Base metal exploration news

New option on West Shoot Out prospect

VAL-D’OR, QUE.–Golden Valley Mines Ltd. announced it has signed a Letter of Intent with Little Mountain Resources Ltd. allowing Little Mountain to earn 50% of the west portion of Golden Valley’s West Shoot Out prospect. Little Mountain can earn the interest by issuing 500,000 shares to Golden Bear and by making payments totaling $100,000 over a 24-month period. In addition, Little Mountain must incur $2,000,000 in exploration expenditures on the West Shoot Out prospect over 24 months including $350,000 during the 2003 field season.

The West Shoot Out property consists of 91 map-designated units located in Nunavik (Ungava), Qubec. The property is situated approximately 9 km southwest of the Delta Ni-Cu-Pd-Pt deposit owned by Falconbridge Ltd. (and others), and 10 km west of Canadian Royalties Inc.’s Crocodile Tears property. The West Shoot Out property is situated along the ultramafics of the Raglan South Trend, which hosts several Ni-Cu-PGE occurrences further to the east including the Mesamax deposit and TK deposit.

At least two nickel-copper occurrences have been identified through earlier work programs completed within the property. Diamond drilling in 1976 at the Alpha showing on the property returned values ranging up to 3.1% nickel and 2.3% copper over 5.4 feet.

In 1996, most of the property was covered by an airborne magnetic and EM survey and some of the target areas identified were followed up with geological and ground geophysical surveys. Several targets are considered drill-ready and are currently planned for testing during the first phase program, which will include diamond drilling during the 2003 field season.

Golden Valley will be operator of the program during the option (earn-in) phase, and at any time thereafter under the joint venture should it maintain a minimum interest of 50% in the West Shoot Out prospect. Vesting occurs following completion of all of the above requirements, and is subject to regulatory approval. The West Shoot Out prospect is subject to a 3% net smelter return (NSR) payable to a non-arms length vendor.

Golden Valley Mines is currently working on 35 grassroots prospects within the Abitibi region. Exploration targets include the eastern portion of the Destor-Porcupine Fault Zone north of Val-d’Or, the western portion of the Blake River Group volcanics in Ontario and several previously-untested airborne electromagnetic (AEM) anomalies and structural features elsewhere in the Abitibi region. It also holds additional interests with base metals and diamond potential in the Nunavik and Labrador regions of northern Qubec.

Canadian Royalties Inc. ups spending at Raglan South Trend project

VAL-D’OR, QUE.–Canadian Royalties Inc. announced in June that it has started exploration at the company’s Raglan South Trend project in Nunavik, Qubec. As a result of an independent technical report by Strathcona Mineral Services, the company will spend approximately $6 million further exploring the Mesamax and TK Ni-Cu-PGE deposits.

Before drilling is to begin, the company is completing a time domain EM and magnetic airborne survey. Once these are completed, Canadian Royalties will test the new targets and go back to further investigate the four already-identified zones on the property.

Canadian Royalties plans to further define the Mesamax and TK deposit by completing infill drilling and testing for possible extensions at both deposits. The company also plans to re-examine historic core from the Expo deposit and complete addition infill drilling here as well. Finally, follow-up drilling will be completed at the Tootoo discovery, the fourth and furthest west of the massive sulphide zones on the property. Last year drilling at Tootoo intersected a 22.03-m interval that assayed 2.0% Ni, 1.91% Cu, 0.11% Co and 3.12 g/t combined Pt and Pd.

Exploration to continue on B20 property

CALGARY, ALTA.–Marum Resources Inc. has received notice from Ressources Appalaches Inc. that the terms of their joint venture on the B20 property near Port-Cartier, Que., have been met and, consequently, both Marum and Appalaches will proceed with an exploration program during 2003.

Drilling to date has outlined a very large, consistent, low-grade nickel-copper system that covers an area measuring 500 metres by 500 metres and extends from surface to a vertical depth of at least 150 metres. The companies hope further exploration will define a high grade, large tonnage Ni-Cu-PGE deposit. This year’s exploration program will include additional geophysical surveys to establish targets for drilling later in the year.