Investment Commentary — Manson Creek cited for its potential

The exploration potential of the Parker Lake property, 80 miles northwest of Rankin Inlet, N.W.T., gives Canaccord Capital reason to repeat its recommendation that investors buy a piece of Manson Creek Resources (TSE).

Having recommended the stock at the 46 cents level in October, 1995, Canaccord now sees further upside in the shares, which recently traded at $1.08.

Analyst Graeme Currie describes the Parker Lake project as unique in that it comprises three distinct geologic targets.

Manson holds a 25% interest in the property, along with Cumberland Resources (TSE) and Comaplex Minerals (TSE), which hold 50% and 25%, respectively.

Although Canaccord also recommends both Cumberland and Comaplex, the brokerage firm says Manson Creek offers greater leverage for speculative accounts seeking exposure to a potentially high-grade nickel-copper-cobalt deposit. It believes the key to the joint venture’s potential is the Suluk discovery, announced in September 1995.

Eleven samples, collected over a strike length of 1,800 ft., led to the identification of a nickel-bearing massive sulphide zone measuring up to 16 ft. in length and averaging 3 ft. in width. The average grade from the 11 samples is 3.9% nickel, 2.81% copper and 0.17% cobalt.

Ground geophysical surveys identified a continuous conductor under the Suluk zone, and the structure has been traced over a length of 2,600 ft. In addition, a second anomaly has been identified, 600 ft. to the north.

Exploration will resume in March, in the form of airborne and ground geophysics, as well as drilling.

Other targets of interest on the Parker Lake joint venture include Sandhill (a large, volcanogenic, massive sulphide target) and the Thirsty Lake diamond prospect.

While studying the property’s base metal potential, the joint venture made a surprise diamond discovery in a dyke. Subsequent sampling returned 6,680 microdiamonds from a 17.2-lb. grab sample. Although not economic, the discovery indicates the strong potential for diamond occurrences in the area.

In addition to its Parker Lake joint venture, Manson Creek holds interests in mineral

claims in northwestern British Columbia, the Northwest Territories, Quebec and Labrador.