Fjordland Exploration Inc.
TSX VENTURE : FEX

Fjordland Exploration Inc.

December 22, 2010 08:00 ET

Fjordland Acquires Interests in 15 Properties Surrounding Iron Range Project, Southeastern BC

Leading Land Position With Over 81,000 Hectares

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 22, 2010) - Fjordland Exploration Inc. (TSX VENTURE:FEX) reports that it has acquired interests in 15 properties totaling over 81,000 hectares in the immediate area of the Eagle Plains Ltd. and Providence Capital Corp. Iron Range Project in southeastern British Columbia. Fjordland acquired a 100% interest in 8 properties (116 claims) totaling 60,047 hectares through staking; the claims are located between 7 km and 58 km from the area of current interest at Iron Range, and cover existing mineral occurrences, geologically favourable Aldridge Formation sedimentary rocks and numerous potentially very significant north-striking faults.

In addition, Fjordland recently completed an Option Agreement with Kootenay Gold Inc., whereby Fjordland can acquire an undivided 60% interest in seven individual claim groups (namely, Big Kahuna, Slocanny Granny, Red Lobster, Moly Pritchard, Big Smoke, MS Peg and GCP), totaling 21,222 hectares, in the Aldridge portion of the Belt-Purcell ranges, located adjacent to the Iron Range Project and within the 90-km long northeasterly-trending Kimberley Gold Trend. This Trend is defined by placer gold in streams, high angle, intersecting oblique-slip faults, Fe-oxide, Fe-carbonate, sericite/quartz/pyrite/albite/tourmaline alteration assemblages, numerous Au-Cu-Pb-Zn occurrences and IOCG (iron oxide copper gold) affinities. Four of the claim groups in the Option Agreement have had limited drilling activities and have new drill targets currently permitted for work.

A location map of Fjordland's holdings may be viewed at www.fjordlandex.com/news/nr10-23b.pdf.

The interest in the Kootenay Gold claims is subject to the terms of the Kennedy Grubstake agreement, including an underlying 2% net smelter royalty. Fjordland must issue an aggregate of 7 million common shares of the Company to Kootenay Gold and fund an aggregate of $7 million of expenditures on the Property within a period of 4 years, from December 20, 2010, the Effective Date of the Agreement. The Option Agreement is subject to the approval of the TSX Venture Exchange.

On December 1, 2010, Eagle Plains and Providence Capital reported that they had recently completed 10 drill holes totaling 3,337 m on their Iron Range Project, located approximately 12 km northeast of Creston, BC. The partners have stated that they are "testing the stratigraphic interval (Proterozoic Lower-Middle Aldridge Formation contact), known to host the giant Sullivan deposit, 70 km to the northeast". They also state that they are "targeting both base metals (sedimentary exhalative, SEDEX) mineralization (e.g. Sullivan mine) and precious metals (iron-oxide-copper-gold, IOCG) mineralization".

The Sullivan mine, which operated for nearly 100 years, is a lens-shaped deposit measuring 1.5 km by 2 km across and 10 m to 100 m thick. It produced 298 million ounces of silver, 8 million tonnes of zinc and 8.4 million tonnes of lead from approximately 150 million tonnes of ore (Source: BC Minfile), and valued at about $30 billion at today's metal prices.

The north-trending Iron Mountain Fault (IMF) complex, which hosts the Iron Range mineralization and several other known mineral occurrences, consists of a number of north-striking faults which occur across an east-west extent of about 3 km and a strike length of approximately 90 km. Within the Iron Range Property boundaries the central core of the IMF is reported to be up to 150 m in width and a strike length of greater than 50 km, with a zone of intense hydrothermal alteration and brecciation associated with iron oxide. Structural interpretations by Eagle Plains' geologists indicate that the IMF and associated growth faults have been reactivated a number of times.

On December 21, 2010, Eagle Plains and Providence provided complete analytical results for Holes IR10-005 and IR10-010 (see: News Release). "Hole IR10-010 intersected two intervals of gold-bearing massive sulphide mineralization. The lowermost zone consists of finer-grained, gold-bearing massive sulphide material at a depth of 275.5 to 279.5m (truncated by a fault) within similar host rocks and at a stratigraphic position interpreted to be at or near the same interval which hosts the Sullivan deposit."

Selected intervals from Hole 10 include:

  • 192.0-206.0 m (upper sulphide interval): 14.0 m @ 5.1g/t Au, 1.86% Pb, 2.1% Zn, 75.3g/t Ag
  • 224.0-280.5 m (intensely altered, including lower sulphide interval at Sullivan-time horizon): 56.5 m @ 1.9g/t Au, 0.44% Pb, 0.59% Zn, 21.5g/t Ag; elevated Cd,Sb,Sn,Bi,Cu

Holes IR10-005 and IR10-010 are located near a major transportation corridor, with rail, road, gas and hydro-electric power situated within 3 km from the area.

The styles of mineralization and alteration, recently reported by Eagle Plains and Providence Capital, including semi-massive to massive sulphides, intense albite+/-tourmaline and silica alteration and breccias textures have been interpreted to indicate the proximity to the favourable contact stratigraphic horizon which hosts the Sullivan deposit. In addition, anomalous quantities of gold have been encountered, perhaps associated with arsenopyrite, a mineral often associated with gold (see Eagle Plains' news releases dated December 1, 2010 and December 21, 2010 for details).

The combination of stratigraphic orientation, local topography and a well-established road network should allow drill testing of the favourable Sullivan time horizon with relatively short drill holes (200 m to 300 m), in contrast to similar targets elsewhere in the Purcell Basin.

Tom Schroeter, President of Fjordland, commented: "We have aggressively secured a commanding, large land package, with many geologically favourable attributes for the potential discovery of both Sullivan-type and newly recognized, structurally-controlled gold deposits. We look forward to starting exploration in this emerging, high-profile, rich mineral camp."

Tom Schroeter, P.Eng./P.Geo., who is a qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release.

About Fjordland Exploration Inc.

Fjordland Exploration is a mineral exploration company focused on the discovery of gold, copper and molybdenum deposits in British Columbia. Of the 28 properties Fjordland currently owns, the Woodjam North and Woodjam South properties (totaling 56,150 ha) are part of the Woodjam Joint Venture between Fjordland (60%) and Cariboo Rose Resources Ltd (40%); both properties are now under option to Gold Fields Horsefly Exploration Corporation. Fjordland also has a 100% interest in 7 other properties ("Tak Package") totaling 52,342 ha in the Woodjam area. Fjordland and Serengeti Resources Inc. are 41%/59% partners (QUEST) exploring 10 properties totaling 56,670 ha in the Quesnel terrane north of Woodjam for precious and base metals. Fjordland has a 100% interest in the 2,192 ha Milligan property, adjoining Thompson Creek Metals Company Inc.'s Mt. Milligan property on the west. The Tak-Milligan properties have been optioned to Capstone Mining Corp. Fjordland has a 100% in 8 properties totaling 60,047 ha in the Iron Range area and has an option agreement on 7 properties totaling 21,222 ha with Kootenay Gold Inc. in southeastern BC. Shares of Fjordland Exploration Inc. trade on the TSX Venture Exchange under the symbol "FEX". For more information visit Fjordland's website at www.fjordlandex.com.

About Kootenay Gold Inc.

Kootenay Gold is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. The Company's flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. The Company's objective is to identify mineral deposits to develop mines or sell projects. Kootenay's management and technical team are proven professionals with extensive international experience in all aspects of mineral exploration, operations and venture capital markets. Shares of Kootenay trade on the TSX Venture Exchange under the symbol "KTN". Further information is available at www.kootenaygold.ca.

Tom Schroeter, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.

Contact Information

  • Fjordland Exploration Inc.
    John Gomez
    Manager, Investor Relations
    604-893-8365
    604-669-8336 (FAX)
    www.fjordlandex.com