Next Page 1 | 2
This year’s fifth batch of nickel assays from Kingsmill were released April 12. Results showed
- 0.21% nickel AR-ICP and 0.26% nickel TD-ICP over 230.5 metres(including 0.24% AR-ICP and 0.27% TD-ICP over 191 metres)
- 0.2% AR-ICP and 0.25% TD-ICP over 200 metres(including 0.23% AR-ICP and 0.28% TD-ICP over 117 metres)
- 0.16% AR-ICP and 0.18% TD-ICP over 97 metres(including 0.17% AR-ICP and 0.2% TD-ICP over 63 metres)
The company says these three holes extend the known mineralization from 550 metres at the top to over 800 metres at a vertical depth of 400 metres. The target is still open at depth.
Meanwhile, drilling continues on Project 81′s Lucas Gold Target. White says, “We’ve done five drill holes, over 2,500 metres so far, and we’ve found mineralized intervals in every hole. We’re currently drilling our sixth hole while waiting for further assays. We hope to release all the assays together within the next two to three weeks.”
[Awaruite] has tremendous benefits from both an environmental and a cost standpoint. You don’t need the CAPEX or operating costs of a processing facility —Vance White
Noble expanded its property in May by picking up three additional claim blocks that are within the Project 81 area but weren’t part of the original acquisition. Geophysics suggest that one of the blocks contains a faulted extension of the Kingsmill Deposit. “Of course we’ll have to drill that off as well,” White says. At 72,218 hectares even without last month’s acquisition, Project 81 made Noble one of the region’s largest landholders.
Noble holds timber rights to Project 81 too, a legacy of the original 2011 acquisition from AbitibiBowater, now Resolute Forest Products. Estimated to have an NPV of $18.5 million (compared to Noble‘s press-time market cap of $12.4 million) for both harvestable timber and timber that will grow into a harvestable asset, the above-surface commodity has attracted outside interest, White reports. He emphasizes that Project 81, north of the town of Timmins, hasn’t been affected by Timmins Fire 9, the 40,000-hectare inferno that’s currently being contained in the forest southwest of the town.
Instead, proximity to Timmins brings considerable advantages, which White sums up as “infrastructure galore.” The mining and forestry region is well served by road, rail, power and skilled personnel.
The timber asset helps explain why Noble could acquire a large property with such mineral potential so close to mining infrastructure. AbitibiBowater focused on timber while an Inco subsidiary took on some mineral exploration. The latter inspired little interest due to the relatively primitive geophysics of the time combined with low metal prices. Consequently the mineral potential lay dormant while the one-time forestry giant went on to struggle with bankruptcy.
When Abitibi put Project 81 up for grabs, Noble found itself in a bidding war, which it won with financial backing from strategic partner Franco-Nevada TSX:FNV. Project 81′s grades, whether from Inco’s historic results or Noble‘s drilling, take on a whole new perspective given today’s prices.
“I consider this similar to the way the mining industry looked at the lower-grade copper-porphyry deposits in the Highland Valley in BC, for example, or low-grade deposits in Nevada before they came in vogue,” White concludes. “I think you’re going to be seeing this type of deposit looked upon more favourably. Certainly there are other players looking at this sort of thing from a very positive standpoint.”
On May 16, the company closed the second tranche of a private placement that issued a total of 11.3 million shares to raise $1.1 million. Funds are slated for drilling the Lucas Gold Target and general working capital. At press time, Noble had 137.5 million shares outstanding at $0.09 for a market cap of $12.4 million.
Disclaimer: Noble Mineral Exploration Inc is an advertising client of OnPage Media.
Next Page 1 | 2
Pages: 1 2