Canadian Orebodies (CO-V) has started early-stage exploration in the “Ring of Fire” in the McFaulds Lake area in the James Bay low- lands of northern Ontario. According to CEO Gordon McKinnon, the company has varying ownership interests in 14 claim blocks totalling about 536 sq. km.
The company’s land position in the area includes: 104 sq. km with a 100% ownership interest, subject to a 2% net smelter return royalty (NSR); 96 sq. km with an option to earn 60% by spending $3.25 million on exploration over three years; 131 sq. km in a joint venture with a 50% ownership interest, with the other 50% shared equally between MacDonald Mines (BMK-V) and Temex Resources (TME-V); and 204 sq. km where the company owns a 1% NSR interest.
One of Canadian Orebodies’ projects is located about 2 km from the border of the property where WSR Gold (WSR-V, WSROF-O), Arctic Star Diamond (ADD-V, ASDZF-O) and Metalex Ventures (MTX-V, MLXVF-O) announced in June a 95-metre intersection of volcanic-derived sulphide mineralization. (The Canadian Orebodies project is included in the package where the company has an option to earn a 60% interest.)
The company also has a 1% NSR royalty in another property bordering the project jointly owned by WSR Gold, Arctic Star and Metalex.
At the end of May, the company announced the completion of an airborne geophysics survey over its 100%-owned projects, and McKinnon says that the survey has identified many targets.
The survey outlines a number of magnetic highs, which could be caused by the presence of ultramafic rocks, with or without sulphide mineralization. The company is also conducting an airborne geophysics survey over the projects where it has an option to earn a 60% interest.
McKinnon is planning to use the summer to build the exploration camp and, subject to accessibility, conduct ground geophysics surveys and fieldwork on targets identified by airborne geophysics.
Drilling during the summer is going to be largely dictated by accessibility, so it is going to be limited. He is planning larger-scale drilling during the winter, when accessibility is good. Initially, drilling will be done to a depth of 150 metres.
Aside from its projects in the McFaulds Lake area, Canadian Orebodies also holds the Coral Rapids and Hawkins projects in Ontario.
In May, the company raised $3 million in a private placement that included shares, warrants and flow-through shares. Currently, the treasury holds $2.8 million, and there are 58.7 million shares fully diluted.