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This we can agree on...
If this was a flyby-night company working in a third-wrold country, then I might agree with you. And if I didn't know some of the players, then I might agree with you.
From various emails, etc I honestly think that Ken thought the market would react positively to the pre-Xmas PR. I have not spoken directly to Ken, so this is third-hand information.
REEs are the big topic in the markets and he probbaly believed that having some elevated REE concentrations would satisfy investors. Well all know the results...
Your suggesting someting else.... which I respectively disagree with.
As Spock would say "that is illogical"...
So they found nothing so they staked more claims immediately before releasing results? You will have to explain this one to me.
Re-read his post....
He was referring to Hole #1. Hole #2 is where REEs were noted and samples sent to the lab in Vancouver.
Believe me, I know a LOT more about NL geology and history than you will probably ever know... Seen and mapped the rocks. I even mapped the area where Cornerstone and Vale have their JV.
First a little correction.
A pull apart zone would actually form a basin, in fact they are typically referred to as pull apart basins. And this follows the rift model for this portion of the island. A good example of such features would be Death Valley and the rest of the Basin and Range Province in the Western US.
And as this is a structural feature they should all line up as I proposed in an earlier post.
In the oil industry a basin as a slightly different meaning. In this case a quiet ocean environment that accumulates critters that will eventually turn into hydrocarbons. They are not looking for "basin mineralization" in the oil industry.
If you go to the same GIS site and turn on the surficial geology layer, then turn on glaical striations you will note that there is more a trend to the immediate east rather than northeast. So it doesn't appear that glacial transport connects these claims.
The actual Cu belt could be related to a structural trend/feature in the bedrock geology as opposed to glacial till.
Balihi, are you trying to get me in trouble? Powerful people are watching this board and may report me... ;^)
In any case, I would suggest you look at some of the other REE players to get a comparison. That is what I did... and I believe I mentioned it in an earlier post.
Ahhh yes the moratorium. Sad times and all due to factory freezer trawlers from foreign countries pillaging the ocean floor. From what I hear (left the island over 15 years ago, but still a proud Newfie) it hasn't recovered entirely because the nose and tail of the Grand Banks stick outside the 200 mile limit, therefore international waters. So the pillaging continues, but I think at a slightly lower rate, since the fish are not as plentiful!
The fishery collapsed and left a LOT of Newfoundlanders out of a job. However, times are a LOT better now with natural resources picking up. Hopefully KATX can add more jobs in the near future.
And - it was a nice finish today. I was waiting for a pullback at the end, but it held 0.04s!
BTW - I hope my mentioning of the NL fishery will not get me in trouble with any geology boards or any other site! ;^)
Any green close is good.
And with REE-related stocks heading a lot higher KATX will benefit by having some good numbers and getting on the REE radar.
The mapping of glacial transport works well on the mainland, but not that well on the island (see the history of diamond exploration in Canada). The reason is that most of the movement was off to the Grand Banks, which of course is underwater.
There is a reason NL is affectionately known as "The ROCK"... most of the topsoil was removed and deposited on the Grand Banks!
The core will tell you how prevalent the REEs might be. If they are related to a particularly geologic unit, then obviously further drilling would determine the extent of this unit and hence possble mineralization.
Is it laterally or vertically continuous, etc.
It would be isolated insofar as being probably hosted to a particular geologic unit.
Relikwie,
I may have to start charging a consulting fee... ;^)
A mafic dyke already has a lot of Fe, which is part of the definition of mafic: Mg and Fe.
Some mafic igneous rocks have a natural low magnetic field due to the amount of Fe in them... in fact ultramafic rocks are extremely hard to get structural information from because the compass needle goes crazy when you are standing on one.
So the magnetism might be just related to the Fe content (not enough to be Fe ore) or, as you suggest, it could be related to alteration. Without seeing the rocks that is as far as I can go.
Hydrothermal processes are related to dykes, but not all the time. If it is just a feeder dyke, then chances are lower as it is not a hydrothermal process. What you need are late stage melts from an intrusion or deep circulating meteroic (groundwater) or ocean water that will crystallize or precipitate minerals enriched in incompatible elements.
This relates to your next question regarding the location of the hole #1 in regard to the anomaly. Deposits are typically associated with the edges of intrusions, that is true. However, in this case they did not mention any intrusion, except for the dyke. The conglomerate records a period of quiescence, if it is sandwiched between volcanic flows. It also records large amounts of water and a high energy environment, which is needed to round the cobbles, etc that make up the conglomerate. So going only by the limited information offered in the PR, it would seem that water was nearby and subsequent volcanic flows covered the area several times. The water would then get heated and probably mobilize Fe, etc that then passed through the permeable and porous conglomerate, which is the origin of the hematite alteration. And could also explain the magnetism in the dyke(s).
The REEs appear to be related to peralkaline, felsic volcanism in the area and not the mafic volcanism, so I have my doubts that REEs would also be within the hematite altered conglomerates.
Again, this is my interpretations based on limited data, but I have done a LOT of mapping in ancient volcanic terranes.
In regards to hole #1... the information that we have been provided to date is not that interesting; however, as many posters have noted, the OD deposit had many barren holes too. I would need to sit down and make a comparison between the OD holes and this one to give a better "go or no go" regarding furhter exploration.
The second hole.... this one is more interesting. It seems they intersected a large mineralized volcanic unit. We know we have elevated REEs at the 'top', so the remaining core is important.
I think if the initial numbers are the best, they still could justify a few more holes around this anomaly, particularly as it is not as deep as hole #1. But that depends on their $$$. And their priorities.
Hope this helps.
Unfortunately it is not that easy as a dyke follows weak areas in the rock (i.e., cracks, fractures, etc) as opposed to volcanic flows sedimentary units, etc that get deposited in semi-flat "sheets" so therefore you have some control.
However, in some cases, if the dyke is a lot different than the surrounding country rock it will show up on some types of geophysical surveys. Is also helps if it is a large dyke or the resolution of the survey is small.
Hey Onemo - thanks.
A dyke can be a feeder, in this case probably feeding the mafic volcanism in the area. In addition, the rocks themselves can be uplifted, folded, and tilted. I worked in an area where the rocks were all tilted 90 degrees, so the first thing you had to determine was which way was "up".
Hope this answers your question.
From a purely geologic point of view I would like to see the mafic dyke since mafic melts are silica undersaturated, therefore would rarely have quartz....
Hey Mappo - I appreciate the comments. Claims "staked" prior to the release of drilling results typically indicate that the company feels that the results are good enough to expand their land position. They have the ultimate 'insider' information as they know the results.
This would give the impression that Ken and co. have a very strong feeling about their properties. But both times the results were not amazing. The results from both properties show promise and I think the new discovery at HC has a lot of promise given the descriptions, etc.
In the case of RR... the initial REE results were above background (not economic), but they noted continued mineralization for another 200+ meters. I really think that Ken thought the market would react more positive and I only have my opinion on this. However, the hype for OD-type mineralization and the lack of positive info from hole #1 was too much to overcome.
We are waiting again for these deeper results, but I hope they wait until they have them all and take their time to put together a more concise PR. Of course I would not complain if they release REE results that are > 5% TREO with > 50% HREO this week! ;)
Without any captions it is a hard call, but I have seen many altered mafic volcanics in core in my time.
I actually think it is from hole #2. And the reason I think that is because of the REEs and the purple mineral, which appears to be fluorite. Y can substitute into its formula, as well as LREEs. So that might be the origin of some of the results. I had post a few days ago that went through some of the possibilities.
Again, welcome aboard!
PS. Great volcanics in Oregon, but I am use to looking at really OLD rocks in the Abitibi!
Leave for a day or so and all hell breaks loose...
Good to see that another geologist is looking into KATX and from what I have read as an even keel on what has been posted, etc.
I agree with most of what you posted, only minor details that are more pure geologic in nature.
The only disagreement I have is in your interpretation of the "conglomerate", which I believe is more an altered intrusion, particularly as I do not see any rounded clasts in the presented photo. But we have a photo without a scale, or caption.
Basalt by itself is not economically interesting. Basalt is easily metamorphosed/altered due to its chemistry, but that does not mean that it an automatic host for hydrothermal mineralization. And VMS-style mineralization is associated with a marine environment and this is a rift (subaerial) environment.
So I would agree that if there were only trace/rare amounts of cpy or native Cu in a basalt host that a limited amount of analyses were collected from hole #1.
Jayree,
I was a little off on my estimation on the location of RR with respect to the tectonic evolution of NL. I thought that RR was more centrally location, but the property is actually located very close to the suture zone between the Avalon and Gander Zones. Geology in the Avalon Zone is more akin to Europe, in particular the UK. As NL represents the opening and closing of an ocean basin, the rifting part would be associated with the opening sequence.
During rifting the continental crust is thinned such that mantle material is able to rise and melt (due to decompression) forming mafic magmas. This is the first step in forming a new ocean (i.e., East African Rift zone, which is dominated by mafic volcanism).
So it would begin as a terrestrial environment. The identification of conglomerates in hole #1 support this interpretation as conglomerates are formed in rivers and/or coastal environments, not marine.
Sorry for my original misrepresentation. Mafic volcanism would still be dominant in this tectonic environment, just not subaqueous.
Call me crazy, but I did add below 0.03. Not much, but I figured that at the very least we would have a bounce off the lows.
After verified results and good results I will add more during the ride up. I am not a "to da moon" person, but with good REE numbers it should go north of 0.10.
From their statement of mineralization and the photos in the PR, I would assume that they observed possible REE-hosting minerals (I discussed this in a post yesterday or the day before) throughout the felsic volcanic sequence intersected in the drill hole #2. I say possible because REEs sometimes replace other elements in the crystal structure, so any exact estimate of how much might be there is hard to assess. And volcanics are fine-grained rocks too.
From the PR they know they had elevated LREEs (which basically means above background), which is why they sent the samples to another lab to get the complete suite of REEs at better detection limits. And from this they found elevated TREOs in a 7+ meter intersection in the felsic volcanics. So potentially they have another 200m of core with elevated REEs.
Now we are waiting to see if they are concentrated enough to be of economic value.
This is opposite to what I perceive from Hole #1, as Cu-mineralization is easier to identify (i.e., chalcopyrite) and an experienced geologist can give a good estimate to the % of Cu in the core based on a visual estimate, as well as Fe%, etc.
I appreciate the vote of confidence..
I think we both agree that there has been a lot "confirmed" about these results from both sides; except from KATX themselves.
I try not to engage on the hypothetical side and privately shake my head at the various outrageous postive and negative statements made here.
At the sametime I am an investor here, so obviously I want them to succeed.
Cheers and Happy New Year!
With all due respect and also not to try to sound like a pumper, but until KATX releases an official PR or publishes the results in a table on their website (per the last PR) this cannot be verified.
Obviously, if you or someone you truly trust has spoken directly to KATX with this information, then you can trust it. But for others it is not verified... yet.
I am not saying I believe there is something of value in this hole as the PR implied that there was not, but the PR also did not quote any assay numbers or even state they had any results for that matter.
If it is one large homogeneous unit, then it is possible that heavier/densier minerals would be concentrated toward the middle, as the melt cools from the top and bottom leaving the interior a melt longer. The melt in the middle would become more "concentrated" in incompatiable elements until they are saturated to the point they start crystallizing.
However, if it is a stratified unit, in this case numerous volcanic flows. Then it is possible that there would be multiple zones of higher concentration through each flow (cooling) unit, as each volcanic flow would cool/crystallize in the manner I decribed above.
In addition, you have to factor in what happen at this interval. Did the upper volcanic unit get eroded, either by weathering processes, or even by subsequent eruptions. This would change how they make their interpretations of the drill core and possible indirect evidence of elevated REEs at depth.
I wish I could tell you... then I could trade confidently here! ;)
There is no way to tell without lab results. Unless you have huge crystals of bastnaesite.
From the photos attached to the PR they probably have fluorite and a variety of fluorite, yttrofluorite, contains yttrium. Also, zircon contains small percentages of yttrium too and they had some elevated Zr results, which suggest some zircon.
Beyond that we do not have any information to even guess at the REE content of the lower part of drill hole #2.
Many factors to consider for the economics of it. I would like to see closer to 2% TREO with >30-35% of that HREO.
At 1.25% TREO, I would like to see >50% HREO. HREEs are the big driver in the REE market.
With these numbers, the REE market will take notice of KATX. Right now they are not part of the REE spec plays. Not with these limted and low results.
Agreed, but KATX needs a lot higher grades, in particular HREE, to get that crowd to notice.
Look here for the movers in this sector:
http://www.streetinsider.com/Insiders+Blog/Rare+Earth+Frezny+May+Reach+Crescendo+Shortly+As+Micro-Caps+Get+In+on+the+Action/6186408.html
I think it would be difficult with only one hole to understand where to look next. They could use the geophysical model and overlay the known stratigraphy to give them an educated guess, but it would still be a guess.
Jayree,
The described magnetic mafic dyke probably has no significance with respect to mineralization. Mafic desribes an igneous rock that has Mg and Fe (MAgnesium and ferRIC [or iron]), but it still dominantly silica (around 48-52 wt% SiO2).
Because of the iron content it can be magnetic. In fact, paleomagnetism uses the ancient alignment of Fe in mafic rocks (which comprise the oceanic crust) to figure out pole reversals and location of the plate through geologic histry. Once the mafic metls drop below the Curie point the iron atoms are not longer able to move around, so in any mafic rock it records the direction to the north pole at the TIME it cooled.
Anyways, I little over board on the explanation... hope this answers your question.
SKF,
Conglomerate is a sedimentary rock composed of large, rounded clasts, thus it is very porous and permeable. It is typically cemented together by precipitated calcite or silica. So the pore spaces are large. Aleration, in this case hematite, occurs during metamorphism, or in this case metasomatism, which basically describes hydrothermal fluids passing through the matrix (which is geo-talk for the cement) of the congomerate and replacing the original cement with hematite. I do not like to decribe it as Fe-ore, as that implies it is at a high enough grade to be profitable. We do not know this yet.
This is why is is also important to know the thickness of this conglomerate.
Another thing to consider is... did the hydrothermal fluids transport anything else of economic importance? And, if so, where would this "deposit" be located in relation to hole #1? Is it related to the REEs in Hole #2? This is what I find interesting...
Relikwie... yes typo on my part.. my REE comments were directed as being from Hole #2 as that is all they really told us.
From their PR, it seems that they observed native Cu and probably chalcopyrite throughout the section, but not at high enough percentages to indicate economic values. Use of the word "indications" suggest that they do not have any assay results back from this hole... ???
We are again left to figure it out for ourselves...
Because they is no indication that we have it...
Why waste your breath on something until we get some info. No photos to suggest massive amounts of hematite, no assay results, no intersected thickness mentioned...
It is not ore unless you can make some $$$.
At the present results... no.
So we need to wait on the remaining assays... and we will only really know after a FS is completed.
Wow - has anyone checked on some of the other pre-market REE plays.... big open. Need to check the newswire for info!
I have to disagree with you...
Lawsuits are out of control, but not to that degree and not in the mining section.
Are you imply that every possible mining operation is hit with litigation? Because that is not true.
Environmental impact reports are designed to ease the publics concerns about any project. Obviously if the company does not adhere to the EIR, then they would be sued, etc.
I am not familiar with the example you state, but I think that there are a lot more examples of mines starting with any problems.
Most definitely... most of the gains will be leading up to production....
Don't you think the RED code would be better for the Canadian link? You should study up before your test....