Nustar Resources (NTR-V) has identified some 30 new kimberlites targets on the Seal River project area in northern Manitoba.
The new electro-magnetic and magnetic anomalies lie along trend from the 500-metre-wide SR02 kimberlite target previously identified by partner BHP Billiton (BHP-N). Nustar plans to drill test the SR02 target plus at least 5 base metal targets in April.
In the meantime, the company is gearing up for a campaign of ground-based time domain electro-magnetic geophysical surveying in January. The program is aimed at more precisely defining targets for follow up drilling.
Nustar can earn a 51% stake in Seal River’s diamond rights from BHP by providing a 100-metre intersection of kimberlitic or lamproitic material from SR02 by May of 2005, or otherwise identifying the source of the anomaly.
Thereafter, the two have agreed to spend $2 million on exploration over the subsequent 2 years. The major can incrementally boost its stake back up to 75% by spending up to another $14 million, and covering Nustar’s share of mine development costs.
Under a separate deal, the junior can earn 51% of the project’s base and precious metals by spending $1.5 million over 4 years. Once vested, the two have committed to spend another $2 million by May 31, 2010. BHP can take back 16% by paying Nustar $2.25 million and solely funding another $10 million in exploration.
The project is home to at least 15 potential base metal targets. Nustar is looking for large Broken Hill type zinc-silver-lead deposits.
In other news, Nustar plans to merge on a 1-for-1 basis with Candor Ventures (CND-V) by yearend. Subject to shareholder and regulatory approval, the enlarged company will be renamed Canstar Resources.
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