Tenement Acquisition Agreement finalised for the Lennard Shelf Zinc Project
Thursday , 20 Aug 2009
Planning well advanced for start of +20,000m drill program
mineweb.net
Highlights:
Since the MOU for the Lennard Shelf Project was signed on 21 April 2009 the following has occurred:
* Signing of the formal Tenement Acquisition Agreement
* Due Diligence confirmed that within the project area, the total amount of resources previously classified in accordance with the JORC Code are 8.2 Mt @ 7.4% Zn and 4.5% Pb (comprising 24,000t of measured resource, 3,039,000t of indicated resource and 5,137,000t of inferred resource)
* The price of zinc has increased 27% to US$0.802/lb from US$0.63/lb at the time the MOU for the project was signed
* Sourced a strategic partner who have committed to invest $10.5M via a placement at $0.08 per share
* Preparations well advanced for a +20,000m drill program
Australian resources company Meridian Minerals Limited (‘Meridian' or ‘Company') (ASX: MII) is advancing plans to commence an aggressive +20,000m drilling program at the Lennard Shelf zinc project in the Kimberly region of Western Australia, following the signing of a Tenement Acquisition Agreement with current owners, Lennard Shelf Pty Ltd (LSPL) an Xstrata Zinc/Teck Resources Limited ("Teck") joint venture company.
The signing of the Tenement Acquisition Agreement is another important step in advancing Meridian's purchase of the Lennard Shelf Project. Meridian's Managing Director Jeremy Read, believes the completion of the full Tenement Acquisition Agreement for the Lennard Shelf Zinc Project will prove to be a significant milestone in the development of the company.
"Our strategy has at all times been centred on acquiring an asset in a low risk fashion that had significant exploration upside and the potential of a near term return to the company and its shareholders," Mr Read said.
"The Lennard Shelf Zinc Project is, in our mind, such a project and we feel with the aggressive exploration and assessment program currently being planned, it has the potential to provide significant returns in the short term and importantly assist the company in driving its overall growth strategy."
"Subject to receiving the requisite regulatory and shareholder approvals, Meridian has secured suitable funding and is ready to hit the ground running on the Lennard Shelf Zinc Project," Mr Read added.
Meridian is currently planning an aggressive +20,000m drill program to be completed at the Kapok and Kapok West mineral resources (Figure One). The major objectives of the drill program will be as follows:
* Infill drilling of the Kapok West mineral resource to allow the majority of Kapok West to be classified in the indicated category and the commencement of a feasibility study;
* Investigate the immediate extensions of the Kapok Central, Kapok East and Kapok West resources in order to grow the overall Kapok mineral resource;
* Investigate any possible link between the Cadjebut Splay resource and the resources at Kapok;
* Drilling to extend the higher grade zone at the Palijippa resource; and
* Provide drill information which will be required to determine if Kapok/Kapok West can be profitably mined as a combined operation.
Meridian plans to commence the drill program with two drill rigs focussing on Kapok West and the link to the Cadjebut Splay resource. A third rig will be obtained in order to complete the more exploration focussed drilling at the Palijippa resource.
Meridian also recently announced (see ASX announcement 22 July 2009) that it has arranged a Placement of A$10.5M to Chinese company Northwest Mining and Geology Group Co Ltd, with the funds raised to be used to fast track the exploration and development program at Lennard Shelf.
Completion of the acquisition of the Lennard Shelf Project and the $10.5M placement are subject to ratification at a General Meeting of Meridian Shareholders planned to be held in late September or early October 2009. |
