CALGARY, April 8 /CNW/ -
1. Massive Sulfides.
A coinciding airborne magnetic and electromagnetic anomaly, located 150
feet due west, in Rathbun Lake, of a mined out lens of massive sulfides, on
the southern shore of the lake appears to be the long sought source of the
massive sulfides. The geology, in a drill hole on the flank of the anomaly
supports it being the source. A grab sample, by the Ontario Geological Survey,
from the massive sulfide lens, assayed 10.2% copper and 34.6oz palladium per
ton. Finding the source of the rich massive sulfide lens had been the
objective of intermittent exploration over the past 100 years.
2. Upper Rathbun Lake.
There is a second coinciding airborne magnetic and electromagnetic
anomaly in Rathbun Lake, located in the upper northeast sector of the lake.
3. Cobalt Hill Mineralization
Mineralization on Cobalt Hill, south of Wolf Lake, Mackelcan Township, on
which a series of studies were completed between 2001 and 2003, confirmed the
minute inclusions of five different nickel bearing sulfides, with gold and
copper in quartz veins.
With the presence of chromium, the third most inert element, the studies
suggested that the source of the mineralization was a nearby underlying mafic
or ultra mafic intrusion.
A down hole magnetic survey, in 2005, detected a strong magnetic anomaly,
from 450 to 2200 feet, deemed to be a mafic or ultra mafic intrusion,
resulting in both magnetic and mineralogical evidence of a source for Cobalt
Hill's base metal mineralization, which also includes cobalt.
After considerable exploration, it is Flag's belief that the source of
Cobalt Hill's mineralization is in the north sector of the hill.
4. Coinciding Airborne Magnetic and Electromagnetic anomaly A, East of
the North End, Rathbun Lake.
An exploratory drill hole, into the anomaly, drilled vertically,
intersected 378 feet of anomalous nickel and cobalt values. As the coinciding
anomaly cuts through the adjoining diabase dike, Flag proposes to explore the
dike for the source of the base metal sulfides.
5. Coinciding Airborne Magnetic and Electro Magnetic Anomaly F, 4900 Feet
Southeast of Anomaly A.
A 415 foot deep vertical drill hole, into the anomaly, also directly
adjoining the olivine diabase dike, intersected anomalous nickel and cobalt
values. Flag proposes to explore the faulted olivine diabase, for the source
of the base metal sulfides.
6. Drill Hole 94-1, South East Sector Matagamasi Lake, by North Boundary
Olivine Diabase Dike.
The drill hole, drilled vertically, intersected 1100 of very sparce
nickel/copper and cobalt mineralization. Although sparse, a 1994 report by
A.J. (Tony) Naldrett said it had to be asked from where the metals in the
sulfide had come. Flag proposes to explore the olivine diabase dike for the
source of the base metal sulfides.
7. Rathbun Lake Magnetic Anomaly.
An exploratory drill hole, into the magnetic anomaly trending north-south
through Rathbun Lake has been recommended to determine its lithological
significance, that is, to evaluate the unknown geological structure with which
the magnetic anomaly is associated.
8. Coinciding Airborne Magnetic and Electro Magnetic Anomalies, East of
Drilling of the coinciding airborne magnetic and electromagnetic
anomalies has been recommended, to evaluate their geological significance.
9. Gold Zone, Northern Flank, Cobalt Hill, Mackelcan Township.
Four drill holes, between 1983 and 1990, located in a 250 feet square
area intersected a gold zone, in widths from 52 to 154 feet wide. The gold
values were mainly anomalous, with occasional higher values. Flag proposes
step out drilling to the east, where there has been no previous drilling.
Flag suggests the gold mineralization may have originated from adjoining
mineralization on Cobalt Hill, as it appears to occur at a similar depth to
Cobalt Hill Mineralization, from 625 to 886 feet, much deeper than the
previous gold deposits discovered in the area by Flag.
10. Airborne Magnetic Anomaly, Wolf Lake, Mackelcan Township.
A large airborne magnetic anomaly has been found in the immediate area
underlying and to the northwest of the Wolf Lake. As the anomaly does not
correlate with any geological data, its genesis remains undefined. Adjoining
the west side of the large anomaly, vertical drill hole WL 83-28 intersected
48 feet of 3.6% copper and .043 oz gold per ton, from 148 to 196 feet and 30
feet to the southwest, vertical drill hol WL 90-3, intersected 73.5 feet of
0.519 oz of gold per ton, including 3.5 feet of 4.98 oz gold per ton.
It has been noted that the Wolf Lake airborne magnetic anomaly is
restricted to a region within the intersection of a series of near vertical
faults and it is suggested that one of the possibilities is that it could
represent an area of increased flow of fluids, which would increase the
11. Magnetic Anomaly, Laundry Lake, Mackelcan Township.
A large magnetic anomaly along the east side of the north trending
Laundry Lake fault, was outlined by an airborne magnetic anomaly.
Flag proposes to complete an airborne electro magnetic survey over the
two large positive magnetic anomalies at Wolf and Laundry Lakes.
Flags's priorities are the drilling of the two Rathbun Lake coinciding
magnetic and electro magnetic anomalies, drilling the suggested source of the
multi base metal mineralization of Cobalt Hill and completion of an airborne
electro magnetic survey over the large airborne magnetic anomalies in
Flag's president, Murdo McLeod has been directly involved in exploration
of Flag's Sudbury properties for 28 years, in beginning with the discovery of
three small gold deposits, at Wolf and Jess Lake, in Mackelcan Township and in
the recent significant exploration results from the airborne magnetic and
electro magnetic survey utilizing recent new technology to penetrate below 300
feet to a depth of 2600 feet.
Murdo worked alongside Sid Miszczuk through the years, President and
Founder of Cooksville Steel in 1952, the owner of 2 steel fabricating plants
in Ontario, with Cooksville Steel the major source of financing for Flag for
29 years. At Flag's annual meeting in October 2008, ninety three(93) percent
of the shareholder proxy votes voted for re-election of Mr. Miszczuk and Mr.
McLeod and fellow directors.
However after 20 years of peaceful co-existence with the TSX Venture
exchange, successor to the Alberta stock exchange and the Alberta Securities
Commission there has been six years of animosity between Flag and the
Allegations by the Exchange led to the halt trading on Flag shares, on
June 24, 2004, on a letter dated June 15, 2004. The shares were delisted on
August 23, 2005, based primarily on the allegation that Revenue Canada in
assessing Flag $150 000 for failure of Flag's Directors to meet a requirement
to pay, in regard to a tax liability of Flag's President, Murdo McLeod, was
thereby paying his taxes, which was denied by Revenue Canada. Although Mr.
McLeod's assumed payment of $100 000 of the $150 000 assessment, it was
subsequently confirmed that there was no failure of Flag Directors to meet a
requirement to pay. Flag has requested Revenue Canada to cancel the
Requirement to Pay order and refund Flag $50 000.
The Alberta Securities commission cease traded Flag's shares on May 19,
2006, for late filing of an annual financial statement, rejecting an
application for a month extension to file the statement. On December 28, 2006,
Flag applied for the cease trading order to be revoked, as financial
statements were up to date. Its application was deferred.
In February, 2009, the commission informed the Alberta Minister of
Finance that the allegations in the proceedings of the Commission between 2007
and 2008 were for failure of Flag and the President and Chairman of Flag to
assure that Flag filed appropriate disclosure information.
In regard to these proceedings the Commission has scheduled a hearing
before the Commission, for August 23, 2009, seeking an order that Murdo McLeod
and Sidney Miaszczuk not be allowed to be Directors of any public corporation
and not be allowed to trade in any Securities.
In a previous hearing, at the Commission, in which Flag was appealing its
delisting from the Exchange, Flag was not permitted to cross-examine any
Exchange official, or to call witnesses. The Exchange was allowed to cross
examine Mr. Murdo McLeod for a day and a half, the Commission granting the
Exchange permission to remove his personal notes. Mr. Sid Miszczuk was also
cross examined in detail.
During the entire period, there has been no allegation of any personal
misconduct, by Mr. McLeod or Mr. Miszczuk, by the Commission or the Exchange.
However,on the basis of unproven allegations, Mr. Miszczuk was forced to
resign as a Director of a company listed on the TSX, after 18 years of service
as a Director.
In addition to its belief that the Commission has no just cause for
removing the two from the management of Flag, after 29 years or more of
service, Flag is concerned that the Commission, by forcing the resignation of
Mr. Miszczuk, could force Cooksville Steel Ltd., owed $8,000 000 by Flag, to
bankrupt Flag, to protect his financial interest, thereby wiping out the
holdings of 2000 share holders in Canada (400 in Alberta) and in the United
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