Miskealps great post has this paragraph as a follow up to my post re this issue:

dmittedly it has been disconcerting to watch Noront's exploration team get lucky with the first couple holes into an electro-magnetic anomaly and then start missing with modest stepouts. But one has to keep in mind that the interpretation of the conductor is based on HLEM data collected on 200 metre line spacing. The discovery sits on one of two claims acquired from a private company in May 2007 for 400,000 shares, a 1% NSR, and a promise to drill at least one hole by year end to keep the claims from lapsing due to lack of assessment work. Because Noront had raised a lot of flow-through money it decided it could afford to earmark $400,000 for this project. Management liked the EM conductor, and although it was on the edge of a magnetic high, which was not the preferred magnetic signature for a polymetallic VMS sulphide zone that theoretically should be associated with a magnetic low signature that could readily be interpreted as weakly magnetic felsic volcanics, the target host rock for VMS deposits, the conductor was enough on the edge of the magnetic anomaly to justify ignoring the likelihood that this EM conductor was just another case of graphite perched within magnetic mafic rocks