Thunder Bay, Ontario, January 28, 2020: White Metal Resources Corp. (TSXV:WHM) (“White Metal” or the “Company”) is pleased to announce that it has applied for drilling permits on its 100% owned Seagull Lake Project (the “Property” or the “Project”), northwestern Ontario. The Property, approximately a one hour drive north of the port city of Thunder Bay, is located about 50 km south of Impala Canada’s Lac des Iles Mine (previously North American Palladium) and is about 28 km north of the copper (Cu), nickel (Ni), and platinum group element (PGE) discoveries of Rio Tinto and Panoramic Resources. Recent staking, aimed at covering high priority targets including a potential feeder conduit, has increased the Project size to 7,539 ha comprising 357 single cell mining claims.
Commented Michael Stares, President and CEO of White Metal, “With the recent price of palladium touching on US$2,500 per ounce and prices for other platinum group elements performing so well, we are very excited to be revisiting the Seagull Lake Project and look forward to initiating an exploration program in the coming months. We are encouraged with the interpretations we are able to make from the historical data we have compiled and continue to compile and have identified numerous opportunities which were not explored in previous programs including surface exploration and diamond drilling targets.”
The Seagull Lake Intrusion (“SLI”) is described as being a 10 km diameter, circular intrusive composed of ultramafic rocks with a high olivine content that has been derived from a deep mantle source. Layering and multiple phases of intrusion have been recognized which creates a favourable setting for Noril'sk Type sulphide accumulation. The SLI is located in the Nipigon Plate, which is interpreted to represent the failed third arm of a Proterozoic-aged, mid-continent rift system, the bulk of which lies beneath Lake Superior to the south. This rifting event is interpreted to be associated with significant Cu-Ni-PGE mineralization such as the Duluth Gabbro Complex deposits (Dunka Road, Minnamax, Local Boy, etc.) in Minnesota, USA, the Eagle Nickel Mine (Lundin Mining) in Michigan, USA, and the Great Lakes Nickel deposit in Ontario. The Nipigon Plate area has been compared to the Noril'sk Region of Siberia, Russia, and is considered to be highly prospective for the discovery of new Cu-Ni-PGE deposits. Known platinum group element-copper-nickel zones in the intrusion support the interpretation that Proterozoic ultramafic intrusions in this area of the Nipigon Plate have undergone magmatic processes that are capable of producing large PGE-Cu-Ni sulphide deposits (see Company news release dated March 12, 2019).
Three styles of PGE mineralization have been identified in the SLI: (1) near surface, PGE-rich detrital “black sands”; (2) magnetite associated, PGE-rich layers or “reef-type”; and, (3) sulphide associated, basal Cu-Ni-PGE mineralization, interpreted as “Noril’sk-type”. Although the detrital and reef-type mineralization was the first style known in the SLI, the discovery of Noril’sk-type Cu-Ni-PGE sulphide mineralization became the focus for subsequent exploration programs, which reported from diamond drilling 3.6 g/t Pt+Pd, 0.34% Cu and 0.21% Ni over 2.1 metres and 1.04 g/t Pt+Pd, 0.14% Cu and 0.16% Ni over 16.0 metres (from Pettigrew, 2002). The possibility for the discovery of other styles of sulphide mineralization remains, including Contact-type deposits (e.g., Lac des Iles Mine and River Valley Deposit, Ontario) and structurally hosted high-grade concentrations along regional fault systems. It is important to note that the SLI contains anomalous concentrations of additional platinum group elements rhodium, iridium, osmium, and ruthenium. The current spot price of rhodium is approximately US$9,000 per troy ounce.
Historical Diamond Drilling
The most recent diamond drilling and re-sampling of historical drill holes was completed by Platinum Group Metals (“PTM”) between 2001 and 2005. This work reported encouraging concentrations of PGE from drill core intercepts with the highest concentrations of PGE reported in 2005 (see PTM news release dated 01/04/2005). PTM reported that their exploration drilling had demonstrated lateral continuity of the mineralized zones within the SLI Seagull Intrusion and that they were typically characterized by near 1:1 platinum to palladium ratios, significant Cu and Ni grades and strongly elevated concentrations in the other “rarer PGEs” (Rh, Ir, Os, Ru).
PTM reported on “total PGE” analyses from drill core which in addition to platinum and palladium included the “rarer PGEs” rhodium, iridium, osmium, and ruthenium (Table 1). PTM noted that the concentrations of the “rarer PGEs” were unusually high compared to their global database of PGE mines, deposits and occurrences (see PTM news release dated 22/04/2005).
Drill hole WM05-20, which contains the shallowest intercept to date of the Lower Dunite Reef, between 329.12 and 333.40 metres vertical depth, returned 6PGE (Pt, Pd, Rh, Ir, Os, Ru) plus Au concentrations (“6PGE+Au”) of 2.13 g/t over 4.28 m, including 3.93 g/t 6PGE+Au over 1.72 m, and 9.96 g/t 6PGE+Au over 0.44 metres. PTM also reported a high-grade intercept from the Peridotite Zone (drill hole WM00-05) that returned 7.63 g/t 6PGE+Au, within a broader intercept of 1.55 metres grading 4.07 g/t 6PGE+Au.
Re-sampling of quartered drill core from the Lower Dunite Reef Zone (drill hole WM00-01) returned 1.84 m of 2.30 g/t 6PGE+Au within a broader zone, between 577.3 and 581.54 m vertical depth, of 4.24 m grading 1.76 g/t 6PGE+Au. PTM’s re-sampling also confirmed the presence of the Upper Dunite Reef Zone in hole WM00-01 over a 3.27 m interval between 533.14 and 536.41 m, grading 0.57 g/t 6PGE+Au. Re-logging and re-sampling of drill hole WM00-06, collared approximately 600 m east of hole WM00-05, also intersected the Peridotite Zone and returned 1.20 g/t 6PGE+Au over 1.06 m between 390.23 and 391.29 metres. Hole WM00-06 is 1,150 m (1.15 km) southwest of the previously reported high-grade Peridotite Zone intercept of 6.21 g/t 6PGE+Au over 0.65 metres in drill hole WM04-17. Both the Upper and Lower Dunite Reefs were also identified in hole WM05-22 which returned lower concentrations of PGE.
PTM noted that historical PGE-Cu-Ni intercepts from the SLI compare favourably to the famous Merensky Reef in South Africa’s Bushveld Complex with known mineralized horizons at the SLI being considerably shallower than those currently being mined and explored in South Africa.
In addition to its ongoing data and information compilation and interpretation, White Metals’ proposed exploration program will comprise surface induced polarization (IP) geophysical surveys to target contact-type sulphide mineralization and targeted diamond drilling in areas of historical high-grade intercepts (i.e., those reported by PTM) and also the testing of Pulse-EM, off-hole geophysical anomalies which were never properly tested. The Company is also planning other lower priority drill holes and will examine the possibility of drill-testing a strong magnetic anomaly considered to be the feeder zone or conduit for SLI magmas and potentially the source for its Cu-Ni-PGE sulphide mineralization.
Technical information in this news release has been reviewed and approved by Dr. Scott Jobin-Bevans (P.Geo.), Vice President Exploration and a Director of White Metal, who is a Qualified Person under the definitions established by the National Instrument 43-101.
About White Metal Resources Corp (TSX-V: WHM):
White Metal Resources Corp is a junior exploration company exploring in Canada.
For more information in regards to White Metal Resources Corp. you can visit the company’s Web Page at www.whitemetalres.com.
On behalf of the Board of Directors of White Metal Resources Corp.
President and CEO, Director
For further information contact:
684 Squier Street
Thunder Bay, Ontario, Canada, P7B 4A8
Phone: (807) 628-7836
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