Nickeliferous sulphides and massive chromite at depth on McFauld's C-1 target

These results emphasize the prospectivity of this sector of the McFauld's property which management believes is geologically and structurally associated with the massive nickeliferous sulphides of the Eagle's Nest deposit and the Blackbird chromite deposits on the immediately adjacent Noront Resources Inc. property.

In 2011, holes FN-10-25 and 26 drilled to depths of 1,082 metres and 1,086 metres respectively, in the very eastern portion of the C-1 area, passed through the granodiorite and, at depths below 700 m, through significant thicknesses of high-grade chromite with peridotite which appear to overlie a lower dunite horizon. Hole FN-10-25 intersected over 200 metres of chromite with an estimated average grade of 43.5 per cent Cr2O3, drilling downdip, while hole FN-10-26, drilling across strike, intersected 56.6 m of an interlayered sequence of peridotite and chromite with an estimated grade of 27.6 per cent Cr2O3 followed by 53.2 m of massive chromite with an estimated average grade of 43.7 per cent Cr2O3. This newly discovered chromite horizon, previously reported, has been dubbed the BlackHorse occurrence.

The BlackHorse occurrence is partially coincident with a moderately strong gravity anomaly cut off to the west by a northwest-trending fault structure but extending easterly a distance of approximately one km. This gravity anomaly may represent a gabbroic intrusion that occurs near surface which appears to mask the underlying chromite horizon.

Within the lower dunite unit are elevated values of sulphides with anomalous nickel values. Hole FN-10-26 contained two important anomalous 0.5-metre samples. At 917.8 to 918.3 m, the sample contained 1.16 per cent nickel with 674 parts per million copper and 2.4 per cent sulphur, and at 988.5 to 989.0 metres, the sample contained 0.71 per cent Ni and 2,670 parts per billion lead with 1.02 per cent S. Results from the downhole geophysics in these holes are indicative of conductive material at some distance off-hole at these depths. The dunite horizon is considered to offer the best potential to host primary magmatic nickel, copper and platinum-group-metal-bearing sulphides in this promising target zone.

The Lamelee and McFauld's reports and sections of this news release were prepared by the company's qualified person, Mike Flanagan, MScA, PGeo.