Mr. Marz Kord reports
WALLBRIDGE EARNS 20% OWNERSHIP OF LONMIN CANADA INC THROUGH OPERATORSHIP AGREEMENT AND CREATES SEPARATE COPPER-NICKEL-PGM GROUP
Wallbridge Mining Company Ltd. has signed a definitive letter agreement whereby Lonmin Ltd. (a wholly owned subsidiary of Sibanye-Stillwater) has appointed Wallbridge as operator of Lonmin Canada Inc.'s Loncan, a wholly owned subsidiary of Lonmin Ltd.'s Lonmin advanced-stage Denison property. Pursuant to the terms of the agreement, Wallbridge has received a 20-per-cent ownership interest in Loncan and a seat on Loncan's board of directors. A copy of the agreement can be found on the company's SEDAR profile.
"This agreement complements Wallbridge's strategy of separating its gold and base metal assets and enables work on the Sudbury-area properties to be funded entirely within privately held Loncan. Distinct operating teams will advance development of our Fenelon gold property and will work to unlock the value of our copper-nickel-PGM assets separately. The agreement allows our existing, dedicated, Sudbury-based team to continue their work of generating value from the copper-nickel-PGM assets with resources independent of those driving our gold strategy," stated Marz Kord, president and chief executive officer of Wallbridge. "With the entering into of the agreement, I am also very pleased to announce that Francois Demers, vice-president, mining and projects of Wallbridge, has been appointed to lead all Wallbridge matters as they relate to Loncan in addition to Wallbridge's existing joint venture agreements with Lonmin."
Aside from the existing joint venture agreements with Wallbridge, Loncan owns 100-per-cent mining interest in the Denison property, which was previously part of Loncan's Sudbury platinum group metals joint venture agreement with Vale Canada Ltd.
Loncan's Denison property highlights:
- Significant historic resources of typical contact and footwall-type Ni-Cu-PGM mineralization of potential economic grades. All resource reports were internal company resource estimates that were generated for different orebodies on the project without following National Instrument 43-101 requirements and represent an excellent opportunity to compile into a global NI 43-101 resource;
Highlight intersections from drilling in recent years (currently not part of any resource estimate) include 1.69 per cent Ni, 2.28 per cent Cu and 2.37 grams per tonne platinum, palladium and gold (total precious metals, TPM) over 8.23 metres in the 99 Shaft zone, and 1.87 per cent Ni, 0.95 per cent Cu and 3.14 g/t TPM over 6.16 m in the 109 West zone;
Advanced-stage property, near-term to production with a current closure plan;
Historic shaft (4,000-foot Crean Hill mine shaft) and underground infrastructure in place.
"The first order of business will be to combine all historic resources on the Denison property into one complete NI 43-101 compliant resource estimate and to complete an economic study," stated Mr. Demers.
General terms of the agreement
The general terms of the agreement include:
- Lonmin will engage the services of Wallbridge to operate and manage all operations of Loncan in Canada as directed by Sibanye-Stillwater.
Wallbridge will receive compensation in the form of cash and/or shares of Loncan and additional compensation for milestones achieved in the development of projects as agreed upon by both parties at a later date.
Termination of the agreement upon a change of control will result in Wallbridge with a 2.5-times multiplier on the value of shares owned by Wallbridge at the time of termination.
About the Loncan properties
The Denison property was previously known and operated as Vale Canada's Crean Hill mine until operations were suspended in the early 2000s. More than 16 megatonnes of ore grading 1.22 per cent Ni, 1.11 per cent Cu, 1.92 g/t TPM and 5.04 g/t silver was produced from the underground and one megatonne grading 0.73 per cent Ni, 0.56 per cent Cu and 0.025 per cent cobalt was produced from the open pit (Vale, 2001). From 2003 to 2017, the Lonmin-Vale joint venture worked on defining the strike and plunge extensions of the Crean Hill 9400 zone, the 99 zone, the 101 zone, the 109 HW zone and discovering 109 FW zone.
The property, which is located in the southwest corner of the Sudbury basin, hosts multiple, well-defined PGM-rich zones that were discovered since operations were suspended. Significant exploration potential remains and the next steps are to update the resources with new drilling information and work to move the project forward by completing an economic study.
The qualified persons responsible for the technical content of this press release are Mr. Demers, PEng, vice-president, mining and projects, and David Smith, PGeo, senior geologist of Wallbridge.
About Wallbridge Mining
Wallbridge is establishing a pipeline of projects that will support sustainable over-100,000-ounce gold production and revenue as well as organic growth through exploration and scalability. Wallbridge is currently developing its 100-per-cent-owned high-grade Fenelon gold property in Quebec with a continuing 70,000- to 80,000-metre exploration drill program in 2019 and a recently completed 35,000-tonne bulk sample. Wallbridge is also pursuing additional advanced-stage projects, which would add to the company's near-term project pipeline.
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