Cobalt-Nickel-Silver project located in the Abitibi Greenstone Belt, Kirkland Lake-Matachewan, Ontario Region.
The property lies between the Kirkland Lake (estimated 24 million ounces of historical gold production) and Matachewan (estimated 1 million ounces of historical gold production) gold camps. The property is well-located in terms of its regional geological setting, in that it is transected by the prolific “Larder Lake-Cadillac Break” and the NWtrending “Cross Lake Fault”.
Previous exploration on the property has been hindered by in part by a cover of younger Proterozoic rocks and a complex regional fault setting. Earlier reported exploration on the property has been limited to some prospecting, trenching, shallow drilling and geophysics in addition to Ontario Geological Survey (OGS) or equivalent reconnaissance geological,/ geophysical surveys.
The Island 27 Prospect is located in Holmes, Flavelle, Burt and Gross Townships and consists of eight unpatented claims that cover an area of 1,712 hectares (NTS Map Sheet 42A01).
The property geology is made up of a tholeiitic mafic intrusion within mafic volcanic rocks that are surrounded by a younger cover conglomerate and sedimentary Gowganda Formation rocks of the Cobalt Group.
In 2008 Golden Valley Mines Ltd. drilled four previously untested chargeability and/or resistivity anomalies inferred to represent potential mineralized trends along the possible southwest extensions or splays of the “Larder Lake-Cadillac Deformation Break”. DDH GIS-08-04 intersected a mineralized zone from 110.0-114.0 metres that returned high values of cobalt associated with nickel, silver, and arsenic. The weighted average of the zone graded 4.18% Co, 12.1 g/t Ag, 0.38% Ni and 0.098 g/t Au, including 6.33% Co, 0.607% Ni, 22.0 g/t Ag over 1.7 m from 112.3-114.0 metres.
The mineralized interval is contained within a 15.8 metre wide fault zone. Cobalt-Nickel-Silver (Co-Ni-Ag) mineralization is concentrated along an intensely fractured (quartzcarbonate) and brecciated (micro dike injections) section of the fault structure. An abundance of very fine-grained sulphides (arsenides estimated up to 30%) with minor pyrite and traces of chalcopyrite are hosted within the light green host-rock. The apparent strike extension of the new Co-Ni-Ag zone is defined by a series of intermittent chargeability anomalies and associated resistivity axis, defined over a strike length of some 650 metres on the property.
Golden Valley Mines granted an option to Battery Mineral Resources Limited to acquire an 80% interest in the Island 27 Prospect (see press release dated June 12, 2017).
In consideration of the grant of the option, Battery Mineral Resources will pay to Golden Valley Mines an aggregate of $500,000, of which $100,000 has been paid, $150,000 will be paid on June 1, 2018 and $250,000 will be paid on June 1, 2019. In addition, Battery Mineral Resources is required to incur expenditures on the property in the amount of $5,000,000 over a period of four years ending on June 1, 2021, of which $500,000 is to be spent by June 1, 2018. Battery Mineral Resources is also required to keep the property in good standing by paying all taxes, assessments and other charges and by doing all other acts and things that may be necessary in that regard.
Upon the 80% earn-in, Golden Valley Mines and Battery Mineral Resources will form a Joint Venture to further explore, and if warranted, develop the property. Once the 80% interest is vested for Battery Mineral Resources, Golden Valley Mines will have a 20% free-carried interest in the property, which means that Golden Valley Mines shall not be responsible for any project costs, including without limitation, construction costs, exploration costs, mine costs and operating costs on the property, until the commencement of commercial production. In addition, Golden Valley Mines retains a 1% royalty on Net Smelter Returns from the property.