Commander Resources Ltd.
TSX VENTURE : CMD

Commander Resources Ltd.

September 23, 2010 18:40 ET

Commander Announces First Drill Results From Kanosak Gold Discovery on Baffin Island

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 23, 2010) - Commander Resources Ltd. (TSX VENTURE:CMD) reports the first drill results from the Kanosak gold prospect and additional results from Malrok on Baffin Island. Reconnaissance drilling at Kanosak intersected zones of gold mineralization with locally high grades, while the final results from Malrok continued to define and enlarge the scope of the gold bearing structures. The widespread extent of gold mineralization confirms continuing potential for a significant gold discovery.

The 2010 drill program at the Baffin Gold Project had two objectives: 1) to extend the gold zone identified by drilling at Malrok in 2004; and 2) to initiate drilling at the newly discovered Kanosak prospect where significant high grade gold mineralization was identified over an extensive area on surface with channel and grab sampling in 2008 and 2009. The drilling at Kanosak tested a strike length of 1.1 km with 11 holes, while 2 further holes were stepped out 1.5 km to the north. Significant high grade intercepts were encountered in two, thick metasedimentary horizons. Both horizons are gently dipping, and the upper one is exposed at surface and is 20 to 30 m thick. The lower horizon, is parallel to the upper zone, and is approximately 50 metres beneath the upper zone. Quartz and arsenopyrite veins, which often host high grade gold concentrations cut through both target horizons. Significantly, the gold and the arsenopyrite are not restricted to the veins and gold is distributed throughout the two thick metasedimentary horizons.

Kanosak:

The Kanosak gold prospect was discovered by prospecting in 2008 and sampled by extensive channel sampling in 2009. The prospective gold bearing zone was identified as a corridor approximately 300 m wide by 3.5 km long which hosts high grade gold mineralization in outcrop and angular boulders. In 2009 a test Induced Polarization survey was conducted over the central portion of the zone. This survey defined a significant chargeability high closely related to the distribution of gold mineralization and associated arsenopyrite observed on surface.

Assay results returned from the first batch of samples from the Kanosak 2010 drill program show that both high grade veins and disseminated, lower grade gold in stratified sediments have been encountered. Complete results from 8 of the 13 holes completed have been received; all hole locations are shown on the plan map on the Company's website.

The Stratabound gold mineralization is contained in two layers of gently dipping siliceous sediments distributed over a very large regional area. Highlights of the first drill results are a 9.39 metre interval of the upper strata assaying 2.26 g/t Au in hole KAN-10-07 and a vein in the deeper layer assaying 22.5 g/t Au over 0.94 metres in hole KAN-10-01.

This deeper zone, situated about 50 metres below the base of the upper mineralized strata, is blind and was discovered only in the 2010 drill program. A summary of results is shown on Table 1.

Table 1: Mineralized Intercepts – Kanosak Drilling 2010

  Interval Width Grade
Drill Hole From To (m) (g/t)
KAN-10-01 7.47 17.25 9.78 0.98
  includes 11.89 16.51 4.62 1.55
  includes 88.53 89.47 0.94 22.50
KAN-10-02 2.03 3.66 1.63 1.89
KAN-10-03 2.86 29.53 26.67 0.21
  includes 4.46 5.26 0.80 3.36
KAN-10-04 8.88 13.09 4.21 2.16
KAN-10-05 7.70 10.36 2.66 1.37
KAN-10-06 20.56 28.50 7.94 0.79
  includes 26.15 27.60 1.45 7.48
KAN-10-07 3.54 16.77 13.23 1.80
  includes 7.38 16.77 9.39 2.26
  includes 10.72 11.23 0.51 31.38
KAN-10-08       NSV
NSV - No Significant Values

The 2010 Kanosak drill holes were targeted mainly to test near-surface gold mineralization and IP targets over a wide area of the prospects. Only six of the holes were drilled on the 2009 test Induced Polarization (IP) survey area; the strongest, widest portions of the 2009 IP anomalies have not yet been tested. The best of the results to date are from hole KAN-10-07, which is off the test IP survey area. Only one hole had no significant values. Results for holes 9 to 13 are awaited.

Subsequent to completion of the 2010 drilling, a 30 line-km IP program was conducted to examine the potential to increase the size of the prospect by expansion to the east and west and better define drill targets. Preliminary results of the wide spaced IP Survey show a two kilometre long chargeability IP anomaly which appears to strengthen to the north. The strongest IP values recorded in the survey area are located on the northern two lines of the 2010 IP survey. The combination of prospecting, geological mapping and geophysics has now outlined the Kanosak target area as 3.5 km north-south along strike and 600 to 800 metres wide east-west. The eastern down-dip extension is constrained by a 2 km long, narrow lake which limited the 2010 IP survey.

Malrok:

The 2010 Malrok drill program was designed to test the direction and extent of the mineralized zones identified by drilling in 2004. A total of 19 holes were drilled in 2010, including 4 from the ice surface of Malrok Lake prior to an early breakup. The planned program included provision for 10 holes to be drilled from the ice as the 2004 results appeared to indicate that the mineralized silicate iron formation that hosts the gold was dipping in a south-east direction under the lake. Due to the early thaw this year, the program was unable to complete all of the ice based holes and additional land based holes were drilled to test the strike in southerly and north-east directions. 

Drill hole MAL-10-58 returned a 3 metre interval grading 6.17 g/t Au, confirming the continuity of the well mineralized Malrok South zone. This 200 metre wide zone plunges easterly and is open into Malrok Lake. To the southeast, holes Mal-10-49 to Mal-10-53 and Mal-10-56 tested for extent of Malrok South for a further 400 metres to the southeast. These holes intersected narrow intervals of the iron formation with no significant gold values.

At Malrok North, hole Mal-10-57 was drilled to test for extension of the high grade zone identified by previous drilling. No significant values were encountered in this hole. This zone was to be tested initially by drilling further down plunge on the ice at Malrok Lake, however that testing was prematurely terminated due to early melting of the ice. Holes, Mal-10-54 and 55, were drilled 500 metres to the northeast; hole Mal-10-54 encountered a 2.6 metre interval grading 2.1 g/t Au while hole Mal-10-55 did not encounter the gold-bearing iron formation.

Part of the 2010 planned drill program was to test the large, circular Malrok structure with 6 to 8 drill holes to search for extensions of the gold bearing iron formations around the 3 kilometre diameter of the Malrok formation. These holes were to be based on defined structural and geophysical targets as well as geological / stratigraphic undertsanding in areas of extensive overburden and younger cover rocks. This drilling was not undertaken as the completed 19 drill hole program utilized all budgeted drilling for the 2010 program.

In summary, the 2010 drill program has shown that the 200 metre wide Malrok South gold zone is open down plunge for future drill testing. The Malrok North high grade zone was interrupted by a strong fault and will require further testing down-plunge from this fault.

Maps showing the location of these drill holes will soon be available on Commander's website at www.commanderresources.com.

The 2010 program is being funded by AngloGold Ashanti as part of the joint venture agreement announced in September, 2009. The program has been managed and overseen by Mr. Alan Sexton, P.Geol., of GeoVector Management Inc. Mr. Sexton is the Qualified Person, as defined by National Instrument 43-101, for this project. The QA/QC protocol is managed by GeoVector as detailed in the company's News Release of August 19, 2010.

QA/QC Procedures:

The quality assurance / quality control (QA/QC) procedures for the 2010 drilling program completed by Commander are consistent with those followed since 2006 and are described below.

NQ drill core was logged and all pertinent geological / geotechnical information recorded. The drill core was then sawn in half, with one half bagged, labeled and sent for assay; the remaining half was placed in core boxes as a permanent record and is stored on the project site. Core sample size varied from 0.5 to 1.0 metres in length. All samples were transported to TSL Laboratories in Saskatoon, Saskatchewan for crushing, pulverization and analysis.

Core samples are crushed using a primary jaw crusher to minimum 70% passing 10 mesh. A finer crush is then obtained through a rolls crusher to a minimum 95% passing 10 mesh. The equipment is cleaned between each sample with compressed air and brushes. A representative 1000 gram split sample is obtained by passing the entire reject sample through a riffler, and by alternating catch pans before taking the final split. The remaining reject material is returned to a labeled bag and stored. The 1000 gram sub-sample is pulverized to a minimum 95% passing 150 mesh. The homogenized sample is analyzed by FA/AA using a 1 AT charge with a detection limit of 5 ppb Au. Any samples that exceed 1 g/t or greater using the FA/AA method are then re-assayed using FA/Gravimetric on a 1 AT charge with a detection limit of 0.10 g/t Au. Each sample is also sent for multi-element analysis by the ICP-MS method.

As part of in-house QA/QC TSL Laboratories inserts certified gold standards, which are purchased from CDN Resource Labs. Standards are inserted and three pulp duplicates are analyzed for every 20 samples. Random additional repeats are also analyzed as required. Results from all internal QC samples and repeats are reported.

In addition, certified gold standards and "blank" core samples are sequentially inserted on site. The standards are purchased from CDN Resource Labs and the "blank" core samples are taken from barren drill core on site. One standard and one blank are inserted with every batch of 20 core samples prior to shipment to TSL Laboratories.

If there are any analyses of the certified gold standards that falls outside of the acceptable range the entire batch of 20 samples will be re-run. If there are any significant gold values returned from the "blank" core samples the entire batch of 20 samples will be re-run. Upon completion of the 2010 assaying 5% to 10% of the core sample pulps from 2010 drilling program will be submitted to another lab for check assaying. No sample batch re-runs have been necessary on the 2010 gold assay results received to date. 

On Behalf of the Board of Directors,

"Eric Norton"

Eric Norton
President & CEO

Shares Issued: 90,942,516

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