Here it is!
NORANDA ACQUIRES OPTION ON MALISEET PROPERTY IN NEW
BRUNSWICK
TORONTO, Dec. 3 /CNW/ - Noranda Inc. and Mountain Lake Resources Inc.
(MOA - VSE) announced today that they have signed an agreement to launch a
major exploration effort at the Maliseet Mountain property in New Brunswick,
where Mountain Lake recently discovered a massive sulfide system. The Maliseet
Mountain property, located in the Bathurst mining camp, is situated 25 km west
of Noranda's Heath Steele mine and 45 km southwest of their Brunswick No.12
mine. During recent exploration drilling, Mountain Lake intersected a 6.6m
zone grading 8.2%Zn, 0.22%Pb, 0.10%Cu, 15.9g/tAg and a second zone 2.5m wide
grading 9.56%Zn, 0.2%Pb, 0.09%Cu, 17.6g/tAg. Both intervals occur within a
15.9m zone of sulfide mineralization with an average grade of 5.9%Zn, 0.24%Pb,
0.09%Cu, 16.1g/tAg. Government and geological mapping shows that the Maliseet
Property is underlain by a stratigraphic horizon similar to that of the nearby
Heath Steele Mine and Half Mile Lake deposit owned by Noranda.
According to the agreement, Mountain Lake will complete a $2 million
exploration campaign on the Maliseet Mountain property. Noranda will
contribute to this effort by purchasing treasury shares of the company
amounting to $300,000, and by providing technical expertise to Mountain Lake.
Once this program (or first phase) is completed, Noranda will have an
exclusive right to earn a 60% interest in the property by spending an
additional $4 million and becoming the operator of the exploration campaign.
According to Dave Stevens, Vice-President of Exploration for Noranda,
''this agreement is another example of Noranda's commitment to establishing
successful partnerships with exploration companies around the world. In the
last few months, we have concluded a significant number of partnerships with
industry players and we intend to pursue other opportunities in order to
achieve our aggressive growth objectives.''
Allen Sheito, President of Mountain Lake, said, ''The alliance with
Noranda will provide an important contribution to this project, as it provides
Mountain Lake with access to Noranda's resources and its extensive experience
in the Bathurst camp. Furthermore, Noranda's production infrastructure in the
region will improve the project's economics, should a significant deposit be
delineated at the discovery site.''
Noranda also has under option from Mountain Lake the Canagau base metal
property in Ben Nevis Township, northeast Ontario, where a broad base metal
rich alteration system with an average grade of 0.55%Zn over 107m was
intersected during the 1997 program. Noranda will conduct additional drilling
on this target in 1998. |
