The Granite Lake molybdenum project is located in mining favourable central Newfoundland Canada. In January 2008, Playfair announced an exciting new molybdenum discovery hole (GL07-23). Hole 23 encountered very significant molybdenum mineralization through its entire length: 182.4 metres grading 0.050% MoS2 (0.030% Mo), included within this intersection is 58.5 metres grading 0.082% MoS2 (0.049% Mo). Hole 23 was part of a recently completed seven month drill campaign (~ 8,700 metres in 47 holes); much of the drilling was focused on the Moly Hill Zone. Drill results show that the Moly Hill Zone is a large-scale bulk tonnage molybdenum target which warrants extensive additional drilling. (Click here to download the Granite Lake Drill Plan Map PDF)
This is the first significant molybdenum discovery in this part of Newfoundland and Playfair has consequently acquired by staking an additional 1,036 claims totalling 265.75 km2 in the area. Playfair now controls five separate claim blocks in the Granite Lake area, which cover multi-element geochemical anomalies including both tungsten and molybdenum.
Granite Lake has the advantage of excellent logistics. The area is accessible by an all weather road and partial logging has provided ready access through a network of logging roads. A newly completed 40 MW hydroelectric facility is located on the southeast corner of the property. There are no aboriginal claims in the area and no major environmental concerns.
A very large (about 80 square kilometre) multi-element geochemical anomaly was discovered at Granite Lake by a Federal/Provincial regional lake sediment survey carried out in 1978. Subsequent follow-up work by a number of exploration companies showed bedrock mineralization, glacial float mineralization and soil geochemical anomalies in an approximately 3 square kilometre area in the centre of the regional geochemical anomaly.
Recent detailed exploration by Playfair, including an airborne magnetics - radiometrics survey, mechanized trenching and extensive diamond drilling, has led to the discovery of the high priority Moly Hill Zone. The Moly Hill Zone is located within the centre of the Granite Lake Property. Its limits are defined by an extensive airborne magnetic low anomaly measuring about 2.4 by 2.6 kilometres. Currently, Playfair attributes this magnetic low signature due the destruction of magnetite resulting from pervasive and wide spread hydrothermal alteration of the host granite rocks. The multi-element mineralization of the Moly Hill Zone is typically associated with a network of (a) east-west trending, near vertical dipping and (b) near flat lying sheeted quartz veins and stockworks. Metal mineralization is dominated by molybdenum, with lesser amounts of silver, tungsten, bismuth, copper, lead and zinc. The granitic host rocks are variably clay-epidote-silica altered, with the local strong greisen alteration associated with particularly dense quartz veining. Molybdenum commonly occurs from the top of drill holes, with many of the holes ending in mineralization.
Playfair's drill testing of a limited portion of the Moly Hill Zone has outlined a priority area of altered and mineralized rocks measuring at least 600m long by 500m wide. The priority area is located on northeast corner of the Moly Hill Zone and is open in all directions except to the north. Molybdenum commonly occurs from the top of drill holes, with many of the holes ending in mineralization.
Just to the west of the Moly Hill Zone is a second smaller airborne magnetic low anomaly (measuring about 0.7 by 2.0 kilometres), dubbed the Moly Hill West Zone. Little is known about this western anomaly except that a large north trending, generally barren, quartz vein passes though its centre. This quartz vein has very similar characteristics to the veins found within the Meelpaeg Lake Fault Zone (MLFZ), which appears to be of considerable significance in controlling the location of the bedrock mineralization within the main Moly Hill Zone.
Playfair has 100% controlling interest in all of the Granite Lake property, with the exception of two small mineral licenses, for which Playfair has the right to earn 100% interest from Buchans River Ltd (BUV: TSX.V) by completing the following option agreement terms. To exercise the right to earn the 100% interest in the two licenses, Playfair must spend a minimum of $50,000 exploration expenditures; this is completed. Playfair has given Buchans River written notice to exercise the option. Commencing from the date of notice (January 31, 2008), for a period expiring on the earlier of (a) 24 months or (b) Playfair having incurred exploration expenditures of $300,000 Buchans River can elect (a) to purchase, in cash, from Playfair a 35% participating interest equal to 65% of all expenditures incurred on the two mineral licenses or (b) acquire a 3.0 % net smelter royalty. If Buchans chooses the former, then all operations carried out on the two licenses will be conducted on a joint venture basis, however, if Buchans elects the NSR option, then Playfair has the right to purchase up to half the NSR (1.5%) on the basis of $500,000 for each one sixth (0.5%) of the royalty acquired.
Location And Access
The Granite Lake-Meelpaeg Lake study area is located in central Newfoundland in NTS map areas 12A/2 and 12A/7. The area is situated at the headwaters of Grey River that flows southward. Access is provided by a 75-km-long gravel road from Millertown to the Granite Lake and Meelpaeg Lake reservoirs. A paved road connects Millertown with the Trans-Canada Highway at Badger.
Topography, Vegetation And Outcrop
The study area is bordered on the west by Granite Lake and on the east by Meelpaeg Lake. The topography is characterized by gentle, timbered ridges (50 percent), flat boggy land (30 percent), and gently undulating barrens (20 percent). Elevation varies from 270 to 440m. Mature spruce and fir cover well-drained ridges in the central part of the area. Alder swamp and bog are dominant on the flat country, particularly in the east. Patches of stunted juniper, spruce and fir occur on the barrens in the western part of the area. Natural rock exposure is generally less than 1 percent. Most exposure was created during exploration or during excavation of an aqueduct (hydro canal) from Granite Lake to Meelpaeg Lake.