Vancouver, BC (PRWEB) April 17, 2012
(Financial Press) – Canada-based resource exploration firm Black Smoker Ventures has announced it has received the drilling permits required to commence drilling its highly prospective Fox Lake property located in the province of Manitoba.
This is a major step forward for Black Smoker, a company that has positioned itself such that it possesses many advantages in the area of natural resource and development. The company has managed to reduce or eliminate many of the risks inherent to resource exploration while maintaining sizable potential rewards.
For example, the Fox Lake project has previously proven to be economically viable as it is a past-producing mine. During its operation, the mine produced more than 400 million pounds of copper. The project is surrounded by the infrastructure necessary for mining. Fox Lake is located about 45 km south of Lynn Lake, Manitoba. The town was founded more than 60 years ago around a community that was there to build and operate mines. The town was founded and grew due to significant nickel, copper, and gold discoveries in the area.
Furthermore, the project’s proximity to other major mines and the fact that it’s in an area with a long history of mining ensure there is sufficient transportation networks, energy, equipment, and personnel in the immediate area. For example, Black Smoker’s project is located adjacent to Provincial Highway 396, a paved road.
Another advantage inherent to the company is that Black Smoker is targeting a Volcanogenic Massive Sulphide (VMS) deposit. VMS deposits are usually extremely rich in high-grade mineralization. In Canada alone there are more than 300 known VMS deposits which account for 27% Canada’s annual copper production, 49% of its zinc, 40% of its silver, and 3% of its gold.
That’s where the Black Smoker story began. Now it’s jumping ahead to the next step.
In an announcement on April 10, 2012, Black Smoker stated it is initiating a 1600 meter drill program. The program will be focusing on a high-potential target that could result in a major discovery.
The Fox Lake mine was previously operated by Sherritt International. Sherritt initially estimated the Fox Lake deposit to contain reserves of 13.1M tonnes at 1.99% Cu and 2.35% Zn. This estimate is historical and not compliant with NI 43-101 standards and has not been revised since the closure of the mine.
Sherritt closed up the mine and halted exploration in 1985 but much of the historical information, models, and knowledge of the project remained.
Black Smoker has acquired that information along with the project. Through its own analysis of the project and its own geological studies, the company has determined there is ample exploration opportunity on the project for a number of reasons.
First, historical exploration of the Fox Lake deposit never tested the VMS mineralization at depth. The previous owners of the property and the Fox Lake mine stopped drilling at 1200 meters and never used any modern exploration techniques or equipment to drill deeper.
They stopped drilling deeper even though mineralization was actually growing richer as it went deeper. Historical drilling data revealed high-grade copper grading as high as 4% at depth in the Fox Lake mine. This is high grade even for a VMS deposit with as rich a history as Fox Lake.
Black Smoker has brought modern drilling and geological testing techniques to the project as well. Modern exploration efforts conducted by the company have identified a geophysical conductor extending as deep as 2000 meters, adding a potential 800 meters of depth to the potential resource base on the Fox Lake mine portion of the property.
In addition to the opening for further exploration at depth, there is also potential mineralization across a far greater area than was originally estimated.
Discovery International Geophysics Inc. successfully completed an HT Squid TDEM survey overlaying the Fox Lake deposit. This survey showed a potential new zone of mineralization adjacent to, and in addition to, the past-producing Fox Lake deposit.
Black Smoker has also assembled an expert team to maximize the opportunity from the project.. Many of the company’s directors and advisors have region-specific knowledge and a string of past successes in and around the prolific mining region in northwest Manitoba where the Fox Lake project is located.
One of the Black Smoker team members is Philip E. Olson (P.Geo.). Olson was the Chief Geologist at the Kidd Creek Mine in Ontario which has been in production since 1964. He has also served on the boards of directors or active management positions in the successful miners Hemlo Gold Mines and Detour Gold and other junior resource companies. He is currently on Black Smoker’s advisory board.
Also, George Gale (Ph.D., P.Eng.) is a director of Black Smoker. Gale has been responsible for several discoveries in Canada and Europe and led the VMS Ventures exploration team which discovered the Reed Lake VMS Discovery in Manitoba.
It is clear Black Smoker has the asset, the knowledge, and the team in place. Drilling is the next step in the evolution of this company and, if successful, will be the point when shareholder value can be created very quickly.
Carson Seabolt, Black Smoker’s CEO, summed up Black Smoker’s current position in the drilling announcement when he said, “Recently completed geophysical work and interpretation at Fox Lake suggests Black Smoker has an excellent opportunity to target a new copper and zinc mineralization at depth. The upcoming drill program will be the first significant exploration campaign at Fox Lake since the mine closed in 1985 following 15 years of production.”
Black Smoker shares trade on the Canadian National Stock Exchange. The company currently has a total market capitalization of approximately $2.5 million.
Learn more at http://www.blacksmokerventures.com.
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