During the fall of 2007, the Company staked an interest in several claims located in the James Bay lowlands (also referred to as McFaulds Lake) area of Northeastern Ontario. The properties are strategically located on and around the “Ring of Fire” and cover approximately 36 square kilometres (8,944 acres) of ground.
In March 2008, the Company entered into a farm-in agreement whereby WSR Gold Inc. (subsequently changed to White Pine Resources Inc., “WPR”) could earn up to a 50% interest in certain mineral claims, which were previously included as part of the Kyle Lake project. These claims were subsequently transferred to a privately owned corporation. Metalex retained a 62.5% interest in these claims, while the private company owned the remaining 37.5%. In October 2019, Metalex entered into an agreement with a private entity for the purchase of the Company’s share of these claims in exchange for 2,780,000 shares of the private entity.
The McFaulds Lake, Ontario “Ring of Fire” appears to be the most significant base metal play in Canada since the Voisey’s Bay discovery in Labrador in September 1993. Investors continue to speculate on the Ring of Fire, and many juniors are lining up to stake their claim to the rich nickel-copper deposit that Noront Resources Ltd struck here in September 2007.
Many believe that the Noront Double Eagle strike will become a very significant discovery and the McFauld’s district will transform into a major new mining region for years to come. Noront’s discovery of a second massive sulphide occurrence located two kilometers southwest of its Eagle One lends credence to the notion of this region becoming the next big nickel-copper play.
By mid 2008, an aggressive exploration program was underway. An airborne helicopter magnetic and electromagnetic geophysical survey was completed over most of the joint venture’s claims. Ground geophysical studies over anomalies identified on the airborne survey have been conducted and 21 electromagnetic anomalies with a sympathetic magnetic response have been identified, as well as 19 with just electromagnetic anomalies.
Drilling commenced on the targets that had been refined by ground geophysics in May 2008. Anomaly number 5.01 was the first tested and several holes have intersected significant widths of sulphide mineralization. The best intercept to date is in hole number six which intersected 95 meters of semi-to-near-massive sulphides from 72.7 meters. Visible copper, zinc, lead and iron sulphide mineralization is typical of the deposit.
Analysis of the mineralized core at ALS Chemex and ACTLabs confirmed the significant mineralization seen visually. Significant intersections include:
- 01-06 intersected near-massive to massive sulphides from 65-167m downhole for a length of 102m averaging 6.5% Zn, 0.44% Cu, 0.19% Pb, and 3 g/t Ag. Included within this section, from 99.7-125.7m, for a length of 26m, the zone averaged 13.8% Zn, 0.50% Cu, 0.05%Pb, and 2 g/t Ag.
- 01-14 intersected similar near-massive to massive sulphides from 83.0-120.0m downhole for a length of 37.0m, averaging 6.0% Zn, 0.34% Cu, 0.05% Pb and 6 g/t Ag. Included in this section, from 103.0-111.0m, for a length of 8m, the zone averaged 17.4% Zn, 0.24% Cu, 0.04% Pb and 5 g/t Ag.
- 01-15 intersected similar near-massive to massive sulphides from 158.8-184.2m downhole, for a length of 25.4m, averaging 7.6% Zn, 0.35% Cu, 0.36% Pb, and 8 g/t Ag.
- 01-16 intersected similar near-massive to massive sulphides from 167.4 – 186.7m downhole, for a length of 19.3m, averaging 10.02% Zn, 0.10% Cu, 1.85% Pb, and 41.5 g/t Ag. Included in this section, from 167.4 – 171.8m, for a length of 4.4m, the zone averaged 19.32% Zn, 0.12% Cu, 2.79% Pb and 63.1 g/t Ag.
To date 42 holes totaling 10,785.9 meters have been drilled on the 5.01 project
Mineralization, alteration and the geological environment at the 5.01 anomaly appears to be typical of a Noranda-Mattabi-style VMS (Volcanogenic Massive Sulphide) deposit. The mineralized zone appears to subcrop beneath approximately 15 meters of glacial till. The high grade zinc – copper – lead – silver mineralized zone has been delineated over a north-south strike length of 200m and to a vertical depth of 275m from surface. The zone dips steeply at 75 degrees to the east and appears to have a steep 65 degree plunge to the south. Horizontal widths of the high grade zone can reach up to 22 meters.
Additional ground and airborne geophysical studies are planned over the 5.01 project area. The results of these surveys, in conjunction with the results of the completed drilling will guide future work.