Rockwell completes due diligence

Junior Rockwell Ventures (RCW-V) has completed its due diligence review of the Pedra Branca platinum-palladium project in the northeastern Brazilian state of Cear.

To earn a 60% interest in the property, Rockwell is required to spend US$7 million over four years and issue 500,000 shares to Altoro Gold (ATG-V) in five equal allotments of 100,000 shares. Each allotment must have a minimum value of US$100,000.

Rockwell’s due diligence included re-sampling and analysis of previous drill core, sample pulps, trenches and confirmation of mineral title and ownership. Altoro will continue to operate the property until Rockwell has established a legal presence in Brazil. The two companies have committed US$1 million for this year’s exploration program, which is expected to begin shortly.

Altoro holds a 100% interest in a 300-sq.-km area that encompasses the Esbarro, Barro Do Riacho, Cedro, Curio and Troia prospects and has an option to earn 70% of a 150-sq.-km package that hosts the Trapia prospects, as well as the Massape, Catinguiero and Ipueiras prospects.

According to the option agreement with Eldorado Gold (ELD-T) made last year, Altoro can earn its 70% interest by spending US$2 million over three years. If Eldorado elects not to contribute when Altoro has earned its share, Altoro is entitled to earn an additional 20% by spending an extra US$1 million on exploration. At that stage, Eldorado can elect to convert its 10% remaining interest to a 2% net smelter royalty.

In late 1999, Altoro tested Pedra Branca with an 18-hole, 1,200-metre drill program. Seven of these targeted the Trapia West zone; one tested the Trapia 1 zone; eight tested the Esbarro zone; and two tested the Ipueiras zone. Highlights from the four zones are as follows:

– Esbarro zone — Hole 4 hit 22.3 metres grading 2.9 grams combined platinum-palladium (Pt+Pd) per tonne. This included a 2.3-metre interval of 4.1 grams platinum and 5.2 grams palladium. Hole 6 cut 28 metres averaging 2.8 grams Pt+Pd and included a 6.5-metre interval that assayed 6.7 grams Pt+Pd.

– Trapia West zone — Hole 1 cut 14.2 metres averaging 2.1 grams Pt+Pd, which included a 6.7-metre section that ran 3 grams Pt+Pd. Hole 3 intersected 39.2 metres averaging 1.4 grams Pt+Pd, including an 8.5-metre section that averaged 2.4 grams Pt+Pd.

– Trapia 1 zone — Hole 1 cut 20.2 metres grading 0.9 gram Pt+Pd.

(The Ipueiras zone returned sub-economic values.)

Drilling to date represents less than 1% of the potentially mineralized horizon seen at the surface.

Altoro sampled holes 5 and 8 from the Esbarro zone for platinum group elements. Assays returned 0.03-0.36 gram rhodium per tonne over widths ranging from 0.49 to 1.16 metres. Altoro determined that the presence of rhodium at these levels increased the value of the in situ rock by 8-20%.

Geological mapping and drilling has enabled Altoro to better-understand the lithological sequence hosting platinum and palladium mineralization. This has resulted in the definition of a critical zone and the discovery of previously unknown chromitite and Pt+Pd mineralization. Exploration is ongoing.