VMS prospects in Elu belt

Following the acquisition of the Elu property in Canada’s northern territory of Nunavut, Sherwood Petroleum (SWD-V) has discovered a number of volcanogenic massive sulphide (VMS) showings during its initial exploration program.

The VMS showings occur along a 12-km-long zone of bimodal volcanic stratigraphy. Massive and semi-massive mineralization was discovered in two outcrops spaced 8 km apart. Both showings are reported to be associated with rhyolite flows and volcaniclastics.

The northernmost showing, dubbed the Peninsula prospect, yielded assays as high as 10.3% copper, 5.2 grams gold and 150 grams silver per tonne in highly oxidized subcrop. The second showing, called Elu 1, returned values as high as 0.2% copper and 0.5 gram silver. Both prospects coincide with airborne electromagnetic conductors.

The Elu property is situated 750 km northeast of Yellowknife and 40 km northeast of the Hope Bay gold belt. Sherwood acquired a 100% interest in the property in August by issuing 5 million units each to Miramar Mining (MAE-T) and Hope Bay Gold (HGC-T). The two companies each hold a 27% stake in Sherwood (or 33% on a fully diluted basis), a junior managed by the Northair Group. About $350,000 was spent in the recent round of exploration.

Field staff on loan from the Hope Bay joint venture carried out this summer’s exploration work on Elu. Sherwood is undertaking a small $50,000 follow-up program of prospecting and sampling in the northern portion of the Elu belt, where a second potential VMS trend has been identified.