Stepout hole hits new zone, boosts Fort Knox potential

A new zone intersected at Fort Knox Gold Resources’ (TSE) base metal prospect in Fawcett Twp., near Shining Tree, Ont., has enhanced the property’s potential to host significant volcanogenic massive sulphide (VMS) deposits.

Designed to test nickel-copper mineralization in an entirely different geological environment, stepout hole SG-8 intersected volcanics containing copper, zinc and lead mineralization at a depth of about 500 ft. Although assays are pending, Exploration Vice-President Wayne Whymark is excited by the implications of such a find.

“I got goose bumps when I got the call (about SG-8),” said Whymark. “This really opens up a large area.”

Hole SG-8, with a target depth of 1,200-1,400 ft., was still turning at presstime. Having passed through the volcanics, it had carried on to test the nickel-copper-bearing intrusives that transformed Fort Knox from a sleepy penny stock into one of The Toronto Stock Exchange’s most active issues. To intersect both types of mineralization in one hole is virtually unheard of. The new VMS zone shares many characteristics with the zinc-copper mineralization being tested on the north grid, about one mile north, but is hosted by a different volcanic horizon. Whymark says the next step is to test the anomaly within a 325-ft. radius using down-the-hole pulse electromagnetics.

Inco (TSE), which has a 40.9% interest in Fort Knox, will manage exploration on the property in the new year. The nickel producer could not be reached for comment Dec. 31, when warrants to buy flow through shares of Fort Knox at one dollar each expired.

During the latest drilling, Fort Knox was also able to establish the continuity of the main nickel-copper zone from surface to 1,000 ft., although the grade and width appear to be decreasing with depth. Hole SG-7, which intersected two shallower zones with anomalous values of nickel and copper, returned 60.8 ft. running 0.48% nickel and 0.19% copper in the main zone. Hole SG-9, designed to test a strong “off-hole” response 80 ft. from hole SG-5, intersected 196.7 ft. grading 0.57% nickel and 0.34% copper, including a 25.3-ft. interval at 1.47% nickel and 0.87% copper.

On the north grid, hole NG-2 returned anomalous copper, lead and zinc values of up to 0.30% copper, 1.09% lead and 1.35% zinc in a felsic volcanic sequence of variably altered pyroclastics and tuffs.

Significant results from drilling to date include:

Hole Interval Length Copper Nickel

(ft.) (ft.) (%) (%)

SG-1 288.8-296.3 7.5 0.24 0.78

SG-2 187.8-300.7 110.9 1.03 0.43

SG-3 400.0-431.3 31.3 1.07 0.50

SG-6 705.0-761.8 56.8 0.78 0.45

777.2-799.8 22.6 1.07 0.60

SG-7 940-1,000 60.8 0.48 0.19

SG-9 374.8-571.5 196.7 0.57 0.34

including 25.3 1.47 0.87