Photo by: Bloomberg
TORONTO (miningweekly.com) – TSX-V-listed Fjordland Exploration on Thursday reported that private firm Commander Resources had given it the option to acquire up to 70% of the South Voisey's Bay nickel/cobalt project, in central Labrador.
The two explorers had executed a memorandum of understanding (MoU), under which Fjordland could earn up to 70% of the 180 km2 project, 80 km south of Vale’s 6 000 t/d mine and concentrator operated by Voisey's Bay Nickel Company. The MoU had established a 3 km area of interest.
Commander had been exploring in the district since mining legend Robert Friedland discovered the spectacular Ovoid massive sulphide deposit in 1994. Commander and its previous partners Donner, Northern Abitibi, Falconbridge and Teck had spent more than $20-million in the district.
Commander had since 2013 consolidated 100% ownership of the key mineral claims and had assembled a significant geological and geophysical database.
The company had identified a strong electromagnetic conductor flanking a large magnetic anomaly referred to as the Sandy prospect. Commander, as operator, would immediately start a $200 000 University of Toronto electromagnetometer geophysical programme designed to extend and delineate this specific drill target.
Several other drill targets had also been identified and would be tested after further geophysical groundwork and modelling. A drill programme and further geophysics currently budgeted at $1-million was expected to start in the second quarter of next year.
"The South Voisey's Bay project provides an exceptional opportunity as it meets Fjordland's exploration criteria in that it possesses large-scale, drill-ready targets in a well documented geologic[al] setting,” Fjordland president and CEO Richard Atkinson said.
He noted that in the 20 years since the series of ore deposits forming the Voisey's Bay mine’s reserves were discovered, extensive research undertaken by industry and government had yielded a greatly enhanced understanding of the mode of formation and deposition of these high-grade nickel/copper/cobalt sulphide deposits.
Recently published studies had favourably compared the South Voisey's Bay host rocks (the Pants Lake intrusion) to those that contain the mineralisation at the Voisey's Bay mine site. The authors had opined that extensive amounts of copper and nickel were contained in the gabbros of the Pants Lake intrusion.
After completing a positive feasibility study, Fjordland would issue a further 1.25-million common shares to Commander.
Commander will be the initial operator and Fjordland had the option to become operator upon assuming a majority interest.
Commander announced on Monday that it had staked more mineral claim units and, thereby, nearly tripled the mineral tenure to a total of 713 claim units surrounding 178 km2.
Fjordland is mainly concerned with its portfolio of 18 properties in British Columbia. The main project is the Dillard project, which is subject to an option agreement with Sumac Mines, an affiliate of Sumitomo Metal Mining.