Canadian exploration company Royal Coal has entered into an option agreement to acquire a 100% undivided interest in Poissons Blanc nickel/copper/cobalt property, in Quebec.
The option repositions the company’s focus on resource exploration of electric vehicle (EV) metals.
The Poissons Blanc property, host of the nickel/copper/cobalt McNickel deposit, is comprised of 32 mineral claims covering about 1 792 ha, located in the Saguenay mining district.
Containing a historical resource of 3.583-million tonnes with grades of 0.39% nickel, 0.18% copper and 0.05% cobalt the deposit was first discovered in 1987, with a major drilling programme completed in 1989.
In the context of today’s demand for these minerals, the company believes that the Poissons Blanc property warrants more exploration and drilling focusing on expansion of existing resources, as well as a new “look alike” zone, at the north of the main deposit zone.
Details of the new exploration plans are now being developed and aim to uncover the potential of this “look alike” zone and expand the existing historical mineral resources of the property.
“We are excited to transition Royal Coal into a resource exploration company focusing on EV metals,” commented CEO and director Nicholas Konkin.
“Demand for supply in the sectors is strong and this particular property has tremendous exploration potential. With over 16 000 m of drilling and metallurgical work, it shows excellent potential for mineral expansion and delineation. We are excited to begin working on this project which will include a Geotech VTEM airborne survey, further metallurgical work which will optimize metal recoveries, and core drilling.”
Under the terms of the three-year option agreement, Royal Coal may exercise the option to acquire a 100% undivided interest in the Poissons Blanc property upon payment of an aggregate of up to $562 600 in cash payments and an aggregate of five-million common shares in the capital of the company plus, at the option of the company, a payment of C$500 000 or an additional C$500 000 worth of option shares and incurring an aggregate of $1.2-million in exploration expenditures on the Poissons Blanc property.