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TerraX Minerals Inc. holds an option to acquire a 100% interest in the Blackfly gold property in northwest Ontario. The property consists of five claims totaling 64 claim units (10 square kilometres) located 10 kilometres northwest of the town of Atikokan, 180 kilometres west of Thunder Bay and 17 kilometres from Brett Resources' (TSX-V: BBR) Hammond Reef deposit, which contains a National Instrument 43-101 compliant resource of 259.4 million tonnes grading 0.80 grams per tonne gold (approximately 6.7 million ounces gold). The geology and known mineralization on the Blackfly property are similar to the Hammond Reef deposit and the Blackfly deposit appears to be along strike from Hammond Reef. During field work at Blackfly conducted in 2009, TerraX identified mineralization over a strike length of 4.4 kilometres and took grab samples that returned assays up to 167 g/t Au.
As does the Hammond Reef deposit, the Blackfly property occurs on the western edge of the Marmion Batholith, which contains a number of phases, varying from tonalite to quartz diorite. Gold mineralization is associated with northeast trending lineaments traceable for up to 80 kilometres within and along the margin of the batholith. The lineaments are thought to represent faults or shear zones. Mineralization occurs in and adjacent to quartz vein systems within the shear zone, and is associated with pyrite and alteration consisting of sericitization, saussuritization, carbonatization and chloritization. Gold-bearing quartz and quartz-carbonate veins were discovered on the Blackfly property around 1897, but the majority of previous exploration took place between 1938 and 1949. This includes the sinking of a 14 metre shaft in 1938. According to the Ontario Geological Survey, mineralization consists of pyrite, galena, and possible arsenopyrite with accessory chlorite, sericite, ankerite and epidote. Sampling by the Ontario Geological Survey produced values of 8.75 grams per tonne gold over 0.35 metres in a quartz vein and 3.44 grams per tonne gold in wallrock. During field work conducted in 2009, TerraX identified mineralization over a strike length of 4.4 kilometres and took grab samples from sulphide-bearing quartz veins that returned assays up to 167 g/t Au. Although the over-riding target for TerraX is a large, low grade gold deposit similar to Hammond Reef, the grades obtained to date from the quartz veins suggests that the property may also have potential for a smaller, higher grade deposit. A Phase 1 drill program completed by TerraX in June 2010 successfully encountered both styles of mineralization, intersecting 8.26 m @ 0.94 g/t Au in altered tonalite, and 1.07 m @ 15.1 g/t Au in a high grade quartz vein (the "Blackfly Vein") that is open down-dip and along strike. In addition, some of the better disseminated mineralized zones were encountered near the ends of the drill holes. On the Blackfly target, hole BF10-02 was drilled behind hole BF10-01 and stopped short of the gold zone encountered at the bottom of this hole. At Blackfly Northeast, BF10-05 hit its best mineralization (1.47 metres of 2.7 g/t Au) in altered quartz diorite near the end of the hole. Hole BF10-06 was stopped short just as it entered this rock unit, prior to intersecting the better alteration and mineralization. Four holes totaling 670 metres were drilled at the Blackfly Target, which consists of the Blackfly Vein and a coincident chargeability/resistivity anomaly identified during TerraX's IP survey earlier this year. Each drill hole encountered extensive silicification with associated pyrite, an important feature in this gold camp, as well as abundant quartz-ankerite veining. Hole BF10-01 intersected 3.96 m @ 0.79 g/t Au in weakly sericitized tonalite near the end of the hole at 130 metres (see Table 1 below). As well, erratic anomalous values (20 to 685 ppb Au) were encountered throughout the entire length of the hole. Hole BF10-02 also intersected locally anomalous values (up to 214 ppb Au) throughout much of the hole. Hole BF10-03 intersected 0.51 m @ 2.22 g/t Au in the Blackfly Vein, and 8.26 m @ 0.94 g/t Au in silicified tonalite with minor pyrite and chalcopyrite. Hole BF10-04 intersected 1.07 m @ 15.1 g/t Au in the Blackfly Vein and 1.48 m @ 0.81 g/t Au in a sericitized mafic dike that has mineralized tonalite shoulders for a total intersection of 3.2 m @ 0.47 g/t Au. An initial drill test of the Blackfly Northeast Target comprised two drill holes totaling 293 metres, targeted solely on IP anomalies. These holes also encountered extensive silicification and pyrite development. Hole BF10-05 intersected 1.23 m @ 0.57 g/t Au, 1.47 m @ 2.70 g/t Au and 1.47 m @ 0.73 g/t Au, as well as intermittent anomalous gold values. The latter two intersections were in a magnetic quartz diorite not previously noted on the property. An intersection of 1.11 m @ 0.79 g/t Au occurred in hole BF10-06 in strongly silicified tonalite with minor pyrite. Numerous isolated intervals of anomalous gold (up to 431 ppb) were present in the hole. TerraX has so far tested only the upper parts of a gold-bearing hydrothermal system, and it is encouraged by the extent of the alteration zones and the associated gold mineralization. It is considered significant that the small drill program on the Blackfly Target encountered both high grade gold associated with major quartz veins, and several intersections of low grade material (the average grade of the nearby Hammond Reef deposit is 0.8 g/t Au) associated with alteration and narrow veins. The Blackfly Vein has been tested only in the upper ten vertical meters; it is open down-dip and along strike. Brett Resources' experience in similar alteration systems is that the width and continuity of the ore improve with depth. In the Hammond Reef A Deposit, many of the shallow drill holes encountered grades of 0.30-0.50 g/t Au overlying much wider and higher grade mineralization. It is also significant that TerraX has only tested a 100 m strike length of the Blackfly Target and a 150 m strike length of the Blackfly Northeast Target, both of which occur on the 4.4 kilometer Blackfly lineament. The remainder of the strike length of this lineament has never been drill tested. TerraX believes the first phase of drilling has revealed significant zones of gold mineralization which are incompletely understood. Our strategy for moving forward at Blackfly will include detailed surface mapping to identify the areal extent of the distinctive rock units encountered in the drilling that contained the gold mineralization. Follow-up trenching and channel sampling will provide better understanding of the structural controls and orientation of these zones. This surface work, which is scheduled for the fall of 2010, will then be used to more accurately locate the second phase of drilling on these gold zones.
Table 1: Mineralized Intersections on the Blackfly Property
All drill core from the 2010 drill program was logged, split and sampled at a secure core facility in Atikokan. Samples were delivered by TerraX personnel to the Activation Laboratories (Actlabs) facility in Thunder Bay. Actlabs is an ISO/IEC 17025 accredited analytical laboratory. Analysis was by fire assay with AA finish. Analytical accuracy and precision are monitored at the laboratory by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the use of international and in-house standards. TerraX routinely inserted blanks and certified standards into the sample stream in order to independently assess analytical accuracy. The technical information contained in this news release has been verified by Dr. Tom Setterfield, P.Geo., who is a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Properties." | |||||||||||||||||||||||||||||||||||||||||||||||||||
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