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CANADIAN ROYALTIES RESULTS FOR SOUTH TREND PROPERTY
Montoro Resources Inc. (“MNQ”) is pleased to report
the following exploration results received from Canadian Royalties
Inc. (“CZZ”) on the South Trend property. CZZ is earning
a 100% interest in the property and expects to complete its earn-in
before year-end.
Montréal, Québec – September 21st, 2005 - Canadian
Royalties Inc. (TSX: CZZ) reports the discovery of a new zone
of nickel-copper-platinum-palladium mineralization on its Raglan
South Nickel project in Nunavik, northern Québec. The discovery
hole, IV-05-01, intersected 12 metres (from 31 to 43 metres) of
net-textured and massive-sulphide mineralization with average grades
of 2.34% nickel (Ni), 3.25% copper (Cu), 0.10% cobalt (Co), 0.5
g/t gold (Au), 1.6 g/t platinum (Pt) and 6.2 g/t palladium (Pd)
(8.3 g/t combined Au + Pt + Pd). With this new discovery, Canadian
Royalties has now extended its discovery horizon to 50 kilometers
along the host Raglan South ultramafic rocks.
The Ivakkak* Zone is now the sixth and westernmost known significant
sulphide zone on the Raglan South Nickel project, in addition to
the Mesamax, TK, Expo, and Mequillon deposits, as well as the Tootoo
Ni-Cu-PGE zone. The Ivakkak Zone is situated on land that, by year
end will be held 100% by Canadian Royalties.
Massive and net textured sulphides have been intersected in the
first eight drill holes completed at Ivakkak along a 50 metre strike
distance and to a depth of 50 metres. A horizontal loop EM geophysical
anomaly associated with the mineralization has been traced for 200
metres. Maps, sections and additional information describing the
new zone have been made available at www.canadianroyalties.com/ivakkak.
Highlights
- The new zone is located approximately 50 kilometres west of
the Mesamax deposit, 40 km west of the Expo deposit, and 23 km
west of the Mequillon deposit. Discoveries further west of the
Canadian Royalties properties include the West Shoot Out discovery
(Golden Valley Mines - 26 km west) and the Getty Zone (Goldbrook
Ventures / Anglo American Exploration - 48 km west);
- Geophysics and prospecting indicates that the zone is at least
200 metres long. The zone remains open and drilling is continuing.
- Additional drill holes have intersected the mineralized zone,
and additional assays will be released as they become available;
- The Ivakkak zone was identified as a surface showing by the
Canadian Royalties exploration team while following up on recent
airborne geophysics survey results.
- High to very high PGE values are reported in all eight holes;
- Composited assay values from the first eight holes assayed
from the Ivakkak zone follow:
IV From To Width Ni Cu
DDH (m) (m) (m) % %
05-01 31.0 43.0 12.0 2.34 3.25
incl. 37.0 40.6 3.6 3.56 4.72
05-02 36.0 46.0 10.0 1.70 2.34
incl. 39.4 42.6 3.2 3.72 4.19
05-03 42.0 49.0 7.0 1.04 1.80
incl. 47.8 48.2 0.4 3.23 7.95
05-04 43.0 56.0 13.0 2.09 2.68
incl. 46.9 53.6 6.7 3.50 3.96
05-05 49.0 56.0 7.0 1.71 1.97
incl. 51.0 53.4 2.4 3.69 3.73
05-06 58.0 65.0 7.0 0.74 1.25
05-07 24.0 44.0 20.0 1.24 2.08
incl. 31.0 34.2 3.2 2.95 5.30
05-08 26.0 44.0 18.0 0.98 1.68
incl. 35.8 36.1 0.3 2.15 11.50
IV Co Au Pt Pd PGM
DDH % g/t g/t g/t g/t
05-01 0.101 0.5 1.6 6.2 8.3
incl. 0.151 0.7 2.2 8.0 10.9
05-02 0.075 0.1 0.9 4.3 5.3
incl. 0.156 0.3 1.9 8.3 10.5
05-03 0.048 0.1 0.4 3.3 3.9
incl. 0.142 0.7 1.1 19.0 20.8
05-04 0.088 0.2 1.0 4.4 5.5
incl. 0.141 0.3 1.5 6.4 8.2
05-05 0.073 0.2 0.7 3.0 3.8
incl. 0.151 0.2 1.3 5.0 6.4
05-06 0.035 0.1 0.5 2.0 2.6
05-07 0.054 0.2 0.7 3.3 4.2
incl. 0.118 0.2 1.4 6.9 8.5
05-08 0.043 0.1 0.6 2.8 3.5
incl. 0.088 0.7 1.2 18.1 20.0
Notes:
- Lengths are drill intersected core lengths, composite lengths
are length weighted;
PGE = gold + platinum + palladium;
- g/t = grams per metric tonne;
- True widths have not yet been determined but are thought to
be generally 70% or more of the core length given in the table
Canadian Royalties’ Raglan South Nickel
project
The current $9,000,000 exploration program has resulted in this
new Ni-Cu sulphide discovery, while at the same time expanding the
resource base of the existing Ni-Cu-PGE deposits and mineralized
zones. In addition, the company has environmental studies, road
construction and metallurgical bulk sampling underway at the Mesamax
Deposit. A 25,000 metre drill program is currently underway with
diamond drilling at five locations - i) the Ivakkak Zone, ii) the
Expo Deposit ; iii) the Mequillon Deposit; iv) the Tootoo Zone (discovered
in 2003); and v) Mesamax Deposit (the collection of a mini-bulk
sample of 50 tonnes of HQ sized diamond drill core).
The discovery of the Ivakkak further enhances the potential for
Canadian Royalties to establish an independent, stand-alone mining
operation in the general vicinity of Falconbridge’s Raglan
Mine where significant infrastructure already exists. Scoping, pre-feasibility
and environmental studies are currently underway in support of this
goal. Total indicated resources on Canadian Royalties’ Raglan
South Nickel project currently stand at 10,568,000 tonnes with a
weighted average grade of 1.0% Ni, 1.2% Cu, 0.04% Co, 0.2 g/t Au,
0.6 g/t Pt and 2.3 g/t Pd (3.1 g/t PGE).
Todd Keast, P.Geo, is Canadian Royalties South Nickel Project Exploration
Geologist and has managed the onsite exploration and resource development
activities on the Raglan South project since Canadian Royalties’
first exploration program in 2001. Management wishes to recognize
the contribution of the entire exploration team and exploration
contractors over the past four seasons for the discoveries and accomplishments
to date.
The discovery that is the subject of this press release is located
on the South Trend property. On November 18th, 2002 Canadian Royalties
was granted an option to acquire a 100% interest in Montoro Resources
Inc. South Trend property, provided that Canadian Royalties paid
a $30,000 cash fee and incured exploration expenditures of $500,000
over 4 years. If the option is exercised, Canadian Royalties’
interest would be 100%, subject to a 1% net smelter return “NSR”
royalty in favour of Montoro (that is subject to a buyout option
in favour of Canadian Royalties) and a 2% NSR in favour of 862539
Alberta Ltd., a related party. Canadian Royalties intends to execute
the option to acquire the 100% interest in the property.
Bruce Durham, P.Geo., and President of Canadian Royalties Inc.
is the designated Qualified Person responsible for the preparation
of this release. All assaying was completed by ALS Chemex with sample
preparation completed in Val-d'Or, QC and analyses completed at
ALS Chemex in Vancouver, BC. Base metal determined by sodium peroxide
fusion with ICP-AES analysis. Platinum, palladium and gold values
are determined by 30 gram fire assay with ICP-AES finish.
* The new discovery has been named the
Ivakkak zone, the meaning of which can be found at www.canadianroyalties.com/ivakkak.
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