Probe, Noront split JV property

VANCOUVER — Probe Mines (PRBV) PRBV) and Noront Resources (NOT-V) have agreed to end their joint venture on the McFauld’s Lake project in Ontario’s James Bay Lowlands, by splitting the property.

Noront and Probe both independently hold claim blocks in the area known as the “Ring of Fire” multi-metals district in northern Ontario. The two, however, entered into the joint-venture agreement in May 2009, partly because there were questions about property rights related to an earlier option agreement between the two parties. The 50-50 joint venture was “viewed as the most practical arrangement to address and resolve all of these historical concerns,” according to Probe’s press release at the time.

With the new split, Probe will get a 100% interest in the Black Creek chromite deposit and one other claim along the chromite trend. Noront will get a 100% interest in the claims northwest of the Eagle’s Nest nickel-copper deposit and a group of claims north of the Thunderbird vanadium discovery.

Probe Mines’ shareholders responded favourably to the news, boosting the stock price up 12¢ or 30.8% to close at 51¢. Noront’s investors were less bullish, with the stock ending down a penny to close at $1.34.

Noront chief executive Wes Hanson says that the deal allows the company to focus on finding more nickel and copper sulphide deposits near Eagle’s Nest, where Noront has concentrated exploration.

The company recently released assay results from the 2010 drill program at Eagle’s Nest and AT-12. At Eagle’s Nest, hole 83 cut 87.4 metres grading 1.93% nickel, 0.82% copper, 1.8 grams platinum per tonne and 3.17 grams palladium per tonne from 565 metres, and hole 87 hit 89.3 metres carrying 2.49% nickel, 0.99% copper, 0.85 gram platinum and 3.97 grams palladium from 535 metres downhole.

As of a March resource estimate, the Eagle’s Nest deposit contains 1.3 million indicated tonnes grading 5.31% nickel, 2.16% copper, 2.8 grams platinum and 7.6 grams palladium, using a 3% nickel cutoff. Inferred resources stand at 300,000 tonnes of 4.6% nickel, 1.17% copper, 0.6 gram platinum and 6.3 grams palladium using the same cutoff.

In mid-2008, Noront discovered AT-12 roughly 9 km northeast of Eagle’s Nest. AT-12’s latest drill results included 146.4 metres averaging 0.24% nickel, 0.04% copper, 0.08 gram platinum and 0.21 gram palladium from 104 metres.

Probe Mines has been busy conducting both airborne and ground geophysical surveys in the area. The low-lying area is covered by a thin cover of sedimentary rocks and little outcrop so the company’s strategy is to survey then drill. Meanwhile, the company plans to drill its Cree Lake and Borden Lake gold projects.

In May, the company announced that it started a resource estimate for its Black Creek chromite deposit. The Black Creek zone is currently drilled along a 200-metre strike, to a vertical depth of roughly 200 metres and remains open in all directions. At the time, the company expected the report would be completed by early August.