Western Metals Ltd has struck an agreement with BHP Billiton for the option to acquire a 100 per cent stake in the highly prospective Snowbird nickel and base metals project in Canada for $US1.5 million ($1.7 million).
Subiaco-based Western Metals Ltd has struck an agreement with BHP Billiton for the option to acquire a 100 per cent stake in the highly prospective Snowbird nickel and base metals project in Canada for $US1.5 million ($1.7 million).
The project consists of claims of 261.3 square kilometres within the Snowbird Tectonic Zone, in Canada's Northwest Territories.
Western Metals will have the right to purchase 100% interest in the Snowbird tenements by paying a non-refundable $US250,000 cash payment following a due diligence period (to end June 2008), drilling one hole to test anomaly KB-1, and paying a further cash payment of $US1,250,000 by 31 July 2009.
Western Metals managing director George Bauk said the acquisition builds on the Western Metals' North American presence and base metals portfolio, representing the Company's first significant nickel project.
Mr Bauk said the project was a rare opportunity for Western Metals to explore for a large high-grade nickel deposit in a poorly explored portion of the prospective Superior Craton margin.
A copy of the company announcement appears below:
WESTERN METALS ACQUIRES OPTION FOR 100% OF CANADIAN NICKEL / BASE METALS PROJECT
Western Metals Limited (ASX: WMT/WMTO) is pleased to announce it has entered into an agreement with BHP Billiton for the option to acquire a 100% stake in the highly prospective Snowbird nickel and base metals project in the Northwest Territories, Canada.
The project consists of claims comprising 261.3 km2 within the Snowbird Tectonic Zone, located 625 km NW of the city of Thompson (Figure 1). The Snowbird Tectonic Zone is on the margin of an ancient continent that hosts the Thompson, Raglan and Voisey's Bay nickel deposits.
Western Metals Managing Director George Bauk said the acquisition builds on the Western Metals' North American presence and base metals portfolio, representing the Company's first significant nickel project. "This acquisition continues our strategy to pursue high value commodities in the most prospective terrains," he said.
Encouraging results from various exploration programs in the Snowbird area conducted by Phelps Dodge from the late 1950s through to 2000 were reviewed by BHP Billiton in 2005 and led to a helicopter supported reconnaissance geological mapping, geochemical sampling and a VTEM airborne electromagnetic survey of the Snowbird area.
Interpretation of the VTEM data resulted in the identification of a number of EM bedrock anomalies and confirmed the presence of elevated Cu-Ni sulphides in boulders (pictured below). These anomalies represent drill-ready targets, and will be explored by the highly experienced Western Metals team of nickel experts.
Surface sampling has been reported from previous work that yielded assay values up to 2.92% Cu and 2.29% Ni 1 from surface grab samples. Trench sampling was reported to include assays of 22.2% Zn, 4.7% Pb, 2.85 g/t Au and 976 g/t Ag 2.
Western Metals will have the right to purchase 100% interest in the Snowbird tenements by paying a non-refundable $US250,000 cash payment following a due diligence period (to end June 2008), drilling one hole to test anomaly KB-1, and paying a further cash payment of $US1,250,000 by 31 July 2009.
Western Metals recently completed a $A32m capital raising, with total funds of $A31.5m currently available for exploration and future acquisitions.
Mr Bauk said the project was a rare opportunity for Western Metals to explore for a large high-grade nickel deposit in a poorly explored portion of the prospective Superior Craton margin.
