This is the best mining news yet out of Alberta -it may even help MMU get some market interest in Chinchaga....
New Blue Ribbon receives Pelican Mountain estimate
New Blue Ribbon Resources Ltd NBL
Shares issued 7,994,812 Apr 11 close $0.46
Tue 11 Apr 2000 News Release
Mr. Larry Kryska reports
New Blue Ribbon has received a resource estimate on its Pelican Mountains
heavy mineral deposit (PMHMD) located in Alberta, Canada. The report deals
specifically with the known occurrence of mineral sands within a small
portion of the company's Pelican Mountains project and does not include
information on the heavy mineral potential discovered on the remainder of
the property covering approximately 450,000 acres. The deposit is situated
within an upland area approximately 100 kilometres north of Athabasca,
Alta. lt is less than two kilometres from Alberta Highway 813 and about 65
kilometres northeast from the CNR rail-line at Smith.
An initial resource of heavy mineral sands has been based upon the seven
holes completed at PMHMD deposit as well as mineralogical tests conducted
by Maureen Johnston, PGeol, and the University of Alberta, an inferred
geologic resource of heavy mineral bearing sands was estimated by the
polygonal method (Dahrouge Geological Consulting Ltd.).
The total inferred resource has been estimated at 14,472,000 tonnes giving
a total heavy mineral content between 900,000 and 1.25 million tonnes with
21 to 24 per cent rutile, 33 to 36 per cent ilmenite, and 15 to 18 per cent
magnetite.
Rutile Ilmenite Magnetite
Total Heavy % % %
Minerals % TI02 FeTiO3 F9304
Zone A -- tonnage, 4,120,000
11.3 - 16.1 21 - 24 35 - 38 15 - 17
Zone B -- tonnage, 3,720,000
6.9 - 10.4 17 - 19 38 - 45 12 - 17
Zone C -- tonnage, 6,631,000
3.0 - 3.9 24 - 27 27 - 28 17 - 20
Total(s) -- tonnage, 14,472,000
6.2 - 8.8 21 - 24 33 - 36 15 - 18
An additional 2.75 million tonnes of lower grade material (1.8 to 4.0 per
cent total heavy minerals) is inferred to underlay the southwest portion of
the deposit. Unconsolidated and semi-consolidated overburden varies from
nil along the southern, eastern and northern flanks of the deposit to a
maximum of 36 metres thickness within the north-central part of the
deposit.
The valuable heavy mineral constituents include titanium bearing minerals
(rutile, anatase, ilmenite), magnetite and trace amounts of zircon.
Reported average prices for the pertinent heavy minerals constituents are
as follows:
U.S.$ per
tonne
Rutile TiO2
-- pigment grade up to $2,244
Anatase TiO2
-- pigment grade up to $2,070
Rutile Ti02
-- bulk concentrate $485 - $600
Ilimenite TiO2
-- bulk concentrate $ 77 - $ 91
Magnetite Fe3O4 $45
Based upon the forgoing tonnage and grade determinations, the PMHMD (not
including lower-grade material to the southwest) may host up to 310,000
tonnes of rutile; 460,000 tonnes of ilmenite; and 230,000 tonnes of
magnetite. Using the foregoing bulk concentrate prices for rutile, ilmenite
and magnetite could render an in situ metal value for the deposit of
$310-million.
The company must caution that a preliminary feasibility study has not been
undertaken at this time. Preliminary bench testing will now be conducted to
determine methods of concentrate separation, recovery rates, production
costs and the proportion of high value rutile pigments. The deposit remains
open to the east, north and northwest, and there is potential to define
tonnage with further drilling.
The company further announces that it has reserved, subject to regulatory
approval, 500,000 incentive stock options to its directors and/or insiders
and employees for a two-year term at an exercise price of 38 cents per
share. |
