Jan 23 2015
Sphinx Resources Ltd. announces the execution of a binding letter of agreement to acquire the Green Palladium project in the Pontiac MRC, adjacent to the Quebec Abitibi-Temiscamingue region, in consideration for an aggregate purchase price of $1,330,000.
Subject to the approval by the TSX Venture Exchange and the execution of a definitive agreement, Sphinx will satisfy the payment of the Purchase Price by: (i) issuing 4.46 million common shares to Amixam Resources Inc. ("Amixam"), the private company who currently owns the Project at price per share of $0.13, as follows: 4.0 million common shares, or 9.9% of the outstanding common shares upon signing of a definitive agreement, and 461,538 common shares on January 20, 2016, and (ii) by Sphinx spending $750,000 in exploration expenditures over the next three (3) years. Upon satisfaction in full of the Purchase Price by Sphinx, a 2% NSR will also be granted to Amixam. Should Sphinx fail to satisfy in full the Purchase Price by January 20, 2018, then Sphinx agreed to transfer back to Amixam the Project, free of any bounds. There will be no cash payments made to Amixam and no finder's fee paid in connection with this transaction.
Nickel and copper were initially found in 1951 on the Project. In 1958, a bulk sample was taken from a small test pit. It returned 1.2% Cu and 0.24% Ni but was not analyzed for palladium and platinum or other platinum group elements ("PGE") (Sigeom GM 27924). In 1964, two (2) shallow holes (35 m and 52 m deep respectively) were drilled under this test pit and nearby. They both returned sub-economic copper values. The 52 m deep hole revealed a 22.5 m intersection which is open at depth and chalcopyrite disseminations and stringers. PGEs were not analyzed. No geophysical survey was conducted before this drilling. In 1973, an induced polarization ("IP") survey was carried out on a 1.3 km2 grid that covered the test pit blasted in 1958. This survey revealed five (5) IP anomalies, one of which measures 200 m by 100 m. The latter anomaly is situated adjacent to the blasted the test pit and drill holes. No drilling was conducted before this drilling. The Project remained inactive until Amixam staked it in 2014. In the spring of 2014, three samples projected outside the pit in 1958, were selected for analysis. These samples were from massive sulphide breccias. The values obtained were 3.3 g/t, 2.3 g/t and 0.6 g/t Pd and 3.2%, 3.3% and 0.2% Cu respectively. Nickel graded between 0.2% and 0.1% while platinum and gold were present in traces. After these initial results, stripping was undertaken around the test pit of 1958, today water-filled. Channel samples were taken in the gneissic wall rocks crosscut by chalcopyrite veinlets and impregnated by them in a disseminated fashion. These channel samples returned values between 0.8 g/t and 0.6 g/t Pd with 0.8% to 0.4% Cu over several meters.
The palladium-copper-rich breccia with a massive sulphide matrix encloses centimeter-scale rounded pyroxenite xenoliths and exhibits magmatic textures. It occurs within a multi-kilometer swarm of gabbroic stocks. The gabbro intrusions crosscut a thick, anhydrite-bearing dolomitic marble sequence of evaporitic origin. This lithotectonic setting is reminiscent of the Norilsk large Ni-Cu-PGE mining camp in Russia, the world's largest palladium producer.
Sphinx intends to commence shortly IP, electromagnetic and magnetic ground surveys on the Project. The surveys will be followed by diamond drilling on priority geophysical targets outlined near the Pd-Cu-rich 1958 blasted test pit.
The acquisition of the Project strengthens the Corporation's focus on high grade Ni-Cu-PGE targets in Quebec. Green Palladium is now added to the Samson project, in partnership with Midland Exploration Ltd. located near the Grasset Ni-Cu-PGE discovery of Balmoral Resources Ltd. in Northern Abitibi, and to the Southern Abitibi Preissac project (100% owned by Sphinx), which is adjacent to the former Marbridge nickel mine.
Sphinx gratefully acknowledges the strong support of the residents of the Pontiac region during the Corporation's initial visits to the area. Sphinx will focus on the objective of making a discovery that could lead to the development of a palladium mine. This would not only help improving the Pontiac economy, but it would contribute to global clean air initiatives, as palladium is an essential catalyst involved in decreasing toxic vehicle emissions.
Source: http://donnermetals.com/