|
CANADIAN ROYALTIES / MONTORO REVIEW SOUTH TREND-OVERTIME
PROPERTY EXPLORATION
Canadian Royalties Inc. (TSX: CZZ) and Montoro Resources Inc. (TSX-V:
MNQ) entered into a Mining Option Agreement, as amended, in December
2002, whereby Canadian Royalties had the right to acquire a 100%
interest, subject to a 3% NSR, in Montoro’s South Trend/Overtime
property located in the Raglan South trend area of Nunavik (Ungava),
Quebec. Canadian Royalties is required to expend $450,000 in exploration
expenditures over four years.
The South Trend Prospect is positioned along the ultramafic trend
(“South Trend”) which hosts the recently drill tested
Golden Valley Mines/Little Mountain Resources Shoot-Out discoveries
(“India” and “Alpha”) (25 kilometres west),
and Canadian Royalties’ Mequillon Deposit (22 kilometres east).
The South Trend Prospect, encompassing approx. 33 square kilometers
(3360 hectares) is also located in the area of Falconbridge’s
Delta-Oasis property which contains approximately 800,000 tons grading
3.05% Nickel, 1.26% Copper and 2.25 grams/tonne platinum group minerals
(PGM’s) (Falconbridge 2002 Annual Report).
During 2003 Canadian Royalties, as operator, conducted a ground
reconnaissance program, consisting of setting up a 6.2 kilometer
grid, ground geophysics, prospecting, and sample collection of over
50 grab samples. Additionally, a preliminary technical report was
completed on the property, which outlined a first phase program
for 2004.
The work in 2004 was also completed by Canadian Royalties, which
included the set up of an 11.3 kilometer grid, geophysics, prospecting,
sampling, mapping, and geophysical and geological interpretation.
The grab samples are currently being assayed for nickel-copper-platinum-palladium-gold
(Ni-Cu-PGE).
At this early stage of exploration, it is difficult to establish
the relationship, if any, between the nickel-copper mineralization
reported from other occurrences in the South Trend area:
- Mequillon deposit held (70%) by Canadian Royalties which is
reported to have inferred mineral resources of 1.4 million tonnes
at average grades of 0.7% nickel, 0.9% copper. 0.6 platinum, and
2.1 g/t palladium (CZZ Press Release dated September 22, 2004).
More recently, Canadian Royalties reported diamond drill hole
MQN-04-58 at Mequillon, which assayed 1.82% nickel, 1.51% copper,
1.14 g/t platinum, and 6.41 g/t palladium over 11 meters (CZZ
Press Release dated November 24, 2004).
- West Shoot Out Property held by Golden Valley Mines Ltd. (TSX-V:
GZZ) and optioned to Little Mountain Resources Ltd. (TSX-V: LIT),
which returned values of 1.09% nickel and 0.4% copper over 9.9
meters at the India Zone, and 1.10% nickel, 0.74% copper and 3.33
g/t PGE over 12.5 meters at the Alpha Zone (Press Releases of
GZZ dated October 26, 2004 and September 30, 2004).
- The Belanger property held by Goldbrook Ventures Inc. (TSX-V:
GBK), which returned values of 1.35% nickel, .61% copper, and
2.88 g/t PGE over 49.35 meters (Goldbrook Press Release dated
September 27, 2004).
- Mesamax Deposit held (70%) by Canadian Royalties, which has
an indicated resource of 1,840,000 tonnes grading 1.9% nickel,
2.3% copper, 5.2 g/t PGE. (Press Release of CZZ dated June 10,
2004).
Over the past two years Canadian Royalties has expended in excess
of $200,000 on the South Trend Property, entitling it to a 50% interest
in the Property. Canadian Royalties is currently working on the
proposed 2005 exploration program, which is anticipated to include
diamond drilling on targets selected from the past two years grab
sample collection, and based on the results of compilations and
geological surveys completed under the joint venture.
|