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James Bay Lowlands Nickel Project, Ontario
The James Bay Lowlands Nickel Project is located in the "Ring of Fire" area, 20 km north of Ogoki, Ontario at its southernmost point. The property package extends discontinuously over a strike length of more than 250 kilometres, with portions situated within 12 kilometres of both the Double Eagle Ni deposit and the McFauld's Lake VMS deposit. Size: The land package comprises over 407,400 acres within 724 claims. Ownership: Diamondex has just entered into an Option agreement with Canada Nickel Corp. for a $20,000,000 work commitment and $5,000,000 cash payment allowing them to earn up to 51%. Diamondex is the Operator. Assets: The property is situated in the highly prospective James Bay Lowlands "Ring of Fire" area, host to Noront Resources' significant Double Eagle Ni deposit, as well as the McFauld's Lake VMS deposits. Diamondex has acquired the most prospective ground within the sub-Paleozoic extension of the large-scale stratigraphic package hosting this mineralization. This arcuate volcano-sedimentary belt also appears to connect to the Norton Lake Ni-Cu deposit located 120 km southwest of the Double Eagle deposit. The property falls within the Kyle Lake kimberlite cluster, and is approximately 65 kilometres southwest of De Beers' Victor Diamond Mine. The area has clear and demonstrated Ni, PGE, Cu-Zn, and diamond potential. Overview: As a result of Diamondex's ongoing diamond exploration in the James Bay area, the Company was able to secure a dominant ground position for nickel exploration by leveraging its field presence together with proprietary data (including high resolution magnetic surveys). The property includes key positive magnetic anomalies, which are typical of mafic and ultramafic lithologies and prospective for Ni mineralization, along the entire length of the newly-interpreted volcano-sedimentary belt. Forecast 2008: As there are a few known rock outcrops in the staked area, Diamondex will rely heavily on the accurate interpretation of geophysical surveys to identify viable drill targets. To that end, Diamondex has recently completed a 5,105 line km VTEM survey over the eastern block of the Project area. This survey was successful in discovering 35 discrete late time basement conductors which are interpreted to be excellent targets for magmatic sulphide exploration. The interpreted strike lengths of the conductors range from 300 metres to 1,600 metres. Geotech Ltd. has been contracted to fly VTEM over the remaining claim blocks of the Property (Areas 1 and 3) (see picture at top of page). This 8,000 line km survey is expected to commence shortly. During this summer season, Diamondex and Canada Nickel will follow-up selected high-priority airborne anomalies with detailed ground geophysical surveys to further assist conductor characterization and ranking (including width, dip, depth, and ultra-low frequency EM response). These efforts will aid in the target selection for the initial diamond drill test program which is expected to get underway during Q4 of 2008 and be completed during Q1, 2009. It is expected that approximately 16 targets will be tested during this period. | | |||||
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