GEOTECH

“9 targets, potentially each an economic deposit”

Around 3 weeks ago, an initiating coverage on Equitas Resources Corp. was published as, a few days prior, the company reported to have identified 4 VTEM anomalies and, on top of that, disclosed that renowned geophysicist Alan King will further analyze and interpret the newly generated VTEM data. The industry leading VTEM airborne geophysics exploration technology has discovered numerous new deposits on a worldwide scale as it is capable to “see” below earth’s surface to a depth of up to 750 m (i.e. scan deeper seated rocks for electromagnetic conductivity, first and foremost sulphides). Equitas commissioned the VTEM Plus system, which penetrates to depths of 350 m.

“VTEM Plus utilized last month has allowed Equitas to scan 5 times deeper”

Today, Equitas announced in a press release that King et al. have now identified 9 distinct VTEM anomalies indicating sulphidic nickel-copper mineralization in a depth exceeding 75 m (previous geophysics were capable to penetrate below surface up to 75 m at most). These 9 targets, potentially each an economic deposit, are presented with below map from Equitas and are summarized on the next page. As being the case with other major nickel mining districts on the planet, its deposits typically occur in multiple groups (“clusters”). However, a second Voisey’s Bay style deposit has not been found in the region, yet. Could the additional multiple groups/clusters occur at depths not yet tested? Historical geophysical work on the Garland Property only went as deep as 75 m below surface; the VTEM Plus utilized last month has allowed Equitas to scan 5 times deeper. The Voisey’s Bay Deposit was discovered in 1993 only because of fortunate circumstances of a locally limited erosion exposing mineralization at surface.

Mr. King is the former Chief Geophysicist from Inco/ Vale (today Vale S.A; 40 billion USD market cap; one of the 3 biggest mining companies besides Rio Tinto and BHP Billiton). Vale is the operator of the worldclass Voisey’s Bay Nickel Mine, which is “only” the 7th biggest nickel deposit of the known world, but said to be the most significant one for the Western World. It produces on an annual average 35% of Canada’s nickel production. Nickel’s share on Vale’s global profit is a staggering 35% representing one of the company’s main pillars besides iron ore.

When Voisey’s Bay was acquired in 1996, Inco’s Principal Geologist, Everett Makela, was on the due diligence committee deciding in favor of the 4.3 billion USD take-over. Since February 2015, Makela serves as VP Exploration for Equitas (3 million CAD market cap). In a recently conducted interview, he explained why Garland is “the most prospective area outside of the Vale mine property.”

Anomaly A is modelled as:

• Conductance: 800 Siemens
• Depth: 267 m (below surface)
• Length: 200 m
• The anomaly possibly extends over 2-3 lines (~600-900 m)
• There is a strong coincident magnetic response
• East-west striking (-20° south dipping plate with a dip extent of 50 m)

“The anomaly area occurs 250 m south of a multi-km long East-West lineament interpreted to be part of the Gardar-Voisey’s Bay fault system, a major structural control on emplacement at Voisey’s Bay.“

Anomaly B is modelled as:

• Conductance: 10,000 Siemens
• Depth: 178 m
• Length: 400 m
• The anomaly is observable over 2-3 lines
• There is an adjacent moderate to strong magnetic feature
• East-west striking (-10° south dipping plate with a dip extent of 20 m)

“The east-west strike is notable as being parallel to the Gardar-Voisey’s Bay fault trend.”

Anomaly C is interpreted as:

• Conductance: 400 Siemens
• Depth: 162 m
• Length: 200 m
• Single line response
• East-west striking (flat-lying plate with a dip extent of 60 m)

“This is a well-defined single line response, in a magnetically quiet area at the interpreted suture between the Archean Nain and Proterozoic Churchill cratons, remarkably similar to the location of the Discovery Hill mineralization at Voisey’s Bay.”

Anomaly D is modelled as:

• Conductance: 30 Siemens
• Depth: 20 m
• Length: 300 m
• The anomaly is observable over 6 lines
• Coincident with a magnetic low area
• East-west striking (flat-lying plate with a dip extent of 100 m)

“Conductance is too high for a clay response, and possibly consistent with weak sulphide mineralization, but may also be due to trapped brines at the base of the overlying lake. The anomaly is positioned along a pronounced member of the Gardar-Voisey’s Bay fault system. Lake sediment geochemical data from the Geological Survey of Canada (National Geochemical Reconnaissance open file for Labrador) indicate a combined nickel-copper-cobalt lake sediment anomaly in the overlying lake. The nearest anomalies of this type in the Nain Province occur in a chain of lakes 4-7 km east (an interpreted down-ice direction of glaciation) of the Voisey’s Bay mineralization. The coincident structural setting and geochemical anomaly flags this response for further evaluation.”

Within the survey data, 5 additional anomalies of a more subtle nature were also detected. Commenting on Anomalies G, H, I, J, and M, Alan King stated:

“Most of these are single line or lower amplitude, but usually well-defined Late-Time anomalies. Given the wide 300 m line spacing and the expected low responses in off-time AEM data for excellent conductors, any one of these could be an indication of mineralization of economic mineralization. Other possible conductive sources in the project area include graphitic gneisses and lithologies containing appreciable concentrations of interconnected magnetite grains.”

Anomaly G is interpreted as:

• Conductance: 25,000 Siemens
• Depth: 80 m
• Length: 200 m
• The anomaly is observable over 1-2 lines
• There is an adjacent moderately magnetic response
• 130° striking (-80° southwest dipping plate, with a dip extent of 10 m)

Anomaly H is interpreted as:

• Conductance: 100 Siemens
• Depth: 76 m
• Length: 200 m
• The response has a possible extension over 2-3 lines
• There is a coincident magnetic high signature
• 105° striking (-70° southwest dipping plate, with a dip extent of 10 m)

“The response occurs at the intersection of an east-west lineament with a northeast lineament.”

Anomaly I is interpreted as:

• Conductance: 5,000 Siemens
• Depth: 97m
• Length: 30 m
• Single line response
• The anomaly has a coincident strong magnetic high
• 270° striking (-77° north dipping plate, with a 20 m dip extent)

Anomaly J is interpreted as:

• Conductance: 100 Siemens
• Depth: 34 m
• Length: 60 m
• The anomaly is observed over 3-4 lines westward towards Anomaly I, giving the entire trend a possible length of 1.8 km
• There is a coincident moderate magnetic signature
• 90° striking (-75° north dipping plate, with a 5 m dip extent)

Anomaly M is interpreted as:

• Conductance: 20,000 Siemens
• Depth: 73 m
• Length: 30 m
• The anomaly is observable over 2-3 lines
• There is a coincident moderately magnetic response
• 270° striking (-75° north dipping plate, with a 5 m dip extent)

Commenting on the anomalies, Makela said:

“Results from the VTEM survey are highly promising. Compilation of previous work indicates that almost all of the anomalies represent newly identified areas of conductivity, at the very limit or significantly below depth detection of earlier surveys. None are explained by the available observed surface geology, a mixture of anorthosite, diorite and granite. The east-west strike of the majority of anomalies is notable, in that the major structural controller on emplacement at Voisey’s Bay was the east-west trending Gardar-Voisey’s Bay fault system, a prominent structural feature on the Garland property. Many of the anomalies display good correlation with east-west and northeast lineaments as interpreted from the known geology, magnetics and topography. The observable trends of many of the anomalies, up to 1 km or greater, lend further encouragement for discovery of significant mineralized systems. The overall nature of the interpreted anomalies is in accord with our exploration model for Voisey’s Bay style mineralization on the property being overlain by flat-lying, sheet-like intrusive bodies.”

Conclusion & Background

‘It’s almost a technology story at the same time as it’s an exploration story,’ Hardy said.

Seeing that 9 distinct, and in part extremely strong anomalies were just discovered, one can only look forward excitedly to the start of the upcoming drill program. Accordingly, an investor’s run into Equitas’ stock is anticipated before the drills start turning; as speculating on a drill success at least at one of the 9 targets. As per Equitas’ news today, the phase 1 drill program will complete 4,000 m during the upcoming summer.

On Monday, the Mining Journal (founded in 1835 and according to their own statement “the world’s most respected mining investment and business title”) published an article entitled “Magnetic Attraction” about Alan King, Everett Makela, and Equitas’ President Kyler Hardy, along the prospects of Garland:

“Renowned Canadian geologist Everett Makela emerged from semi-retirement…

Large, high-grade sulphide nickel deposits are rare because they’re difficult exploration targets. Erosion of overlying rocks left Voisey’s Bay’s troctolite-hosted nickel sulphides relatively exposed. Follow-up success in the deeper ovoid structures may not have happened without the initial breakthrough. One of the things that makes Voisey’s Bay even rarer is its close proximity to a deep-water access port, which clearly tipped the economic scales in its favour when it came to development…

Dahrouge, a 45-year veteran of Canada’s exploration scene, said a thorough re-examination of the Labrador Trough Plutonic suite over more than 18 months still came up with a big ‘X’ over Garland, which had one shallow drill-hole that intersected troctolites but was otherwise as lightly explored as the rest of the district.

‘There was a lot of smoke but nobody was able to identify the fire,’ said [Kyler] Hardy. ’Vale had it [parts of the Garland Property] in their repertoire for a number of years and it was high on their exploration target list. When they finally left North America on the exploration side they let everything drop and become available, and that’s where Everett came into the story.’

Or back into the story.

Vale’s airborne EM hadn’t seen too far into the estimated 200m-thick package of rocks sitting over the interesting stuff. Makela thought VTEM would do the trick.

‘It’s almost a technology story at the same time as it’s an exploration story,’ Hardy said.

‘Vale had the VTEM available to them but it was just becoming accepted throughout the company. They’d worked with it in Quebec and a few other jurisdictions but hadn’t got it working in Labrador yet, before they basically decided to pull out of the area. I think it’s a game changer in these deeper seated sulphide systems that we’re looking for.’…

Hardy says ‘Vale’s (former) senior exploration team is enthusiastic about what they’re seeing’. So, naturally, is he.

’What the VTEM survey came up with has actually knocked our socks off,’ he said.”

 

Read the entire press release “King & Makela Identify Nine “Knock-Your-Socks-Off”-Targets near Voisey’s Bay Nickel Mine” here.

Lesen Sie die Nachrichten Geschichte auf Deutsch “King & Makela entdecken 9 ‘aus-den-Socken-hauende‘ Anomalien nahe der Voisey‘s Bay Nickelmine” here.