Canoe Mining Ventures Corp. (TSXV:CLV) announced the signing of binding letters of intent with Glencore Canada Corporatio, Rainy Mountain Royalty Corp., and Mega Uranium Ltd. for the purchase of a 100% interest in the Hamlin-Deaty Creek Property situated in the Shebandowan Belt 110km west of Thunder Bay, Ontario.
According to the company’s press release:
Current ownership of the Property is held in a joint venture between Glencore, Mega Uranium, and Rainy Mountain where Glencore is the operator and owner of a 51% interest, with Rainy Mountain and Mega Uranium each holding a 24.5% interest. The Property was initially acquired by East West Resource Corporation (now Rainy Mountain) in 2003 and a partnership was formed with Mega Uranium to explore and develop the Property. A total of 58 diamond drill holes were completed by 2006 which traced a 900m long and 100m wide breccia zone containing copper, gold, silver and molybdenum mineralization. In 2011, Xstrata Copper (now Glencore) earned a 51% interest by spending $3.0 million in addition to the $1.5 million spent by previous operators. During 2009 to 2011, Xstrata Copper completed 23 drill holes, for a total of 7763m, which extended the deposit down to 200m below surface.
Duane Parnham, director of Canoe Mining commented:
The Hamlin property compliments our current holdings and furthers our strategic objective to consolidate the Shebandowan copper gold belt into a single major mining camp. There are currently unprecedentedly low acquisition costs for metal deposits in Canada and this, together with a trend for major mining companies to divest their exploration and development projects, has enabled Canoe Mining to capitalize on current market factors and acquire a highly prospective project from Glencore. We envision that Canoe will benefit from being well positioned with an excellent copper gold mining project in the future when markets will potentially recognize a significant increase in this property’s valuation and reward Canoe for its efforts to enhance this asset.
Click here to view the full press release.
The post Canoe Mining to Buy Hamlin IOCG Deposit appeared first on Investing News Network.