These new results are consistent with previous drill results for this project: Grades of 2-3 g/t with the odd higher grade interval. A 7 meter 7.21 g/t interval is still pretty good and definitely worth following-up on.
[box type=”info” align=”aligncenter” ]Disclaimer: This is an editorial review of a public press release and not an endorsement. It may include opinions or points of view that may not be shared by the companies mentioned in the release. The editorial comments are highlighted so as to be easily separated from the release text and portions of the release not affecting this review may be deleted. [/box]
MONTREAL, QUEBEC–(Marketwired – Feb. 11, 2014) – Canada Strategic Metals Inc. (“Canada Strategic Metals” or “the Company”) (TSX VENTURE:CJC)(FRANKFURT:YXEN)(OTCBB:CJCFF) and Matamec Explorations Inc. (TSX VENTURE:MAT)(OTCQX:MHREF) are pleased to announce results from two more drill holes from the recent drilling campaign on the Sakami gold project. These new results confirm the intersection of a wide gold-bearing zone at Sakami. Nine holes were drilled during the program, for a total of 1,605 metres.
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Canada Strategic Metals is a company that, until recently, has been focused on graphite. It holds a large portfolio of graphite projects in Quebec, Canada next to TIMCAL’s Lac des Iles Graphite Mine. The company’s optioning of the Sakami gold project from Matamec Explorations last August was no doubt a response to TIMCAL’s June 2013 announcement to suspend production at Lac des Iles due to excess inventories. After all, having graphite plays next to a mine with too much graphite doesn’t look very good. The move to diversify its mineral project portfolio was a natural choice. The company can earn up to 50% in the Sakami project by spending $2.25 million over 4 years and issuing 2 million shares to Matamec.
Matamec has a number of projects on the go, but is primarily focused on its Kipawa HREE (Heavy Rare Earth Element) Project for which they filed an NI 43-101 compliant feasibility study in October 2013.
As we’ve discussed before, option agreements generally require minimum exploration spending commitments by the optioning company that increase as a project advances. If the commitments are not met, the property usually will revert back to the owner. This happens more often than you’d think: Optioning companies may run out of money or change focus, or project economics may change. The main advantage for property owners is that they advance their projects without spending their own money. The risk is that the optioning company mismanages the exploration program and/or gets poor results leaving the owner of the property with unmarketable dead weight.
The Sakami project is located Lake Sakami, Quebec, Canada about 12 km south of the Trans-Taiga Road. We have included a location map below.
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[googlemap src=”https://www.google.com/maps/embed?pb=!1m18!1m12!1m3!1d9542325.01890588!2d-70.25166201541252!3d54.27442944359106!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!3m3!1m2!1s0x4d03da053543f92b%3A0x1b8b19fe27003df1!2sLac+Sakami!5e0!3m2!1sen!2sca!4v1392135162852″ width=”400″ height=”300″ align=”alignright” ]
The objective of the campaign was to validate and extend the historical zone identified by Matamec Explorations between 2000 and 2004 and acquire a better understanding of the spatial geometry of the two main zones in the La Pointe area. A table with the drill holes collar locations is present below.
The Company has received gold assay results for two mores holes, PT-13-66 and PT-13-67, drilled to test and extend the intersection obtained in historical hole EX-22 and recent hole PT-13-65. Holes PT-13-66 and PT-13-67 intersected a mineralized zone that returned 1.18 g/t Au over 15.45 metres from Hole PT-13-66 and 3.78 g/t Au over 27.95 metres, including 4.01 g/t over 22.60 metres and 7.21 g/t Au over 7.00 metres, from Hole PT-13-67. The mineralized intersections and gold assay results from the recent program are shown below, along with the historical drill results.
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Like most gold deposits in this region, mineralization occurs in Archean aged (4+ billion years old ) rock along a structural weakness. Structures like folds and faults act as channels for gold-bearing hydrothermal fluids and on the Sakami property the structure of interest is a large S-shaped fold. Gold mineralization appears to be thickest along the hinge line of that fold.
According to the company, gold mineralization at Sakami is associated with iron sulfides and tourmaline-bearing quartz veins. While a barren quartz vein is generally white or translucent, a “dirty” quartz vein with other mineral impurities is often a good indication of a more complex fluid chemistry and a higher potential for gold mineralization. Tourmaline is a boron silicate with a complex crystal structure and chemical make-up. A sulfide-bearing quartz vein with tourmaline crystals is exactly the sort of rock that would interest a prospector in the field. We’ve included a photo (below) of a similar quartz vein from the Red Lake gold district.
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“The Company is very pleased that all the recent drill results from its last exploration program confirm the quality and potential of the Sakami project,” said Jean-Sebastien Lavallée, President and Chief Executive Officer of Canada Strategic Metals. “We are looking forward to receiving the results for the five other holes drilled during the program.”
The Company will release the results for the remaining holes as soon as they have been received and compiled.
TABLE OF MINERALIZED INTERSECTIONS OF THIS RECENT DRILLING CAMPAIGN
| Hole # | Type | From (m) |
To (m) |
Length* (m) |
Gold g/t |
| PT-13-64 | New zone | 68.85 | 69.90 | 1.05 | 1.27 |
| PT-13-64 | New zone | 171.00 | 171.50 | 0.50 | 3.62 |
| PT-13-65 Including |
Zone 25 | 112.50 126.00 |
138.00 138.00 |
25.50 12.00 |
3.03 4.00 |
| PT-13-66 | Zone 25 | 109.95 | 125.4 | 15.45 | 1.18 |
| PT-13-67 Including Including |
Zone 25 | 126,90 132.25 138.00 |
154,85 154.85 145.00 |
27,95 22.60 7.00 |
3.78 4.01 7.21 |
| PT-13-68 | Zone 25 | 209.8 | 221 | 11.2** | Pending |
| PT-13-69 | Zone 26 | 141.45 | 150 | 8.55** | Pending |
| PT-13-69 | Zone 25 | 192.85 | 199.6 | 6.75** | Pending |
| PT-13-70 | Zone 25 | 65.4 | 85.5 | 20.1** | Pending |
| PT-13-71 | Zone 26 | 48.9 | 61 | 12.1** | Pending |
| PT-13-71 | Zone 25 | 102 | 118.5 | 16.5** | Pending |
| PT-13-72 | Zone 26 | 49.2 | 66.2 | 17** | Pending |
| PT-13-72 | Zone 25 | 107.9 | 130 | 22.1** | Pending |
| * | Length along the core. The Company estimates the true width of the mineralized zone at 80 to 95% of the width intersected in the drill holes. |
| ** | Mineralized zone |
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It is important to note that the 5 holes reported above are the only new results in this release. Everything below is previously reported data. Since the company has included drill highlights in these results this is probably a good time to pull out our calculator and take a closer look at the results.
For PT 13-65 the company reports 25.5 meters at 3.03 g/t including 12.00 meters at 4 g/t. If we calculate the grade of the remaining 13.5 m we end up with 2.168 g/t.
For PT 13-67 the company reports 27.95 m at 3.78 g/t including 22.60 meters at 4.01 g/t and 7 m at within that 22.60 meters of 7.21 g/t. This “nesting” of results is pretty confusing, but if we break it down we get the following:
- 15.6 Meters at 2.57 g/t
- 5.35 Meters at 2.81 g/t
- 7 meters at 7.21 g/t
These new results are consistent with previous drill results for this project: Grades of 2-3 g/t with the odd higher grade interval. A 7 meter 7.21 g/t interval is still pretty good and definitely worth following-up on.
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TABLE OF HISTORICAL DRILL RESULTS ON LA POINTE SECTOR
Zone 25 selected intersections:
| Hole # |
Au (g/t) |
Length* (m) |
From (m) |
To (m) |
| EX-1 | 2.38 | 7.9 | 91.9 | 99.8 |
| EX-2 | 1.97 | 19.85 | 11.15 | 31 |
| EX-3 | 2.13 | 10.2 | 49.8 | 60 |
| EX-5 | 2.12 | 6 | 72 | 78 |
| EX-9 | 2.93 | 4 | 125 | 129 |
| EX-10 | 2.51 | 54.65 | 18.35 | 73 |
| including | 3.52 | 14 | 43 | 57 |
| EX-13 | 2.96 | 8.25 | 160.5 | 168.75 |
| EX-17 | 1.74 | 10.65 | 155.65 | 166.3 |
| EX-18 | 2.04 | 11.52 | 228.05 | 239.57 |
| EX-22 | 4.16 | 21 | 74.25 | 95.25 |
| including | 6.4 | 12.67 | 77.28 | 89.95 |
| EX-23 | 3.6 | 7.45 | 186.55 | 194 |
| EX-25 | 2.72 | 17.85 | 133.1 | 150.95 |
| EX-27 | 1.17 | 8.2 | 162.75 | 170.95 |
| EX-28 | 2.08 | 3.26 | 71.16 | 74.42 |
| 1.98 | 3.73 | 148.59 | 152.32 | |
| EX-29 | 2.09 | 19.5 | 190.5 | 210 |
| 3.43 | 1.5 | 273.5 | 275 | |
| EX-31 | 2.39 | 30.19 | 110.81 | 140 |
| including | 8.03 | 3.82 | 132.14 | 135.96 |
| EX-32 | 1.72 | 22.3 | 117.97 | 140.1 |
| including | 2.17 | 12.16 | 127.94 | 140.1 |
| 12.23 | 0.5 | 130.64 | 131.14 | |
| 3.43 | 3.16 | 136.94 | 140.1 | |
| EX-33 | 4.95 | 2 | 243.25 | 245.25 |
| 3.34 | 3.45 | 260.91 | 264.36 | |
| EX-44 | 1.51 | 6.09 | 169.47 | 175.56 |
| * | Length along the core. The Company estimates the true width of the mineralized zone at 80 to 95% of the width intersected in the drill holes. |
Zone 26 selected intersections:
| Hole # |
Au (g/t) |
Length * (m) |
From (m) |
To (m) |
| EX-19 | 9.22 | 12.55 | 53.8 | 66.35 |
| including | 13.67 | 7.35 | 58.25 | 65.6 |
| EX-20 | 4.07 | 1.35 | 66.75 | 68.1 |
| EX-31 | 2.75 | 1.5 | 63.79 | 65.29 |
| EX-32 | 2.53 | 1.5 | 64.29 | 65.79 |
| 3.41 | 1.5 | 69.82 | 71.32 | |
| EX-48 | 1 | 9 | 49 | 58 |
| EX-49 | 2.69 | 3 | 64 | 67 |
| * | Length along the core. The Company estimates the true width of the mineralized zone at 80 to 95% of the width intersected in the drill holes. |
The 2013 drilling program was managed by Consul-Teck Exploration of Val-d’Or, Quebec, who designed the drilling campaign, supervised the program and logged and sampled the core.
Consul-Teck Exploration implemented QA/QC procedures to ensure best practices in sampling and analysis of the core samples. The drill core was logged and then split, with one-half sent for assay and the other retained in the core box as a witness sample. Duplicates, standards and blanks were inserted regularly into the sample stream.
The samples in secure tagged bags were delivered directly to the analytical facility for analysis. In this case, the analytical facility was the Bourlamaque Ltee laboratory in Val-d’Or, Quebec. The samples are weighed and identified prior to sample preparation. All samples are analyzed by fire assay with AA finish on a 30g sample (0.01-10 ppm Au), with a gravimetric finish for assays over 10 ppm Au.
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As usual, we take note of the company’s QA/QC procedures and the disclaimer regarding the reported interval widths.
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Jean-Sebastien Lavallée (OGQ #773), geologist, shareholder and President and Chief Executive Officer of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
About Matamec Explorations
Matamec Explorations Inc. is a mining exploration company whose focus is developing the Kipawa HREE deposit with TRECan, with the goal of supplying Toyota with HREEs for the production of hybrid and electric cars. The company is exploring 35 km of strike length in the Kipawa Alkalic complex for rare earths-yttrium-zirconium-niobium-tantalum mineralization on its Zeus property. Matamec is also exploring for gold at its Matheson joint-venture property, which is located along strike and in close proximity to the Hoyle Pond mine in Timmins, Ontario. In Quebec, the company is exploring for lithium and tantalum on its Tansim property and for precious and base metals on its Sakami, Valmont and Vulcain properties.
About Canada Strategic Metals
Canada Strategic Metals is an emerging company focused on the exploration and development of a number of projects covering over 20,000 hectares in Quebec. With broad management experience in green technology and junior resource exploration and development, Canada Strategic Metals is well positioned to aggressively advance this promising property portfolio for its shareholders.
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Whether or not this project could develop into an economic deposit remains to be seen: The location is remote and the drilled grades are not particularly high. That said, there IS gold out there and given the high grade grab and channel samples the company has produced there may be much higher grades waiting to be found. Time will tell.
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