Stelmine Canada announce the acquisition from Exploration J.F. of 90 % of the Courcy-East property a significant gold-rich discovery in a new mining district located within the Archean Opinaca subprovince less than 100 km west of Fermont, Quebec.
In 2006, SOQUEM spent 600 000$ in exploration work, including a campaign of eight (8) short holes which intersected lithologies containing significant amount of gold. Best gold intersection from one hole is 4,5 g/t Au over 42 m including 12g/t Au over 13,5m. Over 30 gold-rich showings were identified without subsequent verification by drilling.
These showings represent two principal types of geologically prospective gold environment:
- gold mineralization near the structural contact of the La Grande and Opinaca subprovinces giving rise to the discovery of the Eleonore deposit yielding proven and probable reserves of 4.6 Million oz of gold at an average grade of 6.07 g/t Au;
- gold occurring in arkosic sediments and banded iron formations in a similar context to that of the Witwatersrand Basin of South Africa; the world's largest known gold reserves.
Stelmine acquired from Exploration J.F. 90% of the exploration right on 43 claims which were increased afterward in 176 claims covering an area of 92 km2on the following six conditions:
- Cash payment of $12 000;
- Issuing 400 000 shares and 400 000 non-transferable warrants at an exercising price of $0.90 per share, expiring in the next 24 months with the following conditions:
- 200 000 shares and 200 000 warrants having a 4 months retention period
- 100 000 shares and 100 000 warrants having a 12 months retention period
- 100 000 shares and 100 000 warrants having a 18 months retention period
- The following restrictions apply to the issuing of shares and warrants:
- The sale of shares cannot exceed 10% of the volume of shares traded daily on the different stock exchanges
- Stelmine can force the exercise of warrants if the price of shares on the (TSXV) Stock Exchange is equal or greater than 150 % of the warrant exercised price during 10 consecutive days
- Incurring $450 000 in unconditional and firm exploration expenses over a three-year period
- In case one party is diluted to 5 % or less:
- Repurchase of its participation in return of a 1.5% N.S.R., whereas 1 % is redeemable at 1 M$ and 0.5 % redeemable at 5 M$
- 180 days after the public issuance of a reserve estimate of 5 000 000 gold equivalent oz, the parties. will receive a discovery bonus of one dollar (1.00$) per gold equivalent oz
- Stelmine will act as the contractor of the exploration work and will solely determine its type and orientation and decide upon the budget.
The core material drilled by SOQUEM was kept in good condition, part of which will be submitted to re-analyses for gold and other base metals. This will help Stelmine to publicly file a 43-101 Technical Report.
«Stelmine intends to focus its exploration efforts and resources on a relatively unexplored but highly prospective region». Stated Isabelle Proulx, CEO and President of Stelmine.
The technical content of this release was approved by Michel Boily, PhD, geo, a Qualified Person as defined by National Instrument 43-101. This agreement is subject to the approval of the statutory authorities.