Noranda Terminates Option
Southern Africa Minerals Corporation
SAF
Shares issued 19,282,574
1999-12-16 close $0.23
Thursday Dec 16 1999
Mr. Denis Francoeur reports
Noranda has notified the company that it will terminate its option to earn an
interest in the Caber base metal property, near Matagami, Que., on Jan. 15,
2000. Noranda has indicated it may be willing to continue its participation in the
project by renegotiating the terms of the agreement. Southern Africa Minerals
owns a 100-per-cent interest in the property.
Since March, 1998, Noranda has completed approximately $3.6-million in
exploration on the property including 45,000 metres of diamond drilling and has
made $1.2-million in private placements in the company. A feasibility study on the
Caber deposit by Noranda, in May, 1999, suggests an indicated resource of
484,000 tonnes grading 11.7 per cent zinc, 1.0 per cent copper and 15 grams per
tonne silver may be feasible at a price of zinc of 60 U.S. cents per pound
(Stockwatch May 26, 1999). A resource calculation completed by Roscoe Postle
Associates, during the same period, concluded that the Caber deposit contains
indicated and inferred resources totalling 800,000 tonnes at a grade of 10 per cent
zinc, 0.6 per cent copper and 11 g/t silver. The company believes that the Caber
deposit remains open at depth.
In the Caber North area, situated approximately two kilometres north of the
Caber deposit, four separate but closely associated massive sulphide lenses
contain an additional inferred resource of 2.1 million tonnes at a grade of 4.1 per
cent zinc, 1.5 per cent copper and 19 g/t silver. Drilling of the lenses has been
minimal and the company believes that additional drilling of the Caber north
massive sulphide lenses has the potential to outline a resource that will enhance the
economics of the project. The work completed on the property during the past 18
months, has outlined new target areas for exploration. An exploration program has
been prepared to follow up on these targets.
With the objective of advancing the project toward a production decision,
Southern Africa Minerals is currently reviewing alternative scenarios of pursuing
the exploration and development of the property, including a possible revision of
the Noranda/SAF Caber agreement. The Caber base metal property is a valuable
asset and the company is well positioned to take advantage in the forecasted
recovery in zinc prices. |
