Mr. Michael Stares reports
WHITE METAL SIGNS LETTER OF INTENT TO VEND SEAGULL LAKE PLATINUM-PALLADIUM PROJECT
White Metal Resources Corp. has signed a letter of intent with Quadro Resources Ltd. (QRO) in regard to the Seagull Lake platinum-palladium project. The project, which covers 7,539 hectares, is about a one-hour drive north of the port city of Thunder Bay, is located about 50 kilometres south of Impala Canada's Lac des Iles mine (previously North American Palladium), and is about 28 km north of the copper, nickel and platinum group element discoveries of Rio Tinto and Panoramic Resources.
The terms of the option agreement being contemplated under the LOI are as follows:
- QRO to earn an 70-per-cent interest in the property;
- The term to earn the interest is three years;
- Cash payments totalling $275,000 over the three-year time period;
- QRO to issue a total of 6.5 million shares over the three-year time period;
- A total of $1.55-million to be spent on exploration on the property over the three-year time period.
More specifically, the details of the three-year agreement are:
- First year: $50,000 cash payment, issuance of one million shares of QRO and a $300,000 work program on the property;
- Second year: $100,000 cash payment, issuance of 2.25 million of QRO shares and a $500,000 work program on the property;
- Third year: $125,000 cash payment, issuance of 3.25 million QRO shares and a $750,000 work program on the property.
The combination of cash payments and share issuances approximates a total value of $990,000 (based on Quadro's Feb. 20, 2020, closing price of 11 cents per share). After vesting a 70-per-cent interest, a joint venture is formed on the basis of 70/30 expenditures with the issuance of a 0.5-per-cent net smelter return royalty upon dilution to less than 10 per cent. The LOI is pending approval by the TSX Venture Exchange.
The primary target in the project area is the Seagull Lake intrusion (SLI), described as a 10 km diameter, circular intrusive composed of ultramafic rocks with a high olivine content and derived from a deep mantle source. Layering and multiple phases of intrusion have been recognized, creating a favourable setting for Noril'sk type sulphide accumulation. The SLI is located in the Nipigon plate, which is interpreted to represent the failed third arm of a Proterozoic-aged, mid-continent rift system, the bulk of which lies beneath Lake Superior to the south. This rifting event is interpreted to be associated with significant Cu-Ni-PGE mineralization such as the Duluth gabbro complex deposits (such as Dunka Road, Minnamax and Local Boy) in Minnesota, the Eagle nickel mine (Lundin Mining) in Michigan and the Great Lakes nickel deposit in Ontario. Known PGM-Cu-Ni zones in the intrusion support the interpretation that Proterozoic ultramafic intrusions in this area of the Nipigon plate have undergone magmatic processes that are capable of producing large PGE-Cu-Ni sulphide deposits (see company news release dated March 12, 2019).
Three styles of PGE mineralization have been identified in the SLI: (1) near-surface, PGE-rich detrital black sands; (2) magnetite associated, PGE-rich layers or reef type; and, (3) sulphide associated, basal Cu-Ni-PGE mineralization, interpreted as Noril'sk type. Although the detrital and reef-type mineralization was the first style known in the SLI, the discovery of Noril'sk-type Cu-Ni-PGE sulphide mineralization became the focus for subsequent exploration programs, which reported from diamond drilling 3.6 grams per tonne platinum plus palladium, 0.34 per cent Cu and 0.21 per cent Ni over 2.1 metres, and 1.04 g/t Pt plus Pd, 0.14 per cent Cu and 0.16 per cent Ni over 16 m (from Pettigrew, 2002). The possibility for the discovery of other styles of sulphide mineralization remains, including contact-type deposits (for example, Lac des Iles mine and River Valley deposit, Ontario) and structurally hosted high-grade concentrations along regional fault systems. It is important to note that the SLI contains anomalous concentrations of additional platinum group elements: rhodium, iridium, osmium and ruthenium. The current spot price of rhodium is approximately $12,700 (U.S.) per troy ounce.
Historical diamond drilling
The most recent diamond drilling and resampling of historical drill holes were completed by Platinum Group Metals (PTM) between 2001 and 2005. This work reported encouraging concentrations of PGE from drill core intercepts with the highest concentrations of PGE reported in 2005 (see PTM news release dated April 1, 2005). PTM reported that its exploration drilling had demonstrated lateral continuity of the mineralized zones within the SLI Seagull intrusion and that they were typically characterized by near one-to-one platinum-to-palladium ratios, significant Cu and Ni grades, and strongly elevated concentrations in the other rarer PGEs (Rh, Ir, Os, Ru). PTM also noted that historical PGE-Cu-Ni intercepts from the SLI compare favourably with the famous Merensky Reef in South Africa's Bushveld complex with known mineralized horizons at the SLI being considerably shallower than those currently being mined and explored in South Africa.
PTM reported on total PGE analyses from drill core, which in addition to platinum and palladium included the rarer PGEs rhodium, iridium, osmium and ruthenium. PTM noted that the concentrations of the rarer PGEs were unusually high compared with their global database of PGE mines, deposits and occurrences (see PTM news release dated April 22, 2005).
HISTORICAL DRILL CORE ASSAY RESULTS WITH TOTAL PGE
Drill hole Horizon From To Interval Au Pt Pd Ir Os Rh Ru 6PGE+Au
(m) (m) (m) (ppb) (ppb) (ppb) (ppb) (ppb) (ppb) (ppb) (g/t)
WM05-20 Lower Dunite 329.12 333.40 4.28 47 826 895 120 151 54 41 2.13
including 331.68 333.40 1.72 88 1,526 1,640 221 289 99 71 3.93
including 331.68 332.12 0.44 220 3,690 3,990 674 891 294 204 9.96
WM00-01 Lower Dunite 577.30 581.54 4.24 60 669 781 79 114 37 27 1.77
including 578.16 580.00 1.84 78 852 993 125 188 54 40 2.33
WM00-05 Peridotite 734.45 736.00 1.55 134 1,731 2,069 39 54 30 10 4.07
including 735.43 736.00 0.57 251 3,250 3,920 58 83 50 13 7.63
WM00-06 Peridotite 390.23 391.29 1.06 2 505 623 18 22 13 15 1.20
WM00-01 Upper Dunite 533.14 536.41 3.27 30 223 260 26 29 13 10 0.59
Drill hole WM05-20, which contains the shallowest intercept to date of the Lower Dunite reef, between 329.12 and 333.4 m vertical depth, returned 6PGE (Pt, Pd, Rh, Ir, Os, Ru) plus Au concentrations of 2.13 g/t over 4.28 m, including 3.93 g/t 6PGE plus Au over 1.72 m and 9.96 g/t 6PGE plus Au over 0.44 m. PTM also reported a high-grade intercept from the Peridotite zone (drill hole WM00-05) that returned 7.63 g/t 6PGE plus Au, within a broader intercept of 1.55 m grading 4.07 g/t 6PGE plus Au.
Resampling of quartered drill core from the Lower Dunite reef zone (drill hole WM00-01) returned 1.84 m of 2.3 g/t 6PGE plus Au within a broader zone, between 577.3 and 581.54 m vertical depth, of 4.24 m grading 1.76 g/t 6PGE plus Au. PTM's resampling also confirmed the presence of the Upper Dunite reef zone in hole WM00-01 over a 3.27 m interval between 533.14 and 536.41 m, grading 0.57 g/t 6PGE plus Au. Relogging and resampling of drill hole WM00-06, collared approximately 600 m east of hole WM00-05, also intersected the Peridotite zone and returned 1.2 g/t 6PGE plus Au over 1.06 m between 390.23 and 391.29 m. Hole WM00-06 is 1,150 m (1.15 km) southwest of the previously reported high-grade Peridotite zone intercept of 6.21 g/t 6PGE plus Au over 0.65 m in drill hole WM04-17. Both the Upper and Lower Dunite reefs were also identified in hole WM05-22, which returned lower concentrations of PGE.
A qualified person has not independently verified the historical data and the scientific and technical information disclosed in this news release.
Technical information in this news release has been reviewed and approved by Dr. Scott Jobin-Bevans (PGeo), vice-president of exploration and a director of White Metal, who is a qualified person under the definitions established by the National Instrument 43-101.
About White Metal Resources Corp.
White Metal is a junior exploration company exploring in Canada.
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