McFaulds

The McFaulds South project, located in the McFaulds Lake area of northwestern Ontario, comprises a total of six claim blocks with a combined area of 11,267 hectares and a total of 696 claim units. The closest community with year-round round road access is Nakina, located approximately 270 kilometres to the south. The six claim blocks are 35-50 kilometres southeast of the First Nation community of Webequie, on Winisk Lake. Although there is year-round scheduled air service to Webequie, there are no air charter operators based there.

The recently released Ontario Geological Survey interpretation of the geology from limited outcrop and drill hole information coupled with regional airborne magnetic survey results has indicated that about 55 percent of the property is underlain by mafic-ultramafic rocks. Certain mafic-ultramafic units have been interpreted as along-strike equivalents of the strata that host the Noront nickel-copper-platinum-palladium-chromium deposits. The Noront Eagle 1, Eagle 2, Blackbird 1 and Blackbird 2 deposits and Freewest’s Black Thor Chromite deposit occur in a layered mafic-ultramafic sequence and in a mafic-ultramafic magmatic feeder zone. The deposits are located 25-55 kilometres northeast of the Platinex property. The McFaulds Lake area is also at the southeast end of a 260 kilometre Neo-Archean elliptical feature that hosts numerous mafic-ultramafic intrusives including the large, Big Trout Lake complex where Platinex claims host potentially commercial grades of PGE mineralization and are underlain by substantial chromium deposits. Potential exists for discovery of reef-type PGE mineralization similar to that in the Bushveld Igneous Complex in South Africa and the Stillwater Complex in Montana, USA.

Massive sulphide volcanogenic Cu-Zn-Au-Ag deposits have also been discovered in the general area by the Freewest/Spider/KWG joint venture and by McDonald Mines. These discoveries were achieved on magnetic anomalies originally selected in an exploration program targeting diamond-bearing kimberlite pipes.

A two phase exploration program is proposed. Phase I evaluation of the property in 2008-2009 will include a comprehensive airborne magnetometer and electromagnetic survey with flight lines at 100 metre intervals and six to seven days of helicopter-supported prospecting, geological mapping and the collection of up to 100 samples of bedrock, till and/or stream sediment. Heavy mineral separate techniques will be employed to identify indicator minerals and analyses will be performed to determine concentrations of PGE’s, base metals and other indicator metals and elements. Phase II will be a 5,000 metre core drilling program to evaluate priority geophysical targets and provide important stratigraphic information for subsequent investigations. The proposed Phase I and Phase II budgets are $645,000 and $2,000,000 respectively. The property can be kept in good standing on the second and subsequent anniversary dates with consecutive minimum exploration expenditure credits of $274,400.

Figure 1: Interpreted Bedrock Geology, McFaulds South Click to Enlarge

Layered intrusions in the McFaulds Lake area containing Ni-Cu-PGE mineralization and thick chromium layers suggest they could be related in many respects to Platinex's Big Trout Lake holdings 250 km to the west. Platinex Management believes that the Company will be able to apply its unique knowledge of the geology of the Big Trout Lake Igneous Complex to the McFaulds Lake area.

Figure 2: Oxford Stull Domain Click to Enlarge

North McFaulds Lake is located 22 km north of Noront Resources' Eagle One and Eagle Two nickel-copper-PGE discoveries. This property comprises 608 contiguous claim units covering 9,846 ha (24,320 acres). The property adjoins on the south and east a claim block held by MacDonald Mines and Temex Resources, and on the west a block held by Noront Resources. It was staked to cover a layered intrusion coupled with magnetic anomalies which was recently revealed in survey publications by the Ontario government.

Figure 3: Interpreted Bedrock Geology, McFaulds North Click to Enlarge

Deposits located by Noront Resources are believed associated with dikes feeding the layered intrusions. Platinex is targeting look alike features along the margins of the layered bodies and also looking internally at the layered intrusions (which latter work has not been yet done by other companies in the area).

Figure 4: Relative Locations of McFaulds Properties Click to Enlarge

For a better view of the above map, see the large version (4MB). The above map was created by Intierra Mapping.

Figure 5: Gravity, First Vertical Derivative Click to Enlarge

Figure 6: Aeromagnetic Data, First Vertical Derivative Click to Enlarge