The Kilometre 26 Nickel Project is located in central British Columbia approximately 55 kilometres northwest of Fort St. James. The property was staked to cover the area where, in 1983, Cominco discovered a quartz-ankerite-magnesite-mariposite boulder which repeatedly graded 8.1 grams per tonne gold. The style of gold mineralization and alteration encountered at Kilometre 26 with the boulder is similar to what has been called Mariposite Ore, in the prolific Motherlode district of California.
Subsequent to staking the property, mineralized ultramafic boulders were encountered that contained up to 0.21% nickel at Kilometre 26. In 2011, eleven samples of nickel mineralized serpentinite were submitted for examination using scanning electron microscope techniques contained either the nickel sulphide pentlandite or the nickel alloy awaruite. These results confirm the presence of Awaruite on the property.
Awaruite (nickel-iron alloy) is essentially a natural occurring stainless steel that contains no sulphur. As a result the product can be shipped directly to steel mills without incurring costly smelting charges. This would greatly reduce the environmental impact that traditional sulphide deposits experience. It is envisioned that mining awaruite could be similar to large bulk tonnage open pit mines on the same scale as copper mines currently operating in BC.
The Kilometre 26 property covers fifteen kilometres of the Pinchi fault trace (9,819 hectares) and is centered on a strong magnetic anomaly indicated on the Quest West helicopter-borne magnetic and electromagnetic survey flown for the B.C. government (Geoscience B.C.) and published in January, 2009.
The Kilometre 26 property was drilled in 1986 by Ross Beaty's Equinox Resources Ltd. who optioned the property from Cominco. A total of 734 metres was drilled in 21 reverse circulation holes and 14 of these holes encountered bedrock. While no significant gold or arsenic results were obtained, several holes encountered ultramafic rock confirming the location of the Pinchi Fault which had been interpreted geologically based on a change from Palaeozoic (Cache Creek Group) outcrop on the west side to Mesozoic (Takla Group) outcrop approximately 400 metres distant on the east side. In 2009, Eastfield noticed the claims had lapsed and staked them. In 2010, when nickel was discovered on the Kilometre 26 property the claims were expanded. In 2011, Awaruite, a nickel-iron alloy was discovered and is now the focus of exploration.
Update (December 15, 2011)
Drilling on the Kilometer 26 project, located near the community of Fort St. James, B.C., commenced on Nov. 20, and four holes have been completed with a fifth hole currently in progress. To date, approximately 700 metres have been drilled. All holes have encountered serpentinite from bedrock to the bottom of the hole. Holes have been drilled at a spacing of approximately 400 metres, resulting in an area extending approximately 1.6 kilometres trending north/south, approximately 500 metres trending east/west and open in all directions, particularly to the south and west, based on geophysical signatures. All holes have bottomed in serpentinite at depths varying from 80 metres to 200 metres. Drill casing has been left in place at all holes to allow for possible deepening at a later date. It is expected that the current hole will be completed by Dec. 19 and drilling will then be stopped for a Christmas break and resume again in 2012. Analytical results are expected in approximately one month.
The Pinchi Fault is one of the pre-eminent structural features in central British Columbia and is a major structural feature that separates distinct geological terranes. It extends in a north-south orientation for more than 450 kilometres. Current hot spring activity on the Pinchi Fault at Tchentlo Lake, located 50 kilometres to the north of the Kilometre 26 Property, confirms that its activity continues.
The Pinchi Fault is predominantly known for several mercury deposits which occur along it, the most significant of which is the Pinchi Lake Mercury mine located 18 kilometres to the south of the Kilometre 26 Property. The Pinchi Mercury Mine, currently owned by Teck Ltd., was discovered in 1937 and was in production from 1940 to 1944 and from 1968 to 1975.
The evidence indicates that the Pinchi Fault has considerable gold potential that has remained hidden because of glacial overburden. Gold mineralization was largely unknown within the Pinchi Fault System until Cominco's discovery of the mineralized boulder in 1983. It can be surmised that the Cominco boulder was not in place but most likely is derived from a nearby source within the Pinchi Fault Zone. The boulder, which was analyzed repeatedly, averaged 8.1 g/t gold
The Snowbird gold deposit is located on a probable splay to the Pinchi fault 40 kilometres to the southeast of the Pinchi Lake Mercury Mine. The Snowbird deposit, located on the south shore of Stuart Lake, has had minor production with a small amount of ore grading approximately 9.0% antimony and 8.0 g/t gold. Mineralization is typically hosted in listwanite ("mariposite" rock). Drilling completed in 1986 included a 15 cm vein which graded 8,508.41 g/t gold from within a 1.5 metre interval that graded 788.58 g/t gold.
Subsequent to the staking of the Kilometre 26 claims, the area became additionally significant because of exploration being undertaken in similar rocks 30 kilometres to the west at the Decar project being explored by First Point Minerals Corp. and Cliffs Natural Resources Inc., a major iron ore company based in Cleveland, Ohio. At Decar, ultramafic rocks similar to those which occur at Kilometre 26 host an unusual iron-nickel alloy that is being explored as a potential new source of nickel (non-sulphide). Preliminary prospecting has encountered mineralized ultramafic boulders containing up to 0.21% nickel and the presence of awaruite.
The Pinchi Fault with its terrane bounding character, ultramafic lithologies, mercury mineralization and hot spring activity is comparable to both the Melones Fault and the Stony Creek Fault and as such offers potential for the discovery of a world class gold deposit.
The Melones fault in the Motherlode district of California is commonly cited as being comparable to the Pinchi Fault. The 200 kilometre long Melones Fault is the structure responsible for nearly 50 million ounces of placer gold and more than 100 million ounces of lode gold, most of which was produced in the nineteenth century. In the Motherlode district ultamafic rocks, often serpentinized, are frequently spatially associated with gold mineralization and define the deep structures that formed the hydrothermal conduits for gold bearing fluids. In earlier descriptions from California the altered product was often called "Mariposite" and more recently has been called "Listwanite". The Motherlode district is famous for spectacular bonanza gold grades that occurred near the edge and on the outside of the serpentinite bodies and for the exceptional down dip continuity of ore bodies.
The Stony Creek Fault in California is also comparable to the Pinchi Fault. The Stony Creek Fault is a major terrane bounding structure separating the Coast Range Ophiolite sequence from the Great Valley sequence. In 1978, Homestake Mining discovered the Mclaughlin deposit on the fault at a then mined out mercury mine. Gold at Mclaughlin is associated with siliceous sinter and contains minor hydrocarbon. A total resource of 24.3 million tonnes grading 4.49 g/t gold was defined and the deposit has since been mined out.
Recent exploration in 2007 completed by Cliffs Natural Resources/First Point Minerals Corp. identified a potential leading edge form of nickel mineralization in the general area of the kilometer 26 project. The recently completed Decar Nickel Property agreement between Cliffs Natural Resources Inc., a major USA based iron mining company and First Point Minerals Corp, has been favorably received by the investment community as Cliff's metallurgical and operating experience with large scale magnetic separation techniques may have direct application to the Decar project. The Decar project hinges around the recent identification of a naturally occurring nickel-iron alloy called awaruite (essentially a natural form of stainless steel). Decar is located approximately 30 kilometers west of the kilometre 26 project where one rock (rubble) sample collected in 2009 exceeded 0.13% nickel and another 0.20% nickel. First Point recently announced additional awaruite discoveries in this belt.
The Kilometre 26 project is 100% owned by Fort St. James Nickel.
The property is easily accessible by a major industrial road and recent logging has resulted in the addition of logging roads. The low lying area and proximity to Fort St. James allow for year round access and work, a luxury that is very rare in this region.
NI 43-101 - Nov 9, 2011