Zenyatta Ventures Ltd. Provides an Update on the Albany Project in Northern Ontario
28 June 2011
Zenyatta Ventures Ltd. (ZEN: TSX Venture) (“Zenyatta” or “Company”) is pleased to provide an update on its Albany Project in northern Ontario.
Zenyatta is conducting an exploration program targeting nickel (Ni), copper (Cu), and platinum group metals (PGMs) on the Albany Project located west and north of Hearst, Ontario. The Company has identified a vast, highly prospective and underexplored area in the James Bay Lowlands of northern Ontario. The area has been largely ignored in the past due to extensive cover rocks (Paleozoic age) and overburden overlying the prospective Precambrian Shield rocks (Archean age). Recent advances in airborne geophysical electromagnetic (EM) technology have allowed deeper penetration/resolution through the cover rocks to target favourable geological and structural settings within the underlying Shield rocks.
The area includes several large multi-phased mafic-ultramafic-alkalic complexes forming an arc approximately 150km long. One of these complexes, called the Nagagami River Alkaline Ring Complex, shows similarities to the Mid-Continent Rift related Coldwell Complex (Proterozoic age) on the north shore of Lake Superior. The Albany project area is considered to host deep seated Proterozoic structures that may be related to the 1.1 Billion year old Mid-Continent Rifting. The Mid-Continent Rift is a structural environment that hosts a number of significant mineral deposits around Lake Superior. Rifting environments around the world are host to many large copper-nickel-PGM deposits due to a tapping of the mineral rich mantle by way of the structural conduits and traps for metal transport and deposit. The Albany geological and geophysical setting is large enough to host and hide world class deposits of this model type.
Zenyatta began a drill program in March to test several high priority Magnetic and Electromagnetic (EM) geophysical targets identified by Geotech’s VTEM 35 survey. Four (4) of the targets have been initially drilled with more than twenty (20) remaining to be tested over the coming months.
Target 1 was a moderate and laterally extensive, high conductivity-thickness EM target flanking a strong magnetic anomaly. After drill testing the geophysical anomaly it is thought to be related to electrolytic waters in a flat lying porous sandstone unit at the base of the Paleozoic above the unconformity with Archean rocks. Geophysical modelling will be conducted to determine if further drill testing is required for this target.
Target 2 consisted of three (3) parallel, strong and large magnetic anomalies extending for a combined strike length in excess of 20km. A drill hole was designed to test a small section of the magnetic anomaly and was explained with the intersection of a Banded magnetite Iron Formation (BIF) never before identified. The BIF unit was continuously sampled from 236.00 to 338.50m, with a weighted average of 27% Fe over 102.50m. The drilling stopped in the BIF and its full extent is not yet known. Further drilling will be needed to fully assess the potential significance of the extensive strike length of the magnetic response associated with this new iron discovery.
Target 3 consisted of a strong and extensive magnetic anomaly believed to be caused by a Proterozoic intrusion representing a potential host for nickel, copper and PGM mineralization. A drill hole intersected ultramafic rocks composed of peridotite and pyroxenite related to such an intrusion. This newly identified favourable intrusion will require follow-up drilling pending receipt of geochemical analysis from the lab.
Target 4 is situated near a rusty gabbroic outcrop in an area with high magnetic and EM responses. Drilling intersected a unit containing magmatic sulphide droplets of pyrrhotite, pyrite and chalcopyrite within a gabbroic unit similar to the outcrop. This sulphide-bearing intrusion is considered to be a favourable indication of the magmatic model and will require follow-up exploration pending receipt of geochemical results.
Zenyatta has the right to earn a total of 80% interest in the Albany Project from Cliffs Natural Resources Exploration Canada Inc. by expending a total of $10,000,000 by July 1, 2014. The Company has already earned 25% interest by flying the Geotech airborne survey and is presently working towards earning an additional 55% interest. Cliffs Natural Resources Exploration Inc., a wholly-owned subsidiary of Cliffs Natural Resources Inc. (NYSE:CLF) (Paris:CLF), an international mining and natural resource company, holds approximately 11.8% of the outstanding common shares of Zenyatta.
Motion for Injunction
Zenyatta, Constance Lake First Nation (“CLFN”) and Ontario (“Crown”) have been engaged in mediation with Superior Court Justice Campbell since May 24. The motion for injunction relief by CLFN in Ontario Superior Court has been adjourned while the newly elected Chief and Council review a recently mediated proposal. If the parties do not accept a settlement during mediation, the motion for an interim injunction will be argued before Justice Lederman in Ontario Superior Court. The Company’s Board and Management are optimistic that an agreement can be reached soon with CLFN.
Mr. Aubrey Eveleigh, P.Geo., President and CEO, is the “Qualified Person” under NI 43-101 and has reviewed the technical information contained in this News Release; To find out more on Zenyatta Ventures Ltd., please visit our website at www.zenyatta.ca or contact the Company at zenyatta%23ca|info or Tel. 807-346-1660.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.