The Snowbird Project consists of claims comprising 261.3 km2 within the Snowbird Tectonic Zone, located 625 km NW of the city of Thompson (Figure 1). The Snowbird Tectonic Zone is on the margin of an ancient continent that hosts the Thompson, Raglan and Voisey’s Bay nickel deposits.
Figure 1 Location o Snowbird Project in the Northwest Territories
History
The Snowbird project area was originally explored by the Phelps Dodge Corporation in the late 1950s. Phelps Dodge returned to the area in 1973 and located and sampled an anorthositic gabbro boulder train containing chalcopyrite and pyrrhotite.
A composite grab sample returned significant nickel and copper assays including a peak of 2.92% Cu and 2.29% Ni 1. Encouraged by these results, Phelps Dodge then conducted electromagnetic (EM) and magnetic geophysical surveys but failed to delineate any conductor.
Work done prior to 1999 was summarised by Phelps Dodge in a 2000 report submitted to the Provincial Mines Department.
In 1999 and 2000 the area was re-visited by Phelps Dodge, re-sampling and enlarging the area of exploration. Results of this work were considered encouraging and a time domain electromagnetic survey was proposed. No further work was apparently done.
In 2005 BHP Billiton conducted helicopter supported reconnaissance geological mapping, geochemical sampling and a VTEM airborne electromagnetic survey of the snowbird area.
Interpretation of the VTEM data resulted in the identification of a number of EM bedrock anomalies and confirmed the presence of elevated Cu-Ni sulphides in boulders. Further geochemical sampling identified high grade Zn-Pb-Ag-Au sulphide mineralisation in a shallow trench associated with one of the late time EM conductors identified during the VTEM survey.
Opportunity
This project is seen as rare opportunity to explore for large high-grade nickel and base metals deposits in a poorly explored portion of the highly endowed Superior Craton margin. The project has a number of untested walk-up drill targets defined by a combination of permissive regional geological setting, late-time EM anomalies, and highly encouraging geochemical data.
The BHP Billiton optioned tenements at Snowbird are considered by Western Metals to be highly prospective for both magmatic Ni-Cu/PGE sulphide deposits (i.e. anomalies KB-1 and KB-4) and for volcanogenic massive sulphide deposits (i.e. anomaly KB-2).
The combination of encouraging surface geochemistry and the lack of any sub-surface investigations make this opportunity one of the very few examples in the world of a greenfield nickel and VMS prospect that has been essentially untested.
The Target
The 2005 VTEM and aeromagnetic survey covered only the northernmost 100 km2 of the 261.3 km2 Snowbird project area. Figure 2 shows an image of the late time secondary EM response, and the location of four anomalies considered worthy of follow-up.
VTEM targets:
- KB-1 – interpreted to be up-ice from boulders (shown in Figure 4) that contain coarse visible Cu-Ni sulphides. Phelps Dodge reported assay results of up to 2.92% Cu and 2.29% Ni 1 in grab samples from the boulder train. Additional boulder float samples were collected in 2005, from which the peak assay values were:
0.18% Ni, 2.73% Cu, 0.31 g/t Au, 5.3 g/t Ag, 0.43 g/t Pt, 0.29 g/t Pd 2 - KB-2 – spatially coincident with an old trench, samples from which delivered high Zn-Pb-Ag-Au assays associated with galena and sphalerite-bearing veins. Assays from the two grab samples taken from the trench exposure yielded:
9.66% Zn, 3.92% Pb, 20.8 g/t Au, 506 g/t Ag 2
22.2% Zn, 4.7% Pb, 2.85 g/t Au, 976 g/t Ag 2 - KB-3 – interpreted as Archaean greenstone rocks with sulphide laminations and quartz veins that may be prospective for gold and silver, but have limited potential for magmatic nickel sulphides
- KB-4 – a large footprint conductive target not yet followed up with ground reconnaissance
Figure 2 – Image of VTEM secondary field at 4.4 ms after turn-off of the primary EM signal
Commercial Interest
Western Metals will have the right to purchase 100% interest in the Snowbird tenements by paying a non-refundable $US250,000 cash payment following a due diligence period (to end June 2008), drilling one hole to test anomaly KB-1, and paying a further cash payment of $US1,250,000 by 31 July 2009.
Within 45 days of the receipt of assay analysis from the hole testing KB-1, BHP Billiton may exercise a back-in right wherein WMT will hold a 40% interest in the property and BHP Billiton will hold a 60% interest.
Should BHP Billiton exercise its back-in right, a JV will be formed and standard dilution provisions will apply. Should BHP Billiton decline to exercise its back-in right, WMT will hold a 100% interest in the property, and BHPB will retain a 2% net smelter royalty and the first right of refusal for marketing agency and off-take rights.
The Geology lies within a NE-trending ~200 by 100 km crustal-scale lozenge of amphibolite to granulite-grade folded and contorted gneiss, granitoids, relatively minor amphibolite , gabbroic and rare ultramafic bodies within the NE-trending Snowbird Tectonic Zone.
In Figure 3 this zone is shown as undivided gneiss, volcanics and sedimentary rocks. This crustal break forms the boundary between the Hearne and Rae sub-provinces along a rifted continental margin.
Figure 3 – Geology of the SW Northwest Territories area including the Snowbird Project
The 2008 Work Plan Western Metals plans to employ its considerable nickel expertise to complete a due diligence program at the Snowbird project and, if warranted, follow this up with an aggressive drilling program. This work will be designed to test the KB-1 anomaly in accordance with the commercial terms, followed by testing of the additional three anomalies. Drilling is planned for mid-2008.
| Due Diligence & testing KB-1 & 3 additional anomalies | Q2 |
| Drilling | Q3-Q3 |
Figure 4 – Boulders down-ice (235°) from anomaly KB-1. Boulders are described as equigranular intrusive texture composed of 60% pyroxene and 40% plagioclase. Mineralisation is 10-15% chalcopyrite with intergrown pyrrhotite.