The play begins...
Windarra Minerals Limited WRA
Shares issued 23,521,909 2001-03-29 close $0.05
Friday Mar 30 2001 News Release
Mr. William Anderson reports
Windarra Minerals has acquired the right from Tulks Resources Ltd. to earn a 100-per-cent interest in Noranda's Tulks South massive sulphide property in west-central Newfoundland, subject to certain back-in rights and/or a royalty payable to Noranda. Noranda has approved the assignment of Talks Resources' option to Windarra.
The Tulks South property is located 40 kilometres south of the formerly producing mines at Buchans, Nfld. The property comprises 16,509.95 hectares or 165 square km of highly prospective mineral lands covering the southern half of the Tulks volcanic belt. This volcanic belt is similar to other volcanic belts in Eastern Canada which host significant volcanogenic massive sulphide accumulations, including the former producing Buchans mines (one of the richest base metal mines in Canada having produced 16.2 million tonnes at 14.51 per cent Zn, 1.33 per cent Cu, 7.56 per cent Pb, 126 grams/tonne Ag and 1.37 g/t Au), the producing Brunswick deposits near Bathurst, N.B., (one of the largest in the world with an original in situ mineral resource of 145 million tonnes of 4.0 per cent Pb, 10.3 per cent Zn, 0.4 per cent Cu, and 115 g/t Ag), and the Duck Pond-Boundary deposits (with a resource of 6,218,000 tonnes at 6.2 per cent Zn, 3.4 per cent Cu, 1.0 per cent Pb, 63 g/t Ag and 0.8 g/t Au) located 40 km to the northeast.
On the Tulks South property there are two, and possibly three, distinct sulphide-bearing horizons within a package of Lower Ordovician (498 Ma) felsic volcanics, mafic volcanics and sedimentary rocks. Each horizon potentially extends the length of the property, approximately 35 km long, giving the potential of approximately 100 km of favourable stratigraphy to explore for base metal deposits. Five significant base metal prospects have been outlined on the property. None have been fully delineated and four are in the early-discovery stages in terms of work completed. One of these, the Tulks East prospect, is the largest sulphide accumulation known in the Tulks volcanic belt and the most advanced in terms of exploration. It hosts three massive sulphide lenses totalling over six million tonnes of material containing base metals.
The specifics of the acquisition are as follows: Windarra has entered into an agreement (the assignment agreement) with Tulks Resources, a private corporation (the assignor) whereby Windarra has acquired all of the assignor's rights and assumes all of the assignor's obligations in respect of an option agreement between the assignor and Noranda Inc. (the Noranda agreement).
The underlying Noranda agreement and the assignment agreement permit Windarra to acquire a 100-per-cent interest in the Tulks South massive sulphide property by incurring $1,425,000 in exploration expenditures before July 15, 2005. Noranda retains the right to back in for a 50-per-cent interest in the property or portions thereof under specified circumstances. Noranda will be paid a 2-per-cent net smelter return royalty on production achieved from the property under circumstances wherein Noranda has not exercised its back-in right. An underlying net profits interest royalty applies to a portion of the property. One-half of any amount paid by Windarra pursuant to the NPI royalty is deductible from the NSR payable to Noranda.
Under the terms of the assignment agreement, Windarra must pay the assignor $35,000 upon regulatory acceptance and issue shares to the assignor, so long as the Noranda agreement remains in good standing: 200,000 shares upon regulatory acceptance; 300,000 shares in minimum tranches of 75,000 shares on each of the first, second, third and fourth anniversary dates; and 50,000 shares upon receipt of a positive feasibility study. The assignor is entitled to receive from Windarra the equivalent of an amount equal in value to a 0.5-per-cent net smelter return royalty on Windarra's share of production from the property (the assignor's royalty) payable from Windarra's share of the proceeds from production from the property, if any.
Windarra has commenced a comprehensive data review using Noranda's historic files and is planning a summer field exploration program consisting of geological followup and mapping followed by diamond drilling to define and increase the mineral resources on the known massive sulphide bodies.
William Anderson of Vancouver, B.C., was elected a director at the company's annual general meeting held on March 26, 2001. Mr. Anderson was appointed president at the directors' meeting held immediately after the annual general meeting. The company also accepted the resignation of Susan Tessman as vice-president, investor relations. |
