Flag also reports it is proposing to explore an undeveloped gold zone in
CALGARY, Feb. 18 /CNW/ - Between 2002 and 2003, studies commissioned by
Flag confirmed the presence of five different nickel bearing sulfides with
copper and gold in pyrite in quartz veins, suggesting the mineralization came
from a nearby mafic or ultramafic source. The study suggested that with the
variety of the sulfide inclusions in pyrite, the source rocks could be
enriched in base metals and possibly gold.
In 2005, to locate the suggested source of this Cobalt Hill
Mineralization, W.A. (Bill) Morris, Morris Magnetic Inc. recommended a down
hill magnetic survey of drill hole CH92-1 on Cobalt Hill. Reporting on the
completed survey he said it had detected a strong magnetic anomaly extending
from 450 to 2200 feet, saying that it's amplitude could only be explained by a
nearby mafic or ultramafic intrusion.
Although there is now both mineralogical and magnetic evidence of a
source for the Cobalt Hill base metal sulfides, the down hole survey was not
able to tell in which direction from CH92-1 but only that it was nearby.
In 2008, to locate the source Bill Morris recommended an airborne
magnetic survey over Cobalt Hill and surrounding area. The airborne survey
detected a magnetic anomaly on the northern sector of Cobalt Hill. Flag
believes that the source of the Cobalt Hill base metal bearing sulfides is in
this magnetic anomaly. Drilling has eliminated the presence of any magnetic
rocks to the south, east, and west of Cobalt Hill.
To more precisely locate and identify the source, Flag, before drilling
the magnetic anomaly, is waiting for Geotech Ltd. to redo an airborne E.M.
survey over Cobalt Hill.
Flag proposes to drill an undeveloped gold zone, located 500 feet north,
northwest of CH92-1, adjoining the northern flank of Cobalt Hill.
In drill hole A89-1, 118 feet of gold-bearing sulfides was intersected
from 715 to 833 feet. A substantial portion of the intersection returned gold
values from 0.03 to 0.14 ounces gold per ton.
In drill hole A90-1, 60 feet north of A89-1, 131 feet of gold-bearing
sulfides was intersected, from 629 to 760 feet. A substantial portion of the
intersection returned from 0.04 to 0.098 ounces of gold per ton.
In A83-20, 70 feet south east of A90-1, 154 feet of gold bearing sulfides
was intersected from 738 to 892 feet. Although the majority of gold values in
the intersection were in the 0.02 to 0.028 ounces of gold per ton, there were
intersections of 10 feet of 0.22 ounces gold, 10 feet of 0.09 ounces gold and
10 feet of 0.76 ounces gold per ton.
The drill holes appear to be on the edge of a gold zone, on which there
has been no step-out drilling to evaluate its size and gold potential. The
depth of the gold zone suggests it may be related to the mineralization on
adjoining Cobalt Hill.
Flag's legal council is proceeding with negotiations with the Alberta
Securities Commission, to endeavor to reach a settlement for lifting the cease
trading order on Flag's shares.
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