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Aripuana project to be developed JV partners, St Genevieve and Ambrex
St Genevieve Resources Ltd SGV
Shares issued 62,286,676 May 8 close $0.99
Fri 9 May 97 News Release
See Noranda Inc (NOR) News Release
Mr Pierre Laflamme reports
Noranda's joint venture partner, Ambrex Mining, has negotiated and signed a
letter of intent with Noranda, in which Noranda can earn up to a 70%
interest in the Aripuana base metal project in Brazil by incurring a total
of $28.9 million in cash payments, exploration expenditures and on a
bankable feasibility. In addition to its 22% equity interest in Ambrex, St
Genevieve holds a 21% direct interest in the Aripuana base metal project.
Ambrex discovered the Aripuana volcanogenic massive sulphide deposit in
September of 1996. Independent consultant Watts, Griffis and McQuat (WGM)
has since calculated a 10-million-tonne potential for the Valley deposit.
To date, the Valley deposit has been drilled to a depth of only 300 metres
and along a strike for 225 metres. It remains open at depth and along
strike in both directions. The geophysical data indicate the deposit
extends to at least 600 metres below surface.
Within the Valley deposit, Ambrex and WGM have formally calculated an
indicated resource of 2.0 million tonnes with a nsr value of US$74 per
tonne. The nsr was calculated by taking into account such costs as
transportation, smelting and recovery charges and applying that against the
gross metal value, which is US$170 per tonne. The average grade of the 2.0
million tonnes is 10.7% zinc, 2.0% lead and 87.5 grams per tonne silver.
The terms of the Ambrex-Noranda development deal include:
To earn an initial 55%, Noranda has agreed to the following:
C$2 million in exploration spending during the remainder of this year.
C$650,000 payment in 1997 and CDN $150,000 in early 1998 to cover property
payments to garimpeiro hand-miners.
Cash payment of US$800,000 (C$1.1 million), at the time of a production
decision, to previous owners.
Total exploration expenditures to December, 1999 of C$12 million.
A final C$3 million cash payment which will be paid pro-rata to its joint
venture partners at the time of production decision.
After these expenditures, Noranda will have earned a 55% interest, leaving
Ambrex with 22.05%, Ourominas with 13,5% and St. Genevieve with 9.45%.
To earn a further 15%, Noranda has also agreed to fund a C$12 million
bankable feasibility study.
After these expenditures, Noranda will have earned 70%, leaving Ambrex with
14.7%, Ourominas with 9% and St. Genevieve with 6.3%. The transaction is
subject to regulatory approval.
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