Transition Metals (XTM-V) creates subsidiary to pursue Aer Kidd - Interest project keep your eyes on.
Nov 6, 2013 - News Release
Transition Metals Corp. has provided an update on its Aer Kidd nickel property, previously held by Transition's wholly owned subsidiary HTX Minerals Corp. pursuant to an option agreement with Canickel Mining Company Ltd. The company has incorporated a new subsidiary called Sudbury Platinum Corp. to pursue the Aer Kidd project. Given the amount of mineral exploration expenditures required to exercise the Aer Kidd option and the company's project generator business model, the company considers it in the best interest of the company's shareholders to establish a new stand-alone corporate vehicle for the Aer Kidd project. Sudbury Platinum has also completed an initial non-brokered financing of $310,500 to finance initial exploration activities at the Aer Kidd project located in Sudbury, Ont.
Sudbury Platinum's primary focus will be to explore for nickel, copper and platinum group metals (Ni-Cu-PGM) in the Sudbury district with a focus on the Aer Kidd property. The option for the Aer Kidd project was assigned to Sudbury Platinum by HTX in October in exchange for stock and other considerations. The terms of the underlying option agreement entitles Sudbury Platinum to earn a 50-per-cent or 70-per-cent interest in the Aer Kidd property. Sudbury Platinum also purchased the Owen nickel property, located near Espanola, Ont., from HTX in exchange for shares. As a result of the two transactions, HTX has been issued a total of 15 million common shares in Sudbury Platinum and Transition has entered into a multiyear operating agreement with Sudbury Platinum to provide exploration services during the term of the underlying option.
"We view Sudbury as one of the world's premiere mining camps with remarkable opportunities for discovery of world-class Ni-Cu-PGM ore," says chief executive officer Scott McLean. "The Aer Kidd project is an outstanding brownfields opportunity exceptionally well positioned between Vale's Totten mine and KGHM's Victoria mine development."
The initial financing for Sudbury Platinum consisted of the sale of 3,105,000 units. Each unit was issued at 10 cents consisting of a common share and a common share purchase warrant exercisable at 20 cents for a 36-month period following the Nov. 6, 2013, closing date for proceeds of $310,500. After giving effect to the financing, HTX holds approximately 83 per cent of the common shares of Sudbury Platinum.
About the Aer Kidd property
The Aer-Kidd property is located approximately 20 kilometres southwest of Sudbury, Ont., and covers a 1.3-kilometre section of the Worthington offset dike in an area with a rich mining history, dating back to the 1800s. The property is approximately 2.6 kilometres along strike to the northeast of Vale's Totten mine (10.1 million tonnes at 1.5 per cent Ni, 1.97 per cent Cu and 4.8 g/t PGM) (1) that is currently in production and 4.3 kilometres to the southwest and along trend of KGHM's Victoria mine (14.5 million tonnes at 2.5 per cent Ni, 2.5 per cent Cu and 7.6 g/t PGM) (2) which is currently being developed. The Aer-Kidd property hosts the former producing Howland pit, Robinson and Rosen mines, which were small deposits exposed at surface and were mined down to a maximum depth of 300 m.
Sudbury Platinum has undertaken a detailed review of historical geophysical and geological data and believes that the property maintains excellent potential to host an economic Ni-Cu-PGM deposit. Drilling completed by Canickel (formerly Crowflight Minerals) in early 2000s confirmed the presence of mineralization on the property to at least a vertical depth of 1,000 metres. Additional drilling and subsequent borehole geophysics completed by Crowflight identified a number of untested conductive targets that extend to depths in excess of 1,000 metres on the property. Sudbury Platinum believes that the property has excellent potential to host a significant Ni-Cu-PGM deposit.
2013-2014 plans
Sudbury Platinum geologists are now engaged in a relogging program of selected core with plans to resurvey all accessible historic holes using the UTEM IV system of Lamontagne Geophysics. The borehole geophysics will further identify and discriminate prospective Ni-Cu-PGM sulphide targets near surface and to depths of more than 1,200 m. Results from the work will be integrated with the Sudbury Platinum geological model in advance of drilling.
Qualified person
The technical elements of this press release have been approved by Grant Mourre, PGeo (APGO), a qualified person under National Instrument 43-101.
(1) Resource reported by Inco; Jan. 31, 2001, news release
(2) Resource reported by KGHM; Jan. 16, 2012, news release
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