Vancouver – Zinc-focused Lundin Mining (LUN-T, LMC-X) is boosting its exposure to prospective base metal projects by investing almost $2.9 million into junior explorer Mantle Resources (MTS-V, MTSZF-O) that holds option rights to the high-grade Akie zinc-lead project in northeastern British Columbia.
The Lundin-group company will acquire just shy of 10% of Mantle by subscribing for 3,685,000 units at 78 apiece. Units are comprised of a common share and one warrant exercisable at 78 for two years.
Since commencing its drill program in late-2005, Mantle has turned in a number of significant intercepts including hole A-05-30 that cut 37 metres grading 10.98% zinc, 2.61% lead and 21.2 grams silver per tonne with a 17.9-metre section of 17.22% zinc, 4.2% lead and 30.1 grams silver.
Recent results significantly exceed historic values encountered by past project operator Inmet Mining (IMN-T, IEMMF-O). In 1995, the major calculated a non-NI43-101 compliant inferred resource (based on only four widely spaced holes) of 13 million tonnes grading 8.5% zinc, 1.5% lead and 13.2 grams silver, over an average true thickness of 6.3 metres. The resource sits within a large, plus-50 million tonne body of massive sphalerite-galena-pyrite-barite mineralization.
Akie is a sedex zinc-lead deposit situated in the southern Kechika Trough. Mineralization is hosted in Gunsteel Formation shales with a sheet-like body of laminated to massive pyrite and barite, containing local finely laminated bands of sphalerite and galena.
As operator, Mantle is earning up to 65% interest from Ecstall Mining (EAM-V, ESMGF-O), which currently holds 40% interest and has an option-to-purchase agreement from Inmet to acquire the remaining 60% for $475,000. Mantle will vest its interest for cash payments of $450,000 and expenditures of $4 million. There are no royalties on the project.
Shares of Mantle got a 24% boost on the news, closing up 20 at $1.04 apiece on strong volume.
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