VANCOUVER, BC, June 10, 2020 /CNW/ - Boreal Metals Corp.
("Boreal" or the "Company") (TSXV: BMX) is pleased to
announce that it has entered into an option agreement (the
"Agreement") with Boliden Mineral AB ("Boliden") with
respect to Boreal's 100% owned Burfjord copper-gold project in
Northern Norway ("Burfjord"
or the "Project"). The Project is host to gold and cobalt
bearing high grade copper veins which occur in broad zones of
disseminated style copper mineralization covering a 6-kilometer by
4-kilometer window of copper prospective geology (Figure
1).
"The option agreement with Boliden, a leading mining and
smelting company in the region, represents a significant step
forward in the advancement of Boreal's exploration project
portfolio," stated Patricio
Varas, Chairman and CEO of the Company. "Collaboration
with Boliden will maximize the potential for a significant
copper-gold discovery at Burfjord and will facilitate value
creation during these difficult financial market
conditions."
Burfjord is characterized by broad arrays of copper, gold and
cobalt bearing veins dominated by iron-oxide and iron-carbonate
rich mineral assemblages reminiscent of Iron Oxide Copper Gold
mineral deposits (IOCGs). The large associated alteration system at
Burfjord and widespread copper mineralization support the Project's
potential to host a large copper deposit.
On March 20, 20191,
Boreal announced compelling drill results from Burfjord, including
an intercept of 32 meters averaging 0.56% copper and 0.26 g/t gold
(including 3.46 metres of 4.31% copper and 2.22 g/t gold) at
shallow depths below a group of historic mine workings. This and
other drill defined zones of copper and gold mineralization are
slated for immediate follow-up. Historical drilling on the Project
returned 7.0 meters averaging 3.6% copper2.
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1Intercept
reported as seen in drill core. The true width is estimated at
85-100% of the reported interval. See Boreal's March 20, 2019
News Release for discussion of analytical methods, QA/QC and core
handling protocols.
|
2Source:
NGU Deposit Factsheet, Deposit Area 1943-010, 1997. Boreal's
property reviews have confirmed the geologic setting and occurrence
of mineralization on the Project and considers the historic
exploration data to be relevant as reported in public disclosures
and government reports.
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Summary of Commercial Terms
In accordance with the Agreement, Boliden may earn a 51%
interest in the Project by incurring US$6,000,000 on exploration and development of
the Project within four years of the effective date of the
Agreement (the "First Option"). Boliden may also exercise
the First Option by paying Boreal in cash within such four-year
period the difference between US$6,000,000 and the expenditures incurred. The
four-year period to exercise the First Option may be extended if
exploration and development on the Project is delayed by an event
of force majeure, which includes the current Corona Virus
pandemic.
If the First Option is exercised, Boliden may earn an additional
29% interest in the Project, for an aggregate 80% interest (the
"Second Option"), by solely funding further advancement work
through the delivery of a NI 43-101 and PERC (Pan European Reserves
& Resources Reporting Committee) compliant feasibility study
and solely funding all annual costs to keep the Project in good
standing.
EMX Royalty Corporation (NYSE:EMX, "EMX"), the underlying
royalty holder and technical advisor to Boreal on the Project, will
retain a 3% NSR royalty on the Project, which includes advance
royalty payments credited toward actual royalties payable upon
production (see Boreal News Release dated February 4, 2017 for details). One percent of the
3% NSR may be re-purchased from EMX by February 14, 2025, provided that this right of
purchase may be extended if Boliden, due to an event of force
majeure, still has the right to exercise, but has not yet
exercised, the First Option by February 14,
2025.
Boliden will solely fund the advance royalty payments due to EMX
until the First Option is exercised, after which advance royalty
payments will be paid by both Boreal and Boliden in proportion to
their respective proportionate interests in the Project.
Boreal will be the initial operator of the Project until the
First Option is exercised. Upon exercise of the First Option,
Boreal and Boliden will form an incorporated Joint Venture to
further advance the Project, and Boliden will have the right to
become the operator.
Overview of the Burfjord Project
The Project is comprised of six exploration licenses totaling
5,500 hectares in the Kåfjord Copper Belt near Alta in Norway. The Project is highly prospective for
Iron Oxide Copper Gold (IOCG) and sediment hosted copper mineral
deposits, which contribute significantly to copper production
globally.
During the nineteenth century, copper mineralization was mined
from over 30 historic mines and prospects developed along the
flanks of a prominent 4 x 6 kilometer fold (anticline) on the
Project consisting of interbedded sedimentary and volcanic rocks.
Many of the rocks in the anticline are intensely hydrothermally
altered and contain sulphide mineralization.
High-grade copper-gold veins at Burfjord that were historically
mined at cutoff grades of 3-5% copper are surrounded by envelopes
of stockwork veins or disseminations of copper mineralization
extending tens to hundreds of meters laterally into the host rocks.
The Company believes this mineralization has economic potential and
represents an attractive bulk tonnage exploration drilling target.
Copper bearing veins in the area are dominated by ferroan
carbonate, sodium-rich minerals, and iron-oxide minerals (magnetite
and hematite), but also contain the economically important minerals
chalcopyrite, bornite and chalcocite in addition to cobalt-rich
pyrite as generally coarse-grained (often 0.5 centimeter to
multi-centimeter scale) disseminations in the veins.
About Boreal Metals Corp.
Boreal is a mineral exploration company focused on the discovery
of silver, zinc, copper, gold, and nickel deposits in exceptional,
historical mining project areas spanning Sweden and Norway. The Company aims to discover new
economic mineral deposits in known mining districts that have seen
little or no modern exploration. The Company is led by an
experienced management team and technical team, with successful
track records in mineral discovery, mining development and
financing.
About Boliden Mineral AB.
Boliden is a Swedish public limited company that is one the
Nordic region's key mineral producers with a diversified spectrum
of operations, including active mines in six mining areas in
Europe and five smelting and
processing facilities across Norway, Sweden, and Finland. Boliden produces a diverse suite of
mineral products including base and precious metals. They are an
ideal partner to work with at Burfjord, given their regional
expertise in exploration, mine development and mineral
production.
Qualified Person
Daniel MacNeil, P.Geo, a
Qualified Person as defined by National Instrument 43-101, has read
and approved all technical and scientific information related to
the Burfjord project contained in this news release. Mr. MacNeil is
Vice President Exploration for Boreal.
On behalf of Boreal Metals Corporation
Patricio Varas, Chairman and
CEO
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain statements that may be
considered to be "forward-looking statements". Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects",
"plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or
conditions "will", "would", "may", "could" or "should" occur.
Although Boreal Metals Corp. believes the expectations expressed in
such forward–looking statements are based on reasonable
assumptions, such statements are not guarantees of future
performance, are subject to risks and uncertainties, and actual
results or realities may differ materially from those in the
forward–looking statements. Such material risks and uncertainties
include, but are not limited to, Boreal Metals Corp.'s ability to
raise sufficient capital to fund its obligations under the
Agreement and fund it s general working capital requirements, the
ability to maintain the Project in good standing, the ability to
explore and develop the Project, the ability of Boreal Metals Corp.
to repay its debt; changes in economic conditions or financial
markets that may impact funding of the Project; the ability to
obtain the necessary permits and consents required to explore,
drill and develop the Project and, if obtained, to obtain such
permits and consents in a timely fashion relative to the terms and
conditions of the Agreement and Boreal Metals Corp.'s plans and
business objectives for the Project; the general ability to drill
test the Project and find mineral resources; if any mineral
resources are discovered or acquired, the ability to monetize
any such mineral resources; and changes in environmental and other
laws or regulations that could have an impact on the Project or
Company's operations. Forward-looking statements are based on the
reasonable beliefs, estimates and opinions of Boreal Metals Corp.'s
management on the date the statements are made. Except as required
by law, Boreal Metals Corp. undertakes no obligation to update
these forward–looking statements in the event that management's
beliefs, estimates or opinions, or other factors, should
change.
SOURCE Boreal Metals