The Groves nickel copper platinum group metals (“PGM”) deposit is located approximately 15 km south east of Gogama, Ontario. The 28 contiguous mining claims consist of 400 units or 6,400 hectares which cover a magnetic anomaly interpreted as a large gabbroic intrusion. The magnetic anomaly is approximately 12 km long and varies in width from 1 km to 2 km.
A VTEM survey was completed to further define the characteristics of the historical deposit within the magnetic anomaly and to see if similar structures exist nearby.
The cause of the intense anomaly in the north east section of the survey is unknown at present. The Groves project contains an historically reported resource of 500,000 tons (Canadian Mines Handbook, 1957) of 1.5% combined copper (“Cu”) plus nickel (“Ni”) above the 45.7m level in two separate zones. The Ni/Cu ratio was reported to be approximately 0.94 which gives an estimate of 0.77% Cu and 0.73% Ni in the resource. The resource category of the historical estimate was not identified and no comparison of the estimate can therefore be made to the accepted categories. The company has not yet completed the work necessary to verify the classification of the resource and is not treating the resource figure as an NI43-101 defined resource verified by a Qualified Person at this time and therefore the resource figure should not be relied upon.
Within the gabbroic/dioritic core, the southern portion of the two zones is continuous over a 69m strike length with an average historical grade of 0.975% Ni and 1.18% Cu over a 5.85m depth. The northern zone can be traced eastward for 123m at an average grade of 1.56% Ni and 1.46% Cu with a 3m depth, also above the 45.7m level. Both zones are open at depth. Values of 3.41 g/t of platinum and 4.96 g/t iridium have been historically reported over 2.68m. Grab samples up to 4.6 oz Au per ton have also been historically reported on the property. There has been limited historical work on the newly acquired properties.
The VTEM results, in conjunction with initial sampling and mapping, will aid in an exploration program designed to both confirm and expand the historical resource to NI 43-101 standards, and to explore the adjacent favourable geology for similar mineralization.
This project has excellent potential for additional tonnage as a Ni-Cu deposit, particularly at depth in the historical zone and from exploration success from the indicated VTEM structures. It also has very significant historical reports of platinum group metals and gold, which will be strongly focused in the exploration program.
The 2011 drilling program on the Groves property was designed to follow up on historical drilling and a non NI43-101 compliant inferred resource. A 10.5 km all weather access road was built to the drill site and a ground geophysics program consisting of IP and MAG surveys were completed. The results from the drill program were encouraging and future work has been proposed for this property.