The first phase, $ 650,000 drill program
completed in August was designed to further evaluate the Upper Duck Lens where
previous, wide spaced drilling by Noranda outlined an inferred resource of
3,880,000 tonnes grading 3.8% Cu, 6.7% Zn, 1.1% Pb, 71.0 g/t Ag and 1.1 g/t Au.
This program was successfull in confirming the size, continuity and grade of
the Upper Duck Lens and identified areas to potentially expand the resource.
The second phase drill program
will employ two drills and consist of approximately 4,200 m of drilling on the
Duck Pond and Boundary deposits combined with 1,800 m at the Moose Pond and
East Pond areas of the 11,796 hectare property. One drill is currently on the
Duck Pond deposit where six holes are planned to further evaluate and expand
the Upper Duck Lens and underlying Sleeper Zone mineralization. The second
drill is on the Boundary deposit, where 35-40 drill holes are planned to expand
and further define the continuity and grade of this 446,000 tonne inferred
resource which grades 3.5% Cu, 3.5% Zn, 0.5% Pb and 22.8 g/t Ag. This drilling
will also provide information for open pit modelling of this shallow deposit.
In addition, two untested electromagnetic anomalies, that may represent
extensions to the Boundary deposit, will also be drilled.
During the later part of the
program, 3-4 holes are planned for the North and South Moose Pond areas of the
property where recent prospecting has led to the discovery of disseminated base
metal mineralization coincident with an electromagentic and gravity anomaly.
Large intensely chloritized boulders that contain stringer chalcopyrite
mineralization and assay up to 11.7% Cu also occur in the immediate area. An
additional 2-3 holes are also planned for the East Pond area where massive
sulphide fragments assaying up to 21.6% Zn, 1.0% Pb, 0.7% Cu, 45.7 g/t Ag and
0.7 g/t Au have been discovered in a favourable felsic pyroclastic unit. Both
the Moose Pond and East Pond areas are viewed as being prospective for the
discovery of a new base metal deposit similar to Duck Pond.
A new resource estimate will be
calculated for the Upper Duck and Boundary deposits upon completion of the
current drill program. In addition, metallurgical studies, designed to improve
recoveries and concentrate grades will be undertaken over the next month.
The exploration programs being
conducted on the Duck Pond property are under the supervision of geologists Mr.
Terry Brace and Mr. Gerald Squires, both of whom are members in good standing
of the Association of Professional Engineers and Geoscientists of Newfoundland.