by Greg Klein | September 25, 2014
It was back in 1993 that diamond prospectors at Voisey’s Bay found nickel instead—so much of it that they made mining history. But, according to Equitas Resources TSXV:EQT, the Labrador region remains in a “very early stage of exploration and discovery.” Now a 100% option on the Garland project puts the company 30 kilometres from Vale’s (NYE:VALE) Voisey’s Bay mine, onto a property that’s lacked regional exploration with modern methods. Equitas believes the 25,050-hectare acquisition, announced September 25, is prospective for nickel, copper, cobalt and platinum group elements.
Fragmented ownership of relatively small claim blocks hindered work that took place on the property by 10 companies during the late 1990s. Outdated electromagnetic surveys could penetrate to only about 75 metres. Sampling and mapping covered only a fraction of the property, Equitas stated.
Vale and its predecessors explored parts of the property between 2000 and 2007, finding several localized targets. But only one hole was sunk. “Despite the absence of significant nickel-copper-cobalt mineralization, the drill hole verified the suitability of the region to host a Voisey’s Bay-style deposit,” Equitas added.
The company plans to fly a VTEM-max survey to be interpreted along with earlier airborne gravity and magnetic data. Ground geophysics, mapping and sampling will follow to identify drill targets.
Subject to TSXV approval, the deal calls for Equitas to issue just under eight million shares over three years and pay $80,000 within one year. One of the vendors gets a 2% gross overriding royalty.