The Northern Miner, 6/13/2008
Canadian Orebodies starts exploring McFaulds Lake
Canadian Orebodies (CO-V) has commenced early-stage exploration at the "Ring of Fire" in the McFaulds Lake area in the James Bay lowlands of northern Ontario. According to CEO Gordon McKinnon, the company has varying ownership interests in 14 claim blocks totaling about 53,600 hectares.
The company's approximate land holdings in the area include: 10,400 hectares with a 100% ownership interest, subject to a 2% net smelter return royalty (NSR); 9,600 hectares with an option to earn a 60% interest by spending $3.25 million on exploration over three years; 13,100 hectares in a joint venture with a 50% ownership interest, with the other 50% shared equally between MacDonald Mines (BMK-V) and Temex Resources (TME-V); and 20,400 hectares where the company owns a 1% NSR interest.
One of Canadian Orebodies' projects is located about 2 km from the border of the property where WSR Gold (WSR-V), Arctic Star Diamond (ADD-V) and Metalex Ventures (MTX-V) have announced in June a 95-metre intersection of volcanic-derived sulphides mineralization. (The Canadian Orebodies project is included in the package where the company has an option to earn a 60% interest.) The company also has a 1% NSR royalty in another property bordering the WSR Gold / Arctic Star Diamond / Metalex Ventures project.
At the end of May the company announced completion of an airborne geophysics survey over its 100% owned projects, and McKinnon says that the survey has identified many targets. The survey outlines a number of magnetic highs, which could be caused by the presence of ultramafic rocks, with or without sulphide mineralization. The company is also conducting an airborne geophysics survey over the projects where it has an option to earn a 60% interest. McKinnon is planning to use the summer to build the exploration camp and, subject to accessibility, conduct ground geophysics surveys and field work on targets identified by airborne geophysics. Drilling during the summer is going to be largely dictated by accessibility, so it is going to be limited. He is planning larger-scale drilling during winter, when accessibility is good. Initially, drilling will be done to a depth of 150 metres.
Besides its projects in the McFaulds Lake area, Canadian Orebodies also has the Coral Rapids project and the Hawkins project.
In May the company raised $3 million in a private placement which included shares, warrants and flow-through shares. Currently the treasury has $2.8 million, and there are 58.7 million shares fully diluted.
