Magma Metals (MMB) rose by 20% today after the Australian mineral exploration company announced that drilling results at its Thunder Bay North project in Ontario, Canada confirm thick zones of mineralisation.
Six diamond drill-holes were recently completed in the northern part of the Current Lake magnetic anomaly within the Thunder Bay North project in Ontario.
Final assay results have been received for three of these holes.
Each hole intersected thick zones of mineralised peridotite (igneous rock containing iron and magnesium) and two holes intersected massive sulphide veins.
“The presence of massive-sulphide veins is significant as they indicate potential for a massive-sulphide body of high-grade mineralisation within the peridotite intrusion,” said managing director Keith Watkins.
“These results further validate the exploration model for the Current Lake peridotite wherein better mineralisation was anticipated in the central part of the shallow peridotite intrusion to the west of the previous drilling.”
Magma Metals said magnetic modelling of a recent surface magnetic survey indicates the peridotite may extend the entire length of the magnetic anomaly at Current Lake, approximately 1.5km. This magnetic anomaly will be tested by drilling from the frozen surface of the lake in the Canadian winter, scheduled to commence in January 2008.
Assay results from the remaining three holes are anticipated within the next few weeks along with results from a hole drilled at Beaver Lake.
Two diamond drill-holes have also been completed in the southern part of the Current Lake magnetic anomaly, 830m south of the holes described above.
Both holes contained thick zones of peridotite and indicate a similar geometry for the peridotite as that seen in the north.
Assay results for these holes are anticipated in 4-5 weeks.
The next Magma Metals drilling program in Canada is planned to commence in mid-November.
The stock rose by 8 cents to close the day at 51.5cents.
MMB Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
