Fieldex Exploration Inc. (FLX :TSXV and F7E : Frankfurt) has announced the results of its recently-completed 4,225-meter drilling campaign on Fieldex's Lac Sairs project in Kipawa and an option agreement for a 12,927-hectare land package for rare earth elements in the Kipawa area.
The Lac Sairs project is located in the Kipawa alcalin complex, 1.7 km from the Matamec Explorations Inc. Kipawa REE—Yttrium-Zirconium deposit, 100 kilometres northeast of North Bay, Ontario, within northwestern Quebec, near the Quebec-Ontario border.
"Fieldex is very pleased by the results. The results confirm that the Kipawa Lac Sairs project hosts significant zirconium mineralization and enriched TREO zones. In addition, Matamec Exploration Inc. reported in its press release dated October 18, 2010 that they successfully leached 89.2 % recoveries from a sample collected from the eudialyte zone of its Kipawa deposit. This is very encouraging news because of the close proxymity of Fieldex's Kipawa Lac Sairs project to Matamec's Kipawa deposit" said Martin Dallaire Fieldex's President and Chief Executive Officer.
Kipawa Land Option Agreement
Fieldex Exploration has entered into an option agreement with Lunik Explorer to acquire a 100% interest in a land package comprising of 12,927 hectares (129 sq. km) in the Kipawa region. Martin Dallaire, President and Chief Executive Officer of Fieldex, stated: "Fieldex's geological team is extremely happy with this option agreement. In our view, the Kipawa area contains considerable potential for rare earth elements and other strategic metals. Moreover, the area is easily accessible by road, near infrastructure and close to a well-trained work force."
Pursuant to the terms of the agreement, Fieldex has an option to earn an undivided 100% interest in the property by making cash and share payments, and incurring exploration expenditures over a 36-month period from the proposed closing date.
In order to earn a 100% interest, Fieldex must:
- On the closing date, make a cash payment of $100,000 to Lunik Explorer.
- On or before the first anniversary of the closing date, make a cash payment of $100,000 and issue 500,000 common shares to Lunik Explorer, and incur $150,000 in exploration expenditures on the property.
- On or before the second anniversary of the closing date, make a cash payment of $100,000 and issue 500,000 common shares to Lunik Explorer, and incur $150,000 in additional exploration expenditures on the property.
- On or before the third anniversary of the closing date, make a cash payment of $150,000 and issue 500,000 common shares to Lunik Explorer, and incur $150,000 in additional exploration expenditures on the property.
In total, in order to earn a 100% interest, Fieldex must pay $450,000 and issue 1.5 million shares to Lunik Explorer, and incur $450,000 in exploration expenditures on the property. Fieldex has already made the first cash payment of $100,000. Fieldex has the option of making the remaining $350,000 cash payment to Lunik Explorer through the issuance of shares.
The property is subject to a 2% royalty in favour of Lunik Explorer. Fieldex can acquire half the royalty (1%) from Lunik Explorer for a cash payment of $500,000. The option agreement is subject to regulatory approval, including that of the TSX Venture Exchange.
Quality Assurance / Quality Control
Fieldex Exploration has implemented and adheres to a strict Quality Assurance/Quality Control program which includes REE mineralized standards, duplicata and blanks for each batch of samples. Assay samples are taken from drill core sawed in half with one half sent to a commercial laboratory and the other half retained for future reference. Analyses are performed by ALS Chemex, Val-d'Or, an accredited laboratory.
Qualified Person
The drilling program was carried out under the supervision of Robert Sansfaçon, geologist and qualified person as per National Instrument 43-101.
Source: Fieldex Exploration Inc.