Vital Pacific to acquire Ontario properties
Vital Pacific Resources Ltd VPR
Shares issued 29,717,355 Aug 23 close $0.05
Thu 24 Aug 2000 News Release
Mr. Keith Neumeyer reports
Vital Pacific Resources has entered into an option agreement with 876101
Alberta Ltd. which allows Vital Pacific to earn up to a 75-per-cent
interest in four grassroots exploration properties located in the Dana and
Pardo township and the Thistle and McLaren townships of Ontario.
All four project areas, the Pardo north, Dana east, Satellite and B-Blob,
are located within the Sudbury mining division, Ontario, Canada. The Pardo
north and Dana east projects are located immediately northeast and east of
the platinum group metal (PGM), copper and nickel discovery being explored
by Pacific North West Capital Corp. of Vancouver. Satellite and B-Blob are
located about 25 kilometres east of the PFN discovery. The properties have
excellent year round accessibility and are located from 100 to 150
kilometres driving distance east of Sudbury.
These projects are located in a geologically complex region that includes
the juxtaposition of three major geological provinces of the Canadian
Shield: the Grenville province, southern province and superior province. A
major tectonic zone referred to as the Grenville front separates younger
rocks of the Grenville province from older rocks of the southern and
superior provinces. The geological history of this area includes major
rifting and intrusive episodes which are considered to be important factors
in the development of potentially economic sulphide associated magmatic
PGM-Cu-Ni deposits.
Under the terms of the option agreement, Vital Pacific has an exclusive
option to acquire a 51-per-cent interest in the properties by making option
payments to 876101 Alberta Ltd. totalling $185,000 at various dates and
incurring exploration expenditures on the properties totalling $1-million
of which: $150,000 must be spent on or before Oct. 31, 2001 (Phase 1); an
additional $350,000 must be spent on or before Oct. 31, 2002 (Phase 2); and
an additional $500,000 must be spent on or before Oct. 31, 2003 (Phase 3).
Vital Pacific is also required to issue up to 2.6 million common shares in
its capital to 876101 Alberta Ltd. as follows: 750,000 common shares issued
upon regulatory approval; 350,000 common shares upon completion of the
Phase I exploration program upon filing with and acceptance by the Canadian
Venture Exchange of a geological report summarizing the work completed on
the properties and recommending further work; 750,000 common shares upon
completion of the Phase 2 exploration program and the filing and acceptance
by the CDNX of a geological report summarizing the work completed on the
properties and recommending further work; and 750,000 common shares upon
completion of the Phase 3 exploration program and the filing and acceptance
by the CDNX of a geological report summarizing the work completed on the
properties and recommending further work.
Within 120 days of exercise of the initial option to earn a 51-per-cent
undivided interest in the properties Vital Pacific can elect to earn a
further undivided 24-per-cent interest by incurring additional minimum
exploration expenditures of $3-million, issuing a further 1.5 million
common shares and completing a prefeasibility study.
876101 Alberta Ltd. is an arm's-length party to Vital Pacific. A finder's
fee is payable in shares to Lion Mining Finance, London, England, subject
to regulatory approval, equal to the maximum allowable by the regulatory
authorities in connection with the letter agreement.
Pardo north, Dana east projects
The Pardo north property is contiguous with claims held by PFN and
comprises a contiguous group of 136 claim units (5,440 acres) in Pardo
township. The Dana east property is contiguous with claims held by PFN and
comprises 122 claim units (4,880 acres) in Dana township. Recent work by
the Ontario Geological Survey has modified the original limits of the
intrusion including the northern and eastern extent of the contact,
suggesting the potential for further River Valley intrusive rocks being
discovered on the Pardo north and Dana east properties.
Early 1970s mapping of the River Valley intrusion suggested that it was a
Proterozoic Massif anorthosite-gabbro located within the Grenville
province. However, recent work has shown that the intrusion is in fact
early Proterozoic in age (2,475 Ma) and is therefore considered an
excellent target for magmatic accumulations of Pt-Pd-Cu-Ni in sulphide and
potentially oxide association. Moreover, earlier mapping of the boundaries
of the intrusion have shown to be somewhat suspect, leaving areas outside
of this mapped intrusive boundaries that may potentially be underlain by
mineralized intrusive rocks of the River Valley intrusion.
Recent work by PFN along the highly prospective northern igneous contact
has identified potentially economic accumulations of Pt-Pd-Cu-Ni in a
magmatic breccia zone. The potentially mineralized contact zone has been
confirmed from Dana township, north into Pardo township and may extend even
further into Pardo township beyond the limits of PFN's current claim group.
The target region for mineralization appears to be positioned within about
200 metres of the footwall contact and as such has been termed a
contact-type PGE deposit; a new and as yet, maturing exploration model in
North America.
In addition to being a prospective area for gabbro intrusive hosted
Cu-Ni-Pt-Pd sulphide mineralization, the area underlain by the Pardo north
property is noted by the Ontario Geological Survey as being prospective for
gold. An extensive alteration zone (chloritization) occurs from the
southwest quadrant to the north east quadrant of Pardo township, where it
parallels the Grenville front fault. Numerous anomalous gold values have
been noted in the altered sedimentary and gabbroic rocks within this
corridor. The areas gold potential is currently being explored by Tenajon
Resources Corp. and Triex Resources Ltd.
Satellite, B-Blob projects
The Satellite and B-Blob properties, located approximately 25 kilometres
east of PFN's PGM-Cu-Ni discovery, cover what are potential outliers of the
River Valley intrusion; no exploration work is known to have been completed
in these areas. The Satellite property consists of two groups of claims
totalling 324 units (12,960 acres) in Thistle and McLaren townships. The
B-Blob property comprises 94 claim units (3,760 acres), located in Bastedo,
Gibbons and McWilliams townships.
It is important to note that previously unknown areas of River Valley
intrusion has since been discovered in areas west and east of the previous
extent of mapped intrusive and that the boundaries of the River Valley type
rocks are being substantially modified as more exploration work is being
conducted in the area.
The option agreement remains subject to completion of due diligence and
regulatory approval.
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