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| March 18, 2010 --- Vol. 04, No. 11 | March 2010
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Nunavut
DIAMONDS – Shear Minerals Ltd. March 17 said it signed a final option and joint venture agreement with Rio Tinto Exploration Canada Inc. to explore and advance the Chesterfield Inlet Diamond Project in Nunavut. In the fall of 2009 a prospecting program was completed at the project and budgets are currently being finalized for the 2010 summer season. The project comprises a group of 35 mineral claims (28,340 hectares or 70,000 acres) located within and near the North Corridor of the larger Churchill Diamond Project. The project area is located about 15 kilometers, or 10 miles, north of the Josephine River Corridor and portions can be accessed by gravel road from the community of Chesterfield Inlet. The project has been outlined based on more than 25 priority geophysical targets suggestive of kimberlites with potential for larger kimberlites. This area covers the North Corridor, an indicator mineral dispersion area based on till samples from 2003-2006 having high count probe-confirmed kimberlitic indicator minerals including pyrope garnet, eclogitic garnet, chrome diopside, ilmenite and chromite. In October a three-day prospecting program was conducted at the project in order to prioritize targets of interest for further drilling. A total of 27 geophysical targets were prospected suggestive of larger tonnage kimberlites based on magnetics or targets that had a distinct electromagnetic association. In addition, five new kimberlite float occurrences were discovered from prospecting and are being interpreted. Preliminary visual kimberlitic indicator minerals counts have been received from 12 till samples collected in 2009 and results include pyrope garnet, eclogitic garnet, chrome diopside, ilmenite and chromite. Under the terms of the option and joint venture agreement, Shear and Stornoway Diamond Corp. have jointly granted Rio Tinto the right and option to acquire, subject to all underlying royalties, up to a 70 percent interest in all mineral rights to the project. Rio Tinto has a first option to acquire a 51 percent interest in the project by incurring exploration expenditures of C$100,000 before Dec. 31, and an additional C$1.9 million in exploration expenditures during the ensuing two years. If the first option is exercised, Rio Tinto can exercise a second option to earn another 19 percent interest in the project by incurring an additional C$4.5 million in exploration expenditures before Dec. 31, 2016. Shear will be the operator during the first option period.
The project is currently owned by Shear (about 62.78 percent) and Stornoway Diamond Corp. (37.22 percent). At the adjacent Churchill Diamond Project, work is currently focused on continued exploration of new promising indicator mineral trains and geophysical anomalies as well as the evaluation of a system of significantly diamond-bearing, vertically-emplaced kimberlite dykes that have returned sample grades of up to 2.18 carats per metric ton.
IRON – Advanced Explorations Inc. March 10 said metallurgical work undertaken by COREM on the C Zone core samples of its Roche Bay Magnetite Project located on the coast of the Melville Peninsula in Nunavut, has verified the previous work performed by SGS Lakefield Research. The additional metallurgical work was carried out as part of definitive feasibility work requirements. The results have confirmed it is possible to produce a concentrate that meets the operational requirements of an iron nugget plant and, in addition, a standard concentrate quantity that meets the quality specification imposed on standard concentrate. Advanced Explorations 2010 plan is to undertake the necessary work (metallurgical, engineering, drilling, etc.) to complete a definitive feasibility study. Results of a preliminary economic assessment of the asset’s C-Zone indicated a very robust project with annual production of 1 million metric tons of high value 96-98 percent Fe iron nuggets. “The metallurgical work was an important step in confirming the process flow sheet will produce a suitable concentrate to supply the proposed nugget plant,” said Advance Explorations President and CEO John Gingerich. “The company will now continue to move forward on the other aspects of the definitive feasibility study, which we expect to complete by early Q1/2011, and then initiate pre-development project financing. With the baseline environmental study already completed, the company should be into the Impact Benefits Agreement negotiations and the mine permitting process by next year. Despite the setbacks from the economic collapse in 2008, we remain on track to deliver an important development opportunity for AEI shareholders and Nunavut.”
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