VR Resources (TSXV:VRR) has announced significant developments at its Northway site in northern Ontario. The company completed drill hole NW23-003, reaching 627 m in depth. The drilling operation unveiled a substantial kimberlite breccia deposit spanning an area of about 700 m laterally and roughly 320 m vertically below a layer of sandstone.
The NW23-003 drill hole was initiated at a depth of around 240 m, revealing a xenolith-rich kimberlite breccia (XPK) layer that continued further down. This depth is consistent with the previous two drilling operations at the site.
The company has now completed drilling in three holes, resulting in approximately 500 m of kimberlite core samples. These are estimated to amount to about 1.3 metric tonnes of material. The company is planning compositional studies and microdiamond evaluations on these samples at the SRC laboratory in Saskatoon. The preparation and shipment of these samples are scheduled for the second week of July.
Notably, the NW23-003 hole, like its predecessor, is located in the heart of a magnetic anomaly, a region of strong magnetic field, hinting at a large concentration of minerals. It’s aligned steeply to the north at a -65o inclination.
The company also unveiled changes to its corporate structure, announcing the adoption of a long-term incentive plan (LTIP) involving restricted share units (RSUs) and deferred share units (DSUs). This plan is designed to attract, retain and motivate highly qualified personnel, align their interests with the company’s shareholders, and foster long-term growth. The LTIP will come into effect on July 6, 2023.
However, the LTIP is yet to be ratified by the company’s shareholders and approved by the TSX Venture Exchange. The company will seek these approvals at a shareholders’ meeting scheduled for August 31, 2023. The maximum number of RSUs/DSUs that can be issued under the LTIP cannot exceed 11,396,636 common shares, which is 10% of the common shares of the company as of the effective date.
VR Resources CEO, Dr. Michael Gunning, commented in a press release: “Having now hit kimberlite breccia in 3 drill holes spanning some 700m across the magnetic anomaly at Northway, the sheer scale and energy of this kimberlitic event and breccia pipe complex is both obvious and exceptional.
There is kimberlite breccia to the bottom of hole 003, which is some 700 m laterally from the kimberlite crater facies seen at the top of hole 001, and we have yet to even see the northwestern part of the complex with the three holes completed to date. Similarly, we see no constraints for the depth extent of the breccia based on observations in drill core, including xenolith-rich XPK breccia at the bottom of hole 003, and based on the continuity in the 1,000 metres of vertical extent in our 3D magnetic inversion block model.
With that realization towards the sheer scale of the KPK breccia rocks at Northway, and the potential for a new Devonian-aged kimberlite field in the northern Superior craton, we are now scoping the acquisition of detailed magnetic data on the twenty-odd magnetic anomalies that we have staked around Northway, and proximal to the active Ontario Northern railroad.
We now have over a metric ton of drill core in three holes spanning some 700 metres laterally and 320 metres vertically within the breccia pipe complex at Northway. This amount of core will optimize a first-pass evaluation of the micro-diamond potential by caustic fusion, and provide for a robust compositional characterization of the breccia.
In order to appreciate the upside potential of Northway itself, and of the expanded strategy related to the field of similar targets staked by VR following the discovery in hole 001, I would again encourage our shareholders to remind themselves of the drill core photos and geological context for this discovery as outlined in the previous news releases dated February 22 and May 18, 2023, respectively, and as summarized on the Northway project page on the Company’s new website at www.vrr.ca.