwest of the Lac des les mine. Houston says it is in discussions with several companies about a possible joint venture.
BHP partnership
About 120 metres northeast of Thunder Bay, partners
The earlier geophysical surveys outlined a magnetic anomaly underlying the properties. A series of crosscutting faults, plus a closeness to the PGE-bearing Seagull and Desraili Lakes plutons, makes both prospective for new discoveries.
Muskrat is owned outright by the joint venture, whereas Spruce is under option from East West Resource. Both cover a combined 499 claims. To earn a half-interest in Spruce, the partners must spend $600,000 on exploration and pay $20,000 in cash.
Meanwhile, near the town of Coldwell, the partners have begun preliminary surface exploration and an airborne geophysical survey at the Foxtrap property. The property, which covers 174 claims in the Port Coldwell complex, was acquired earlier this year.
In early 2000, McVicar teamed up with BHP to explore for nickel and PGM deposits in North America, particularly in the Lake Superior region. The pair will spend up to $3 million over three years at a 1-to-4 ratio, respectively, with the former doubling as exploration manager until a significant discovery is made. At that point, BHP can elect to become operator.
In the late 1990s, BHP had backed McVicar’s search for nickel projects in China.
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