The Nemesis sells a Cadillac...
Noront Resources Ltd.: Burnt Hill Tungsten-Molybdenum Project, New Brunswick
TORONTO, ONTARIO -- April 5, 2007 - Noront Resources Ltd. NOT/TSXV is pleased to announce that it has agreed to the transfer of the Option Agreement entered into with a private Ontario company dated October 31st, 2006 covering the Company's 100% owned Burnt Hill tungsten and molybdenum project in New Brunswick, Canada, to Cadillac Ventures Inc. ("Cadillac").
Cadillac has agreed to assume the obligations under the Option Agreement entered into with the private Ontario Company for the right to earn into an initial 51% interest in the Burnt Hill project. These obligations include the payment of $100,000 in cash to Noront, the issuance of 2,500,000 shares in the capital of Cadillac to Noront and a work commitment of $1,500,000, all of these obligations must be met prior to October 27, 2009, (see press release dated November 13, 2006.)
The Burnt Hill property was most recently privately worked in the late 1970's and early 1980's, by a subsidiary of Canadian International Paper Company at which time a historic non-compliant resource was identified and a 400 tpd pilot plant operated on the property for 4 months as part of a pre-feasibility study.
Products from the pilot plant were sent to Lakefield Research for process testing which resulted in two concentrates being made, Tungsten and Molybdenum. The project was deemed to be viable at a price for tungsten at approximately $7.50US per pound.
However, due to falling price of tungsten to approximately $3.00US per pound, the project was considered uneconomic and was shelved.
Recently the prices of tungsten ($17.50US per pound as at March 30th, 2007, see www.metalprices.com) and molybdenum have risen, due in part to a strong worldwide demand for these metals, and relatively few active tungsten mines supplying that demand. This, in the opinion of Cadillac management, "makes Burnt Hill a very attractive project".
Noront commissioned an updated but non (NI 43-101) compliant technical report on the Burnt Hill project. This report also recommended the work required to enable the Company to make a 43-101 compliant statement of the project's potential. Please visit the Company's web site www.norontresources.com for details.
Cadillac has advised Noront that it has immediate plans for the Burnt Hill project. These include re-surveying the property, as historic mine preparation altered the surface elevation and removed historic drill hole collars. Cadillac will also perform site rehabilitation and re-establishment of control grids, and sampling of historic core held in storage. The Company intends to embark on a drilling campaign in the summer of 2007.
This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are Canadian dollars unless otherwise noted.
Noront is a tier 2 junior resource company on the TSX Venture Exchange, trading symbol NOT, with 90,057,692 shares issued to date.
R. Nemis, President and Chief Executive Officer |
