Fort Chimo Minerals Inc.

August 10, 2005 10:54 ET

Fort Chimo Minerals Commences Trading on CNQ and Drilling in Ungava

TORONTO, ONTARIO--(CCNMatthews - Aug. 2, 2005) - Fort Chimo Minerals Inc. (CNQ:FORT) is pleased to announce completion of camp set-up on Lac Livaudiere and commencement of drilling on the Erickson #3 Cu-Ni-Co showing. Four diamond drill holes have been drilled to date. DDH 05-1 and 2 have been abandoned for technical reasons. DDH 05-3 and 4 have encountered sulphides in favourable host rock which will be further described when logging, splitting and assaying are completed. DDH 05-5 commenced August 2, 2005.

The company's Ungava properties, acquired from Peter Ferderber of Val d'Or, consist of 87 claims covering the Erickson #3 and # 4 Cu-Ni property, 52 claims over the nearby Ducreux Zinc showng which occurs in the centre of a large airborne magnetic anomaly and a group of 30 claims, the Prinzeles block, which cover No. 264 base metals and No. 265 gold showing.

The properties are located 75 km west of Kuujjuaq (formerly Fort Chimo), in the Cote du Nord District of Northern Quebec within NTS Sheets 24F/13, ( Lac Leopard ) and 24F/14 (Ile Koksoak) and 24 F/12 Confluent Kannilirqiq.

Horizontal loop-electromagnetic geophysical surveys carried out on the Erickson #3 & 4 in Sept 2004 and April 2005 outlined four strong conductors, of which three are interpreted to represent massive sulphide bedrock conductors.

Current geological mapping has confirmed the presence of a thick differentiated gabbroic sill with basal accumulations of pyrrhotite, chalcopyrite and pentlandite. The mineralization occurs in a glomeroporphyritic feldspar-rich phase and has been traced over a distance of 3.2 km on the property. Thirteen blasted trenches, have also been located on the ground and are being re-sampled.

The first discoveries date from about 1953 when Holannah Mines Limited (a 50:50 joint venture of Hollinger Consolidated Gold Mines and Hannah Coal and Ore Corp) was formed to operate in northern Quebec. Zones A, B, and C of the Erickson area were described as containing significant copper mineralization. Erickson #3 and #4 deposits were discovered at the same time. Initial sampling of the latter deposits returned an average of 2% copper from intrusive sills, containing mainly disseminated pyrrhotite and chalcopyrite. In 1954 surface mapping and an extensive trenching program were carried out on Erickson #3 & #4 deposits. Packsack holes were drilled at shallow angles from 0 degrees to 15 degrees. Core, chip and channel samples from blasted rock were assayed over 5-foot lengths along all trenches. Sulfide mineralization averaged 1.34% copper, 0.18% nickel and 0.2 % cobalt. There is good continuity over an average thickness of 28 metres in two sub-parallel zone.

For all reliable samples to which widths can be assigned, mineralization averages between 5 and 30 metres in thickness and the average grade is 0.63% Cu, 0.18 % Ni and 0.2% Co. No assays of PGE have been reported.

In 1995 Fonteneau carried out an airborne magnetometer and VLF-EM geophysical survey over the Erickson #3 claim group, which suggested a strike length of 6 kilometres with possibly an additional 6 kilometres along the geological trend.

The Erickson mineralization occurs in Lower Proterozoic, glomeroporphyritic gabbro (Montagnais ) sills in the Labrador Trough where Ni-Cu deposits are found in sills containing a layer of pyroxenite. Other examples include: Chrysler 2, Leslie 2, Erickson 1 and Lepage. The Cu-Ni-Co mineralization on the Properties is significant and also shows similarities to nearby deposits with drill indicated inferred resources, such the Chrysler deposit of North Atlantic Nickel Corporation (1.24 million tonnes, grading 1.8% Cu, 0.6 % Ni, 0.5 g/T Pt +Pd).

A copy of the Technical report filed in May on the company's Ungava project may be obtained on SEDAR.COM.

Ulrich Kretschmar, Ph.D., P. Geo. of Exploration Geoscience Associates in Orillia, Ontario is directing exploration and is the qualified person on the project. Dr. Kretschmar assumes responsibility for the technical content of this news release.

Shares Outstanding: 37,287,498

No stock exchange or regulatory authority has approved or disapproved the contents of this release.

Contact Information

  • Fort Chimo Minerals Inc.
    James M. Brady
    (416) 368-0999
    (416) 368-6836 (FAX)