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| June 26, 2014 --- Vol. 08, No. 26 | June 2014
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Greenland
West Melville Metals Inc. June 25 reported that the vendors of the Isortoq Project (Hunter Minerals Pty. Ltd. of Australia) have elected to waive the final USD$1.4 million payment due on the Isortoq Property and an amending deed to the purchase agreement to this affect has been executed. The “Royalty Agreement” covering non-ferrous metals also has been canceled. This secures the exclusive right to a 100 percent unencumbered interest in the project for West Melville, and Hunter will now file an application to the Greenland Authorities to transfer title to the Isortoq Exploration Licenses over to West Melville. “This is a very significant development for West Melville,” said West Melville Metals President and CEO Rory Moore, Ph. D. “With the ownership risk now completely resolved, the company is finally in a position to focus on advancing this high-potential project. We are very appreciative of the progressive approach that Hunter has taken in dealing with the challenges presented by the current tough market conditions. As a significant shareholder of West Melville, Hunter has decided that it would be better served by creating an opportunity for West Melville to allocate resources to advancing the Isortoq Project and thereby create longer term value for all stakeholders.” The 70-square-kilometer Isortoq Project is a large iron-titanium-vanadium prospect located in southern Greenland. Previous drilling combined with geophysical results to date has confirmed a potential strike length of at least 16.3 kilometers with the mineralized body being open to the south. The property is favorably located on a deep, ice-free ocean inlet on the temperate southern coast of Greenland within 60 kilometers (37 miles) of Narsaq and 100 kilometers (62 miles) from Narsarsuaq International Airport. Bench-scale beneficiation tests produced average concentrate grades of 48.7 percent iron (62.6% percent ferrous oxide); 19.1 percent titanium oxide and 0.32 percent vanadium pentoxide with acceptably low levels of penalty elements sulfur, phosphorus, silicon, aluminum. These are positive indicators that support the future economic potential of the project. In January 2013, West Melville reported an initial NI 43-101 resource estimate for the Isortoq project of 70.3 million metric tons grading 38.1 percent ferrous oxide (29.6 percent iron), 10.9 percent titanium oxide and 0.144 percent vanadium pentoxide) applying a 15 percent iron cutoff. It is significant to note that this initial resource represents drilling on less than one kilometer of the Isortoq body. “Given the low geological risk, extremely low strip ratio for open pit mining and the highly favorable logistics offered by the Isortoq Project, the key to the success for this project lies in identifying an economically viable metallurgical extraction procedure,” said West Melville Metals Chairman John Robins. “Several promising new hydro-metallurgical techniques are currently being developed at innovative laboratories around the world, and we will immediately be moving forward with evaluating the suitability of this technology to the Isortoq deposit.” In view of this “exciting” development, West Melville said its board of directors has unanimously decided to focus all of the company’s resources on the Isortoq project, and as a consequence it has elected not to exercise its option to purchase the Alex Project in Mexico. The option on the Fraser Bay Project is secure until December 2014 and efforts continue to find a suitable partner for the project.
In another development, Bruce Counts has resigned as a director of West Melville in order to pursue other opportunities.
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