Optioned Brabant Lake Property to Votorantim Metals Canada:
- Votorantim has commenced its initial drill program of 2,750 metres consisting of 20 holes testing 20 priority targets over the 16 kms of favourable horizon
- Exploration budget for the quarter - $500,000
In 2011, a 560 line-km airborne VTEM PLUS survey was completed over the ground. The geophysical interpretation of the data identified numerous targets for follow-up drilling.
In early 2010, Manicouagan staked four additional four mining claims to the north and south of the Mining Lease that hosts the Brabant Lake Zinc deposit. The expanded land position covers approximately 16 kilometres of the favourable horizon which hosts the Brabant Lake Deposit. Approximately 24 square kilometres were staked bringing the total land package in the Brabant Lake Area to over 28 square kilometres.
To earn its 60% interest, Votorantim has made its initial payment to Manicouagan of $80,000 to be followed by cash payments to Manicouagan totalling $460,000 and staged expenditures on the project totalling $2,550,000 over the next three years. The option/JV agreement also provides for an expenditure commitment of at least $300,000 in the first year. Upon Votorantim earning its 60% interest a joint venture will be formed whereupon future expenditures will be shared in proportion to each party's interest. Should either party's interest dilute to 10%, this interest will convert to a 2% Net Smelter Return ("NSR"). The non-diluting party has the option to purchase 50% of the NSR for $1,000,000.
REVISED RESOURCE ESTIMATE -- 2008
- Zinc Grades improved by 77% to 9.18% Zn
- Copper grade improved by 39% to 0.79% Cu
The 2008 MPH/P&E NI 43-101 Resource Estimate incorporates drilling by previous operators. The new indicated resource category is a direct result of Manicouagan's 2006-2008 drilling campaign, which focused on the largely unexplored Lower Zone and included 49 drill holes for 15,360 metres.
This updated indicated/inferred resource estimate supersedes the prior NI 43-101 compliant inferred resource estimate previously determined by Deptuck et al in 1994 and reported in a NI 43-101 Technical Report completed by MPH with an effective date of September 15, 2006.
Potential exists to expand the indicated resource with additional drilling of the inferred resource.
*1) The resource for the Brabant Lake Zinc deposit was estimated on the basis of June 30, 2008 approximate $US three year trailing average metal prices of $1.27/lb zinc, $3.02/lb copper, $0.86/lb lead, $12.49/oz silver and $663/oz/gold, and a $US exchange rate of $0.912. An NSR cut-off of $75/tonne for underground mining and milling was utilized to report the resource.
*2) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
*3 )The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
*4 )Contained metals, expressed in pounds (lbs) and troy ounces (oz), presented in the table above are the product of resource tonnes multiplied by metal grades and are provided for information purposes only and not meant to imply recoverable product as mineral resources which are not mineral reserves do not have demonstrated economic viability.
Mineralization occurs in two main zones referred to as the Upper and Lower zones. The zones strike northeast (grid north) and dip moderately to the northwest. They are typically less than 10 metres in thickness and are sub-parallel. Drilling on the property has focused on the Lower Zone, which is on average almost twice the grade of and 50% thicker than the Upper Zone.