This is great news for the Wolverine project.
Cheers,
Blake
Expatriate Resources Ltd -
President appointed; metal leach technology acquired
Expatriate Resources Ltd
EXR
Shares issued 8547500
1998-05-22 close $0.51
Tuesday May 26 1998
Mr. Alan Archer reports
Dr. Harlan Meade has been appointed president and CEO, responsible for
corporate development of the company and enhancing shareholder value. Former
president, James Stephen will remain as a director of the company. Dr. Meade
was previously with Westmin Resources (recently taken over by Boliden Ltd). As
vice-president of exploration for Westmin, he was intimately involved with the
Wolverine discovery in the Finlayson Lake district of southeast Yukon and was
responsible for Westmin's international exploration activities. e has been a director
of Expatriate since March 1996.
Expatriate has entered into two letters of intent with Boliden Westmin (formerly
Westmin Resources Ltd). Under the first, Expatriate will acquire Boliden
Westmin's interest in certain hydrometallurgical technology, in consideration for
1.7-million Expatriate shares. Pursuant to the second letter of intent, Expatriate
will acquire certain mineral properties and assets in the Finlayson Lake district,
including Boliden Westmin's 60 per cent interest in the Wolverine deposit, in
consideration for 5.0-million Expatriate shares. Both acquisitions are subject to
regulatory and other required approvals, including Expatriate shareholder
approval.
Metal Leach Technology Acquisition
The Finlayson Lake assets, including the Wolverine deposit, contain unusually high
levels of selenium in all the sulphide minerals. Selenium is a penalty in copper and
zinc concentrates at smelters and would make the concentrates from Wolverine
difficult to market. Expatriate would, as part of its exploration activity and efforts
to develop the Wolverine deposit, explore various methods to overcome the
difficulties caused by the high levels of selenium in the mineralization.
The hydrometallurgical technology to be acquired from Boliden Westmin includes
four recently granted US Patents and related expertise owned by two private
companies in which Boliden Westmin owns a 50 per cent interest (and has the
right to increase its interest to 90 per cent). While at Westmin, Dr. Meade
managed hydrometallurgical research conducted by Dr. Robert O'Brien at the
University of Victoria under the supervision of Dr. Ernie Peters of the University of
B.C. The remaining interest in the private companies is owned by Dr. O'Brien.
Two of the patents may provide a new way of leaching base metal concentrates
by producing sulphates from which cathode copper and zinc can be electroplated.
The other two patents produce elemental sulphur from hydrogen sulphide gas and
sulphuric acid from sulphur dioxide gas. The latter two processes are directly
linked to the leach technology in the recovery and regeneration of leach reagents.
They also may have important application in the chemical, pulp and paper, and
fertilizer industries.
The metal leach technology utilizes a mixture of concentrated nitric and sulphuric
acid to dissolve the sulphide minerals. Testing at bench scale indicates that
leaching can be done efficiently with high copper and zinc recoveries. The process
works under atmospheric pressure and temperatures in the 150 degrees Celsius
range. Precious metals would be recovered from the residues of leaching of the
Wolverine concentrate by cyanidization methods. Expatriate will evaluate
alternatives for financing pilot stage work and the methods for removal and
recovery of selenium from the leach solutions. This leach technology provides an
excellent opportunity for overcoming the selenium problem at the Wolverine
deposit and maximizing the value of its high grade mineralization.
Finlayson Lake Assets Acquisition
Boliden Westmin's interests in the Finlayson Lake district include approximately
1760 claims comprising the Wolverine joint venture between Boliden Westmin
and Atna Resources, 676 wholly owned Boliden Westmin claims and 38 claims
subject to the TY option and joint venture agreement (TY JV) between Boliden
Westmin and Pacific Bay Minerals, together called the Finlayson Lake assets.
With Expatriate's existing 5420 claims in the Finlayson lake district, Expatriate will
have the largest landholding in this important emerging volcanogenic massive
sulphide district.
Expatriate will issue Boliden Westmin 5,000,000 shares of Expatriate to acquire
the Finlayson assets. With the issuance of the shares Boliden Westmin shall have
the right to nominate two directors to the board of Expatriate. In addition,
Expatriate shall give Boliden Westmin a right of first opportunity to bid on any
interest in a significant base metal project that Expatriate may wish to sell or joint
venture.
Boliden Westmin has a 60 per cent interest in the Wolverine joint venture and a
50 per cent interest in TY JV (which is not part of Wolverine joint venture).
Boliden Westmin may increase its interest in TY JV to 60 per cent by making
additional expenditures of $150,000 during 1998. The assignment to Expatriate of
Boliden Westmin's interest in TY JV is subject to a right of first refusal by Pacific
Bay.
The Wolverine joint venture property hosts the Wolverine and Lynx zones which
have a resource estimated at 6,237,000 tonnes grading 12.66 per cent zinc, 1.33
per cent copper, 1.55 per cent lead, 370.9 g/t silver and 1.76 g/t gold. In
addition, narrow high grade intersections of massive sulphides were discovered
late in 1997 in a new area called the Sable zone, 1.6km southeast of the
Wolverine deposit. The Sable zone is near Expatriate's Puck claims that are under
option to the Wolverine joint venture. Numerous other base and precious metal
targets are indicated on the property.
Preliminary exploration on the TY JV claims has defined a thick pyritic felsic unit
with strongly anomalous base metal geochemistry. Initial drilling failed to intersect
mineralization other than pyrite, however additional drill targets have been
determined by subsequent fieldwork.
Updated Capital Structure and Future Plans
On completion of the two acquisitions, Boliden Westmin's interest in Expatriate
will increase from 1,450,000 shares to 8,150,000 shares, representing 53.5 per
cent of Expatriate's shares. In consideration for the issuing of the shares, Boliden
Westmin will enter into a standstill agreement with Expatriate whereby it will
refrain from acquiring any additional shares of Expatriate for a period of three
years, except that during the standstill period it will have the right to participate in
any Expatriate financings to the extent required to preserve a minimum 35 per cent
share interest in Expatriate on a non-diluted basis. Expatriate shall have a first right
of purchase of any shares that Boliden Westmin should wish to sell or otherwise
dispose of.
The association with Boliden Westmin provides Expatriate with a strong financial
partner as it goes forward in its effort to develop the Finlayson Lake assets and
the hydrometallurgical technology. In addition to these new acquisitions Expatriate
will continue to explore its current landholdings and has begun searching for
international opportunities, primarily in South America and Mexico. Joint venture
discussions with several groups in Chile and Mexico are progressing well.
(c) Copyright 1998 Canjex Publishing Ltd. ht |
