Manicouagan Minerals Acquires Option to Earn Up to 70 Percent in Three Gold Exploration Properties in the Pickle Lake Area, Onta
16 April 2009 - 10:30PM
Marketwired
Manicouagan Minerals Inc. (TSX VENTURE: MAM) announced today that
that it has entered into an agreement with Trillium North Minerals
Ltd. ("Trillium North") pursuant to which it can earn up to a
seventy percent interest in three gold exploration properties in
the Pickle Lake Area, Ontario.
The Pickle Lake Properties consist of three non contiguous claim
groups known as the Pickle Lake East Property, the Kasagiminnis
Property, and the Dorothy-Dobie Lake Property. Collectively the
properties cover an area of approximately 7741 hectares or 77.41
square kilometres. The properties are located in the Pickle Lake
Greenstone Belt, which is part of the prolific Uchi Geological
Subprovince having historically produced over 30 million ounces of
gold. The Pickle Lake area includes four past producing mines:
Golden Patricia (0.45Moz at 19.9 gpt Au), Dona Lake (0.21Moz at
8.6gpt), Central Patricia (0.65Moz at 12.0gpt) and Pickle Crow
(1.45Moz at 16.1gpt). A sketch showing the location of the
properties is attached and is also available at
www.manicouaganminerals.com.
The Pickle Lake East Property adjoins the past producing Pickle
Crow Property that is currently being evaluated by PC Gold Inc. The
claims were acquired by Trillium North to cover what is believed to
be an area hosting the possible extension of the gold bearing trend
that includes the Central Patricia and Pickle Crow Mines.
The Dorothy-Dobie Lake Property covers the northwest extension
of the gold bearing structure that hosts the past producing, high
grade, Golden Patricia Mine and includes several gold prospects
which contain non NI 43-101 compliant gold resources. Drilling in
late 2007 by Trillium North to test for the extension of the Golden
Patricia Vein returned values including 153.5 grams per tonne gold
(4.48 ounces per ton) over a drilled width of 0.43 metres (see
Trillium North Minerals Ltd. Press Release dated December 19,
2007).
Previous work on the Kasagiminnis Property has outlined a gold
bearing iron formation with a strike length of over 500 metres.
Historical drill results included:
19.9 grams per tonne gold over 1.4 metres and 48.0 grams per
tonne gold over 1.3 metres from hole KAS-87-6. These results are
based on public records and have yet to be verified by a Qualified
Person on behalf of Manicouagan.
Manicouagan can earn a 51 percent interest in the Pickle Lake
Properties by spending $1,000,000 on the properties over the next
three years of which a minimum of $250,000 must be spent in year 1
of the agreement.
After earning its 51 percent interest in the properties,
Manicouagan can increase its interest from 51 percent to 70 percent
by funding the next $1,500,000 on the properties.
Once Manicouagan has completed earning its interest in the
properties a joint venture will be formed. Dilution is provided for
if a party fails to fund its pro-rata share of joint venture
expenditures. If either party is diluted to a 10 percent interest
or less, its interest in the properties and the joint venture will
convert to a 2 percent Net Smelter Return royalty ("NSR"). The
remaining party will have the option of acquiring one half of the
NSR by paying the sum of $1,000,000.
Manicouagan and Trillium North have also agreed to a one
kilometre area of interest from the outer boundaries of the current
Pickle Lake East and Dorothy-Dobie Lake properties and 1.6
kilometres from the current outer boundary of the Kasagiminnis
Property.
The Kasagiminnis and portions of the Dorothy-Dobie Lake
properties are subject to underlying option agreements with a
single Vendor. To maintain the underlying option agreements in good
standing Manicouagan has paid $45,000 to the Vendor. To maintain
both the underlying agreements and the agreement with Trillium
North in good standing Manicouagan will have to make an additional
payment of $45,000 to the Vendor on or before April 15, 2010.
The underlying option agreements also provide the Vendor with a
2 percent NSR of which one half can be acquired by payment of the
sum of $1,000,000 payable to the Vendor. The Dorothy-Dobie Lake
properties are each the subject of advance royalty payments of
$50,000 per year for three years commencing April 30, 2012.
Manicouagan has also agreed, subject to regulatory approval, to
issue 250,000 common share purchase warrants to Trillium North
concurrent with its next equity financing. When issued the warrants
will have an exercise price equivalent to those warrants issued in
connection with the next equity financing completed by Manicouagan
and will have a term of two years.
Mr. Bruce Mackie, P.Geo., of Bruce Mackie Geological Consulting
Services has reviewed and verified the technical content of this
press release on behalf of Manicouagan Minerals and is a "Qualified
Person" as defined in National Instrument 43-101.
The agreement entered into with Trillium North is a result of
Manicouagan's previously announced program of actively identifying
and reviewing Canadian gold properties to add to its diversified
portfolio of Canadian base and precious metal assets including the
Brabant Lake Zinc deposit in Saskatchewan, the Mouchalagane
Nickel/Copper/PGE project in Quebec and the HPM/Forgues
Nickel/Copper/Cobalt project in Quebec (see MAM Press Release dated
March 2, 2009).
Additional information about Manicouagan Minerals and its
exploration projects can be found at
www.manicouaganminerals.com.
All statements other than statements of historical fact,
included in this release, including, without limitation, statements
regarding potential mineralization and reserves, exploration
results, and future plans and objectives of the Company, are
forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Company's expectations are exploration risks
detailed herein and from time to time in the filings made by the
Company with securities regulators.
To view the map associated with this release, please visit the
following link: http://media3.marketwire.com/docs/mam416.pdf
The TSXV has not reviewed this news release and does not accept
responsibility for the adequacy or accuracy of this news release.
The TSXV has neither approved nor disapproved the contents of this
news release.
Contacts: Manicouagan Minerals Inc. Joseph Baylis President and
Chief Executive Officer 416-360-3038
investorrelations@manicouaganminerals.com
(TSXV:MAM)
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