Rockwell explores for Brazilian PGMs

Vancouver — A private placement of 4.5 million units priced at 65 apiece has added $2.9 million to the coffers of junior Rockwell Ventures (RCW-V). The Hunter-Dickinson-led company will use the funds to explore the promising Pedra Blanca platinum-palladium property in Brazil’s Ceara state.

Each unit consists of one share plus half a warrant and must be held for four months. After the hold period, a full warrant will be exangeable for one share at 65 for a further 12 months.

Late in 2000, the company completed a mapping and grab-sampling program targeting 10 showings over the 420-sq.-km property. The junior collected 226 grab samples, of which 120 returned greater than 5 grams combined platinum-palladium-gold per tonne.

– The Conceicao showing returned up to 3.2 grams platinum, 4.1 grams palladium, 0.37 gram rhodium and 0.05 gram gold per tonne;

– the Curiu showing returned up to 6.6 grams platinum, 10.6 grams palladium, 0.26 gram rhodium and 0.44 gram gold;

– the Esbarro showing returned up to 17.8 grams platinum, 6.2 grams palladium, 0.15 gram rhodium and 0.09 gram gold;

– the Ipueiras showing returned up to 18.1 gram platinum, 23.1 grams palladium, 1 gram rhodium and 0.17 gram gold;

– the Massape showing returned up to 4.3 grams platinum, 6.4 grams palladium, 0.13 gram rhodium, and 0.05 gram gold;

– the Mendes showing returned up to 2 grams platinum, 5.5 grams palladium, 0.04 gram rhodium and 0.04 gram gold;

– the Morado Nova showing returned up to 16.4 grams platinum, 15.9 grams palladium, 0.71 gram rhodium and 0.07 gram gold;

– the Pitombeira showing returned up to 12.7 grams platinum, 6.2 grams palladium, 0.7 gram rhodium and 0.05 gram gold;

– the Trapia 1 showing returned up to 3.9 grams platinum, 4.6 grams palladium, 0.3 gram rhodium and 0.04 gram gold; and

– the Trapia West showing returned up to 16.3 grams platinum, 20.5 grams palladium, 0.1 gram rhodium and 0.3 gram gold.

Rockwell is earning a 60% interest in the property by spending US$7 million over four years and issuing 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.

Altoro holds a 100% interest in a 300-sq.-km area that encompasses the Esbarro and Curiu prospects and has an option to earn 70% of a 120-sq.-km package that hosts the Trapia, Massape, and Ipueiras prospects.

According to a 1999 option agreement with Eldorado Gold (ELD-T), 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, the latter will be 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 return 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. Ipueiras returned sub-economic values. Highlights from the other three 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 new program will consist of mapping, geochemical surveys and diamond drilling.