VANCOUVER, Sept. 25, 2014 /CNW/ - Equitas Resources
Corp. (TSXv: EQT; FSE: T6U1) ("Equitas" or the "Company") is
pleased to announce that it has entered into an agreement to
acquire a 100 per cent interest in the Garland Property, located in
Labrador, Canada. The
property encompasses 25,050 hectares and is 30 kilometres southeast
of Vale's Voisey Bay Nickel/Copper/Cobalt mine. A review of
historical exploration work shows the Garland Property to be within
an environment favorable for magmatic Ni-Cu sulphide deposits; and
which also possess strikingly similar features to the Voisey's Bay
deposit(s).
Given the close proximity to the Voisey's Bay discovery, a
similar tectonic environment to North American Nickel's Maniitsoq
Project in Greenland, and coupled
with the lack of modern exploration techniques at the Garland
Property, the company believes it has good potential for the
discovery of nickel, copper, cobalt and platinum group element
("PGE") mineralization.
Advances in geophysical electromagnetic exploration techniques
allow greater depth penetrating capabilities than those available
at the time of historic exploration (circa. 1995 to 1996).
The Company's exploration of the property will initially include an
airborne Versatile Time-domain Electromagnetic (VTEM max)
technology. The results of this survey will be integrated
with existing airborne gravity and magnetic data, which will allow
for the rapid identification of geophysical targets similar to
those for other magmatic nickel-copper sulfide occurrences (ie.
Voisey's Bay). Targets will be ground tested with applicable
ground geophysics and geological mapping/sampling to identify high
priority targets that may warrant drilling.
About the Garland Property
The Property was explored
by 10 separate companies, primarily between the years 1995 to 1999.
At the time, individual claim blocks were relatively small
with multiple owners, which was not conducive to a regional
exploration strategy that allowed for the systematic exploration of
the area. Exploration methods focused on out-dated
frequency-domain airborne Electromagnetic ("EM") surveys over
isolated areas, and which have very shallow depth penetration
capabilities (estimated at 75 metres). Further,
reconnaissance rock sampling and mapping covered only a fraction of
the Property.
Recently, in-between 2000 to 2007, parts of the property and
areas to the west were explored by Vale Canada Limited (and its
predecessors). Exploration methods included a regional
Airborne Gravity Gradiometer ("AGG") survey, with follow-up Induced
Polarity ("IP") ground-EM surveys, and ground reconnaissance
sampling. This exploration resulted in the identification of
several localized targets, but only one drill-hole is reported for
the Property. Despite the absence of significant Ni-Cu-Co
mineralization, the drill hole verified the suitability of the
region to host a Voisey's Bay-style deposit. The drill hole
encountered "a sequence of variably textured gabbro-norites with
trace very fine-grained disseminated sulphides
locally".
About Voisey's Bay
The original discovery at Voisey's
Bay was made in late 1993 while conducting a regional exploration
program by Archean Resources Ltd., under contract to Robert Friedland's Diamond Fields Resources; the
geologists noticed an outcrop at surface. The property was
staked in early 1994 after samples returned high nickel and copper
values. Drilling commenced and early results suggested that
the property could hold one of the highest-grade, large nickel ore
bodies known. In August 1996,
after many negotiations and transactions, Inco Limited purchased
the Voisey Bay Property for $4.6
Billion. Approximately 420 diamond drill holes were
completed for a total of about 205,000m of drill core by August of
1997.
The Voisey's Bay Mine commenced production in 2005, with
reported reserves of 17.2 million tonnes of ore grading 2.38% Ni,
1.34% Cu and 0.11% Co (2013 proven and probable reserves). Total
resources have been estimated at well over 100 million tonnes.
In 2012, at the Voisey's Bay Ovoid mine in Newfoundland and Labrador, Vale reported mining 2.35 Mt of ore
containing 3.11% nickel (73,116 t), 1.94% copper (45,600 t), and
0.052% cobalt (1,221 t). The Nickel that was produced from
Voisey's Bay accounted for nearly 35% of the total produced in all
of Canada.
The Voisey's Bay district is thought to be at its very early
stage of exploration and discovery when compared to other nickel
and base metal districts, such as Sudbury, Ontario and Thompson, Manitoba. The region continues
to hold excellent potential for additional discoveries.
Acquisition Terms
In consideration for a 100% stake in
the Property, Equitas has entered into an option agreement with
Zimtu Capital Corp., DG Resource Management Ltd. and Ridge
Resources Ltd., collectively the "Vendors".
The Company will issue 7,999,998 shares over a 36 month period
of which 2,666,666 is due upon exchange approval of the agreement.
Pay $80,000 over a 1 year
period of which $30,000 is due upon
signing and grant DG Resource Management a 2% Gross Overriding
Royalty (GORR) in the Property. The transaction is subject to
acceptance by the TSX Venture Exchange.
NI 43-101 Disclosure
Neil
McCallum, P.Geol., Dahrouge Geological Consulting Ltd., a
Qualified Person as defined by National Instrument 43-101,
supervised the preparation of the technical information in this
news release.
On Behalf of the Board of Directors,
EQUITAS RESOURCES CORP.
"David Hodge"
David
Hodge
President
Tel: 604.681.1568
The TSX Venture Exchange has neither approved nor disapproved
the information contained herein.
Forward-Looking Statements
This news release contains
forward-looking information which is subject to a variety of risks
and uncertainties and other factors that could cause actual events
or results to differ from those projected in the forward-looking
statements. Forward looking statements in this press release
include but are not limited to modern exploration techniques will
lead to discovery of nickel, copper, cobalt and platinum
group element mineralization; advances in geophysical exploration
will provide greater magnetic and structural interpretation; plans
for a comprehensive exploration program and that targets will be
tested on the ground.
Information set forth in this news release may involve
forward-looking statements under applicable securities laws.
Forward-looking statements are statements that relate to future,
not past, events. In this context, forward-looking statements often
address expected future business and financial performance, and
often contain words such as "anticipate", "believe", "plan",
"estimate", "expect", and "intend", statements that an action or
event "may", "might", "could", "should", or "will" be taken or
occur, or other similar expressions. By their nature,
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or other future events, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the following
risks: the need for additional financing; operational risks
associated with mineral exploration; fluctuations in commodity
prices; title matters; environmental liability claims and
insurance; reliance on key personnel; the potential for conflicts
of interest among certain officers, directors or promoters with
certain other projects; the absence of dividends; competition;
dilution; the volatility of our common share price and volume and
the additional risks identified in the management discussion and
analysis section of our interim and most recent annual financial
statement or other reports and filings with the TSX Venture
Exchange and applicable Canadian securities regulations.
Forward-looking statements are made based on management's beliefs,
estimates and opinions on the date that statements are made and
Equitas undertakes no obligation to update forward-looking
statements if these beliefs, estimates and opinions or other
circumstances should change, except as required by applicable
securities laws. Investors are cautioned against attributing undue
certainty to forward-looking statements.
SOURCE Equitas Resources Corp.