Polymet Mining (POM-V) is pulling out of Labrador so that it can focus on the Dunka Road polymetallic project in northeastern Minnesota.
Polymet, formerly known as Fleck Resources, will sell its interest in the Voisey’s Bay West, Harp Lake and Pacific Golden Spike properties to joint-venture partner Anvil Resources (ANV-A).
In return, Anvil will pay $75,000 in three instalments over six months and transfer to Polymet a total of 250,000 of its shares.
The Dunka Road project, 57 miles north of Duluth, is seen as a potential open-pit operation. The minable resource is estimated to contain 808 million tonnes grading 0.432% copper, 0.109% nickel, 0.006% cobalt, 0.116 gram platinum and 0.437 palladium, as well as 0.061 gram gold and 1.5 grams silver per tonne. Surrounding this resource is an additional resource of about 1.4 billion tonnes at similar grades.
Recent technological advances in metallurgical extraction (specifically bio-oxidation and pressure leaching) have improved the metallurgical viability of the Dunka road deposit. Three separate bench-scale tests returned 98% recoveries of copper, nickel and cobalt from concentrate. Precious metals will be extracted using conventional processes, and hydrometallurgical testing is under way.
Polymet holds a 100% working interest in the project, which is subject to a 3-5% net smelter royalty.
The company is also reviewing offers for its properties in British Columbia, Ontario and Quebec.
Be the first to comment on "Polymet sells Labrador interests"