VANCOUVER —WSR Gold (WSR-V, WSROF-O) got a healthy boost following news that the sixth drill hole into its Ring of Fire joint venture, in the James Bay lowlands, hit a significant width of volcanic-derived sulphide mineralization.
At the Anomaly 5.01 claim block, which sits 45 km north of Noront Resources'( NOT-V, NOSOF-O) Eagle One discovery, WSR hole 6 encountered a strong sulphide zone starting 73 metres down-hole and extending 95 metres. Hosted in highly altered felsic volcanics, WSR’s consulting geologist John Harvey described the intersections as containing visible copper, zinc, lead and iron sulphide mineralization in semi-to near-massive sulphides.
Hole 6 was a 50-metre stepout from hole 1, which cut 11 metres of near-massive iron, copper, and zinc sulphides. Four additional holes along the same section encountered three main parallel, steeply dipping core lengths of sulphide mineralization with visible copper, zinc, lead and iron sulphides in an altered volcanic sequence. Hole 3, for example, returned 13.7 metres of semi-massive iron copper sulphides from 56 metres down-hole, followed by 7.7 metres of iron, copper and zinc sulphides from 76 metres depth and 18.6 metres of iron, copper and zinc sulphides from 92 metres depth. None of the first five holes, however, were as well mineralized as hole 6.
WSR is managing and operating the Anomaly 5.01 project in order to earn a50% interest in the claims from Metalex Ventures (MTX-V, MLXVF-O), which holds a 91.5% interest, and Arctic Star Diamond (ADD-V, ASDZF-O), which owns the remaining 8.5%. Under an agreement signed in early 2008, WSR must spend $20 million over four years to earn its 50%.
Anomaly 5.01 is just one of 21 potential Noront-style electromagnetic- magnetic anomalies on the joint venture’s claim block. The area also hosts 19 additional electromagnetic conductor anomalies. WSR has cut ground grids and completed ground electromagnetic and magnetic geophysical surveys on 16 of 21 Noront-style anomalies; drill-hole targets have been identified on three. Anomaly 5.01 was the first anomalous target ready for drilling.
And the Metalex-Arctic Star joint venture is not WSR’s only Ring of Fire project. In three separate agreements, WSR agreed to operate the exploration on a total of 17 claim blocks totalling more than 370 sq. km on the northeast corner of the Ring of Fire on behalf of partners Noront, MacDonald Mines Exploration (BMK-V), and Metalex. WSR can earn a 50% interest in the Noront claims and a 75% interest in the MacDonald claims.
In the last few months, the company has built a 20-person exploration camp, prioritized exploration targets, undertaken an extensive ground geophysics program and begun a 2,500-metre drill program.
The Ring of Fire is an arc-shaped greenstone belt encompassing Mc- Fauld’s Lake and outlined by geophysical surveys that have yielded clusters of mineralization, including the Noront discovery.
In order to finance all of its various Ring of Fire projects, in April WSR closed a $9-million financing. The company issued 11 million units at 50 apiece, comprising one share and half a warrant, as well as 5.8 million flow-through units at 60 each, comprising one flow-through share and half a warrant. Warrants are exercisable at 65 for one share within 24 months.
The financing left WSR with $14 million cash in hand.
News of the intersection from hole 6 boosted WSR 13 to close at 79. The company has a 52-week trading range of 20-$1 and has 111.5 million shares issued. Metalex gained 2 to close at 38.5.