Halifax-based Scotia Prime Minerals (ASE) has optioned a base metals property near Five Islands, N.S., to the Canadian unit of U.S.-based giant Phelps Dodge Corp. — the fourth in a series of agreements over the past two years involving six properties covering carboniferous rocks in the province.
In mid-May Scotia Prime share price doubled to 50 cents in one week of trading as a result of the news.
President Craig Miller issued a letter to shareholders, dated May 15, which outlined the company’s summer drilling program, beginning in early July. Core will be pulled from at least four properties in Nova Scotia in the second phase of a comprehensive search for a 10-million-tonne deposit with a combined grade of more than 10% lead-zinc.
Phelps Dodge of Canada is financing the program to earn an interest in the ground.
Drill targets were identified in the first phase which involved mapping, geochemical and geophysical studies. Results were interpreted and geological concepts developed; they were then tested by drilling in 1991. “We did not encounter any significant mineralization in the 1991 drilling,” Miller says, “but most of our expectations for the program were met.” Phelps Dodge dropped an option on one of the six properties as a result of the program.
Assay results from glacial boulders, spread over the company’s Loch Lomond property on Cape Breton Island, lend credibility to the company’s work. The boulders contain base metal mineralization grading as high as 17% lead, 13% zinc and 140 grams silver per tonne.
Other claims covering favorable geology in the Loch Lomond area are held by: Rio Algom Ltd.; two private companies, Aurion Minerals and Tri-Explorations; and consulting geologist Lyndon Jensen.
The banded texture and brecciated nature of these rocks; the type of mineralization and the fact that the rocks have been recementing with base metals imply geological processes known to have formed the Tara, Lishenn, Silvermines and Tynagh deposits in Ireland.
Phelps Dodge has four separate option agreements with Scotia Prime.
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