 | | 
 
History of the Project:
In 1993, a joint venture agreement was signed with Kennecot Exploration Inc. to explore the area for diamonds. Geological and geophysical surveys were conducted including low level helicopter aeromagnetic surveys of a 100 square miles target area, ground geophysics surveys, field mapping and stream sediment sampling. Land lease holdings were then increased.
A drilling program was conducted which produced over three tonnes of core samples. However, soon after completion of the drilling program, the joint venture was terminated due to an industry consolidation which directly impacted Kennecot and its exploration activities in North America.
Per the agreement, all data and material were returned to Resource Finance and Investment Ltd. Analysis conducted by Kennecot on some of the initial drill core did not indicate the presence of diamonds, however it did indicate a very good potential for zinc.
RFI determined at that time to maintain the primary leases until market conditions improved. The project has been inactive until late 2006 when the company commenced an exploration evaluation to determine the components and cost for the next stage. The project is 100% owned by RFI through Dynamex Corporation Inc.
Geological Setting of the Project:
The geological credentials include an underlying Precambrian shield that possesses the essential diamond preservation and vertical transportation characteristics. There are present deep, almost continental scale faults representing rifts that have been active over long periods of time and surface outcrops of kimberlitic rocks with petrography indicating that the kimberlite is prospective for diamond.
The Lollypop intrusion lies at the confluence of important geological structures. The edges of the Mississippi Embayment and the Illinois Basin coincide at the northern extension of the Reelfoot Rift, one of the most seismically active areas in the United States.
Program and Strategy:
RFI reactivated its Shawnee base metal exploration project and commenced a new exploration initiative in October 2006. The program components were;
- Engaged the services of an experienced exploration firm (Jay Gatten & North American Exploration Inc.)
- Initial evaluation (including re-logging the drill core).
- Data compilation (topography, geophysics, surface geology, samples, etc.).
- Surface mapping & sampling. Includes assays and report.
- Soil sampling/analyses.
- Permitting for coring/drilling/bulk sampling.
- Coring -- 6000 feet -- about 12 holes, includes supervision, assays, report).
During 2007 approximately $600,000 was spent on new lease acquisition, surface exploration and drilling.
The program focus has been on the area of interest that management believes has the most potential to contain high grade zinc and associated mineralization. Early in the program there was some opinion that there could be potential for a larger tonnage lower grade zinc deposit but subsequent exploration has not been successful in confirming this. A selective drill program was undertaken over a broad area with the objective of testing several geologically different structures to ascertain the host structure of the higher grade zinc deposits. Baseline data utilised to determine the potential included the geology in and around the sites of historic production, as the region has hosted many producing mines. The results from the early stage of drilling were encouraging as several zones of higher grade (>8% zinc) over widths of 3 to 23 feet were shown. Subsequent drilling was unable to replicate this grade and width of mineralisation.
Very recently, a drill rig moved to the Hampton prospect in Livingston County. This drill is better adapted to drill the slightly deeper vertical holes that are planned. Drilling began on Wednesday, December 19th. It is expected that this hole will confirm the thickness and grade of bedded zinc encountered in core hole R-100 which was drilled approximately 30 years ago. Thirty two (32) feet of core from this hole assayed 14.9% zinc, and there were additional mineralized intervals of core. This first hole is being drilled vertically, with a projected depth of 700 feet. An experienced team is working on the drill program utilising the original survey monuments which have had updated the location of core hole R-100. Individuals with many years of regional experience have been engaged to assist with this project since some actually did much of the field work and supervision for the original drilling.
Post drill evaluation of the Hampton prospect will be digitizing the drill hole and assay data and then inputting these data into a computer program to model the deposit and construct the various maps and sections and assist in resource calculations. This data will form part of a report being prepared by an independent geologist to be incorporated into the prospectus filing with the stock exchange. We are anticipating that the assay work will continue to be assayed at Chemex labs.
Drilling was completed on the Bad Bull prospect on December 6th. Hole DXDH-3 was completed at a depth 375 feet. This hole was drilled at an angle of 45 degrees at a bearing of N60E to intersect a small exposure of an igneous dike, a trend reflected by several small prospect pits, and a strong positive magnetic anomaly. Unfortunately the results of the hole were negative as no igneous dikes or significant zinc mineralisation were encountered.
The Company is optimistic that it will be successful in identifying high grade economic deposits in this region which hosts zinc production, smelting capacity and good infrastructure. This prospect is the principal driver for our initiative in this era of limited long term domestic zinc supply.
|
 |
|
