Results buoy North Atlantic Nickel (May 17, 2004)

An expanded program may be in the works at North Atlantic Nickel‘s (NAC-T) Kantela project in western Mali, following results from 11 reverse-circulation drill holes.

The project is contiguous with the Sadiola mine of Iamgold (IMG-T) and Anglogold (AU-N), which, at the end of 2003, contained an estimated 2.7 million oz. gold in the proven and probable category.

Regionally the area is underlain by lower Proterozoic Birimian-aged greenstone. In western Mali, a major north-trending fault with associated northeast-trending splays is often associated with gold deposits. Zone 3 consists of east-striking, carbonate-hosted hydrothermal quartz breccia plunging at 70 north-northeast in an argillite sequence.

In April, 11 holes were drilled (1,063 metres) in zone 3 on a 50-by-50-metre grid. The holes were drilled to an intended depth of 100 metres (with the exception of one, drilled to 130 metres). Samples were collected over every 2 metres of hole length; these were homogenized and split at the drill site, then sent to Analabs SARL in Kayes, Mali.

Highlights include 26 metres grading 5.1 grams gold per tonne at 32-58 metres down-hole, and 2 metres of 5.13 grams gold at 70 and 72 metres down-hole.

The plunge was previously thought to be 50. For this reason, hole 8 requires deepening, as 10 metres grading 0.52 gram gold were intersected at the end of the hole and it is speculated the hole was terminated in the halo above the mineralized zone. Hole 7 will similarly be deepened.