Northcore Resources & Nuna Minerals Sign a Memorandum of Understanding for the High Grade Ymer 0 Tungsten-Antimony-Gold Proje...
May 15 2014 - 12:50AM
Marketwired
Northcore Resources and Nuna Minerals Sign a Memorandum of
Understanding for the High Grade Ymer 0 Tungsten-Antimony-Gold
Project in Central East Greenland
MONTREAL, QUEBEC--(Marketwired - May 15, 2014) - Northcore
Resources Inc. (TSX-VENTURE:NCR) is pleased to announce they have
signed a Memorandum of Understanding ("MoU") with NunaMinerals A/S
of Nuuk Greenland (CSE:NUNA.CO/NUNA.DC). The two companies are now
in advanced stages of commercial negotiations regarding an
Option-to-Earn-In and Joint Venture Agreement designed to advance
the development of NunaMinerals' Ymer Ø tungsten-antimony-gold
project ("Ymer Ø") in Central East Greenland.
Under the proposed
Option Agreement, Northcore will be able to earn, incrementally
through three phases, a 65 % interest in Ymer Ø by funding US$ 4.6
million (c. 25 MDKK) of exploration and development expenditures
over a three year period commencing in 2014 provided the first
stage of exploration during 2014 worth US$ 920,000 proves
successful. Northcore will have the option to earn an additional
10% interest in the project upon Northcore expending an additional
US$ 2.5 million in exploration and development expenditures before
the end of 2019. In addition, Northcore is required to make an
upfront cash payment of US$ 300,000 to NunaMinerals, of which a
cash payment of US$ 150,000 is payable upon the signing of the
Option and Joint Venture Agreement, along with 500,000 post
rollback shares of Northcore's capital and the remaining US$
150,000 is payable six months thereafter. At the start of each the
2015 and 2016 exploration season when Northcore takes the decision
to proceed with exploration it will remit to NunaMinerals an
additional 500,000 shares of its share capital. Upon Northcore
earning a 65 % interest, a Joint Venture to further develop the
Ymer Ø project will be formed between NunaMinerals and Northcore.
The terms of the Option and Joint Venture Agreement, as defined in
the MoU, are summarised in Table 1 below.
Tungsten and
Antimony potential at YMER Ø: In addition to the
exceptionally high grade intersections of tungsten and antimony in
historical drilling, which remain open ended, there are several
other drill ready targets identified from an airborne geophysical
survey that NunaMinerals completed over the license area.
Significantly these targets are also coincident with strong
geochemical anomalies. The fundamentals for tungsten have
strengthened considerably in recent months, and so we very much
look forward to the opportunity of rapidly defining additional
resources at Ymer Ø.
Table 1:
Northcore Resources Inc.'s minimum expenditure commitments and
corresponding earned interest in the Ymer Ø project as agreed in
the Memorandum of Understanding.
|
Minimum Commitment |
Number of shares in Northcore to be issued to NunaMinerals |
Northcore's Earned Interest in the Property |
Northcore's total undivided interest in the Property |
2014 |
US$ 920,000 |
500,000 |
20 % |
20 % |
2015 |
US$1,380,000 |
500,000 |
29 % |
49 % |
2016 |
US$2,300,000 |
500,000 |
16 % |
65 % |
Up to 2019 |
Option to spend an additional US$2,500,000 |
- |
Option to earn an additional 10 % interest in the property |
75 % |
Introduction to the
Ymer Ø Tungsten-Antimony-Gold Project
The Ymer Ø project
(a 441 Km2 exclusive exploration license), covering a substantial
proportion of Ymer Island is located within the major fjord system
of Central East Greenland, which remain ice free for several months
of the year. The project is approximately 280 km north of the town
of Illoqqortoormiut (Scoresbysund), 115 km north of Mestersvig
Airfield and 200 km south of the Zackenburg Scientific Research
Station and the Daneborg Weather Station. The area is serviced by
scheduled ice-class vessels of the Royal Arctic Line. All of the
prospects at Ymer Ø are located between 5 and 15 km from proposed
deep water harbour sites.
The Ymer Ø project
is centered around the greater than 10 km thick, unmetamorphosed
Late Precambrian Elenor Bay Group (EBG) sedimentary package.
Replacement type tungsten-antimony-gold mineralisation is hosted
within wide sulphide bearing hydrothermal veins and E-W fault
systems (greater than 10 km in length) which cuts sandstones,
siltstones and shales of the Quartzitic Series of the EBG at Noa
Dal. The multicoloured series of the EBG (limestone, dolomite and
dolomitic shale) hosts separate, high grade lenses of scheelite
(tungsten) and stibnite (antimony) mineralisation at South
Margeries Dal and North Margeries Dal, respectively. The tungsten
and antimony mineralisation in the Margeries Dal area occurs in
silicified lensoid breccia zones in the central portions of
graben-like fault structures associated with E-W faults. The
extreme concentrations of tungsten and antimony and their
restriction to discreet strata within the EBG is inferred to result
from chemical traps offered by the availability of calcium within
limestones and dolomites (scheelite mineralisation) and similarly
the high concentrations of sulphur within the dolomite- shales
(stibnite mineralisation). The vertical expression of the
hydrothermally zoned mineralised system at Ymer Ø is upwards of
1,500 metres. The distribution of the various
gold-tungsten-antimony associations suggests a zoned, reduced
intrusion-related system. A circular magnetic feature in airborne
geophysics, located immediately north of Noa Dal has been
tentatively interpreted as a deep seated granite, of inferred
Caledonian age.
The project has been
subject to a limited diamond drilling campaign (18 holes totalling
2,000 metres) by Nordisk Mineselskab A/S in 1983/84, which was
successful in revealing exceptionally high grade intersections of
tungsten and antimony. The drill tested occurrences remain open
along strike and to depth. Key intercepts are shown below:
South Margeries
Dal (Historical drilling by Nordisk MineselskabA/S):
- 22.0 metres at 5.0 % WO3
- 3.0 metres at 5.8 % WO3
- 3.5 metres at 4.9% WO3
North Margeries
Dal (Historical drilling by Nordisk Mineselskab A/S):
- 2.5 metres at 20.9 % Sb
- 13.5 metres at 3.8 % Sb
- 6.0 metres at 1.9 % Sb and 3.5 % WO3
- 8.5 metres at 0.8 % Sb and 2.7 % WO3
Noa Dal (Surface
chip sampling profiles by Nunaoil A/S):
- 40 metres at 0.78 g/t gold
- 45 metres at 1.3 % Sb
- 14 metres at 7.2 % Sb
In 2008,
NunaMinerals commissioned SkyTEM to conduct a helicopter-borne
combined time domain electromagnetic (EM) and magnetic geophysical
survey, comprising of 2,250 line kilometres. This resulted in the
delineation of several significant geophysical targets within the
Noa Dal area, many of which correspond to known geochemical
sediment anomalies. Radiometric surveying by NunaMinerals has
identified a unique radiogenic signature occurring as a halo
associated with the structures hosting the mineralisation. This is
considered an important breakthrough for delineating the strike
continuity of existing targets and the identification of additional
mineralisation.
Scoping level
metallurgical test work by SGS Mineral Services UK in 2012 on
scheelite mineralisation from South Margeries Dal, demonstrated
that the mineralisation can be upgraded to approximately 65 % WO3
by using a staged grind recovery method by gravity means alone.
Heavy liquid testing conducted on a feed sample crushed through
11.3 mm showed that a separation made at 2.75 g/cm3 would reject 85
% of the weight whilst losing just 10 % of the tungsten, suggesting
that this could act as a very effective means of pre-concentration.
Contaminants such as copper, lead, zinc, arsenic, bismuth and
sulphur at South Margeries Dal are low - considerably below
acceptable threshold values. The initial metallurgical results
suggest a coarse-grained, high-grade pre-concentrate could be
produced cheaply onsite and shipped to Europe or elsewhere for
final concentration, thereby reducing the CAPEX requirements. The
South Margeries Dal could therefore be an attractive start up
mining project with significant potential to add further resources
through additional exploration.
Garry Majerle,
Chairman and CEO of Northcore Resources, states: "On this project,
I am very excited to be working with a company with such deep roots
in Greenland like NunaMinerals. Mr. Ole Christiansen, President and
CEO of NunaMinerals stated in his press release '…At this
year's PDAC, we experienced intense interest in our Ymer Ø
tungsten-antimony-gold project…' The exceptionally high grade
intersections of tungsten and antimony in historical drilling are
world class and remain open ended. During the coming weeks, we will
be working vigorously on putting in to place the management and
financing for this project."
The technical
portion of this press release was reviewed and approved by Mr. Jens
Eskelund-Hansen, P. Eng., a Qualified Person in accordance with
National Instrument 43-101. Mr. Hansen is a Northcore Resources
shareholder.
Neither the
TSX-Venture Exchange nor its regulation services provider (as that
term is defined in the policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this news
release.
On behalf of the
Board of Directors of Northcore Resources Inc.
Garry Majerle,
Chairman
We seek safe
harbour
Northcore Resources Inc.Garry
MajerleChairman519-697-6945www.northcoreresources.com
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