After a summer of magnetic surveying and collecting more than 200 glacial sediment samples, operator BHP Billiton Diamonds, the Canadian diamond division of BHP Billiton (BHP-N) has decided to drop its option on Majescor Resources (MAJ-V) Portage project in the Otish Mountains of north-central Quebec.
While the 14,553 km of airborne surveying turned up a number of untested geophysical anomalies, an aggressive drilling program earlier this year failed to return any kimberlite from 18 various pipe-like geophysical anomalies.
BHP, as operator, had spent $2.2 million exploring the property, and had the option of picking up a 56% stake in the project by funding it through to production. Under the exit clause in the option deal, the major will keep the property in good standing for a period of one year.
Majescor intends look for a new partner to help explore the property, which sits immediately down-ice from Ashton Mining of Canada‘s (ACA-T) Foxtrot property and its kimberlitic discoveries.
Based on BHP’s indicator mineral data, Majescor plans an extensive reverse-circulation drill campaign at Portage early next year. The drilling will aim to test several geophysical targets, and better define the glacial dispersion of indicator minerals on the property.
Majescor’s will focus its drills on areas of coincident indicator minerals and geophysical anomalies, not directly down ice from the Foxtrot kimberlites.
Shares of Majescor were off 3 or more than 9% at 30 in afternoon trade in Toronto on Dec. 5
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