CALGARY, Feb. 26 /CNW/ - Between 2001 and 2003, studies on Cobalt Hill
mineralization, for Flag Resources, confirmed the presence of minute
inclusions of five nickel-bearing sulfides, with minor gold and copper values,
in quartz veins, contained in the drillcore samples from drill hole CH92-1,
located on Cobalt Hill, Mackelcan Township. With chromium being present (in
chromium mica) with the sulfides, an inert element not moving far from its
source, it was suggested that the mineral bearing sulfides in the quartz veins
migrated, in hydrothermal saline fluids, from a nearby underlying mafic or
Significant anomalous values in cobalt were also found in Cobalt Hill
mineralization. Like chromium, cobalt does not move far from its source.
Following up the 2001-2003 studies, Flag, in 2005, had a down-hole
magnetic survey of CH92-1, on Cobalt Hill, undertaken by DGI Geoscience Inc.
Data from the survey was processed by Morris Magnetics Inc. (W.A. "Bill"
Morris). He reported that the magnetic survey had detected the presence of a
very strongly magnetic off-hole anomaly, extending from a vertical depth of
130 meters (436 feet) to 680 meters (2,094 feet). He stated the amplitude of
the anomaly could only be explained by the presence of a nearby strongly
magnetized mafic or ultramafic intrusion.
To pinpoint the location of the magnetic anomaly, its size and direction,
Bill Morris recommended a helicopter-borne magnetic survey. Completed in
January of this year, by MPX Geophysics Ltd., it covered an area of 35.5
kilometers (21 miles), including, in the area of Cobalt Hill, Jones Lake, Jess
Lake and Wolf Lake, Mackelcan Township and Rathbun Lake in adjoining Rathbun
Township. The data from the airborne survey is currently being interpreted by
Morris Magnetics Inc. - Bill Morris.
Drill hole LL 1993-94 is 300 feet north of the very strongly magnetic
perimeter of the airborne survey located close to the northwest shore of
Laundry Lake, which is less than one mile northeast of Wolf Lake, in Mackelcan
LL 93-94 intersected intermittent occurrences of disseminated and blebs
of chalcopyrite (copper), Sudbury breccia, from near surface to 4400 feet, and
magnetite from 500 feet to the bottom of the drill hole, a vertical depth of
4400 feet. Mafic dykes were intersected at 100, 1000 and 2000 feet.
The helicopter-borne magnetic survey and related services were paid by an
advance of $75,000 to Flag by its president, Murdo McLeod. In return for the
funds, Flag gave him a three percent net carried interest in any commercial
ore deposits discovered on Flag's mining bases in Mackelcan Township, which
includes Cobalt Hill. He, in turn, gave Flag an option, with no time limited,
to purchase his net carried interest for 500,000 Flag shares, any time after
Flag shares become tradeable.
This press release has been reviewed by W.A. Morris.
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