TORONTO, July 6 /CNW/ - Woodruff Capital Management Inc. (WOO-TSX.V)
(the "Company") is pleased to provide an update on its announcement earlier
today that, subject to regulatory acceptance, it will purchase the Scott Lake
base metal massive sulphide property from Thundermin Resources Inc., in
consideration of staged payments totalling $285,000 and the issuance of
300,000 treasury shares to Thundermin over a two year period. Upon reaching
commercial production on any mineral deposit discovered on the property, the
Company will make a final payment to Thundermin ranging from $1,000,000 to
$4,000,000, depending on the size of deposit discovered, and issue to
Thundermin 1,000,000 treasury shares of Woodruff.
The Scott Lake Property is situated approximately 20 kilometres west of
Chibougamau, Quebec. The property has seen considerable exploration activity
in the mid 1970's and in the late 1980's-early 1990's. Between 1975 and 1981,
Selco completed 5,416 metres of drilling. This work led to the discovery in
1976 of a VMS deposit. In 1988, a report by Thundermin Resources estimated
that the deposit contained drill indicated resources of 700,000 tonnes grading
0.4% copper and 6.9% zinc to the 375 meter level. Woodruff now possesses the
data used for the report, including drill logs and drill core, and believes
the estimate to be relevant. However, in today's standards these estimates
would not comply with CIM Definition Standards on Mineral Resources and
Mineral reserves that were prepared by the CIM Standing Committee on Reserve
Definitions and adopted by CIM Council, November 14, 2004. The Company has not
done the work necessary to verify the classification of the resource or
reserve, the Company is not treating them as a NI 43-101 defined resource or
reserve verified by a QP, and the historical estimates should not be relied
upon. The Selco massive sulphide deposit covers a strike length of 160 meters,
down to a vertical depth of 400 metres.
The Scott Lake property is located on the north limb of the Chibougamau
Anticline and covers 7 kilometres of strike length of felsic rocks of the
Waconichi Formation. On the south limb of that Anticline, the Waconichi hosts
the past producing high grade Lemoine mine which is now part of the Company's
Lemoine project. Between 1988 and 1993, Thundermin Resources undertook an
extensive diamond drilling program on the Scott Lake property. In this period,
Thundermin completed over 45,000 metres of drilling in over 100 holes. The
1991-92 drilling program led to the discovery of two other massive sulphide
lenses, 1.2 kms and 1.7 kms west of the Selco deposit, thus suggesting the
potential existence of other sulphide lenses. No resource calculations are
available for those two lenses.
The potential for additional stacked mineralized horizons is illustrated
by various sulphide bearing chert horizons and stringer zones found
stratigraphically above the known massive sulphide lens. In addition,
widespread alteration and stringer sulphide zones have been identified over
3 kilometres, indicating the existence of an extensive and vigourous
hydrothermal system of a scale consistent with the possibility of a very large
VMS deposit. Thundermin has reported numerous stringer sulphide intersections
in the Scott property. The true thickness and orientation of the stringer
sulphide mineralization is unknown at the present time.
The Company will, over the course of the next few months, review and
compile all of the technical data received from Thundermin with the purpose of
establishing a comprehensive stratigraphic and lithogeochemical model of the
existing mineralization, which will form the basis of the anticipated 2006
drilling program.
The president of Woodruff Capital Management Inc., GDerald Riverin, PhD,
P.Geo., is a qualified person (as defined by National Instrument 43-101) and
has more than 28 years of experience in exploration.
The Company focuses on base metal exploration in accessible areas of
Quebec, Ontario and Newfoundland.
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The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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