First Narrows options Falls Creek property
2006-08-17 10:19 ET - News Release
Mr. Peter Gummer reports
FIRST NARROWS OPTIONS TUNGSTEN-MOLYBDENUM PROPERTY IN NEW BRUNSWICK GRAB SAMPLES ASSAYED UP TO 5.83% TUNGSTEN AND 0.62% MOLYBDENUM
First Narrows Resources Corp. has entered into an option agreement to acquire 124 claims (the Falls Creek property) situated 40 kilometres south of the company's Chester property and 27 kilometres north of the village of Boiestown, in the little explored regions of New Brunswick's central highlands. The property consists of seven claim blocks (1,984 hectares or 4,960 acres) on which numerous tungsten-molybdenum mineralized boulders have been discovered within coincident soil geochemical and IP anomalies, all of which remain undrilled.
The Falls Creek property has been acquired under option from Anthony Johnston and Delbert Johnston, effective Aug. 14, 2006. Subject to regulatory approval, the company has the right to earn a 100-per-cent interest in the claims by issuing 90,000 common shares as an initial option payment, and up to 240,000 additional common shares to the Johnstons over the ensuing six years. The Johnstons retain a 1.5-per-cent net smelter royalty, 50 per cent of which the company may purchase at a cost of $500,000.
The company will immediately proceed with a technical report, prepared in accordance with National Instrument 43-101, on the property to document the historical work and recommend an exploration program. Earnest Brooks, PGeo, is the company's qualified person for the Falls Creek property. Mr. Brooks was formerly mine and exploration geologist for Brunswick Mining and Smelting.
Background on the Falls Creek property
Tungsten (W) and molybdenum (Mo) mineralization was discovered in widespread boulders in 1982 by Delbert Johnston on what is now the Falls Creek property. Consequently, claims were staked and optioned to various exploration companies. Records indicate that historical work consisted of prospecting and limited soil geochemical and IP geophysical surveys. Scheelite, molybdoscheelite, wolframite and molybdenite (the main economic minerals of W and Mo) mineralization is reported in boulders of altered granite, pegmatite and quartz veins along a strike length of up to 4.5 kilometres and across widths of 200 metres or more on the east contact of the Dungarvon granite and in the intruded country rocks of sediments, and mafic and felsic volcanic rocks.
Although the historical soil geochemical survey delineated W-Mo anomalies, and although the historical IP survey delineated an IP anomaly associated with both the soil anomalies and the mineralized boulders, the targets remain undrilled today.
Grab samples taken during the historical surveys returned as much as 5.35 per cent W. Confirmation assays on grab samples from boulders with coarse molybdenite mineralization collected by Mr. Brooks, the company's qualified person, during an initial property visit, returned values up to 0.62 per cent Mo. During a second property visit wolframite and molybdenite were also observed by Mr. Brooks as small, less-than-five-millimetre crystals in altered granite. Additional analyses are pending on samples collected during the second property visit. Earlier records report wolframite crystals up to 10 centimetres in length in boulders of quartz. The Falls Creek property is part of a classic W-Mo-tin-uranium (Sn-U) metallogenic belt that occurs in New Brunswick's central highlands. Although significant W-Mo mineralization has been observed in many boulders on the property, there has been little sustained exploration activity over the years. The property is considered by management to be significantly under-explored and has potential to host economic W-Mo-(Sn-U) mineralization.
