CALGARY, July 16 /CNW/ - Flag has identified a region of quartz diorite
in an area that was previously mapped as Gowganda sediments. Initial discovery
of the mineralized quartz diorite followed mapping of the coinciding airborne
magnetic and EM anomalies interpreted by W.A. (Bill) Morris. Subsequently, the
quartz diorite has been found: a) in all of the 300 feet of drill hole RLE
08-01, b) in drill hole RLE 08-02 which is 4,900 feet southeast of RLE 08-01,
and c) in a surface exposure by Reg Charron, Flag's prospector, 800 feet
southeast of RLE 08-02. Identification of quartz diorite is significant since
ore deposits in the Offsets associated with the immediately adjacent Sudbury
igneous Complex are also associated with Quartz diorite intrusions. "In the
Sudbury igneous Complex the major ore deposit at the Frood, Stobie,
Clarabelle, Copper Cliff North and Copper Cliff South Mines are ALL associated
with quartz diorite, a member of the Sublayer group of rocks." (Geology and
Ore deposits of the Sudbury Structure, Ontario Geological Survey, 1984, p.
Assays have been completed on 5 foot sections taken at 50 foot intervals
from drill holes RLE 08-01 and 08-02. All assays from RLE 08-01 have returned
anomalous concentrations of nickel. The last 5 foot section from 258 to 263
feet suggested there is a significant increase in nickel versus depth. Flag
has submitted samples from the remainder of the hole from 263 feet to 300 feet
for assay. Assays from RLE 08-02 confirmed the presence of anomalous nickel.
Flag is awaiting geochemical information on a sample for a surface
exposure of the quartz diorite that is being performed by the Resident
Geologist, Ministry of Northern Development and Mines, Sudbury.
Flag proposes to deepen both of these drill holes with the intent of
defining the variation of nickel content with increased depth.
With the recent discovery of two significant magnetic anomalies in
Mackelcan Township, two previously drilled holes have become geologically
relevant. Hole WL 83-28 on the northwest side of Wolf lake, in the Campsite
Zone, which has large intersections of copper and gold is within the newly
identified magnetic anomaly around Wolf Lake. Hole LL 93-1 on the southwest
side of Laundry Lake intersects Sudbury Breccia which contains disseminated
chalcopyrite occurrences is associated with the Laundry lake magnetic anomaly.
Flag is investigating the possibility of any sulphide concentrations
adjacent to these holes by completing borehole EM surveys on both drill holes.
To further evaluate the potential of its holdings in Mackelcan Township
Flag proposes to complete airborne EM surveys over: a) the recently discovered
Wolf Lake magnetic anomaly, and b) the previously identified Cobalt Hill
This press release was written by Flag's president, after being reviewed
with Flag consultants.
On July 25, 2005, the TSX Venture Exchange announced that as a result of
the resignation of Mr. McLeod, president, and Mr. Miszczuk, chairman, as
directors, Flag no longer possessed the minimum number of directors required
pursuant to section 2.1(b) of Exchange Policy 3.1, and pursuant to section 4.1
of Exchange Policy 2.9, its shares would be delisted on August 25, 2005
(although there would still be two directors on the board).
Mr. McLeod and Mr. Miszczuk had not and did not resign, but the Exchange
proceeded to delist the shares on August 25, 2005, when its announced basis
for doing so did not exist.
In the light of the recent significant discoveries, it is fortunate for
Flag shareholders that the chairman and president had not resigned.
For further information:
For further information: Murdo C. McLeod, President, Phone: (403)
262-8883, or toll free in North America: 1-888-531-7798, Fax: (403) 262-8886